Cost Management

We value new visions COST MANAGEMENT

Tunnelfabrikken will be the new cultural epicentre in Northern Copenhagen. Since the idea phase, our Cost Management team has been responsible for pricing the unconventional renovation project and various proposals for the building's activities.

We became involved at an early stage to create a detailed decision base. At Tunnelfabrikken, the client was enabled to assess various alternatives and make important choices. Our calculations resulted in a solid amount of data that our client used to build a business case.

Rune Worm Christensen Team Leader Cost Management Copenhagen

The abandoned tunnel factory is 261 metres long and 125 metres wide, and therefore has ample space for the establishment of new activities.

The ideas-man Klaus Kastbjeg and his company Unionkul are renowned for having a creative and innovative approach to abandoned industrial sites. Unionkul, for example, is one of the driving forces behind the future transformation of Papirøen.

One of his newest ideas is Tunnelfabrikken. It is a radical transformation of an old tunnel factory in Copenhagen, which will be launched in collaboration with NREP and By & Havn. The huge hall in the Nordhavn area of Copenhagen was once used to manufacture elements for the Øresund Tunnel. To put it mildly, there are quite a few unused square metres.

The vision is for the hall to house all sorts of cultural activities, and the first step was to engage the architects from Arcgency to design the aesthetic solutions and propose various possible uses. At an early stage, MOE Cost Management was tasked with pricing the various rough designs and technical building solutions in order to create an overall picture of the project's economic potential.

We became involved at an early stage to create a detailed decision base. At Tunnelfabrikken, the client was enabled to assess various al ternatives and make important choices. Our calculations resulted in a solid amount of data that our client used to build a business case. It is custom to make a rough assessment of a total square meter price, but in this case, we provided the client with precise pricing data before the construction programme, says the group leader for MOE Cost Management, Rune Worm Christensen, adding that it was possible to produce a tender price list at an extremely early stage of the project. Benchmarking via the cost database As Rune points out, Tunnelfabrikken is not an off-the-shelf item. It therefore required a different approach to the financial calculations. However, the cost database that the team has created from historical figures from previous MOE projects has been used.

It made no sense to use other projects where a hall was rebuilt as our basis. We had to delve much deeper into the data and look at the different functions and what they entail from a technical building perspective. After we divided the building into smaller categories, we could start our benchmarking, which would allow us to see the bigger picture , says Rune.

He adds that it was highly beneficial to be able to draw on a large network of specialists at MOE to investigate the engineering aspects, which provided an insight into where adjustments could be made in order to minimise the expenses.

At the forefront with new guidelines Finally, Rune thinks that the project is a good example of how MOE has prepared for the changing view of financial management found in the updated version of the General Conditions for Consultancy (ABR 18).

In the past, you had to report the finances upon the completion of every phase. With ABR 18, however, you have to update the budgets on an ongoing basis and keep a close eye on any changes. This practice certainly requires that we master the skills we have built up in our Cost Management team , Rune concludes.