5d: creating cost certainty
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5D: Creating Cost Certainty. David Mitchell Partner & 5D Quantity Surveyor Tuesday 22 nd October. How Does 5D Benefit the Owner?. 5D creates cost certainty by: Early cost decisions - more alternatives Cost transparency - stronger negotiation capability - PowerPoint PPT PresentationTRANSCRIPT
5D: Creating Cost Certainty
David MitchellPartner & 5D Quantity SurveyorTuesday 22nd October
How Does 5D Benefit the Owner?
5D creates cost certainty by:
• Early cost decisions - more alternatives
• Cost transparency - stronger negotiation capability
• Real-time estimates - greater accuracy & less contingency
More alternatives & stronger negotiations
Source: Mitchell Brandtman
Greater accuracy & less contingency
% Change
Entire Contract:
Extensions of Time (38 No) + 57%
Variations (321 Claims) + 27%
Structural Steel Component (15%):
Extensions of Time (zero) + 0%
Variations (5 Claims) + 2%
Source: Mitchell Brandtman
What Does Successful 5D Require?
Successful 5D requires:
• Leadership: wisdom
& know how
• Plan: process,
behaviour & technology
Source: Mitchell Brandtman