Cost escalation: fact or fear?

Rapid cost increase was one of the biggest concerns in Canterbury’s recovery environment. At one point, extreme projections suggested that every month of delay would result in an additional $1 million cost to the project.

You can’t manage risk to zero

Risk can never be removed completely, but it can be reduced. That’s true in normal operations and remains so during disaster recovery. However, in the aftermath of a major event, most people become increasingly risk averse, just when they are called upon to make crucial decisions in an uncertain environment.

Value engineering for the long haul

The goal of value engineering is to reduce the cost of design solutions without sacrificing the functionality of the end result. But the value of a building is not limited to the construction phase. Value engineering decisions also need to balance the benefits and costs that are likely to accrue across the whole life of the asset.