IPA’s Detailed Cost Analysis, which can be done on any type of project, is a more in-depth analysis that looks not only at cost, but also evaluates the labor hours and quantities of materials. This analysis is based on the work breakdown structure (WBS) cost, which is a more detailed code of costs than what is used in IPA’s typical cost analysis.
The Detailed Cost Analysis can also be used to re-examine a project’s cost and cost effectiveness if significant changes occurred to the project’s estimate since the original IPA evaluation.
A Detailed Cost Analysis can be performed in addition to the standard overall assessments if the level of detail in the estimate is sufficient and actual numbers are able to be provided or as a separate standalone analysis after the initial evaluation when this level of cost detail is available.
The assessment will allow the project team to compare its costs in specific labor categories for the given quantity of materials to be installed against that of similarly sized industry projects, which will allow the team to determine the strength and competitiveness of its assumptions. The Detailed Cost Analysis benefits the team by:
To perform a Detailed Cost Analysis, the project team will need to provide its cost estimate broken out into IPA’s detailed cost form. If the Detailed Cost Analysis is done as a separate analysis, IPA will conduct a face-to-face interview with the project manager, estimator, and project controls lead to understand the scope of the project and how the cost estimate was developed and broken out.
However, if the project chooses to have this analysis done as part of a Prospective or Closeout Analysis, the project team will only need to provide the costs broken out into the IPA detailed cost form. The face-to-face interview with the relevant team members will be held as part of the overall Prospective or Closeout Analysis interview.
If the Detailed Cost Analysis is conducted as part of a Prospective or Closeout Analysis, the results of the analysis will be provided in the Cost Analysis section of the written report using both detailed text and graphics. This will include the project’s planned or actual labor hours and material quantities and ratios between the two, which will be compared against the industry averages from similar projects.
If it is a standalone analysis, IPA will deliver a short form report. The written report will include the analysis of the overall cost effectiveness of the project as well as the analysis of the planned or actual labor hours and material quantities as described above using both detailed text and graphics.
IPA can also deliver a separate briefing to the project team (or management) if requested.