Cost plus fixed fee contracts can suit projects that are difficult to price upfront. Agree a fixed dollar fee, define reimbursable costs, and use open book reporting and spending limits to keep the arrangement fair for both the client and contractor.
An agreed hourly rate does not establish how much a contractor is authorised to spend. Set a clear spending limit, monitor the forecast cost and approve increases in writing to reduce budget surprises and payment disputes.
Some companies make it very difficult and time consuming to release unneeded project budgets. Project budget release should be simple, quick and easy. This will allow the funding of other projects to be much easier.
Project controls are important. They help you keep track of project costs and schedule. A good project controls system will help the project manage its costs and schedule, preferably part of a project management tool. It should be easy to use and automate as much of project controls as possible.
Project meetings can take a lot of time and cost a lot of money. A simple way to encourage meeting efficiency is to display the hourly cost of the meeting for all attendees to see. It is a simple way to keep attendees focused on getting things done and ending the meeting sooner.
Automation of the collection of project expense receipts is a key element in improving project efficiency.
Implement a receipt scanning system in your company finance software or project management software.
Scope creep is sneaky and costly. Learn how to spot it early, manage it firmly, and keep your project from going walkabout with these proven field strategies.
Restricted access to project information, documents and data can cause a significant increase in project cost and schedule. Ensure all your project team has access to the information and data they need.
Install safety or security fences around physical works areas. Do a safety risk assessment to determine the type of fence required. Allow enough budget.
You must allow time and budget to do safety in design. This will reduce the structure’s safety risk and your, your designer and your companies legal risk.