In the event of a change in lender or contractor, it would be important for the client to know if the project is on track for completion based on work in progress and construction expenditures to date; or if additional financial resources would be needed to complete the project. A Cost-to-Complete report is designed to provide an assessment and opinion on the construction of the work in place and the balance of the work remaining. A site visit will be performed after receiving documents to assess work in place versus work remaining. A complete document and cost review could be included in our analysis. The Cost-to-Complete is tailored to each client’s need as each project will have specific requirements either mandated by the client or recommended by Partner to successfully meet the client’s needs and address the risks.
Cost-to-complete is typically calculated by assessing the remaining scope of work, estimating the costs associated with completing that work, and adding them to the actual costs incurred to date. Various methods, such as bottom-up estimating, parametric estimating, and expert judgment, may be used to determine the remaining costs.
Cost-to-complete should be assessed regularly throughout the project lifecycle to track progress, identify any deviations from the budget, and adjust financial forecasts accordingly. It is often reviewed during project status meetings, budget reviews, and financial reporting periods.
Earned Value Management (EVM): A project management technique that tracks progress, budget, and schedule performance.
Accuracy depends on the quality of historical data and assumptions made.
Unexpected events can significantly impact the final cost.
