We need to reconsider construction cost management

We need to reconsider construction cost management

Most of the large construction or engineering projects lay under the civil and infrastructure classification. This kind of projects became a synonym of and change of the scope, delay and, extra cost worldwide. This is essentially due to the expensive obstacles that lead to construction costs and that were not considered at the beginning of the project, such as artesian waters, poor soil quality or super strong rocks, etc.

  • Implementing project controls software: How to avoid the risks

    Project controls software is a tool that is used to measure and control cost and productivity throughout a project life cycle. It allows you to track the actual performance of the project and to compare the actual performance to the project estimate. If the actual performance shows significant deviations from the estimate in terms of budget and hours, corrective measures can be taken in time. Therefore, a cost management software can help you improve the efficiency of your projects.

  • Structuring cost control documents with multiple breakdown structures

    Working in the field of cost management, you will very likely encounter long lists of commitments, actuals, and other cost data that need to be reported on a frequent basis. To ease the job of structuring this data, breakdown structures prove to be the answer. They allow otherwise flat data to be viewed under many angles, serving the needs of the various stakeholders in the project, e.g. management, clients, and engineers.

  • How to reduce scope growth with Change Management

    Just like it is important to have contract templates in your contract management software, you also need to have a way of estimating and processing the impact of changes to the scope of work. If not controlled, changes can lead to huge cost overruns and delays. Therefore, managing changes is essential in successfully performing cost control.

  • Cost management for turnaround projects, useful or not?

    Most of you know that turnarounds are major events for refineries and other petrochemical facilities. They typically cost significant sums of money to execute (capital expense), but also a major loss of revenue when the facility is shut down (operational expense). As a result, these turnaround projects are usually schedule driven, where the only priority is to get the facility up and running again, rather than keeping control of spent cost. But is this really the best way to go forward or can cost management result in higher cost efficiency when you take all aspects into account?