Project Cost Controls ensure proper management of the project budget in a constantly changing environment for the operator/owner. We specialise in the field of cost management from the initial estimate build (or Bills of Quantities preparation), through assisting during the tendering process, post-tender contract administration, change order management, cost management and control throughout execution to final accounting and close-out

Cost Management Services

Our cost management & control processes apply to the life of the project from Feasibility, through Concept Select, FEED, Detail Design, Fabrication / Construction, Close-out & Handover. Our procedures start with the cost estimate build via our cost estimating personnel reflecting the Client’s own work breakdown structures (WBS) which enables a smooth transition to the cost management phase via our Cost Engineering personnel. Where required and deemed suitable, cost control is exercised via our PEMS system.

Our standard cost management processes cover: budget build and cost phasing in line with project schedule; commitment and expenditure recording; VOWD computation; monthly reporting including earned value reporting, cost forecasting and variance analysis. Changes are identified and controlled via the Client’s own Management of Change process including the draw-down and management of contingency.

Cost management staff are normally integrated within the project team in the Client’s offices with full access to our head office personnel and cost control systems.

Cost Estimating Services

We are able to bring an established track record in the provision of cost estimating and independent estimate validation services involving a wide range of project types.

This experience captures validation of EPCM’s conceptual, feasibility, FEED and control estimates as well as production of all classification estimate types using our in-house estimating tools. Estimate generation and validation can be carried out to support investment decisions, budget planning as well as to support negotiations / bidding evaluations. As part of the validation and attest process, a range of benchmarks and metric comparisons are available in-house from comparable projects in relation to manhour, cost and quantities. We draw on their Global internal network of data and experience as required in order to provide the necessary tools, techniques and data to be able to support their delivery of the services.

Risk Management

As part of our overall Cost Management Service, we specialise in quantitative schedule and cost risk analyses for Oil and Gas projects, either as part of a wider estimating brief, or as stand-alone assignments. We prefer to work jointly with the project team rather working as an independent third party.

We generally use @Risk for quantitative cost risk analyses and Oracle Primavera Risk Analysis for schedule risk analyses. We also use the lesser-known Futura Nova software tool where appropriate, which is particularly suited to qualitative risk and opportunity identification.

Our quantitative risk modelling is typically preceded by a structured qualitative risk and opportunity analysis workshop in which all aspects of the project execution plan are challenged. The outcome of the qualitative analysis is used to support the quantitative probabilistic modelling, but it can also be used as the basis for developing risk and opportunity registers.

Project Execution Management System (PEMS)

Our “Project Execution Management System” (PEMS) lies at the heart of its cost reporting capability. PEMS is a Cost Control and Reporting system developed in 2002 which provides a single dynamic framework for Project Controls Cost Management, complementing other client systems for cost capture and reporting. We has implemented over 40 databases around the world making PEMS a proven Project Cost Control Tool accommodating both small and major projects.

PEMS is an integrated cost control environment which includes:-

  • Unlimited user defined reporting structures
  • Inclusion of Actual cost
  • Budget phasing & baselines
  • Management of Change (MOC)
  • Contract/Purchase Order capture and reporting
  • Vendor register
  • VOWD
  • Estimate at/to Complete
  • Multiple currency capability
  • Cash forecast

Cost Management Personnel

We have a broad range of Cost Management personnel at a range of grades/levels to suit Client requirements including:

  • Cost Estimators
  • Cost Engineers
  • Quantity Surveyors (QS)
  • Contracts Engineers
  • Risk Management Specialists
To find out more about Wood and our capabilities, please contact us.
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