Before getting your hands in construction projects, it is important to have a clear understanding about the cost control procedures. Then you will be provided with the opportunity to get the construction project done without spending a fortune on the job.
You can always refer to a construction estimate PDF to get to know about the best cost control procedures. To make the life easy for you, we did a research on some of the best quantity surveying books PDF available out there. Here are some of our findings. These tips can help you to get a basic understanding on best construction cost control procedures. You can refer to quantity surveying PDF to get additional information.
Preliminary cost estimation
Before you develop executable plans, it is important to do preliminary cost estimation. However, all the engineers and architects are not good in cost estimation. Due to this reason, it is important for you to go ahead and seek the assistance of a construction management firm or an independent construction manager. The amount you spend to get their service is totally worth when compared to the results that you will be able to get in the long run. The construction manager you hire will carefully go through the preliminary plans that you have created. Then you will be provided with a basic cost estimate. Then you will be able to revise your plans accordingly, so that it would meet with your budget. This will provide you with effective results at the end of the day as well.
Detailed cost estimates
Once you submit the final plans, the accountant and the construction manager should review them. That’s where the detailed cost estimations are being made. When it comes to detailed cost estimations, a variety of factors need to be taken into consideration. They include materials cost, labor cost and the construction expenses. Cost is a function of time. Therefore, it is important to work on the detailed cost estimations. If a construction project goes over the budget, there is a high possibility for it to end up with a failure.
Roadmaps of construction projects
The next step is to work on the roadmap of the construction project. The project manager has to play a vital role in here. The project manager should also seek the assistance of the construction accountant to get the job done. In here, the detailed cash flow will be estimated, along with the project schedule. The final construction plan is being used as the input in here.
The document created at the end of the exercise would become the project roadmap. The progress on all activities are then compared along with the project schedule. This is done to match the project schedule to expenses. This can control the financial aspect of the overall project. Deviations in the cost estimates and the overruns in cost can indicate potential issues. Hence, they need to be addressed before starting the construction activities. As per quantity surveying books PDF, conducting a detailed examination of the discrepancies would show how these issues can be eliminated.
Forecasting cost control
Once the discrepancies are eliminated, you need to forecast cost control. This can provide you with the opportunity to keep peace of mind in the long run with the construction projects. That’s because you know that money is being spent for the project according to the way you planned.
Traditional financial accounting tends to be historical. It will only tell you what has happened. But you need to have the ability to forecast the expenses when you venture into a construction project. Then it is possible to make sure that all the expenses and costs are in place. These details can also be used to keep track of the completion schedules and measure the intermediate milestones.
You cannot wait until a project is completed to calculate the total expenses. Instead, you should forecast the expenses. It is better if you can divide the construction project to individual milestones and check if you can get a breakdown of the expenses. Then you will be able to stick to the schedule up until the end of the construction project.
Now you have a basic understanding on how to control the cost in construction projects. With that understanding in mind, you can work accordingly and overcome the financial difficulties that you will come across along with time.