Cost estimating & pro formas
Cost estimating & pro formas
Set realistic budget and development scenario expectations and maintain them
Whether you are planning, constructing, renovating or operating your real estate assets, you need an accurate picture of the associated costs to avoid budget overruns and unnecessary change orders.
A reliable pro forma and / or cost estimate accurately forecasts the professional, construction, and regulatory costs and timeframes for your asset in your market at the specific time you intend to acquire or develop.
That said, nothing is set in stone and managing change is a cornerstone of any development – updating and refining original financial projections throughout the asset lifecycle helps you mitigate risks while maximizing value and performance.
Support business, development and funding agreements with initial pro forma and budget strategies
While purchasing a site or considering a development, you need a reliable forecast of the cashflow variables affecting your proposed investment to make key due diligence decisions.
Partner with our team of cost consultants for initial pro forma and budget strategies based on accurate & extensive benchmark data from real, comparable completed & live projects in your market.
Maintain project budgets with regular cost management and value engineering
Details of your overall project and its components evolve and become more defined as design progresses. To stay on top of your project budget, you should regularly gauge the current design to the original budget and quantify the cost of those refined details with updated estimates.
When the market & project conditions change, you need a meticulous cost consultant on your side to help you manage your design and cost scheme with agility.
As you move towards construction, the cost estimate gives you an accurate projection that you can use to benchmark and negotiate with the construction marketplace when it comes time to break ground.
Protect your building or portfolio during operation
Our team will review project information and the conditions on site to provide an independent estimate of the replacement cost and facility condition.
This important step will help you obtain suitable insurance coverage, inform sound capital planning practices or get fair compensation during expropriate or other proceedings.
Looking to repurpose or refresh your existing building?
We develop pro forma scenarios and evaluate sensitivity factors to help you navigate through your options. Once you establish which option to pursue, partner with us to develop and manage the costs.
Benefits of partnering with us
From a single pro forma or construction estimate through to a master planned project that spreads over decade, we have the experience on projects of all sizes and asset types, from coast to coast to coast.
Combining years of estimating and pro forma experience with lasting industry relationships, benchmark data, and top-rated software, our professional cost consultants work with you to:
- Manage, validate and benchmark your project costs and projected cashflows
- Manage every aspect of project cost from land to marketing, financing, construction labour, materials, timeframes, buildings systems, constructability and sustainability
- Develop flexible & dynamic summaries with key project success metrics to keep your development plan on the right track
- Leverage real benchmark data and top-rated industry software to get you the critical information you need
Reduce project risks and construction costs with sound procurement, contract and dispute resolution strategies.
Keep decision makers informed with insights and data from experienced development consultants.
Asset and facilities management
Understand the current state of your facilities and their maintenance practices so you can make asset and operation decisions.
Minimize risk and enhance control measures on infrastructure projects with impartial expert advice.
Project & loan monitoring
Get peace of mind with accurate reporting on construction progress and cash flow from an independent project monitor.
Cost Escalation Report
Accurately assess construction cost escalation by trade, for better budgeting and forecasting.
Distressed development & workout solutions
Clarity on project viability for lenders, developers, trades and court-appointed trustees, monitors, receivers & managers
CMHC Rapid Housing Initiative services
Understand your eligibility and position your application for success
Replacement cost estimates
A replacement cost estimate will ensure you have the appropriate insurance coverage for your property.
Contact a qualified professional
Our multi-disciplinary team of professionals brings a wealth of industry experience and unparalleled data-driven insights, providing the clarity you need to make informed decisions.
Our workView All
Cost estimating, Cost allocation, Value engineering, Payment certification, Pro formas, Scheduling, Project monitoring, Economic advisory & market research, Economic studies
Contract solutions, Project and loan monitoring, Cost estimating and pro formas, Development consulting, Economic advisory & market research
Commercial investment portfolio
Replacement cost estimates for insurance purposes, Capital expenditure forecasts, Property tax assessments, Portfolio valuation
CLTC Gander & Grand Falls-Windsor
Construction cost analysis, Peer review, Lenders' technical advisory
The KIP District
Property appraisals, Cost Planning, Cost Monitoring, Market feasibility studies, Economic advisory & market research
Project and loan monitoring, Cost estimating and pro formas, Development consulting
Gastown Child Care Centre
Pre-bid estimates, Design development estimates, Breakout costing for Passive House requirements
Practical strategies for managing construction cost escalation
Feb 16, 2021
Practical strategies to manage construction cost escalation
Your guide to a successful office fit-out project
Feb 1, 2021
Practical strategies for each phase of your office fit-out project
2021 Canadian Cost Guide
Jan 20, 2021
Your guide to better understanding Canadian real estate development and infrastructure construction costs
Construction cost escalation – not all sectors and trades change at the same pace
Aug 31, 2020
It’s very common for developers, contractors and consultants to estimate construction cost escalation, for all asset types and trades, based on a single number or range. This is dangerous and can lead to grossly inaccurate development budgets and forecasts, and more time (and money) spent on contingency plans down the road.
Modular building construction: Has its time finally come?
Dec 9, 2020
Modular construction is something that forward-thinking governments, investors, manufacturers, developers and builders are looking at, but it is important that it be tempered with a clear understanding of advantages versus constraints, and a proper assessment of opportunities and how to mitigate the risk.
CMHC’s Rapid Housing Initiative – Your questions answered (updated)
Nov 20, 2020
Ongoing answers to your questions about CMHC's Rapid Housing Initiative. This program was launched to address housing affordability and homelessness in Canada's most vulnerable communities.
Put pro formas to work to understand and manage development risks and protect your profits
Aug 14, 2019
Rising land values and construction costs in the real estate market over the past several years are raising risks for developers, lenders and equity investors. This precarious situation requires a new approach for understanding and managing development risk – an approach with pro formas as the focus.
Challenging the traditional approach to project management
Dec 3, 2020
A new era of project managers is needed to adopt a more integrated approach and to address three key risks: scheduling, costs and claims.
Opinion | COVID-19 impact on construction costs and escalation
Mar 30, 2020
What are the potential short, medium and long-term construction cost outcomes of the COVID-19 pandemic
Opinion piece | COVID-19 impact on construction costs and escalation (part deux)
Sep 30, 2020
An update to Marlon Bray's March post on how the pandemic would impact construction costs and escalation on the short, medium and long term.
As good as gold: opportunities for institutions to extract land value through strategic redevelopment
Jan 28, 2019
As land values climb and structures wear out, rather than simply selling their property and bidding goodbye to their buildings and land forever, more and more institutional administrators and boards would like to determine whether a redevelopment partnership may be possible to safeguard their future.
Stitch in time saves nine – How to use this pause in construction to save on your next development
May 12, 2020
With a desire to keep soft costs down, there is a reluctance amongst owners to invest more in the design and tendering phases of the project development. However, spending a bit more on the design team prior to construction seems to make a lore more sense, especially with millions of dollars in savings being left on the table.
Tariffs & Construction Costs
Oct 5, 2018
Tips to manage risks and mitigate the impact of tariffs on construction costs and your bottom line.
Cost plans & estimates – the most underused problem-solving tools in the construction industry?
Jun 1, 2020
Cost estimates are one of the best problem-solving tools an owner, design team and construction manager have at their disposal. However, they are often treated as a formality, pulled together for compliance, when the wealth of information that is contained is often lost and rarely fully-leveraged to the extent it should.