Cost estimating of construction projects has become an increasingly frequent point of contention between design professionals and their client owners. This friction often materializes when all bids received are significantly higher than the design professional's estimate relied upon by the owner. Similarly, as proposed changes are presented during the course of construction, the owner turns to its design professional/construction manager to manage and control the changes to fit the budget. A project that cannot be constructed within the budget results in both seriously disappointed owner expectations as well as, potentially, claims against the design professional.

A number of public owners, including the Commonwealth of Massachusetts, have reacted to cost overruns by putting more stringent standards on cost estimating for public projects through legislation and contractual requirements.

Ensuring that the client has realistic expectations of the various project participants' roles is a practical and simple way to mitigate claims that can arise when a project comes in with a final construction cost in excess of what was originally contemplated. This can be accomplished through clear communication of the scope of the cost estimating services that the design professional will be providing, and the commensurate resources that will be dedicated to that task. Fair and transparent risk allocation and well-written contract terms will serve the design professional well.

David Corkum, Partner with the Professional Practices Group at Donovan Hatem LLP, will moderate a discussion between Matthew Poirier, Director of Project Controls-Keville Enterprises, and Richard Redmond, P.E., President-Redmond Construction Engineering, on the design professional's role in managing the project budget--before, during, and after construction.