Project and capital cost management

Cost estimating and cost control are critical parts of any construction project.

These are key drivers governing the sanction of a project at its start, and continuing confidence in the estimate is essential for sound decision making throughout. So managing the impact on the cost of any changes to the scope of the project is essential.

We use our sophisticated in-house cost model in conjunction with our extensive cost benchmarking database. With these tools our cost engineers consider a wide range of potential development scenarios to provide powerful project development cost analysis reports for clients. With this as a basis, our tools and techniques allow the team to quickly identify how changing parameters within a project will impact the cost.

Our cost analysis models can be applied to projects of any size, from minor brownfield modifications to large scale plant expansions, and cover:

  • overall project costing, including
    • multiple contracting strategies
    • infrastructure development
    • owner’s costs
  • major field developments from the top of well, through gathering systems, processing facilities and export systems
  • benchmarking third party estimates
  • historical data analysis
  • sensitivity analysis

Our history of successfully delivering EPC projects worldwide means that we have access to large amounts of procurement data. This includes country-specific information associated with costs in that area and specific location factors.

These data libraries, combined with our cost modelling tools, industry standard software and published indices, meanthat we can generate highly accurate CAPEX and OPEX estimates.

And we can provide estimates across four levels, depending on project requirements:

  • level 1 – order of magnitude
  • level 2 – conceptual/preliminary
  • level 3 – front end engineering design/definitive
  • level 4 – detailed/control estimate

As a result, our clients have sound cost estimates on which to base their decisions with a reduced risk of cost overruns.


Cost risk analysis

Robust benchmarking and testing of any cost estimate is a key part of our estimating procedure.

Using standard risk software - @risk - our cost engineers deliver Monte Carlo simulations to provide cost guides. This gives the decision-maker a range of possible outcomes for the choices they have to make, and the probabilities (P10, P50 and P90) that they will occur. As a result, the decision-maker has good information on which to base their decisions.

We also offer other cost risk analysis services to support our clients, such as:

  • overall project risk analysis
  • schedule risk analysis
  • operating cost analysis
  • economic and financial modelling

As a result of our cost risk analyses, our clients are better able to manage and control the costs of their - typically large and complex - projects.


Cost control

Managing the costs involved in any project is essential to its successful execution and delivery.

Our cost control processes centre on our project control integrity model, and are implemented via our business management systems framework, called eBMS.  

We offer high-quality project control services for all project stages, from technological studies to concept, FEED and engineering, procurement, construction and commissioning (EPCC) contracts. At every stage, we control design integrity by checking outputs and managing change requests.

We rely on our well-established management systems and in-house processes as well as proprietary software to maintain standards. For most projects, we use:

  • Documentum – for document control
  • Oracle Primavera – for project management, planning and scheduling
  • Pertmaster – for schedule risk analysis.

Because our people work in the same way with consistent systems and procedures across our international engineering centres, we can deliver multi-centre project management, controlling and reporting activities in real time. This streamlines the delivery of more complex projects, and ensures that managers have the most recent data possible to support their decision-making.

 

Our strengths

Our benchmarking knowledge and data. We know what best practice levels of operational performance and costs look like

  • best tools. We have developed excellent tools to help model and control costs
  • proven methodology. Our cost modelling and cost control approach and disciplines have grown from our deep experience of managing major projects.
  • expert teams. We have consultants with deep experience of estimating and managing costs for major projects. We build each team to meet the needs of each project; every project has different, and specialist, needs.  And every team can draw upon our global bank of expertise

 

Further information 

Contact our marketing team