Cost certainty starts early. Good parameters are crucial for a realistic cost estimate in phase 2. Interview with Benedikt Sulzer.
Mr. Sulzer, cost certainty is currently one of the key issues in planning and construction. Why do you think this is more critical today than perhaps ever before?
Money is no longer so loose, to put it casually. Especially in industrial and pharmaceutical projects, which we often have to deal with, costs have of course always played a major role. Nowadays, however, cost certainty is really essential – and not just at the end of a project, but right from the start. It doesn’t do me any good if I create a concept for the customer at the beginning, they give me their budget and then I have to come back at the end and say: sorry, there’s not enough money.
“We work with real key figures from completed projects. That is the crucial point for us.”
Benedikt Sulzer, Managing Director of Ingenieurbüro Sulzer
In your opinion, where exactly does real cost certainty begin in the course of a project?
In my view, cost certainty begins as early as service phase 2 – i.e. with the cost estimate. That is the crucial point. If I work properly there, I have a reliable basis for everything that follows. We want to be able to tell the client early on: This project can realistically be implemented for this money. And that requires reliable data, not gut instinct.
What is the most important prerequisite for this in terms of planning?
Clearly: the level of detail in the planning. Industrial and pharmaceutical projects in particular require very detailed planning. The quality of the planning and the level of detail are directly linked to cost certainty. That’s why we switched our entire CAD system to Revit about a year ago, in order to be able to accurately map this level of detail. At the same time, we switched our AVA software to NOVA AVA in order to become faster and better at estimating costs, especially in the early phases.
You mention the early phase. How do you actually manage to deliver reliable figures there?
We work with real key figures from completed projects. That is the decisive point for us. NOVA AVA enables us to create key figures from completed projects, adjusted for the construction price index and reliable. These are not theoretical figures – these are real prices. We know these projects, we know what they cost and we know that we can also implement new projects for this money.
That sounds like a clear break with previous ways of working. What did it look like in the past?
We used to do all this in Excel. We evaluated projects, created key figures, collected Excel files and merged them. That was extremely time-consuming. Today, we go into NOVA AVA, load in comparative projects and immediately have construction price-adjusted key values available. It’s a different way of working – much faster and much more reliable.
What role does software play in overall cost security?
A very big one. For us, software is not an end in itself, but a tool to make processes efficient and transparent. For me, NOVA AVA is not classic AVA software. It not only maps tendering, awarding and invoicing, but can also do a great deal with data. This is particularly crucial for LP2. Good data is the basis for good cost estimates.
You keep emphasizing the early timing. Why is that so crucial?
Because subsequent corrections are expensive – both financially and organizationally. If I only realize during implementation that the budget doesn’t fit, I have hardly any levers left. That’s why it’s important for us to give the customer a realistic estimate at a very early stage. For us, cost certainty means transparency right from the start.
How do you keep an eye on costs over the course of the project?
We work with a consistent cost trend. For us, it’s always like this: when we publish new costs, there is a comparison. What were the costs in service phase 2? What is now in the cost calculation? This comparison is extremely important for us. We constantly use the cost analysis in NOVA AVA for this purpose. This makes the cost progression digitally traceable.
Watch the video to learn more about Sulzer’s experience with NOVA AVA
How important is collaboration with architects and other planners?
Very important. The earlier we are involved, the better. The architect is usually the first to visit the client, and the earlier we are involved, the greater our influence on technical and therefore also cost-relevant decisions. This works much better today, especially with BIM. We need the model from service phase 3 onwards so that we can really work with it – and that now works very well with many offices.
Keyword BIM: What role does the model play in cost certainty?
An increasing one. We have been planning in 3D and with metadata for many years, long before it was officially called BIM. Today, we realize that holistic planning on the model has really arrived on the market. The next step for us is to generate the cost calculation directly from the IFC model. To do this, the models need to be very consistent – we are currently working intensively on this.
Cost certainty does not end with planning. How do you ensure it during execution?
Transparency also plays a major role here. We use NOVA AVA for the entire invoicing process in service phase 8: measurement, invoice verification, supplements. Our project assistants and specialists are very well trained in this. The software also helps us to have clear workflows, especially in construction management. This creates clarity and traceability.
How do your site managers deal with the issue?
The site managers are integrated early on, ideally from LP5. They then know the BOQ, know what is being tendered and are prepared. NOVA AVA is also used on the construction site, via iPads and iPhones. The internet is sometimes still a challenge there, but overall it works well.
Finally, what does cost certainty mean for you personally as a planner?
For me, cost certainty means above all reliability towards the customer. I make many cost estimates myself and also check them. When I give out figures, I want to be able to stand behind them. And I can do that because we work with real data from completed projects. That gives us and our clients security.
Thank you very much for the interview.
About the office
The engineering office Sulzer, Vogt, has been offering complete planning and processing of technical building equipment from a single source for over 30 years. Founded by Harald Sulzer, the 90-strong team is led by Benedikt Sulzer and Mathias Sulzer. Since 2024, the office has been working with the cloud-based construction cost management software NOVA AVA and uses it across almost all service phases.