The triangle illustrates the relationship between three primary forces in a project. Time is the available time to deliver the project, cost represents the amount of money or resources available and quality represents the fit-to-purpose that the project must achieve to be a success.
The normal situation is that one of these factors is fixed and the other two will vary in inverse proportion to each other. For example time is often fixed and the quality of the end product will depend on the cost or resources available. Similarly if you are working to a fixed level of quality then the cost of the project will largely be dependent upon the time available (if you have longer you can do it with fewer people).
A multitude of factors can effect the scope triangle.
When calculating build cost we cross reference three sets of data.
Here are just a few examples of build projects we have completed which we have experience and data.
Within your quote for building or maintenance works you may have a item labelled as an estimate or provisional sum.
This item we do not know the exact cost of so we will make a “best guess” based on experience or industry standards.
But the cost is still unknown.
Examples of situations that might involve provisional sums might include:
A prime cost sum is basically a rough known cost of an item or package of works from say an electrician.
The item could be double glazed bi-folding doors and the price was retrieved from a range of online providers.
Not until the item is purchased and fitted was the true price known.
Examples of a situation that might involve a prime cost sum might include:
EXAMPLE: On one project I was involved with the client had order a very expensive bespoke free standing bath tub. Unknown to all managing the job this bath was delivered to the site and offloaded onto the pavement outside the house. No communication from the client had taken place to inform us of its delivery. Worse still the delivery happened at the end of the working day when most persons on the site had finished for the day. The bath was delivered in a wooden crate and weighed in excess of 300kg. Due to the very high cost of the item, its ease to being damaged and the very heavy weight and limited gripping points and space to move it in the house it presented a very difficult task just to move. This bath had also to be lifted up two flights of tight stars to the bathroom. This task took five very strong tradesmen exerting great effort to do the task. These tradesmen had to all be persuaded to return to the site to complete this task so the bath was not left on the street overnight. All these tradesmen had to be paid for their time and for the risk of injury which could have put them out of work. This cost had to be met by the client.
We use construction industry professional standard contracts to give both parties peace of mind that professional business standards are being applied and that your project is managed in the highest professional manner.
SEE link to the JCT family of contracts.