The comprehensive identification, quantification and prediction of project and operational risk can afford a project the difference between a bankable project and an un-fundable one. Cost and Risk Management Professionals, through years of project and operational experience identify and quantify risk utilising either a Risk Register or, where a more complex set of risks is present, a Probabilistic Risk Assessment, in the form of a Monte Carlo Simulation.
Basic cost management services include:
INDEPENDENT PEER REVIEWS
The strict application of the agreed terms and conditions of any contract affords all parties an immediate and mutual understanding of the project progress, anticipated delays, anticipated costs and the scale and nature of disputes.
Cost and Risk Management Professionals provide the following services:
Advice and selection of suitable contracting strategies.
CAPITAL COST ESTIMATING
Accurate and appropriate cost estimation is fundamental to the development of realistic business cases and successful delivery of the associated projects. Aligning the accuracy of the estimate to the level of design completion will afford the project a relevant
and reliable cost base upon which optioneering, optimisation and value engineering exercises can be levered.
OPERATING COST ESTIMATING
Often regarded as the less critical of the estimates, an operating cost estimate that is pragmatically founded in reality and inclusive of appropriate efficiencies can afford the delivery team an opportunity to undertake design optimisation prior to the commencement of construction. The comprehensive first principles build-up to an operating model can report against primary and consequential cost drivers of fixed inputs (corporate allocations, amortisation, etc.), variable inputs (labour, consumables, etc.) and sensitivity inputs (risk, foreign exchange, etc.).
REHABILITATION/MINE CLOSURE COST ESTIMATING
The accurate quantification and estimation of costs and timelines of rehabilitation activities associated with Life Cycle Management are paramount to the minimisation of the liabilities reported in every balance sheet. Remaining economically competitive while meeting social and environmental obligations is equally important to the responsible financial provision for closure and rehabilitation, including mandatory capital guarantees for rehabilitation trust investments. The comprehensive first principle development of a rehabilitation estimate, based upon the Environmental Management Plan, afford the owner the peace of minds that an apt provision is being made, without risk to the shareholders.
The successful delivery of large, complex and interrelated projects is assisted by the deployment of appropriate, organised and controlled contract management structures that best balance the risks of the project against its actualisation. CRMP offer independent advice to help avoid, manage and resolve construction and engineering disputes. With sector-specific experience, our team of specialists are adept at anticipating, preventing and mitigating costly overruns and programme delays that can lead to disputes.
CRMP provides a full range of traditional quantity surveying services, drawing on traditional skills gained over many years in the industry and latest business practice such as Building Information Modelling.
FEASIBILITY STUDY PHASE
POST CONTRACT PHASE
The constant evolution of want in the workplace has necessitated a need for the development of new, more environmentally friendly buildings to accommodate the shift in work trends. Whether for owners, developers, occupiers or acquirers, we have a proven capability of applying our knowledge and expertise to help deliver objectives and create long-term sustainable success.
Health systems across the globe are under constant and significant pressure to deploy modern technologies, whilst maintaining existing capacities, without sacrificing the quality of service. CRMP has extensive clinic and hospital experience and is well positioned with relevant knowledge to manage healthcare projects of all sizes, from concept stage through to final completion and commissioning.
Deteriorating levels of numeracy and literacy across the globe clearly highlights the urgent need for major development within the sector. A complex relationship exists between authorities and project owners that require a clear understanding of systems and regulations that is to be carefully managed. CRMP has managed several successful education projects and offers the full suite of services to manage government entities, developers and owners to implement project successfully.
HOSPITALITY AND LEISURE
Hotel, resort and similar developments are capital intensive by nature, and as such must be met with tried, tested and practical cost and risk management services. CRMP offer the full suite of services to both developers and owners.
Decades of accrued knowledge and understanding of retail projects, that consider the unique nature of each project, is testament to the track record of capability that CRMP bring to the table. Be it the development of new shopping centres, the remodelling, upgrading and refurbishment of existing centres, or the fit out of stores and restaurants, CRMP are able to provide full quantity surveying services.
The swelling in numbers of the middle class has resulted in an increased demand for housing, especially in urban centres. CRMP provide services across the complete project development cycle.
A systematic, enforceable but agile procurement plan is fundamental to the successful execution of the oil and gas life cycle. The precise scheduling and execution of exploration campaigns, drilling campaigns and extraction and collection site development, afford the operations a better start, with earlier optimisation and better throughput.
The remote nature of upstream activities usually necessitates both complex and expensive midstream infrastructure, usually consisting of a combination of pipeline, rail, barge, tanker, and finally storage.
The high capital value of downstream projects necessitates the meticulous and comprehensive application of tried and tested contract management techniques, supported by detaildriven cost and risk management tools. From refineries to tank farms to distribution networks and consumer petrol stations, CRMP offer full cost, contract and risk management services that will assure the project a sound and competitive result.
The complex nature of linear projects (considering land access and ownership, SHEQ, long lead times, cross border legislative adjustments, etc.) necessitates a pragmatic and detail-oriented approach to managing cost, contract, risk and schedule. The value of optimising capital cost rail estimates, without sacrificing the quality, longevity or bankability of the development, cannot be underestimated.
ROADS, BRIDGES AND TUNNELS
Road transportation provides the crucial network upon which many goods and people interact with the world. Be it national highways or rural service roads, the terrain and resulting route constitute a major investment, and the application of strict standards and programme management will afford the project significant benefit.
PORT AND MARINE
Port and marine design and optimisation is often driven by factors other than the port layout, such as coastal geography, access roads and local stakeholder restrictions. A wholesome but controlled contract and risk management framework will afford the project owner confidence that the right solution is adopted, at the right price.
The profitability and sustainability of opencast contractor mining often relies upon the application of an appropriate and controlled
assignment of risk and reward. CRMP offer full cost, risk and contract management solutions from junior minors to majors, across Africa, applied to the conception, feasibility study, enquiry, award, operations, close-out and rehabilitation of both bulk material and hard rock deposits.
Proactive management of the unpredictable nature of underground mining is what differentiates a successful mine from a failed mine. The appropriate selection of mining methods, the resultant enabling infrastructure, the efficacy of labour, the method of recognition of work done and the identification, quantification and allocation of risk all significantly influence the sustainability and return on investment of the enterprise.
TAILINGS STORAGE FACILITIES
The proper operation and maintenance of Tailings Storage Facilities is pivotal to the mitigation of the environmental risks associated with these facilities. IPA offer the full cost, risk and contract management solution from junior minors to majors, across Africa.
Most primary mineral beneficiation consists of 3 main activities – communition, physical separation, and post-separation management. Whilst each can be specified, designed, constructed and operated independently, each is ultimately fully reliant upon the others, and each discipline thereof needs be fully considered prior to any business case being promoted. IPA understand the complexity of process plants, and the need for accurate measurement and estimating against each discipline (bulk earthworks, civil, structural steelwork, piping, mechanical, electrical, controls and instrumentation).
In today’s increasingly litigious construction industry dispute resolution is common place. CRMPs team of highly qualified professionals are able to advise and prepare documentation and advocacy to assist in the resolution of disputes. Our team are fully conversant with varying dispute resolution procedures, including Adjudication, Litigation and Mediation. Reporting includes Quantum, Delays, Extensions of Time and Damages.
The strict application of the agreed terms and conditions of any contract affords all parties an immediate and mutual understanding of the project progress, anticipated delays, anticipated costs and the scale and nature of disputes. Cost and Risk Management Professionals help project owners to reach their commercial objectives by rendering the following services:
• Advice and selection of suitable contracting strategies. Advice and selection of appropriate conditions of contract. Vendor and Procurement support services.
• Pre-qualification of bidders. Contract tendering.
• Tender evaluation, adjudication and recommendation. Contract agreements.
• Change Management. Document Management. Contracts closeout.
• Contract correspondence register.
• Contract variation instruction management and costing. Attend meetings, record and distribute minutes.
The complex nature of linear projects (considering land access and ownership, SHEQ, long lead times, cross border legislative adjustments, etc.) necessitates a pragmatic and detail-oriented approach to managing cost, contract, risk and schedule.
The value of optimising capital cost rail estimates, without sacrificing the quality, longevity or bankability of the development, cannot be underestimated.
The treatment and re-treatment of water for process, agriculture and human consumption is often a large and complex exercise, and is becoming increasingly critical.
Large piping, instrumentation and mechanical packages, supported by significant civil structures require proactive and comprehensive cost, contract, risk and schedule management.
As the world edges closer to the realisation of REN21, the rapidly accelerating pace of technological improvement yields a better and more efficient solution.
As these black boxes of technology steadily reach towards a fully renewable feed of power, the need for the management of cost, contract, risk and schedule, to the enabling infrastructure becomes more important.
• Steering cost and savings throughout the entire project life cycle.
• Fast and accurate measurement of construction drawings.
• Detailed monthly cost reporting for each construction contract.
• Regular cost meetings with the client.
• Accurate payment certification.
• Comparison of construction drawings with feasibility drawings prior to issue to contractor.
• Implementation of effective site variation procedures.
• Prompt final account settlement after construction completion by applying Running Final Account during the construction phase.
Often regarded as the less critical of the estimates, an operating cost estimate that is pragmatically founded in reality and inclusive of appropriate efficiencies can afford the delivery team an opportunity to undertake design optimisation prior to the commencement of construction.
The comprehensive first principles build-up to an operating model can report against primary and consequential cost drivers of fixed inputs (corporate allocations, amortisation, etc.), variable inputs (labour, consumables, etc.) and sensitivity inputs (risk, foreign exchange, etc.).
Accurate and appropriate cost estimation is fundamental to the development of realistic business cases and successful delivery of the associated projects. Aligning the accuracy of the estimate to the level of design completion will afford the project a relevant and reliable cost base upon which optioneering, optimisation and value engineering exercises can be levered.