Using linked data to manage budget more

“Anyone can design a beautiful project, but it takes skill to design a beautiful and affordable project. We often use this quote about steering on budget to point out the importance of “drawing and calculating” at the same time. You have no use for a beautiful design, which is far from the available budget. And in the beginning of the project we have the most influence on the design and cost.

And in the beginning it’s easier to adjust the design. So tinkering with the design early to get on budget is an important strategy.

Managing budget

We were given a task for a client specifically asking us to explore a sustainable real estate strategy. This within the existing framework of existing real estate (renovation and new construction), existing business processes and an existing program of requirements.

But also within a tight budget.

Cost estimate

A good cost estimate is more than the sum of materials and labor. It is a strategic tool that guides design choices, investment decisions and risk management. Whether it is a foundation cost estimate in the initiation phase or a detailed element budget in the DO, each phase requires a different approach and calculation tool.

Our approach is based on financial engineering. We combine current cost data from independent databases with the design data from our models. This creates an integrated picture of quantities, costs and risks. But we do not only calculate what has been drawn – we also know what we have to calculate, because it has not yet been drawn.

Construction Cost Database

We use IGG’s construction cost database.

IGG construction economics retrieves construction cost information from architects, developers, contractors and suppliers. We use their construction cost database to provide current and reliable cost data.

By linking that cost database to our design models, we can issue cost estimates for every change, thereby guiding design decisions.

Our designs are not only visually, but also financially clear. We make visible what a design costs, where the uncertainties are and what choices are available. In this way we help clients make informed decisions – and keep a grip on their investment.