Construction Cost Estimating

Detailed Council Cost Report

A Detailed Council Cost Report is a report required by councils that must be prepared and signed off by a qualified Quantity Surveyor. This is then submitted to the council as part of a Development Application (DA). Councils then use these reports to determine the necessary development contributions that need levied and to ensure the developer is submitting a genuine estimated cost for their development.

Contact Quanto today for a quote and to find out about our quick turnaround time.

Elemental Cost Estimates

An Elemental Cost Estimate is a method used in construction cost planning to estimate the total cost of a project by breaking down the fundamental parts, such as structural elements, electrical services, hydraulic services, fixtures & fittings and gives an estimate of cost for each element separately. The estimate also makes allowances for preliminary costs and contractor’s margin.

How does this work?

  1. Identifying Elements: The first step is to identify and list all the major elements involved in the construction project. This includes everything from the excavation, substructure, framework, walls and roofing to interior finishes, services and landscaping.
  2. Measurement and Quantification: Each element is then measured and quantified based on the project’s plans, drawings and specifications. This involves determining the quantities of materials, labour and equipment.
  3. Unit Cost Assignment: Once the quantities are determined, unit costs are assigned to each element based on historical data, market rates or quotes from subcontractors and suppliers. Unit costs may vary depending on factors such as location, project complexity, and market conditions.
  4. Calculation of Costs: The cost for each element is calculated by multiplying the quantity by the unit cost.
  5. Total Cost: Finally, the costs for all the individual elements are tallied to determine the total estimated cost of the project. This total cost estimate serves as the basis for budgeting, financial planning and decision-making throughout the project lifecycle

Elemental Cost Estimates offer several advantages:

  • Detailed Breakdown: By breaking down the project into its fundamental elements, this provides a detailed breakdown of costs which allows for greater accuracy and transparency in budgeting and cost control.
  • Better Cost Management: With costs estimated separately for each trade or element, project stakeholders can better manage costs by identifying areas where savings can be achieved or where costs may need to be adjusted.
  • Improved Decision Making: Having a detailed understanding of the costs associated with each element allows project owners, architects and contractors to make informed decisions regarding design alternatives, materials selection, and construction methods.

Contact Quanto to find out how an Elemental Cost Estimate can assist in keeping your next project within budget and on time.

Financier Check Estimate

The purpose of a Financier Check Estimate report is to provide the financier (usually a bank) with an overview of the project’s cost implications before financing approval. This is in the form of an Elemental Cost Estimate or similar cost plan. The report will also advise on the contract, contractor, insurances, authority approvals and construction program.

The financier uses the Financier Check Estimate report as part of their due diligence process to evaluate the project’s financial viability and determine the appropriate level of funding. It assists them in making informed decisions regarding loan approval and risk assessment.

Quanto cover the Newcastle & Greater Hunter region and are on a number of Australia’s major financial institutions panels for the production of these reports.

Progress Payment Reports

Progress Payment Reports are documents that track and detail the financial progress of a construction project over time against the Financier Check Estimate report. These reports are typically initiated by the contractor and submitted to the developer at regular intervals (often monthly) to request payment for work completed during that period and provide a Cost to Complete for the project.

The financier will usually request a Quantity Surveyor’s report to certify that the amount the contractor is claiming payment for is fair and reasonable. Quanto would carry out a site inspection to assess the construction progress and verify that all work being claimed has been completed and fixed to site.

If there have been any changes to the scope of work, specifications, or contract terms since the last progress payment report, these changes are documented as Variations. This may include approved variations or additional work requested by the client, along with their corresponding impact on the contract price, program and Cost to Complete.

Progress payment reports play a crucial role in facilitating transparent and efficient payment processes in construction projects, ensuring that contractors are compensated fairly for the work completed, and developers and financiers have clarity into the project’s construction and financial progress.

Expert Witness

An Expert Witness is an individual with specialised knowledge, training, and experience in a particular field, in this case, construction. In the unfortunate event of a construction dispute, Quanto’s role as an Expert Witness is to assist the court or tribunal in understanding complex technical issues and providing independent, unbiased opinions based on our construction cost expertise.

Expert witness reporting in construction can be required in various types of legal proceedings, including but not limited to:

  • Construction defects or failures
  • Breach of contract claims
  • Delay and disruption claims
  • Cost overruns and disputes
  • Building code violations
  • Incomplete works

Quanto’s coverage for Expert Witness reports include Newcastle, Sydney and the Greater Hunter region.

Frequently Asked Questions

What type of Cost Estimate do I need?

Quanto can provide a Construction Cost Estimate for any proposed development at any stage. Whether it is a simple plan drawing or a full set of architectural and structural plans, Quanto are able to provide our opinion on the construction cost of your project. Obviously, the greater the detail in the information we are provided, the more accurate the estimate.

Contact Quanto and we will advise you of a tailored cost estimate to meet your needs.

When do I need an Expert Witness?

If you think you might need the services of an Expert Witness in a construction dispute, you should first seek legal advice from a qualified legal representative. If they then require an Expert Witness, your legal representative may instruct you to engage a qualified Quantity Surveyor.