Cost control in construction is done to make sure the cost for a project does not exceed its intended cost. For a construction project, there are different areas and sections that need to be covered. Controlling the cost means looking at the different sections of the particular project with the aim of cutting down on cost. This will not only prevent spending overboard on project but also maintaining timeliness in the project. So, what are the various levels of cost control in construction?
Preliminary Cost Estimation
This is the first cost evaluation done before the development of executable plans. It’s carried out when the project is being drafted at the initial stage. However, not all engineers or architects will excel at preliminary cost estimation. That is why it’s vital to contract a construction consultant at the initial stage to do a proper estimate of the entire cost of the project. This will help the site owner understand what is involved when it comes to cost of the project. The cost control consultant or construction manager needs to review the submitted preliminary project plans to know the actual cost of the project at its early stage. This will ensure proper cost planning when the project begins proper.
After the preliminary cost estimate, a detailed estimate is carried out with more details for different sections of the project as it pertains to cost. The accountant and construction manager need to review the project details and make comprehensive estimates for construction overhead, materials, and labor. They also need to make estimates for project schedule. Generally, timeliness and cost go hand in hand. A project tat finishes at the estimated time will require lesser funds to complete than a project that met a couple of delays on the way. So, timeliness is also considered here when making detailed cost estimate.
Construction Cost Roadmap
When the cost estimate has been done, the accountant and project manager make sure the actual project plan is followed to stay within cost. They prepare a cash flow schedule with blueprints of the construction plan. This is where every reference will be made during the construction process. So, it will be used for comparison between estimated cost of construction and actual cost. With this roadmap, the project manager will be able to tell whether they are on track or not. As long as the timelines and cost match the cost estimate, the project is believed to be in the balance when it comes to finance. But when there are deviations in schedules or there are overruns in cost, it is a good indication that there are some problems. With a timely examination of the differences, these problems can be corrected and the project will continue smoothly.
Cost control in construction is very important for the successful completion of any construction work. Without proper scheduling and evaluation, so many discrepancies will be recorded. This is why it’s important to higher the right construction manager or consultant who will put things straight even before the commencement of the project.