Benchmarking an effective tool for evaluating projects.

In the world of both facilities and construction, benchmarking is the most effective way of evaluating the success of a project. It is the discipline that establishes the guidelines from which a project model is created, based upon data derived from similar projects. A project's efficiency will be gauged from the information not only within that company, but also within the industry as a whole.

The advantages are obvious. Overall construction costs and schedules are planned at a very early stage. Moreover, the cost management team will budget at a much greater level of accuracy and detail. Because benchmarking is a goal setting process, the standards are higher and the goal is set for a superior performance.

Today, approximately 70% of Gardiner & Theobald's business includes benchmarking at project inception. Our firm has a long tradition of cost analyses and benchmarking projects. Over the years, we have compiled some of the most comprehensive databases available, covering vital information regarding local, national and international construction projects.

In addition to prominent developers worldwide, we have implemented benchmarking projects for the likes of Merrill Lynch and other major financial institutions in New York City. As a result; we now have standards from which to discern future project costs with similar criteria. But for any kind of construction project, whether interior or base building, benchmarking is an important way to determine, then work within a budget

Our cost models for interior fit-outs are based upon functional space. Functional space is categorized as either "standard space," comprising private offices, conference room, administrative offices and open plan office areas; or "non-standard space," which includes such areas as data centers, cafeterias, fitness centers and reception areas.

In addition to identifying ideal costs for the fit-outs, we delineate areas for value engineering and more efficient specificities, e.g., office layouts, furniture and lighting.

As with most undertakings, a benchmarking project requires a structured methodology to ensure the successful completion of thorough and accurate investigations. Once completed, the result is a veritable cost blueprint from which to work.

Flexibility is key, however, especially when considering the many variables that can occur during the course of a construction project. The efficacy of benchmarking is that within the context of any construction project the unexpected will probably arise. It is, therefore, imperative to be able to incorporate any anomalies into the cost model as the project progresses.

In larger organizations, it is not uncommon for facilities and in-house construction departments to develop their own cost analyses. These analyses are usually based upon previous projects, which can be accurate within certain contexts. For example, a retail outlet in a mall, whether it is for a luxury, bridge or discount brand, is still going to have a model from which current costs may be derived. Benchmarking is helpful in these circumstances because the information provided in this kind of study is so finely detailed, it will help a retailer become more competitive..

But in the case of a retail build-out in New York City, Chicago, San Francisco or any major city for that matter, the costs are going to be effected by local building codes, demographics and myriad other variables. This is where a construction consultancy with an experienced team of cost analysts becomes crucial to the outcome of a project. Benchmarking in these situations is a critical part of the. overall project. When one considers the inordinately high costs of construction today, from materials through labor, there has to be a standard from which to discern the appropriate expenditures and justify the expenses.

Benchmarking has been an integral part of large projects worldwide for decades. But in the states, where it has primarily been used in the financial and corporate sectors and only on larger building projects, the discipline is becoming more widespread. Clients are discovering that the additional cost of a benchmarking study ultimately provides a template for cost savings and a higher standard of construction.