Managing the costs of a project requires careful planning to avoid shortfalls that can adversely affect payment schedules and damage stakeholder reputations. Cost forecasting is a useful exercise in determining required expenditures at the various payment stages of a project. Efficient management of project income is crucial in making timely payments to the various stakeholders involved in the project.
An important aspect of cost forecasting is to understand the payment system for the project based on the contractual provisions, and accordingly retrieve information from the project schedule that will help map out the funds required during the course of the project. Spire’s experienced construction cost consultants can assist clients in developing cost forecasts that are integrated with the project schedule.
Construction Cost Forecasting
A clear understanding of project contractual provisions and a well-defined project schedule are critical to the development of an accurate cost forecast. As a part of monitoring project risks, Spire adopts a systematic approach to cost forecasting that involves the following steps:
- Contract analysis
- Analyzing project scope of work
- Analyzing project payment system
- Developing project Work Breakdown Structure
- Developing project Cost Breakdown Structure
- Integrating project schedule with cost and resource data
- Identifying KPIs that will enable accurate cost forecasts
- Performing a cost forecast that considers optimistic, pessimistic, and most likely scenarios
- Formulation of risk mitigation plan
- Periodic reviews of project risk register
For construction cost forecasting support, call our team or reach out online by clicking here.