Total Cost Management: A Better Way
Goal
A cost management process produces a positive outcome when it effectively aligns the demands of visionary intent, client expectations, and fiscal integrity. Although each of these parameters can take on different form and purpose—programmatic requirements, iconic design, life cycle and operational integrity, sustainability aspirations, pro-forma parity, donor and fundraising goals—in the end, a successful project strikes a balance among these variables without undue compromise.
We can also measure success by the internal framework and constraints of a profitable fee structure, although this concept is argued among architecture professionals. The method we describe here, Total Cost Management (TCM), offers a key byproduct: fewer abortive design efforts.
Existing Paradigm
Typically, a cost consulting request directive outlines a series of cost-estimating milestones that mimic, in direct proportional relationship, the design submittal progression. These milestones are familiar: schematics, design development, and construction documents. Characteristically, we are asked to provide estimates as each of these design milestones are achieved.
We find this approach reactive, static, and passive. The design team provides the template, and in return, we simply inform them of the cost of their proposals. Invariably, we encounter a misalignment with budgetary constraints, and then employ some form of corrective action—usually a combination of Value Engineering and programmatic sacrifice.
This linear approach often produces untenable expense. We all know the script. The compromises are many; a diminished product is the too-frequent net effect. Although the extent of the devalued outcome varies, it is often unavoidable. Most significant is our loss of design time, energy, and ultimately, our fee.
We think there is a better way.
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