Analyse every item of expenditure
If it does still look ok then carry out what is called
a ‘Value Engineering ‘exercise on the schedule
of work. That means going through every item and question
if it needs to be done or if it does is there another
way of doing it which will be cheaper.
Don’t forget to include a contingency item in
your cost plan because you will find that there will
be items of work which you have forgotten and other
items they you would have under estimated.
If you have some expensive items on your list get quotations
for the work . Ideally to ensure cost certainty for
80% of the work to give some level of confidence that
the budget is about right.
This cost plan will be of great use when you are undertaking
the project to ensure that costs are fully understood
and can be monitored. [more on cost planning)
Programming the work
Once you have decide what work is required to be completed
it is important to plan the tasks on a comprehensive
programme. For each task you need to estimate how long
it will take. What will be the lead in time to organize
the task and are there any long delivery periods for
materials.
Once all this information is known the tasks have to
be coordinated with each other to ensure that the sequence
is correct and that the work is completed in a logical
order. For example if you need to have the floor boards
up to install central heating and you also need to rewire
the house then plan to take up the board once. Also
you don’t want expensive finished work being damaged
by dust from cutting masonry work. ( see section on
Programming for an example and more detail)
Once the programme is complete it will be easy to see
which items are critical. This is often called the ‘Critical
Path’ of a programme and this path will govern
the overall time it will take to complete the work.
The programme will now form an important role to first
estimate the overall time to complete the project and
help to estimate costs and monitor the work as it is
being completed.
Also the programme will help to understand when the
facilities will be available and this is vital if you
are trying to live in a property while undertaking the
work. A shorter programme will always be possible if
you have the property vacant. You need to link some
of these factors to the financial issues. A fast track
programme may soak up the money but it may be an option
you prefer to get things available more quickly. On
the other hand you may be funding the work over a longer
period which proves acceptable.
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have a brand new home you may be paying top prices.
If the housing market drops you could find yourself
in negative equity.