Dealing with the reality
3E International Ltd. primarily deals with such developments which exceed one billion HUF thresholds. 3E has already successfully worked with many large, international companies in addition to numerous domestic projects, and they can represent the interests of their respected Clients throughout the entire investment process. “Any engineering service provider basically has three main tasks: to oversee the technical content of the investment, the budget, and the scheduling of implementation,” says Péter Bóna, technical director and chief engineer of 3E International. “If two of them work perfectly, we can talk about a reasonably good project,” he adds with a smile. Jokes aside: our task balance Quality, Cost, and Schedule based on the specific interests of each Investor/Real Estate Developer. It is also a very important part of the consultant’s work to help the developer to navigate in the jungle of different regulations with continuous, up-to-date knowledge of the applicable building regulations and legal issues and to adapt the design to the requirements of the local environment in all respects – it is especially important for foreign investors. The problems usually start when the developers, investors do not properly assess the real, actual cost of the construction. “Companies often underestimate the expected costs by as much as 10 to 20 percent,” the chief engineer points out. “If you start working on that basis, you’ll run out of money on the go, and nothing is more expensive than an investment which is half-finished.” 3E International provides an estimate of the expected current costs based on many years of professional experience and their data basis. -“You have to face with the reality, otherwise the reality will face you,” – Peter Bóna quotes one of his favorite sayings. For example we can tell our Customer what is the cost of a 30,000 square meter office building with an average or special fit-out cost(s). At the beginning of the project, we can provide realistic, guiding cost figures for the expected investment for the entire duration of the project realization. We can tender different construction companies in a professional, transparent manner. By taking their references into account, we help our Customer to select the best offers, therefore providing the customer savings in measurable percentages. ” Roughly three-quarters of construction projects are profit-oriented investments. The realistic cost estimates are inevitable in terms of return, as this can determine whether that idea is worthwhile to implement in a given place and form at all.
Start with the basics
It is true, that it is never too early to involve an engineering firm with extensive experience. Although our company 3E International can be involved at various stages of the project, but the best off is before the first hoeing. “There have been several developments where at the concept level we had to pretty much ask our Customer, sorry to say; but do you mean that it shall be considered as a serious plan? – says Peter Bóna. “A really good project starts with the involvement of project manager from the concept plan, or even better before buying the development plot or an existing facility to be converted to different function. We can advise our respected Clients what can be developed there, what are the best technologies for this purpose, etc.” 3E experts may also draw the Developer’s attention to hidden pitfalls, such as archeological issues, environmental protection etc. If archaeological relics appear in the development area, this will negatively affect the scheduled construction period and as a result of such investigation the scheduled construction work may stop or get delayed for months or in worst case even a half a year. The next step is to review the design documentation. “We also take into account certain aspects that normally the designers may not think about, such as simplicity of maintenance or the cost of replacing certain equipment or even the entire production lines, if the new technology or the business demand requires such modifications in the future. The chief engineer states that such event may not be applicable during the project realization, but which may yield significant savings for the investor in the later operating stage(s) of the facility. Furthermore 3E’s experienced engineers and technical/cost experts can save their customers costs by proposing cheaper or more efficient solutions based on the aspects of so-called value engineering analysis. Timely advices can be given to the Developer, suggesting “cut back” from the proposed technical content of the project or even from some extravagant design solutions, as applicable.
In the footsteps of perfection
Based on the experience of many completed projects, it can be stated that the involvement of a professional engineering service provider, like 3E International brings back the total consultant’s fee or sometimes several times the related costs to the investor, we didn’t even count on such future cost elements, which are difficult to convert, longer downtime due to an avoidable circumstances, or the cost of subsequent maintenance. “We work for a small percentage of the value of the entire project, a real estate agent asks for more than that,” says Peter Bóna, laughing, but then he takes the word seriously. – I have been working as a MSc. Engineer for 41 years, but I have never seen any design documentation which should not have been changed or improved sooner or later. There is no perfect project, but we can get very close to the best possible implementation in teamwork with a careful and cooperative Client. There are no miracles in the construction industry, but we had several occasions where we were able to save from the collapse and divert back to the safe track a project, that had not been started properly with a teamwork working on the narrow path bordering on a the miracle. Without having an engineering consultant, the project implementation is similar to the night skydiving. Okay, after the bail the parachute opens, but where are we going to land? That makes a lot of difference…. ”