Construction Cost Analysis
Building construction is a very time-consuming procedure. The process from project conception to completion can take years, or even decades, in some situations. The initial project budget may change as labor and material prices rise throughout the lengthy endeavor. Conflicts between owners and contractors are frequently the result of this discrepancy between estimated cost and overall cost. Through building cost analysis, Spire seeks to help identify a solution fair to owners and contractors. You can use our services at any point during the construction process. Material and labor escalation clauses can be used as contractual tools to account for pricing adjustments brought on by changes in material prices before construction starts, and forensic material escalation analysis can be carried out after construction to quantify material cost adjustments in the past.
When used proactively, material escalation analysis is an objective instrument for conflict avoidance and claims minimization, and when used forensically, it is an objective tool for dispute settlement. Even though material escalation analysis is useful for tracking the cost of project components over time, our construction cost analysis services are most effective when combined with our other services, such as:
- Contract administration
- Construction Cost estimating
- Mediation and arbitration support
- Litigation support
Material escalation analysis can also be combined with revised cost forecasting for an ongoing project to avoid further disputes.
Our team employs a range of tools to produce a cost analysis tailored to your project and requirements. Spire creates historical pricing profiles for the building materials using a variety of pricing indices and historical data. With the use of these profiles, we can calculate the project’s cost precisely, accounting for inflation and current development. Additionally, we can keep track of the cost as the project develops, keeping you updated on any recent price changes.
Spire’s experts are prepared to perform material escalation analysis to support your efforts, whether you are a contractor or subcontractor trying to prove material escalation or an owner trying to defend against overinflation of material costs. We are aware that things alter on a construction site and that the project undergoes numerous revisions, alterations, and updates before being finished. Our cost analysis resources can follow these cost changes as they take place with our other services.
Material escalation analysis can play a pivotal role proactively in the drafting of contract documents as well as forensically in the expert reports and witness testimony provided for litigation support.
If you are interested in learning more about our cost analysis services, contact our team today to schedule a consultation.