Cost Management

Our approach is to add value to our Clients throughout the project lifecycle aimed at improving the project cost efficiency and certainty

Benchmarking

The benchmarking exercise is generally carried out at much earlier stage of the project cycle, which allows client to understand the target for proposed project and where and how monies have been allocated. It provides an essential framework within which design and cost allocations can be considered and balanced between varying elements and priorities in the purview of what has been achieved on other similar projects. We at NEYO are able to draw on a wealth of statistical data collected from previous comparable projects and current market cost information. This data allows us to carry out benchmarking exercises against functional and elemental cost breakdowns and enables to make analysis of differences if any in allocations and so to allow reallocation of costs if necessary to take place to achieve best value for money.


Procurement and Contract Advice

Choosing a right procurement strategy and contracting model plays a vital role in achieving the objectives of the project. Therefore, it becomes essential to understand the Project objectives precisely and devise a strategy for procurement in terms of contract type, management approach and contract packaging including choosing the form of contract. We believe there is no "One Size Fits All" procurement strategy for any client embarking on capital, or revenue spend programmes. NEYO’s senior management has adequate experience and right expertise in suggesting suitable procurement strategy and advice the client on merits and demerits of available options to enable client choose the most appropriate solution. NEYO has in depth knowledge on various international forms of contracts including FIDIC and capable of preparing bespoke contract conditions suiting the selected approach.


Cost Planning

Cost planning is vital to keep the cost of the project within a client budget and for this, efficient control of design development process is a prerequisite. A complete cost planning process is designed to achieve a balanced expenditure and control the design development to meet the client’s budget. It is been established that elemental cost planning is the most appropriate method of cost planning during the design evolution process wherein it enables to set the total target costs and drills down to elements and sub elements so that a scientific approach is adopted in adjusting the cost eventually aligning the design to meet the client budget. NEYO team over a period have studied standard established cost planning models and have customised it to suit to local conditions and the report includes analyses covering various economic ratios that helps specifically to identify the variants for balancing the costs


Tender Management

A transparent process planned to manage the tenders for procurement of various packages. This is synchronised with the construction schedule and worked back to establish milestones for various activities involved in the tender management. The process includes shortlisting of contractors for tender using a robust pre-qualification process and issue report for client’s decision-making. The process involves manage / assist the client / PM in the tender management process through pre bid, tender clarifications, and addenda and evaluate tender submission from commercial perspective capturing omissions, deviations, qualifications and inconsistencies in prices and prepare a report to enable to conduct effective tender interviews until the selection of successful tender is complete. NEYO‘s expertise to develop robust processes in alignment with client’s policies shall certainly add value to client with greater transparency.


Post Contract Cost Control

While adequate care would have been taken in establishing the right contract packaging, it is equally essential to ensure a sustained proactive and precise monitoring process is established and continued effectively until contract closure in order to achieve the originally set cost objectives. A robust reporting mechanism capturing the key cost, contract information, risks with mitigation measures including cash flow forecast and progress payments information that eventually provides a comprehensive understating of the cost and contract aspects of the project on a monthly basis. The scope during this stage involves valuation of works for progress payment based on completed works and contract terms and issue progress payment recommendation using quantities measured from GFC drawings and establishing a process for managing the variations effectively including assessing the variations from an entitlement perspective and value the variations in accordance with the contract terms. NEYO’s team with well-established toolkit and with experienced management overview can certainly meet the objectives until crossing the last hurdles in the project.