- Advisory Services
- Cost Consultancy
- Project Management
Can the benefits of a project be analysed to see if their costs are warranted?
Procurement strategies should provide a systematic means of analysing costs and benefits of various ways that project objectives can be achieved. Appraisals should be undertaken at the earliest possible stage in project development before any commitment is given to a particular option and include the following:
- Clearly define project objectives
- Identify practical ranges of options
- Quantify the costs and benefits of each option
- Consider qualitative aspects
- Identify the preferred option and map actions required
Rider Levett Bucknall can examine the issues and assist in the development and evaluation of a project or service delivery with its experience and knowledge of costs, benefits and risks.
An effective feasibility study is an essential pre-requisite to any procurement decision making process. Feasibility studies assess the viability of a project over its expected life and indicate the probable return, either at the point of sale or over a period of time, generally using discounted cash flow techniques.
In addition sensitivity analyses can be used to highlight those variables that have the greatest impact on project returns. The feasibility report can also assist in the process of obtaining project finance.
Rider Levett Bucknall have their own computerised feasibility systems which offers:
- a simple developer’s return on capital cost feasibility, or
- a detailed discounted cash flow feasibility based on a range of rates of return and risk sensitivity tests
The choice of contractual arrangement is critical to effective project procurement and service delivery system.
Contractual arrangements to facilitate project delivery vary according to the degree of risk accepted by Developers, Contractors and Owners relative to the prevailing economic and industrial climate.
In the final analysis, any project procurement or service delivery system should cover;
- Time performance and delays
- Cost control and claims
- Quality control over the final product
- Delineation of risk between the parties
- Industrial relations and statutory obligations
- Dispute resolution
Rider Levett Bucknall are uniquely positioned to provide independent and specialist advisory services and supplementary support to a Client who wishes certainty of contractual outcomes.
RLB Global Capability Statement 2011-12