After a bump in the road caused by the pandemic, the Indian real estate sector is now witnessing a healthy resurgence. What is particularly of interest is that developers and end users are increasingly focused on developing Grade A assets. Among them, there are always a handful of projects that are outstanding; they become symbols of quality and success. Having a robust cost control mechanism and effective co-ordination are essentially the elements that separate a good project from a great one. Establishing robust cost controls Firstly, a project’s financial success is dependent on the establishment of robust project control, or cost control mechanisms. In simple terms, it is defining the cost of a project through a detailed budget. It is important to demonstrate transparent communication and present all the elements of the project to the client, including technical specifications, scope matrix or battery limits, basic prices, sustainability expectations, and much more. At the same time, it becomes important to have a dialogue on what costs are essential, depending on the location or region. While a Central business district (CBD) location can afford higher specifications, Secondary Business District (SBD) or locations farther away from the city centre needs to be optimised to suit rental or sale price expectations. This dialogue helps the client to establish ROI projections. Budget adherence Once a budget gets signed off, it becomes important to ensure the project costs remain within budget, as occurrences of overruns will have adverse impact on the ROI of the project and can even render it unfeasible. Cost control mechanism involves the preparation of Anticipated Cost Reports (ACR) on a regular basis. All probable variations should be assessed well in advance, and in the case of quantities and rates exceeding the limit, immediate design discussions should be taken up with the design consultants. Importance of value engineering Secondly, Value Engineering exercises play a crucial part in cost control. The other two things which aid the process are preparing suitable contract conditions that make it obligatory for all vendors to submit variance reports and material reconciliations regularly, and monitoring and managing all items in the contract under the basic price clause. Overall, proper and detailed cost control throughout the tenure of the project execution and complying with all expectations set initially at the time of budget creation play a vital role in ensuring that the client’s financial expectations are met. At the end of the day, a well-engineered product with proper detailing and adhering to the architect’s creatives are best achieved through managing costs and budgets in a judicious manner. Coordination across project stages It can be presumed that the above can be achieved through effective coordination. This starts right at the beginning of the project by establishing communication protocols for seamless communication, value engineering sessions, design team meetings and detailed review mechanisms. Coordination is an ongoing process which, even when started in pre-construction stage, finds its vital importance as the project transitions through the planning, procurement and construction management stages. Coordination finds its high effectiveness at the commissioning and handover stages and becomes a useful tool for all parties involved in the project. In conclusion, coordination and cost control should move with equal vigour at every stage of the project to make it a grand success. About the author Indranil Basu, Managing Director, Project Management, Colliers India, has over 25 years of diverse real estate experience in delivering complex and acclaimed projects in India and abroad.