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  • Keeping construction project costs in line

    Construction projects usually cost a lot of money, in comparison to other types of projects that are done in front of a computer, such as completing a software program, because construction involves materials, labor, equipment, it is affected by so many factors from real life and therefore keeping construction costs in line is very important task. For example, you can call a software project of $5 million in size a very large project to develop, where for the same amount for a construction project, it is a small size project and you can not even build a single story office building.

    The points below to keep costs from getting out of hand actually applies to any project in any field and not just to construction, but as we mentioned it becomes most critical - dollarwise - since the overall costs involved with construction are bigger.

    Important points to keep construction costs in control:

    1-The beginning of the project affects things the most. All stakeholders of the project must be consulted and the overall desired product, which will be the ultimate deliverable of the project must be understood clearly. Then this will need to be transferred into project documents, such as plans and specifications on a construction project. This step involves the Owner, stakeholders and the designers of the project. This step has the highest control over the construction cost.

    2-After the project documents are created, a good baseline must be created for schedule, cost and scope. This is critical or keeping the costs in line later because everything will benchmarked against this later. Proper resources as far as labor equipment and materials must be assigned to each activity in the schedule as this will be the base of the costs. The mostly project involves the project manager and the project management team, but the approval must be done by the owner.

    3-The cost control after this point involves executing the job per the schedule and quality standards. As long as this is kept, the change orders will be minimal. The resources that was assigned in the previous stage must be managed efficiently. In order to keep the costs low, all trades performing the job must be closely monitored and the quality standards be followed. Materials must be tracked and followed up for deliveries as delays will be costly. Following up is as important as solving installation problems during a construction project.
    This article was originally published in forum thread: Keeping construction project costs in line started by atuter View original post
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