Financial accuracy in business plans is key in developing investor confidence. Project capital costs are a foundational element of a business plan. Complete and accurate project capital cost estimates require skill, knowledge and experience to review or develop. Consistency of estimating methodology and approach throughout a project life-cycle will deliver superior project financial outcomes.
With the ever-changing financial challenges for Industry, it has never been more important to have a professional cost estimating consultant on your project team who is experienced and able to provide timely and valuable estimating input. Vertex’s structured approach to estimating will provide accurate and consistent estimates resulting in vital benefits and budgetary information for project owners throughout the life-cycle of their project.
At Vertex, our multi-disciplined estimating team offers a combined 200 plus years of estimating experience which includes extensive field knowledge and a materials and construction productivity database with 30 years of data, providing cost assurance to your project estimate.
Financial Investment Decision (FID) - Review & Support
Prior to FID, a third-party independent estimate review or “cold eye estimate review” is advisable to confirm the validity of the estimate contained within the business proposal. This review is more than just analyzing the estimate against historical data, unit costs and benchmarks with other similar projects. It involves reviewing the details of the estimate to ensure that the entire project scope of work is accurately represented in the estimate including all other related items and factors. This includes such items as labour productivity factors, material allowance factors, MTO allowances and freight allowances.
Vertex reviews FID estimates on a regular basis to provide owners and financial institutions with confidence that the estimate accurately reflects the defined scope of work and level of engineering completed on the project.
Guidance and assistance in Estimates
It is critical to have a structured approach in completing estimates on any project, no matter the project value. Vertex staff have a proven track record and are available to be part of the project team to provide guidance and assistance. This ensures that estimates are prepared in a structured format aiding in an accurate and complete estimate.
Detailed Capital Cost Estimate Development
Vertex staff have extensive experience preparing detailed estimates. With regards to detailed estimate preparation, we offer:
- A well-defined and structured approach for preparing detailed industrial estimates
- Consistency in the preparation of estimates by utilizing material and discipline templates for data collection
- A process that ensures that the construction execution strategy, project schedule and indirect costs are accurately articulated in the estimate
- The capability to review engineering products (DBM, P&ID, Plot Plans, Piping Plans, etc.) to ensure fidelity of design and cost estimate
- Ability to develop Material Take-Off’s (MTO’s) or use engineering generated MTO’s to prepare detailed estimates
- An extensive database (30 years of productivity, material and equipment data) for preparing project estimates
- Estimating software capable of incorporating the project requirements, such as Work Breakdown Structure, Construction Work Packages and Material Requisitions into the estimate.
- Lessons learned from previous projects resulting in the formation of best practices that are incorporated into future estimates
- A team with the ability to recognize missing information within the project and with the ability to estimate the associated missing costs
- An extensive selection of estimating reports to meet the project needs of project controls, supply chain, contracts and construction teams
- A process to update the estimate in a timely and efficient manner throughout the project life-cycle
- Validation of estimates by checking the estimate against database benchmarks, estimate ratios and similar projects
- The ability to complete detailed “check estimates” for any portion of an estimate
- Estimating support and guidance during the life-cycle of the project