SERVICE

01

Cost management is the process of setting an appropriate target budget while satisfying the client's requirements and various constraints and managing the final cost to stay within the budget by implementing consistent cost control from the conception and planning stage to the construction stage of a construction project.

Index Group provides strongly supports our clients by strategically performing consistent cost management throughout the project with the following services as its core.

02

Establishment of an appropriate target budget

At the conception and planning stage of a construction project, Index Group organizes the client's requirements and various constraints to optimize the target budget, including whether the budget is appropriate and whether the existing budget is reasonable.

Specifically, we set the "price per square meter" based on the conditions of the planned area, purpose, scale, and grade of the building. Based on this price, we adjust for differences in conditions such as "region," "scale," and "price fluctuations" in the business plan and similar projects to formulate highly accurate target costs. In addition, depending on the purpose of the building, we consider the "unit cost per guest room," "unit cost per customer seat," or "unit cost per hospital bed”.

At the same time, we verify the appropriateness of the target budget by analyzing it from a comprehensive and objective perspective, such as whether the budget is generally within the market level of construction costs by creating a benchmark of similar projects.

03

Estimate Scrutiny, Design VE, and Contract Negotiation

At the stage of selecting a construction company, we determine evaluation items such as construction cost, quality, schedule, and design value engineering (VE) proposals, and comprehensively compare and evaluate them according to the circumstances and objectives of the project. We also provide full support to our clients in discussions and negotiations with construction companies regarding contract conditions and construction costs.

The unit prices of quotations submitted by bidders are examined efficiently and accurately by utilizing Index Group’s vast database. Similarly, quantities are checked for validity by our experienced cost engineers.

The design VE is based on the design contents and asks, "Does it meet the functions of the building required by the client?”, "Is the grade of the final products more excessive than what the client wants?”, "Are there less expensive building materials and equipment that can fulfill the same functions?”. We then review the design and construction methods from a technical standpoint and proactively propose alternatives that will reduce costs and shorten the construction period.

Regarding contract terms and conditions, we advise on how to settle accounts in the event of changes or additional work, how to bear the increased cost of materials and labor due to post-contract price increases, and the terms of payment for construction work. In addition, we prepare various documents required for bidding, provide various coordination services related to the selection process, and support consultative negotiations during contract negotiation.

[Bidding-related documents (example)
Quotation guidelines
Specifications and Unique specifications
Estimate preparation guidelines
Quotation breakdown form
Reference quantity sheet
Questionnaire, etc.

04

Cost Control and Cost Monitoring

Index Group monitors the current costs against the target budget at any time during all phases of the project, from planning to completion. We prevent over-budget and unexpected cost increases and implement consistent cost control throughout the project.

05

Market research and database

In cost management, consideration of the whole market and its conditions is very important. In addition to the effective use of statistical data and transaction data published by governments, public institutions, and construction companies, we conduct timely market research based on the actual conditions of our numerous projects and develop precise cost management based on data that matches the actual conditions.

We also create persuasive documents by utilizing various information based on our extensive project experience. For example, when formulating and evaluating the appropriateness of target budgets, we refer to numerous projects with similarities in "region," "purpose," "scale," "structure," "grade," etc., and provide strong support for projects from the perspective of actual market transaction prices.