Cost management is the process of planning and controlling the budget of a construction project. It involves estimating costs, setting budgets, and then monitoring and controlling costs throughout the project to ensure that the project is completed within budget. Cost management is an integral part of construction management, as it helps to ensure that a project is completed on time and within budget. This encompasses cost estimating, budgeting, cost control, cost reporting, change management, and life-cycle cost analysis.
- Cost estimation errors: which can arise from incomplete information, or site conditions that are difficult to predict
- Budget overruns: from unexpected expenses, such as materials or labor that cost more than budgeted or improper planning, poor cost estimation, and changes in scope.
- Inadequate cost control: Lack of proper cost control measures can lead to costs spiralling out of control
- Limited Resource Availability: When resources availability varies largely from anticipated availability this has cost implications to projects
- Inflation: The cost of materials and labor can fluctuate due to factors such as inflation
- Change Orders: Changes in scope, design, or other aspects of the project can cause additional costs
- Unforeseen conditions: Unexpected site conditions such as underground utilities, contaminated soil or bad weather.
How we can help
- We can provide accurate and precise cost estimation using professional experience and historical data
- We can prevent budget overrun by managing contractors, procurement, and ensuring schedule is tracked avoiding contractual penalties
- We can ensure that all logistics, supply chain, and labor restrictions are considered in the project life cycle
- We can account for inflation and goods pricing based on trends and contingencies
- We can manage change orders and ensure resolutions are met with minimum cost to the project