Proving the Validity of Construction Project Budgets, Costs and Changes at Zaxon

 

 The definition of the word valid is the power to dispel doubt or overcome resistance or opposition. Validating means to establish soundness, accuracy, or legitimacy. At Zaxon, we’ve developed a system for construction cost validation that is designed to dispel doubt with accurate and clearly verifiable data that can prove or disprove the legitimacy of vendor bids, overages, underages and change orders. At Zaxon, we can capitalize on our 32 years of experience and some of the best trained and educated estimators in the industry combined with our scientific methodologies to quickly give you the information you need for construction cost reconciliation on any construction project.

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Today more than ever, construction cost control through cost validation is crucial for project owners to avoid being overcharged and for preventing expensive change orders from an underestimated budget. Of course, the first step to affective cost control is an accurate supportable cost estimate based on assemblages (not square feet) using real time data and correct allowance percentages.  Construction cost control validation must be set in place with the most accurate demonstrable ground zero construction project cost to establish a system of checks and balances as contractors are hired and bids come in. Without a legitimate, sound and verifiable cost estimate there is no check point in place for construction cost reconciliation along the way. Putting estimates together solely based on construction bids is very foolish, since nothing is showable and the methodology leaves no evident data or protective construction cost validation for the owner and everyone else involved.

A confirmable scientific estimate of time, cost, and resources before project execution establishes the platform from which to measure overages and underages and to perform construction cost reconciliation throughout the project.  When the project execution phase of a project starts, the construction cost control validation and reconciliation phase also needs to begin. This is the only way to insure that the estimated baselines are not exceeded without careful analysis and demonstrable construction cost variance reports to protect the owner.

Construction Cost Reconciliation for Project Estimate Discrepancies

Over the course a project, discrepancies about the amount and cost for time and materials allocated for services often results in disputes between owners and contractors. Material and labor construction cost reconciliation through proven, supportable and clear data provided in construction cost variance reports that are acceptable to everyone will dispel doubt for all involved.

Whether you are a project owner, an A & E firm, or a contractor or subcontractor trying to discover who is correct in a project estimate discrepancy. Zaxon’s cost estimators are equipped to provide construction cost reconciliation analysis of estimates and construction cost variance reports to support your efforts to resolve inconsistencies in pricing.

Example:

Zaxon was asked to analyze an a $100,000,000 price discrepancy on an airport project in the Planning and Schematic Design stage that was originally estimated at close to $350 million after the contractors estimate came in at close to $450 million. Zaxon was able to analyze construction cost variance to uncover overages in costs and allowances as well charges for work that had already been completed or wasn’t required. Zaxon was also able to point out the lack of verifiable calculations in the estimating method used by the construction firm allowing room for vendors to overcharge. The construction cost reconciliation variance report that Zaxon prepared showed that the discrepancy amount was actually very nominal (not anywhere near $100,000,000) and everyone agreed amicably to take steps to resolve the inconsistencies and establish a new agreed upon baseline that would serve as the check point to help prevent vendors from overcharging at will.

Change Order Analysis for Construction Cost Reconciliation

With 32 years of experience of estimating and compiling accurate construction assemblages, Zaxon can quickly implement our construction cost reconciliation methods to analyze proposed change orders for owners and A & E firms or contractors and provide a cost variance report with a detailed mathematical analysis of discrepancies, including overages or underages in time, materials, allowances and mistakes so changes can be resolved amicably.

Budget Analysis for Construction Cost Validation

If owners, A&E firms or contractors have concerns about the validity of a project budget right from the get go, our cost controllers can provide detailed construction cost validation to protect the project from a negative trend towards ovarages or underages early when it is not too late for corrective measures to be taken without additional expenses. Our cost estimators have used our proven budget validation methods to insure that projects nationwide have been successful in meeting both budget and time requirements.

Example:

On a large military project, there were concerns about the accuracy of the overall budget that had been determined for the project by military staff with vendor input. In an attempt to avoid expensive and time consuming change orders later in the project, the military organization called in Zaxon to validate the budget. Using proven assemblages and real time data, Zaxon was able to put together a cost variance report with clear and provable formulas that demonstrated that an additional $40,000,000 needed to be added to the project, which helped avoid problems and unnecessary time and money spent on the project when it was further along.

Capital projects are major purchases that require huge investments. They are complicated and include inumerous amounts of supplies, materials and services with no easy pricing catalogue. The magnitude of the projects leaves lots of room for error, overages, expensive change orders and hundreds of thousands of dollars wasted.  Construction cost validation by an extremely well trained and experienced professional can save hundreds of thousands of dollars needlessly overspent on a project. Start validating construction costs today, call Zaxon at 817-551-7772