Donald Towey 
Cost Management of Construction Projects 

The cost manager/quantity surveyor plays a pivotal role in the
financial and contract management of construction projects,
although the exact nature of the service they provide depends on
the project employer’s terms of engagement. This can mean
acting as consultant in a range of roles including cost and
advisory services for budget setting to initiate a project, cost
management through the design and construction phases, contract
administration and acting as the client side project manager to
oversee the entire building process.

Cost Management of Construction Projects focusses on the
cost manager/quantity surveyor engaged by the project client, and
discusses key elements that help drive project success including
measurement (based on the New Rules of Measurement published by
RICS), procurement, cost planning, contract administration and
project cost management. With examples, it provides a thorough
guide to the role in the workplace and in the field, directly
addressing the day to day situations faced by the cost
manager/quantity surveyor.

Donald Towey MRICS has extensive experience of the
construction industry. His experience began as an estimator with a
glass/glazing contractor in Manchester. Following a number of
positions with UK contractors he relocated to Australia and has
worked with a number of developers and main contractors, as well as
doing freelance work. He is currently working in contracts
management in Sydney.

Table of Content

Preface xi

1 Practice Procedures

1.1 Organisation and structure

1.2 Methods of appointment

1.3 Business development

2 RICS New Rules of Measurement (NRM)

2.1 What is NRM?

2.2 RICS NRM2: Detailed measurement for building works

2.3 Taking off

2.4 Bill of quantities (BQ)

2.4.3 Cost centres

3 Pre-contract cost management

3.1 Cost planning

3.2 Plans of work

3.3 Development

3.4 Design influence on cost

3.5 Setting a budget

3.6 Early design development

3.7 Ongoing design development

3.8 Self-checking of design development

3.9 Action on variances

3.10 Final design proposals and production information

3.11 Cost planning accuracy

4 Procurement systems

4.1 Procurement definition

4.2 Meeting the client’s objectives

4.3 Influencing reports and the need for change

4.3.3 Rethinking Construction (Egan)

4.4 Procurement routes

4.5 Appropriate procurement selection

5 Construction contracts

5.1 Freedom of contract and contract law

5.2 Construction contracts

5.3 Industrial standard forms of contract

5.4 Form recommendation

5.5 Pre-contract signing audit report

5.6 Commitment to commence

5.7 Project insurances

5.8 Project securities

5.9 Contract administration

6 Post-contract cost management

6.1 Professional appointment

6.2 Conflict management

6.3 Cost management

6.4 Insolvency

6.5 Client progress reports

6.6 Performance feedback

Further Reading

Index

About the author

Donald Towey MRICS has extensive experience of the construction industry. His experience began as an estimator with a glass/glazing contractor in Manchester. Following a number of positions with UK contractors he relocated to Australia and has worked with a number of developers and main contractors, as well as doing freelance work. He is currently working in contracts management in Sydney.