At the beginning, after we help you write your project brief, we engage on your behalf the building cost consultant to ensure your expectations are financially realistic.
We require our clients to set a realistic project brief.
Peter Dalton Architects House Design Budgeting Tool

	Preparing a cost estimate during the design stage
	Carrying out a financial feasibility of the development
	Confirming the cost estimate prior to lodging the development application
	Updating the cost estimate at the construction certificate stage
	Updating the cost estimate prior to calling building tenders
	Checking that tenders are financially realistic
	Certifying that the builder’s monthly progress claims are reasonable
	Ensuring that costing of any variations are reasonable
	Ensuring that extension of time claims and any costs arising are reasonable
	Documenting the final construction accounting

Preparing a cost estimate during the design stage BACK
The conceptual design stage may involve evaluating a number of design options and their associated cost. Cost estimates at this stage naturally have a degree of approximation as many detailed aspects of construction and selection of finishes and fittings are yet to be resolved. Design development is also subject to review of the conceptual design with Council planning officers which may result in changes which can increase costs.

Design development can also modify building costs. Our building cost consultant keeps you informed of these adjustments. (see example)

Carrying out a financial feasibility of the development BACK
Your project may be for future sale or rental. If that is the case, in association with our building cost consultants we are able to provide a financial feasibility at the conceptual design stage which will demonstrate the possible return on invested funds.

Confirming the cost estimate prior to lodging the development application BACK
Development consent locks you into the design unless you apply for a change to the consent or appeal to the Land and Environment Court against Council’s refusal, or the conditions it has imposed. Consequently it is important to confirm that the design which is lodged with Council is still on budget before the application is lodged.
Council can also cause increase in costs as a result of the development consent conditions it imposes at the time of approving the development application. (see example)

Updating the cost estimate at the construction certificate stage BACK
The construction certificate commits you to build in accordance with the requirements of the Building Code of Australia (BCA). These requirements have cost consequences. We have the Building Cost Consultant confirm the cost estimates at this stage to ensure that such compliance is within budget. (see example)

Updating the cost estimate prior to calling building tenders BACK
When you invite builders to tender they expect that the proprietor (the client) has the financial capacity to pay for the construction. Our building cost consultant checks that the detailing, selection of finishes and fittings are within budget as these are progressively documented. It is very easy to increase costs when selecting finishes and fittings, and resolving construction details. This will be reflected in the tender prices.

We also seek advice from the building cost consultant about the likely impact of supply and demand amongst the type of builders who may be suitable for your project to ascertain the likely tendering environment. Inflation and market forces can cause tenders to vary from cost estimates.
Peter Dalton Architects House Design Budgeting Tool

Checking that tenders are financially realistic BACK
All tenders are selected on the basis that they have the capability to undertake the type of construction expected.

Not withstanding this pre-qualification tenders may vary significantly.

Some builders may, when invited to tender, be busy but wish not to be excluded because of the prospect of doing future work with the architect. Others may, during the tender period sign contracts which fill their work schedule for the foreseeable future. Some may under-estimate the difficulty of certain aspects of construction, or not understand the ease of construction methods. Different builders will estimate the time for construction differently. Builder’s subcontractors may also be subject to all these factors. Consequently it is not unusual to have a significant variations in submitted tenders. Some tenderers may choose not to submit a tender for all, or any, of the above reasons.

With the building cost consultant we check that tenders are financially realistic.

Certifying that the builder’s monthly progress claims are reasonable BACK
The building contract requires that the builder submit progress payments. These are usually submitted monthly. The claim is broken down by trades, and may involve claims for provisional or prime cost sums for finishes or fittings. The claim is evaluated by the architect and the building cost consultant to check that it represents a reasonable claim for the work carried out in the previous month. If there are any discrepancies adjustments may be made to the claim. The reasons for these adjustments are included in the certificate requiring the proprietor (the client) to pay. (see example)

Ensuring that costing of any variations are reasonable BACK
There can be many reasons for variations. The foundation conditions may require adjustment to the footings and may vary from the test bore results produced by the geotechnical engineer. This may effect excavation and construction costs. Sub-surface drainage conditions may vary from that assumed requiring adjustment to the drainage (nobody can see under the ground). If the project involves alterations and additions, opening up of existing construction may reveal unsatisfactory conditions requiring additional work, and even re-design of details, finishes and methods of construction. The clients may, after watching the building come into existence see additional work that they decide they want done. Selection of finishes or fittings, which may have been deliberately left until during construction, will result in adjustments to provisional or prime cost sums. Wet weather may delay construction. Strikes, or unforeseeable delays in transport if materials or products are imported can cause delay.

All of these, and other causes which the contract allows, can be a reasonable basis for a variation to the contract.

With the building cost consultant we check that any variation claims are allowed under the contract, and if so, priced realistically.(see example)

Ensuring that extension of time claims and any costs arising are reasonable BACK
Variations and other contractually valid reasons for delay can be the basis of legitimate extension of time claims and associated costs, if so defined in the contract.

We determine whether such claims are legitimate, and in conjunction with the building cost consultant if the costs claimed are reasonable. (see example)

Documenting the final construction accounting BACK
At practical completion the final contract accounts are prepared. These include a statement of payments made against all the trade breakdowns, adjustments of provisional and prime cost sums, accounting of all variations and any costs associated with extensions of time.

At the issuing of the certificate of practical completion half the retention sum is released. The other half is retained until the end of the defects liability period and all defects have been fixed.

Issuance of the final certificate the when all defects have been properly rectified and the remainder of the retention is released completes the building contract. (see example)
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