The Professional Practice Task Group for the Construction Leadership Council (CLC) Covid-19 Task Force has today published a methodology for assessing and reporting the cost implications of disruption due to the pandemic. Construction clients and contractors rely on accurate cost prediction as the basis of business plans, financial contracts, and commercial control.
The unprecedented nature of the pandemic is affecting the progress and productivity of existing and future contracts, meaning that the information
upon which estimates are usually prepared no longer applies.
The Toolkit acts as a guide to enable better cost forecasting to assist the industry in making informed investment decisions on viability, improving robustness of pipeline and driving long term economic growth.
Commenting on today’s launch, Simon Rawlinson, Chair of the Professional Practice Task Group said:
“The Cost Assessment Toolkit will help the construction industry manage the impact of Covid-19 on existing and future contracts. It establishes a standard methodology to incorporate the cost impacts of the virus into estimates, provides clarity on exclusions and through the collection of industry wide data allows clients and supply chains to compare their project costs against an aggregated data set. By providing the tools to measure and therefore improve productivity, the toolkit acts as a guide to ascertain and assess project risks and establish viability for the long term.”
FIS CEO Iain McIlwee responded:
“This Toolkit could be one of the most valuable resources the CLC has produced through the COVID crisis. Our sector has been particularly hit by productivity concerns with work often being high, heavy or inside and sometimes all three! It is vital that we work together to understand this so that we can sensibly price and manage work and that we work together as a supply chain to find practical solutions to some of the potential contractual landmines out there. We are looking carefully at this Toolkit and what we can do as a sector to add further context and detail to ensure that it supports the cultural improvement much talked about, but desperately needed in construction”.
Download all the Toolkit documents: