5 important techniques of cost control 6 cost reduction 7 economic value 8 cost estimation cost control by management means a search for better and more economical ways of completing each operation. Construction cost estimating and cost control overview professor odeh describes the course and provides an overview of what will be covered also covered is an introduction to construction cost estimating and cost controls. Construction put in place, defined as new residential and nonresidential construction but generally excluding maintenance and repair construction, was $3172 billion for the soviet union, $2001 billion for japan, $713 billion for the federal republic of germany, and $43 billion for the united kingdom. Computer estimating and cost control programs, whether industry-specific or general spreadsheet type, are especially valuable for rapid and efficient generation of both the estimate and actual construction cost information.
Level 1 construction fundamentals study guide 355 budgeting, costs, and cost control the estimate and the project budget the estimate is a static document at a specific point in time (bid time. Research aimed at studying the cost control techniques being used in uganda was done on a selection of 130 contractors involved in the construction of buildings in nakawa division, kampala city. Abstract: despite the availability of various control techniques and project control software many construction projects still do not achieve their cost objectives research in this area so far has mainly been devoted to identifying causes of cost overruns.
Particularly in the construction industry, the inadequacy of cost accounting systems has resulted in the dissociation between the cost management and the production planning and control processes. Cost reduction techniques cost estimating and control to reduce expenditures a) cost per direct labor b) analyzing manufacturing costs c) breakeven analysis. Cost estimating involves developing an assessment of the likely quantitative result-how much will it cost the performing organization to provide the product or service involved pricing is a business decision-how much will the performing organization charge for the product or service.
Cost control in building design and construction a development budget study is undertaken to determine the total costs and returns expected from the project a cost plan is prepared to include all construction costs , all other items of project cost including professional fees and contingency. In the construction industry, cost estimation is the process of predicting the costs required to perform the work within the scope of the project accurate cost estimation is crucial to ensure the successful completion of a construction project. Cost calculation methods construction industry because of the project cost control controlling of previously produced works. Following are some of the valuable and essential techniques used for efficient project cost control: 1 - planning the project budget you would need to ideally make a budget at the beginning of the planning session with regard to the project at hand.
Techniques that are available in construction industry purposes but the proper usages of those techniques areminimum cost control techniques were identified as a tool of reducing cost overrun. 2 10 chapter one 10 background of the study the growing need for construction of all types coupled with a tight monetary supply has provided the construction industry with a big challenge to cut cost. Subject: the cost control techniques used in constructionindustry 11 objectives undertaking cost control weaken the common job strengthen cost control, change the efficiency of endeavors is cardinal the endurance and development undertakings in a market economic system.
Monitor and control budgets benefits of cost planning or less of the design and construction cost predesign process and product. 85 effectiveness of monitoring systems for controlling project cost in the construction industry samuel k ansah 1 and emmanuel bamfo-agyei 2 abstract the absence of a well established effective system for monitoring and controlling project. The project management institute defines project management as the application of knowledge, skills, tools and techniques to project activities in order to meet or exceed stakeholders needs and expectations from a project.