A project cost verification report will generally include all the costs by the date of the report, where they are known, a forecast of the costs likely to be incurred during the rest of the project, in so far as these can be foreseen and estimated, and risk allowances for the possibility of unforeseeable costs.

Cost verification report involves the quantity surveyor undertaking an estimate to a level of detail commensurate with the level of detail contained within the Building Contract documents. This include, where possible, comparisons on a trade basis with the Builder’s tender. Any significant variance with the Builder’s tender and the construction contract be highlighted and discussed with the parties.

Key issues:    

In verifying the Construction Estimating Services in Sydney, the quantity surveyor assesses the followings:

• where available, compare the Builder’s price with other tenders received
• identify any Value Management items included in the Builder’s price
• comment on any exclusions noted in the Builder’s tender and whether these items should be allowed for elsewhere, or not
• comment on items specifically excluded from Builder’s tender scope to be provided by others
• compare the Contract Sum with other benchmark projects of similar size and nature
• list any Prime Costs and Provisional Sums, and comment on the appropriateness of the allowances
• note any potential budget overruns
• undertake and include a proper measured and priced estimate (not metre square rates)
• benchmark against similar projects (that the quantity surveyor has worked on), and include a statement addressing how this project compares to other projects similar in size and nature
• identify Client supply items and implications to the contract
• verify costings and stage of costings, particularly where these are front loaded
• for Owner-builder projects, confirm the level of trade lettings to-date and whether margin is, or is not, included.