Controlling the cost is an important process in any construction projects. From a contractor perspective it aims at ensuring that resources are used to best advantage thus maximizing profitability. However, from an employer viewpoint, it is all about ensuring best value for money for their investment.
Often, quantity surveyors opt to manage cost independently. This is not correct. Cost has to be managed in relation to the schedule and scope of works. The best way to use for controlling cost, is through the doctrine of Earned Value Management (EVM) which, to be effective, requires a resources loaded schedule which will then facilitate calculation of the value of work scheduled as compared to the budgeted cost of work performed.
Whilst this is easily said, cost control is a science on its own and requires a lot of expertise to bring benefits to any organization
Our team will be sharing several cost control techniques that are commonly used in construction industry such as controlling of cash flow, Cost Value Reconciliation (CVR), means to enhance cash flow, etc.