CLOCKING OUT sector and the ongoing backdrop of contractors in financial trouble , and it paints a challenging picture for ongoing and upcoming projects .
Using data as an asset
In this kind of climate , data can be your biggest asset , but it needs to be versatile enough to adapt to the changing winds of the industry and detailed enough to help those acting on behalf of investors to make informed , calculated decisions . Platforms such as the Building Cost Information Service from RICS can act as a guide , but the broadness of its parametres and costings mean that getting an accurate estimate can be an inexact science .
Traditionally , the role of the monitoring surveyor would involve the preparation of a written report to consider the viability of a project , and then monthly draw-down reports to sanction the loan . Consultants , such as Naismiths , have
By fully exploring the advantages of digital financial forecasting and working with consultants that can deliver it , investors in construction projects can reap the reward of significantly improved cost predictions and – consequently – more favourable funding outcomes .
historically made assessments of projects and advised clients on potential risks or deficiencies in the business plan , and help quantify and balance them .
However , attitudes are slowly beginning to change . The construction industry doesn ’ t have the best record when it comes to innovating its processes , but the benefits of digitisation are increasingly becoming clear . There is a real gap in the market for the proper use of granular data , and by combining historical data from previously completed projects and live information from the market , there is the opportunity for real-time risk metrics to be assessed across a range of projects .
That real-time element means that not only can this be used at the commencement of the project but can also be easily adapted for use at various stages throughout the build programme . It can also form a key part of recovery plans should the main contractor on the project run into financial difficulties , allowing the investors to essentially run a ‘ lifeboat drill ’ and simulate what their level of liability is should such an event happen , and how they can mitigate that risk .
Having the ability to take a truly granular look at data can slow down the moving parts of the process , support the longevity of a project and help safeguard investments . By fully exploring the advantages of digital financial forecasting and working with consultants that can deliver it , investors in construction projects can reap the reward of significantly improved cost predictions and – consequently – more favourable funding outcomes . �
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