Cost Planning & Management

Karkan Partnership routinely participates as a sub-consultant and core member of a design team, providing cost estimating and evaluation services during the programming, design and construction phases of a project. In other cases, we are often hired directly by an Owner to establish construction budgets, analyze the cost decisions made by the design team and monitor costs during construction. Typical services on a project include:

Pre-Design Phase Services
Prior to the commencement of programming and/or design, Karkan Partnership prepares a cost model and budget cost plan for a project. The cost model establishes a construction budget and defines how the project budget is to be allocated between various building systems. The cost model also confirms the project scope and identifies any costs or work to be funded separately.

Schematic/Design Development Phase Services
Karkan Partnership works as an integral member of the design team to evaluate design decisions made throughout the design phases against the pre-established cost model. This approach allows the cost management team to provide an integrated value engineering process throughout the design phase.

At the end of schematics and design development, Karkan Partnership produces a comprehensive cost estimate. The estimate is compared against the cost model developed during the preliminary cost estimating services phase of the project. Once the estimate is complete, and if required, separate meetings are conducted for each building system or site element to determine the cause of any cost variances and to brainstorm opportunities for budget adherence and/or further economies.

Pre-Construction and Construction Phases Services
Working as the Owner's representative, Karkan Partnership:
· assists with review of bid documents and contractor bids
· monitors costs during construction
· provides a monthly evaluation of work completed at the site
· evaluates change variation orders
· Contracts and sub contracts administration
· investigates claims submissions for contractual correctness and recommends appropriate settlements
· Prepares the final closure accounts

Life-Cycle Cost Studies
Karkan Partnership performs cost-benefit studies to determine the most economical design direction for selected key issues such as plant and utility connection.

Independent Cost Opinions on Behalf of an Owner
Owners often secure Karkan Partnership services to provide an independent peer review of cost estimates provided by a design team. Acting as the Owner's representative to verify costs is an essential step to maintaining the overall construction budget.
Operation
· Project Financial Audit (forensic)
· Cost is Use Benchmark

Project Management

Project management provides dedicated management to ensure project success by offering an independent and professional service to plan, lead, co-ordinate and control the management of projects and programs from inception to reality.

Design Control
· Advice, selection and definition of the consultancy contract packages
· Administration of consultancy contracts.
· Obtaining of the necessary site surveys and soil investigations.
· Review of the final construction documents to help eliminate inconsistencies and omissions.
· Constructability reviews

Cost Planning and Control
· Preparation of a Master Plan Budget including all project related expenditures.
· Updating the budget and reporting the effect of all subsequent changes in program requirements, and of executed contracts and purchases.
· Continuous cost monitoring.
· Comparative cost analyses of alternative building configurations, structural systems, materials and architectural treatments.
· Preparation of a Fund Requirement schedule or Cash Flow analysis.

Time Control
· Preparation of schedules for design and construction phasing.
· Monitoring progress of design, approvals and contracting. Working with design teamsand contractors to maintain schedules.
· Arranging for pre-ordering or pre-purchase of materials and equipment to avoid delays.
· Report on progress in relation to schedule and notification to contractors of the requirements to meet schedule and corrective measures to be taken.

Contracting
· Selection and definition of the construction contract packages.
· Advice on types of construction contracts, terms of contracts, special contract conditions and bidding procedures.
· Review and selection of qualified contractors to submit bid proposals.
· Evaluation of bids and recommendation on contract awards.
· Coordinate installation of owner-purchased items.
· Auditing final account.

Contract Control
· Evaluation of work in progress, auditing of contractors' accounts and certification of the amount due to each contractor, in accordance with the terms of the contract.
· Evaluation of any proposed change in the Scope of the Work and negotiation of modifications to the various construction contracts.
· Analysis of claims for additional payment submitted by any contractor and recommendation of action.
· Report on the total cost of each contract as modified and on total project, with updated fund requirement schedules.

Procedures
· Project status reports to Executive Management.
· Conflict resolution.
· Obtaining all necessary permits, environment impact assessment, and planning approvals.
· Arranging for all necessary insurances by Owner or Contractors.

Project Coordination
· Manage project meetings with design teams and contractors.

Dispute Resolution

Claims Preparation and Analysis
Our approach to claims preparation quickly identifies issues, determines client's goals, marshals facts and documents We analyze claims to determine cause and effect accurately. We define the merits and basis of a dispute by reviewing project history, contractual obligations, contract documentation and statements from key personnel involved in the dispute.

Schedule Analysis
Given that time is money, we analyze schedules in disputes to determine when each delay occurred, how it happened, why it happened and who's responsible. We also determine the impact of each delay on other construction timetables, overall project completion and budget.

Graphic Services
We make the difficult simple for arbitrators, judges and juries to understand using a variety of visual aids. With photographs, illustrations, videotape, computer animations and other techniques, we provide a logical illustration of what happened, why it happened and how it happened.

Expert Witness
Karkan Partnership focuses its testimony on the critical issues that truly matter to a judge and jury. We draw upon extensive internal resources and experience to ensure that our testimony will also stand up to intense scrutiny on the stand.

Damage Calculation
Given our heritage in cost management, Karkan Partnership is well equipped to calculate all costs of re-design, construction, repair or other remedial work that may be necessary. Our experience with architecture, engineering, construction, building codes/standards and the Standard Forms Contract enables us to determine all damages based on a thorough review of lost time and money.

Mediation/Arbitration
We either serve as an informal mediator to help owners and contractors work out solutions or we work with outside mediators. With arbitration, we resolve disputes on projects not serviced by our firm or we help clients make their best case to other arbiters.

Construction Audit
The findings lead to fair settlement with contractors and a savings to owners. Construction audits should be standard operating procedure for every project, even those that come in under budget, because of the likelihood of finding additional savings.

Project Turnaround

RESCUING PROJECTS IN CRISIS

Karkan Partnership has successfully rescued and turned around many projects which have been in serious trouble having overrun their budgets and deliveries are far behind schedule. The previous project team has been relieved, team morale is low, sponsors are disappointed.

Karkan Partnership has severally been brought in to take over the project and turn it around.

We have followed a step-by-step approach to diagnose the problems which normally include:

• Insufficient commitment from project sponsors
• Unclear requirements/scope
• Inexperienced team members
• Poor planning
• Lack of formal project management processes
• Cultural issues
• Unclear roles of team members including that of the project manager
• Inadequate communication