FREQUENTLY ASKED QUESTIONS
Whether you’re evaluating a project budget at the proposal stage or refining costs through schematic design, design development, and construction documents, here we address common questions about construction cost management services, including Target Value Design, conceptual cost models, estimate delivery timing, delivery methods, and how early cost insight supports better decision-making.
What does a construction cost management firm do?
A construction cost management firm helps owners and design teams plan, evaluate, and control project costs throughout design and construction. Services typically include Cost Estimating, Conceptual Cost Modeling, Estimate Review & Reconciliation, and Value Engineering.
How is Palacio Collaborative different from other estimating firms?
Cost management is our sole focus. Our cost managers have deep experience working directly for architects, project owners, and construction firms, giving us a unique understanding of how design decisions, community context, budgets, and market conditions intersect. We maintain up-to-date cost intelligence across the sectors we serve, so our guidance reflects current realities—not outdated assumptions.
What is a cost model, and how is it different from a cost estimate?
A cost model is an early-stage, data-driven projection of construction cost prepared during pre-design or conceptual planning, when limited information is available. It uses high-level inputs—such as building program, space types, system assumptions, and site considerations—to help owners evaluate feasibility and make informed decisions before design is fully developed.
A cost estimate is prepared later in the design process—typically at schematic design (SD), design development (DD), and construction documents (CD)—and reflects progressively greater detail and refinement as the design advances.
Is there a difference in cost management services between design-bid-build and CM-at-risk delivery?
Yes. Under CM-at-risk, cost management includes estimate review and reconciliation with the construction manager at each design phase. In design-bid-build, this reconciliation step is typically not required.
When should we bring your team in to provide a cost model?
As early as possible. We routinely develop accurate cost models from limited information—often starting with a basic building program by space type and early conversations with the architect to establish assumptions for building envelope, MEP systems, and sitework.
What is Target Value Design?
Target Value Design (TVD) is a collaborative approach that aligns project scope, design decisions, and budget from the earliest stages. Rather than designing first and pricing later, the team establishes a target budget early and uses cost feedback to guide design decisions as they evolve—reducing redesign and late-stage budget surprises.
Can you help determine if a project budget is realistic at the proposal stage?
Often, yes. If an RFP or RFQ includes a reasonable level of programming and scope information, we can use historical data and sector experience to help design teams assess whether a proposed construction budget is feasible.
Where is Palacio Collaborative located?
Palacio Collaborative is headquartered in Atlanta, with offices in Charlotte, Raleigh, Austin, and New Orleans. From these locations, we provide construction cost management and cost estimating services nationwide, supporting projects across Georgia, North Carolina, South Carolina, Texas, Louisiana, and beyond. Our regional teams collaborate seamlessly to deliver consistent, market-informed cost guidance—whether a project is local, regional, or national in scope.
How are estimate delivery times determined?
While we prefer to estimate from more complete documents, real-world design schedules don’t always allow for that. What matters most to estimate accuracy is time. Accurate quantity take-offs are the most time-intensive part of cost estimating. With adequate time, a 50% document set can produce a more reliable estimate than a more detailed set delivered on a compressed schedule.