Cost Control Process
Stage 1
Following consultation with the developer and the end user, feasibility drawings were produced for each site. Once the feasibility drawings were signed off, a Stage 1 Budget Estimate was produced.
The Stage 1 Budget Estimate costs were incorporated into a Business Plan for the site and these figures, together with the business plan were analysed to establish the viability of each site redevelopment.
If the particular site proved to be viable, each site was given approval to proceed to planning stage. Prior to the planning submission, adjustments were made to the scope of works and budgets for each site to satisfy the end user.
Stage 2
Planning drawings were produced, and planning applications made. On receipt of planning approval, a Stage 2 Budget Estimate was prepared for each of the sites, to ensure that any changes to the scope of works agreed between the Stage 1 Budget Estimate and planning approval were captured and recosted.
If the Stage 2 costs were within the Stage 1 costs the scheme proceeded to working drawings. If the Stage 2 costs exceeded the Stage 1 costs, the figures were analysed further, to establish if the project was still viable.
Stage 3 – Tender Stage
Following a contractor approval process, a Schedule of Rates for each project type was prepared together with 5 Cost models (KDRB, extension, carwash, brick clad building and brick clad pitched roof building). 15 Contractors were selected to price the tender documents. Each contractor was instructed to price both the Schedule of Rates and each of the Cost Models using the rates contained within their Schedule of Rates. Each of the priced Cost Models was analysed to establish which of the tendering contractors provided best value across all project types. A selected list of 8 contractors was chosen to proceed with the project.
On receipt of working drawings, Bills of Quantities were prepared for each specific project. The Bills were priced at the rates contained within the selected contractors’ Schedule of Rates. Where necessary ‘star’ rates were used to price any “rouge” items not included in the schedule of rates. The BOQ and pricing was agreed between GEA and the Contractor and these would form the basis of the contact sum.
Where it was evident that contamination was likely to be encountered on a site, a provisional sum was included within the Bills to cover the additional cost of removing any hazardous material from the site.
Site specific contract documents were then prepared by GEA for each site.
Where applicable, warranty documents were prepared and issued to the relevant parties for execution.
Stage 4 – Construction Phase.
Interim Valuations were carried our on a monthly basis. Each month, site specific Cost Reports were issued to the client. Cost reports included all known variations and provisional sum expenditure and reported the anticipated final project cost against the budget.
As well as individual project cost reports, a Master Cost Schedule was produced. This schedule
tracked each and every projects cost history from the Stage 1 Budget Estimate through to the
Anticipated Final Account sum. It indicated the current underspend / overspend for each site and
also for the entire project. This schedule was presented to the Client on a monthly basis.
Stage 5 – Invoice and Funding Management
Throughout the project, all invoices were processed by GEA to include those received outside the building contract. Invoices were checked by GEA both arithmetically and to establish their validity. Where necessary, invoices were queried, and corrected invoices raised. All legitimate invoices were scheduled monthly and forwarded to the client for payment.
Invoices were separately scheduled in a format requested by the funder. The schedule was issued to the funder on a monthly basis to drawdown the funds required to meet the Client’s financial obligations for that month.
Stage 6 – Post Construction Phase
Final Accounts were agreed for each site within 3 months of Practical Completion and any further payments made to the contractors.
Final Payment Certificates were issued once the Certificate of Making Good Defects had been issued for each of the projects.
Stage 6 – Summary
Project Golden Gate was delivered to the Client after a 3 year construction phase on time, to an excellent standard of workmanship and within the £44,540,907.00 Budget.
Description
CLIENT: Azure, Project Golden Gate
The project consisted of the purchase and redevelopment of 104 petrol filling stations. The sites were formally Texaco petrol filling stations. The portfolio had been leased to Somerfield Stores Limited as the end user. The scope of works carried out on each site ranged from minor extensions and associated forecourt works to full KDRB’s including remediation works where required.
- Overall budget including acquisition costs and Fees: £152,526,855.00
- Project Final Cost on completion of project: £152,327,064.00
- Construction Budget: £44,540,907.00
- Project Period: 3 years.
GEA managed the complete cost control process converting over 100 existing petrol filling station sites into retail units with fuel facilities.
