How effectively and efficiently using cost control during the construction period?

Dear Mr.Roshan,

Assalamu alaikum.

As you aware, budget shall be prepared before the commencement of the project.

To control the project cost, care shall be taken care from the preparation of budget itself like,

1. Budget shall be prepared in WBS wise

2. Should prepare the budgetted cost of Manpower, material, subcontract for each WBS.

3. Cost working for Overhead shall be prepared like staff,equipment/machine, manpower, accomodation, hirecharges, taxes, financing cost,etc.,

Control of Cost;

a) Every Purchase request/ material request should be approved with refernce to the budget availabilty of the particular WBS

b) WBS wise Manpower cost shall be verified/ monitored fortnightly by planning engineer to know the productivity

c) Site engineer / manager should know right material is for right Job . (eg.Carper for shuttering work not for reinforcment fixing work)

d) Wastage / rework should be reduced by implementing QA/QC.

e) Care should be taken care for HSE otherwise idle cost as well reputation of the company will go.

Hope the answer for your question

Thanks

Asarudeen S.

Also, Cost control used during the construction period in variation / change order ( cl.13 -fidic1999) which affect on final cost of the poject and avoid cost overrun of the project.

Contractors can save money throughout a project’s lifecycle by improving efforts in the preconstruction phase.

Cost Control Management throughout the design phase helps to avoid cost overruns and maximize potential returns on investment. During the estimating phase, project control teams should determine which tools and techniques they can employ to make the estimate more accurate and to properly forecast budget and materials needed through completion.

ciao,

dhino

first I thanking you and I agree with you but my question is how they can maintain the cost with in the budget during the construction phase.