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Estimating

Cost Control and Value Engineering
in Shopfitting

In shopfitting, cost control and value engineering are two sides of the same coin: one is about keeping spending in check, the other is about making sure you get the best value without compromising design or quality.

Cost Control

  • Begins at estimating and continues through project delivery
  • Involves setting a project budget, tracking actual costs, and comparing them against forecasts
  • Covers monitoring subcontractor quotes, material orders, labour hours, andvariations.
  • Uses financial reports, site diaries, and progress claims to identify overspending early.
  • Goal: deliver the project on budget and protect margins.

Value Engineering

  • A structured process of analysing spending to find smarter ways of achieving the same result.
  • Examples include swapping imported tiles for local options, using modular joinery instead of fully custom, or revising lighting specs to cheaper but compliant alternatives.
  • Focuses on maintaining functionality and design intent while reducing unnecessary costs.
  • Requires collaboration between estimator, project manager, designer, and client.

Why They Matter in Shopfitting

  • Shopfitting margins are thin and deadlines are tight; small overruns can wipe out profit
  • Clients often expect premium finishes on modest budgets, making cost-effectivesolutions essential
  • Cost control ensures financial discipline, while value engineering identifiesopportunities to deliver smarter and leaner outcomes.

In shopfitting, cost control and value engineering are two sides of the same coin: one is about keeping spending in check, the other is about making sure you get the best value without compromising design or quality.

Project Schedule in Shopfitting

A project schedule in shopfitting is the master plan that lays out how a fitout project will actually get done, step by step, and within the client’s deadline. It maps out who does what, when, and in what order, so the job doesn’t turn into chaos on site.

What It Usually Includes:

Timeline of tasks

All key activities from demolition to handover, broken into manageable chunks like site prep, joinery installation, services rough in, finishes, inspections, and final clean.

Dependencies

Which tasks rely on others being finished first, e.g., joinery can’t beinstalled until walls are complete, flooring can’t go down before services are finished.

Milestones

Critical points such as 'services rough - in complete,' 'joinery delivered or 'practical completion' used to track progress.

Resources

Allocation of trades, subcontractors, equipment, and materials so tasks can be completed without delays

Dependencies

Supplier delivery schedules and manufacturing times factored in to prevent bottlenecks

Buffer and contingencies

Allowances for unexpected issues like weather delays, design changes, or client indecision.

Format

Usually presented as a Gantt chart or timeline using tools such as MS Project, Primavera, or Excel.

In short, a project schedule in shopfitting is the roadmap that keeps the fitout movingsmoothly, ensuring trades don’t trip over each other and the store is ready for opening dayon time

Estimating Training Modules

  • 1.Key considerations before stating an estimate
  • 2.Manage trade & Supplier Rates
  • 3.Conducting a site assessment
  • 4.Minimum key documentation to successfully estimate
  • 5.Reviewing the plans & preparing RFIs
  • 6.Breaking down the plans &preparing trades quote requests
  • 7.Starting your estimate in Buildxact (Other software package) including take-offs
  • 8.Cost control & Value Engineering
  • 9.Reviewing trade quotes and finalizing the estimate
  • 10.Project Schedules
  • 11.Revisions once you have meet with the client

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What we provide

Comprehensive List of the Estimating Process
for the Building Industry

Project Scope Definition

  • Understand the project requirements, including design, specifications, and scope of work.
  • Review architectural and engineering drawings to identify keyelements and areas ofcomplexity
  • Clarify details with clients and stakeholders to avoid ambiguities and ensure alignment with project goals.
  • Review architectural and engineering drawings to identify keyelements and areas ofcomplexity
  • Prepare a project brief or scope document to serve as a reference point throughout theestimating process.

Quantity Take off (QTO)

  • Measure and list all materials, labor, and equipment needed, ensuring no component isoverlooked.
  • Use digital software tools or manual methods for accurate take-offs from drawings andspecifications.
  • Break down take-offs by constructionphases (e.g., demolition, foundation, framing,finishing) to streamline cost tracking.
  • Include allowances for waste, overages, or specific site conditions that may impactquantities.

Cost Analysis

  • Assign unit costs to materials, labor, and equipment based on current market rates andhistorical data.
  • Factor in regional cost variations, transportation costs, and potential price fluctuations.
  • Include indirect costs such as permits, inspections, and temporary facilities.
  • Perform a cost comparison analysis to identify opportunities for value engineering.

Subcontractor and Supplier Quotations

  • Obtain multiple competitive quotes from subcontractors and suppliers to ensure cost-effectiveness.
  • Verify all inclusions, exclusions, and validity periods of quotes toavoid discrepanciesduring construction.
  • Evaluate subcontractors' capacity, reputation, and previous performance to minimizeproject risks.
  • Document and organize all quotations for easy reference and comparison.

Overhead and Profit Calculation

  • Include business overhead costs such as office expenses, project management salaries, insurance, and utilities.
  • Allocate a margin for profit that reflects the company’s strategic goals and market position.
  • Consider the project’s risk level, duration, and complexity when determining profit margins.
  • Ensure transparency in overhead and profit calculations when presenting to clients.

Risk Assessment

  • Identify potential risks such as delays, adverse weather conditions, and material shortages.
  • Evaluate the likelihood and impact of each risk on the project timeline and budget.
  • Allocate contingency funds or develop alternative plans to mitigate identified risks.
  • Document risk assessment findings to inform decision-making and client discussions.

Compliance Check

  • Ensure the estimate complies with relevant building codes, standards, and regulations.
  • Account for environmental or sustainability requirements, such as energy efficiency ratings and waste management.
  • Review project-specific legal requirements, such as zoning laws, heritage considerations, or health and safety regulations.
  • Include allowances for mandatory compliance certifications and approvals.

Final Estimate Preparation

  • Consolidate all costs, including direct, indirect, and contingency expenses, into a comprehensive estimate document.
  • Review the estimate for accuracy, consistency, and completeness.
  • Ensure the final estimate aligns with client expectations and project objectives.
  • Prepare a summary or executive overview for stakeholders, highlighting critical cost drivers and assumptions.

Presentation to Client

  • Prepare a clear and professional estimate report tailored to the client’s requirements.
  • Highlight key aspects such as total cost, payment terms, project timeline, and any assumptions made during the estimate.
  • Provide a breakdown of major cost categories to enhance transparency and build client confidence.
  • Address client queries and be prepared to adjust the estimate based on feedback.

Ongoing Adjustments

  • Update estimates as project details evolve, incorporating changes to designs, materials, or market conditions.
  • Maintain a version control system to track revisions and ensure clarity in communication with stakeholders.
  • Regularly monitor actual costs against estimates during the project to refine future estimating practices.
  • Adapt to unforeseen circumstances promptly, ensuring that budget adjustments are communicated clearly to the client.
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