Cost control as the name suggests derives the process of evaluating, executing and monitoring the measures to limit the costs incurred during a project. The construction industry is vulnerable in terms of monetary factors. The project is accomplished on the main component of budget. If the estimated budget gets collapsed, the whole project suffers. Then, the project is either at halt or is completed with a comprising quality. Hence, it becomes a vital procedure to keep a close watch on the costs from the initiation to completion of the project.
Once the cost estimation is submitted, the Cost control and management team validates the data and suggest measures on cost reduction. The basic objective of the Cost Controller is to suggest cost control measures and assist in completing the project within the estimated budget. Sometimes, resources are purchased at high prices due to lack of knowledge. A cost control plan can help to analyze and curb the excess expenditures that are incurred during the project. With an effective cost control approach, the project can be free from frauds and misleading facts. A cost controller is responsible to identify ambiguities in the cash flow and propose changes without comprising the quality of the project.
Due to high risks and uncertainties involved, the cost estimator prepares a contingency plan. This can help to further adjust and control the costs. A thorough competitive analysis can help to measure the targeted and actual costs. A cost controller uses feasible cost management techniques to avoid cost overruns.
- Monitoring the cost estimate in all phases of the project
- Supervising and suggesting control measures without hampering the quality
- Ensuring the cost plans and measures undertaken are within the specified time limit
A credible cost control measure can be crucial for a successful completion of the construction by eliminating excess expenditures thereby delivering a quality project within the defined time and budget.