Published December 2003

In cost consultants, developers find a useful tool

By John Wolcott
SCBJ Editor

More and more developers looking for ways to control costs on their construction projects are discovering that spending extra money for an experienced cost management firm can actually save money — usually a lot of money.

The concept of hiring third-party oversight services for projects isn’t new. Most developers don’t have the expertise to deal with all of the intricacies of major projects, so consultants and specialists are hired to bridge that knowledge gap.

Now, objective experts who analyze the cost of everything from project designs and engineering work to the price of steel girders and lighting are becoming part of the developer’s toolbox.

The Seattle office of global cost consultant Rider Hunt Levett & Bailey, for instance, has used its value engineers, architects, estimators, surveyors and licensed contractors to pare millions of dollars from such projects as the expansion of the Washington State Convention & Trade Center in Seattle, Sea-Tac International Airport’s terminal expansion and the Port of Seattle’s Cruise Ship Terminal.

Rider Hunt’s pre-bid estimating services use quantity surveying techniques to develop realistic costs at the conceptual phase, establishing a framework and cost plan that guides cost checks during the project. Its lender and investor consulting services assist banking and real estate professionals through pre-construction project reviews, monitoring construction progress and making facility audits for due diligence.

One of the firm’s most helpful cost-saving services is proving to be its detailed comparison of similar construction projects, according to Simon Squire, resident associate with Rider Hunt’s Seattle office.

“Without proper delineation it’s not easy to see the scope and details of a project. Our analysis provides not only an evaluation of the costs of construction but also such things as whether the architectural plans are right for constructability and whether different materials could lower costs,” Squire said.

In Rider Hunt’s elemental cost comparison, for instance, the client’s project would be compared with four similar projects, not just on total cost but line-for-line for such categories as the foundation, wall and roof construction; internal doors and partitions; plumbing; elevators; and site work, all outlined in subcategories.

“If we find our project’s exterior walls cost significantly more than the other four projects, we analyze the differences to see if circumstances justify that higher cost or if it can be reduced without affecting the quality and needs of the project,” he said.

In Snohomish County, Rider Hunt is one of the firms working with the Everett Housing Authority on a feasibility study to help evaluate the cost of several options for the future of the 1940s-era Baker Heights residential community (see related story).

A Cashmere company, Matson Carlson & Associates Inc., is also involved in Snohomish County cost-consulting through its north Everett office.

Sandra Matson Carlson said the firm’s roster of projects includes police stations, detention facilities, ferry buildings, multifamily housing, medical offices, fire stations and a variety of public works projects.

“One of our services that clients particularly like is when we put on the bidder’s hat when we evaluate a project, to see how the architect could redesign it to reduce construction change orders,” she said.

More information about cost consultants is available on the Web at www.riderhunt.com and at www.costestimates.com for Matson Carlson & Associates.

Back to the top/December 2003 Main Menu