Price management

Price management, or cost management, is a part of project management and one of the critical branches of investment constructions, which is applied at all stages of the project.

Price management solves the issue of project costs, both during the first phase of the price proposal, as well as subsequently specify the calculation to quantify all expenses (costs) in connection with the preparation of project documentation and project specification. The responsibilities usually also include the control of construction costs and invoicing of the contractor (contractors).

Price management is an essential tool for the successful completion of a project, minimising all costs.

Price management, or cost management, is a part of project management and one of the critical branches of investment constructions, which is applied at all stages of the project.

Price management solves the issue of project costs, both during the first phase of the price proposal, as well as subsequently specify the calculation to quantify all expenses (costs) in connection with the preparation of project documentation and project specification. The responsibilities usually also include the control of construction costs and invoicing of the contractor (contractors).

Price management is an essential tool for the successful completion of a project, minimising all costs.

Price management phases:

Study, investment plan

Determining the concept of the financial plan for the preparation and implementation of the investment plan

Analysis of possible budget costs of the project study or investment plan

Cost analysis in terms of possible solutions

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Project preparation

Interactive cooperation in incorporating individual project documentation inputs with an emphasis on cost optimisation

Price impact analysis when choosing alternative workflows, technologies, materials used

Monitoring and submitting savings proposals, performing cost optimisation

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Tender procedure

Processing of bill of quantities

Preparation of tender documentation, preparation of standard tender forms, valuation of documents, etc.

Preparation of instructions and management of tenderers

Cooperation in the preparation of the contract of work and the general terms and conditions

Distribution of tender documentation, arranging of interviews with candidates, organisation of questions and answers, overall managing of contact with the candidates

Evaluation of tenders, especially in terms of fulfilment the tender conditions and price calculation; issuing the progress report

Cooperation in the preparation of the final draft of the contract for work and general contractual terms and conditions

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Project realisation

Cost management during the project implementation, handling of all financial agenda with the contractor

Checking the contractor’s proposals for pricing of works, supplies, and quantity in case of changes to the work

Regular evaluation of the state of completion as far as costs and financial plan are concerned

Discussing any changes to the performance of the work as opposed to the contractual terms and impact on costs (extrawork, cancelled work)

Financial management of client’s changes, record keeping, negotiations, re-launching

Proposals and supervision of payment invoicing, management and organisation of document circulation

Analysis of the contractor’s financial requirements, their discussion and submission of recommendations for dispute resolution

Updating the price in the course of the project implementation concerning the construction progress, work changes, client’s changes, schedule modifications, phasing, etc.

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Price management phases:

Study, investment plan

  1. Determining the concept of the financial plan for the preparation and implementation of the investment plan
  2. Analysis of possible budget costs of the project study or investment plan
  3. Cost analysis in terms of possible solutions

Project preparation

  1. Interactive cooperation in incorporating individual project documentation inputs with an emphasis on cost optimisation
  2. Price impact analysis when choosing alternative workflows, technologies, materials used
  3. Monitoring and submitting savings proposals, performing cost optimisation

Tender procedure

  1. Processing of bill of quantities
  2. Preparation of tender documentation, preparation of standard tender forms, valuation of documents, etc.
  3. Preparation of instructions and management of tenderers
  4. Cooperation in the preparation of the contract of work and the general terms and conditions
  5. Distribution of tender documentation, arranging of interviews with candidates, organisation of questions and answers, overall managing of contact with the candidates
  6. Evaluation of tenders, especially in terms of fulfilment the tender conditions and price calculation; issuing the progress report
  7. Cooperation in the preparation of the final draft of the contract for work and general contractual terms and conditions

Project realisation

  1. Cost management during the project implementation, handling of all financial agenda with the contractor
  2. Checking the contractor’s proposals for pricing of works, supplies, and quantity in case of changes to the work
  3. Regular evaluation of the state of completion as far as costs and financial plan are concerned
  4. Discussing any changes to the performance of the work as opposed to the contractual terms and impact on costs (extrawork, cancelled work)
  5. Financial management of client’s changes, record keeping, negotiations, re-launching
  6. Proposals and supervision of payment invoicing, management and organisation of document circulation
  7. Analysis of the contractor’s financial requirements, their discussion and submission of a proposal for dispute resolution
  8. Updating the costs during project implementation with regard to construction progress, work changes, client changes, schedule modifications, phasing, etc.