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Monthly cost reconciliation is important for any contractor, as it assesses the profitability of the works on site, highlights any problems or deficiencies on site and allows the contractor to make provisions or changes to reduce or eliminate such problems. Even if unavoidable, understanding the overall position is useful for a contractor in the control of the site’s costs.
An increasing part of our PQS offering is where a client has elected to employ a builder on a cost plus basis. Here we will monitor monthly expenditure against budget projected expenditure and report to the client on any under or over expenditure. We are currently providing this service on a £1million barn conversion in Alderley Edge, and recently completed the same service on a £2million new house in Knutsford.
We are also able to offer advice on which items are allowable as prime cost and which should be taken into the overhead percentage. There are several items, such as supervision and insurances which are grey areas, and we are able to advise on these based on our past experience.
As part of our service to major groundworks clients, we offer a monthly reconciliation service whereby they furnish us with their costs, we collate and analyse the same and provide a profitability report, this then provides useful feedback for pricing future tenders.