Today more than ever, construction cost control through cost reconciliation is crucial for project owners to avoid being overcharged and for preventing expensive change orders. Construction cost control validation must be set in place with the most accurate demonstrable ground zero construction project cost to establish a system of checks and balances as design build contractors are hired and provide GMP. Without a legitimate, sound and verifiable cost estimate there is no check point in place for construction cost reconciliation in design phase. Relaying the project cost together solely based on GPM provided by contractor very foolish, since nothing is showable and the methodology leaves no evident data or protective construction cost validation for the owner and everyone else involved.
A confirmable scientific estimate of time, cost, and resources before project execution establishes the platform from which to measure overages and underage’s and to perform construction cost reconciliation throughout the project. Before the project execution phase of a project starts, the construction cost control validation and reconciliation of GMP needs to be done. This is the only way to ensure that the estimated baselines are not exceeded without careful analysis and demonstrable construction cost variance reports to protect the owner.
