For effective long term collaborative working both the client and contractors must understand their costs through an Open Book Cost Management Process. Only when actual costs are understood and recorded, can the cost of waste be identified and eliminated. Actual costs include Cost of Labour, Cost of Materials, Cost of Plant/Tools, Cost of Risk, Overhead and Profit.
IBE Partnership work with the project team to develop transparency in the both direct and indirect project costs. We have successfully worked with in excess of 300 contractors and key suppliers to develop true open book working.
We have a 3 stage approach:
Stage 1-Review contractors/suppliers basic processes and procedures to deliver cost transparency, together with the desire and attitude to work openly and collaboratively - including establishing the non-project (company) overhead and profit margins.
Stage 2 -Develop ‘open book’ Resource based Target Cost Models for individual projects.
Stage 3 -Establish a project specific Cost Tracking process to monitor and control costs as well as a client audit procedure.
We operate open book procedures for maintenance activities including servicing and repairs and for planned and new build projects.
We mentor and train the client, main contractor and supply chain in the processes and procedures enabling them to own and implement the processes independently on future projects.