Using the Rule of Thumb Method in Cost Estimating
Ramani Sundaram talks about how rules of thumb can assist estimators in bringing value to their cost estimating approach.
How the Anticipated Cost Report Method Helps in Managing Construction Costs
Changes are inevitable in construction and in any project. There might be costs that were not budgeted or authorized initially. A change due to differing site conditions, design errors or omissions, or a scope change due to owner’s added requirements may lead to change orders. Besides change orders, which are additions to the original contract, […]
Core Estimating for Owner Companies
How can you increase core-estimating maturity for Owner companies and improve project performance and increased capital efficiency in today’s construction industry? Introduction Owners rely on cost estimates to perform an economic analysis of the return on their capital investments or capital expenditures (CAPEX). Estimates are critical to early planning and de-risking of project budgets developed during project authorization. When Owner companies place little […]
Cost Control vs. Cost Management
What is the difference between cost control and cost management? Cost management and cost control are two terms that often get mixed up. If you think about the words, what sounds better? Would you rather be in control or managing your costs? It turns out that cost management and cost control really are two different things, and yet they are equally important […]
The Top 20 Reasons Why Construction Projects Experience Cost Overrun
Why do so many construction projects have cost overrun by as much as 10% to more than 100%? How can cost overrun be rectified? This continuing cost overrun situations costs industry million dollars each year and wastes valuable engineering /construction labor resources. Construction cost overruns are an everyday happening on mid-sized & large multi-million dollar EPC projects around the world. Studies on this subject […]
Top 10 Mistakes In Project Cost Management
Starting the New Year energized and motivated you yet not entirely meeting your resolutions? This may seem to be a yearly reoccurrence. With all that goes into managing a project, making sure things are done right, within budget, and on time is a challenge; especially when we fall victim to the same mistakes. Knowing that there are a lot […]
Top 5 Skills of a Cost Controller
Summary: Have you ever been in a project that finished over budget, and nobody could explain exactly why? Have you ever seen a cost report in a project that only showed the budget versus the expenditures? Have you ever published, or seen a cost report, and had no clue what the cost metrics meant? If […]