Methods and tools of our estimating and budgeting services are outlined below:
Customized Estimating Software Program
We are very proud of our custom cost management/estimating system.
Fully automated, it allows for maximum customization and flexibility. Our process begins from the very first conceptual estimates and tracks every penny of the project through the final bid package and on to final completion of the project.
Another advantage of our system is its flexibility.
As the author of the software program, we are able to customize any report in order to meet the owner's desires in terms of content and format.
Standardized Cost Codes
We provide unparalleled cost tracking.
With company-wide pre-assigned cost code numbers for each and every work activity, we are able to accurately track all costs from the first conceptual estimate through the preconstruction phase and the entire construction phase. This includes all equipment, materials, and manpower.
Our estimating system has over 17 years of data in its master cost file.
Not only do we take all the projects which we have completed, but also all of the projects which we have bid and input unit price information in order to have the most accurate and up to date cost data base possible.
Complete Detailed Estimates
Our estimating format is broken down into four levels, each level showing more detail.
From the first estimate we perform throughout subsequent estimates, all are done electronically showing complete detail, down to the "nuts and bolts" level. We are able to break our estimates into as many summary levels as needed through our cost coding mechanism. This allows you to see your project broken down by departments, areas, or phases.
Cost Management and Control System
GH Phipps begins its cost management and control system in the estimating phase of the project.
We identify every item of work on the drawings, assign a cost code number to it, as well as the budgeted number of man-hours and costs associated with that item of work. The estimating report has an unlimited number of major elements that can be separately identified. Each of these major elements has four levels of detail starting with a System Summary Report to a Full Detail Report. A Financial Status Report is used to track and compare each estimate completed and the Cost Study Report allows us to price various alternates and track the value process. Again, this report serves to assist the team in tracking the cost impact to the job based on design and value engineering alternatives.
Construction Cost Analysis
As construction starts the cost items from the detailed estimate are converted directly into our accounting system.
Each subcontractor and supplier is identified and assigned a cost code. This report is labeled "Job Cost Analysis" and can be produced on a weekly basis for our labor and monthly for our subcontractors and suppliers.
Ongoing Status Reports
By tracking progress daily, we stay on budget.
As the project progresses, the costs and quantities of work completed are reported from the field, giving us a status report of the dollars spent and work completed to date and that remaining. This then allows us to project the total dollars and man-hours required to complete the job. At this point we are able to determine whether there are enough dollars left in the budget to complete the work item, which in turn will alert us to any potential problem areas.
Comparisons of productivity between jobs is available on-line from our historical cost library.
This provides management with immediate budget feedback as well as informing our estimating department of the most current costs. We maintain a historical database of not only building system costs, but also those of sub-trade unit prices, based on construction management and competitively bid projects.
Guaranteed Maximum Price
Staying on budget begins with design.
Once the design is within the budget, and the Guaranteed Maximum Price is set, Phipps will provide a number of estimates ensuring the design remains in budget throughout the design phase. A financial status report is generated after each of these estimate updates in order to identify on a line item by line item basis each element of the project and track its costs from one phase to the next. With this report we are able to quickly identify any elements which may threaten the Guaranteed Maximum Price and recommend action to get the project back in line with the budget.
Subcontractor solicitation and management
We use only the best.
GH Phipps has developed the reputation for treating subcontractors with great integrity and fairness. Additionally, we have a working understanding of the capabilities and level of quality every subcontractor we use. We maintain a database of subcontractors, their area of work, size capabilities, and their performance rating on our past projects.
Highly detailed bid forms
Public or Private Bid Openings
Early Procurements of Materials; Materials Management
Just in time delivery saves money.
GH Phipps uses preconstruction scheduling information and material delivery schedules to ensure that all materials arrive at the project site when they are needed. This "just-in-time" process prevents materials from arriving at the site too early, requiring site storage, and invoicing for these items earlier than necessary. The submittal requirement log and material delivery schedules are reviewed at all project meetings and become an integral part of the master construction schedule.