Cost control

Project management process







Our main construction objective

We are involved in directing and coordinating human and material resources throughout the life of a project by using modern management techniques to achieve predetermined objectives of scope, cost, time, quality and participation satisfactory

Practises of the construction management

Our Main functions

Our management approach is based on the following:

Main Areas of focus



Cost control, Monitoring and Accounting

A development budget is always undertaken to determine the total costs and the returns expected from the project. Therefore a cost plan is prepared and includes all the constructions costs including professional fees and contingencies.

The project budget

For cost control on a project, the construction plan and the associated cash flow estimates provide the main reference for the subsequent project monitoring and control

A project is expected to be under financial control by ensuring that the costs are within the detailed cost estimates. Overruns in some cost categories signal the possibility of a problem and indicate the exact problems being encountered.

For the purposes of control and monitoring, the original detailed cost estimate is usually converted to project budget which is used as a guide for management.

The project budget also includes the Information on material quantities and labor inputs

The following is an illustrative set of project cost account

The following is an illustrative set of project cost account

1.0 Clearing and preparing site
2.0 Substructure:
  1. Excavation and Shoring
  2. Piling
  3. Concrete Masonry
  4. Mixing and placing
  5. Formwork
  6. Reinforcing
3.0 Outside Utilities (water, gas, sewer, etc.)
4.0 Superstructure
  1. Structural Steel
  2. Masonry Construction
  3. Exterior Finishes (brickwork, terra cotta, cut stone, etc.)
  4. Wood Framing, Partitions, etc.
  5. Roofing, Drains, Gutters, Flashing, etc.
  6. Interior Finish and Trim
    1. Finish Flooring, Stairs, Doors, Trim
    2. Glass, Windows, Glazing
    3. Marble, Tile, Terrazzo
    4. Soundproofing and Insulation
    5. Lathing and Plastering
    6. Finish Hardware
    7. Waterproofing
    8. Painting and Decorating
    9. Sprinklers and Fire Protection
  7. Service Work
    1. Electrical Work
    2. Plumbing and Sewage
    3. Heating and Ventilating
    4. Air Conditioning
    5. Fire Alarm, Telephone, Security, Miscellaneous
5.0 Paving, Curbs, Walks
6.0 Installed Equipment (elevators, revolving doors, mailchutes, etc.)
7.0 Fencing

During the development and implementation of a cost account, appropriate numbering system is essential to facilitate comminication of information and proper aggregation of cost information. eg, 2.01 refers to Excavation and Shoring in the above table

The following is a sample project budget breakdown of a small project



Personnel Project budget (Ksh.)
Architectural Division 870,070
Engineerin 490,700
Environmental Division 340,000
Total 1,700,770
Other direct expenses
Travel

10000
Communication 7000
Supplies 6000
Total 23000
Overhead 1,500,000
Contigencies 220000
Total general 3443770


The following is an illustration of Estimated Total Cost for Completion of a project by use of a graph:


A graph showing percentage completion of a project(Y-axis) over percentage of budgeted expenditure(X-axis)
Go to Top