COST MANAGEMENT

Cost management is fundamental to the success, and therefore profitability, of a project. Beginning with the initial estimation, through control and monitoring, along with any necessary optimisation during project implementation, to the final settlement – at each stage the flows and the state of the budget should be carefully monitored. Not only does this task require broad practical and theoretical knowledge, but also familiarity with the current market conditions. Therefore, it is worth ensuring external management of the project costs.

Cost Management is not only about valuation of the project implementation. REACON offers you a comprehensive service which includes the development, regular verification and control, as well as optimisation and a clear and comprehensible summary of the total costs for the investor. REACON’s task is to increase the profitability of the project and establish an optimal budget which meets all the expectations and objectives of the client. The specialists of REACON’s finance department deal with the finances during the entire investment process – from the purchase of a property through to the design, implementation and final settlement of the project.

The prediction and estimation of risks as well as the ongoing control of costs are basic activities in the case of the implementation of any project. The approach of the REACON specialists, to the management of financial issues, follows from a true commitment to achieve the maximum return for clients. The basis for REACON’s efficiency is, above all, its experienced team which always looks after the interests and reputation of the client.

Our qualified experts estimate the risks on a current basis and minimise the impact of any possible future problems. The cost forecasts and estimates are presented and updated on an ongoing basis for each type of project, in many different sectors. This translates into a shortening of the time of completion of the entire project as well as the absence of any issues at the respective stages of workmanship, and frequently on measurable savings for the client.

PREPARATION OF THE BUDGET FOR A PROJECT | ANALYSIS

Owing to close cooperation with representatives of financial institutions – our clients can be certain that the risk of downtime caused by problems with payments is reduced to a minimum.

REACON supports professional preparation of the investment budget – the analysis created by REACON’s specialists allows for the minimisation of the risk of any unplanned expenditures. Owing to cost optimisation, clients are able to stay within their budgets and often save money which they can then allocate to other projects.

RISK ANALYSIS

Each construction undertaking requires the precise estimation of costs even at the project planning stage. REACON offers, among other things, preparation of a budget for its clients’ projects. Risk analysis provides practical information which allows for the effective planning of the flow of funds. Identification of potential adverse events which could affect the Cash Flow of the organisation is extremely important.

Thanks to the support of our professionals, our clients are able to take better purchasing decisions and assess offers from contractors and suppliers more quickly. Proper preparation for the implementation of a given project also affects its final quality, the work completion date and the satisfaction of future tenants and users. The investment budget prepared by experienced REACON specialists has a significant influence on the viability of the undertaking. We encourage you to contact us in order to initiate cooperation.

COST OPTIMISATION

Cost optimisation is a constant element of every project implementation. REACON provides Value Engineering services at each stage of the investment process, relying on proven procedures, professional cost models and precise and up-to-date market data.

REACON specialists have extensive experience in preparing detailed cost estimates and comprehensive investment budgets. They choose financially optimal solutions, predicting precisely how the general design intentions and goals of the client may affect the final balance of the investment. They control the Cash Flow based on the prepared project implementation schedule. They conduct a continuous risk analysis for the respective activities and, based on the data collected, recommend solutions followed by a cost optimisation agreed with the client.

The result of the activities related to the Value engineering process is presented in monthly cost reports which take into account the progress of work, use of resources and compliance with defined objectives as well as continuous monitoring and risk estimation. This enables continued budget control, minimisation of risks and an immediate response in the event of any complications.

KEY PROCESSES | cost management

• preparation of a preliminary, estimated budget of the project,
• development of a detailed budget on the basis of design documentation and facility finishing standards,
• preparation of cost schedule (cash-flow) based on the project implementation schedule,
• cost control at the stage of tendering and implementation – replacement and additional work, balancing of abandoned work, etc.
• verification and acceptance of monthly contractor’s deliverables,
• recommendation of partial payments,
• cooperation with representatives of financial institutions,
• analysis and summary of risks that may have an impact on the cost of implementation,
• preparation of monthly cost reports taking into account the progress of work,
• estimation of the final costs of the project,
• agreement and final settlement of the project.