1 / 14

Cost and Time Control

Cost and Time Control. Project completed on time and on budget Want to get done early Lower costs More profit. Cost Control. Use cost codes assigned to items during estimating Cost codes allow PM to monitor costs and compare to estimated costs Want total project under budget.

Download Presentation

Cost and Time Control

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Cost and Time Control

  2. Project completed on time and on budget • Want to get done early • Lower costs • More profit

  3. Cost Control • Use cost codes assigned to items during estimating • Cost codes allow PM to monitor costs and compare to estimated costs • Want total project under budget

  4. Cost Control • Uses of actual data • Monitor costs, id problem areas, select mitigation measures • Id additional costs incurred thru change in scope • Id costs for completing work that was subbed out (back charges) • Develop a database of historical data for estimating future projects • Provide a cost report to owner

  5. Cost Control • Steps involved • Assign cost codes to each element of work in cost estimate • Correct estimate based on buyout costs • Actual costs are tracked using cost codes • Construction process is adjusted to reduce cost overruns • Actual quantities, costs, and productivity rates are recorded and as built estimate is prepared

  6. Cost Control • Greatest risk items • Direct labor • Equipment usage or rental • Job site overhead or project admin • Need detailed cost analysis to see where overruns are

  7. Cost Codes • Need to be able to track actual vs estimated costs • Use same coding as on files • Many companies use CSI MasterFormat system • Proj #.CSI Workpackage.element of cost • 1 = labor, 2 = equipment, 3= materials, 4 = sub • 9821.06100.1 – labor for rough carpentry on Huna Office Bldg

  8. Accounting • Usually done at home office • All cost items have cost code • Must be right cost code even if it means you go over budget on item • Only way to truly track how you are doing

  9. Work Packages • Method of breaking down estimate into distinct packages or systems that match measurable work activities • Footings including forms, rebar, pour is a work package • Get supers involved in estimating the work packages that they will oversee

  10. Project cost curve • Graph showing estimated labor vs actual labor • Actual Labor under estimated => either beating estimate or behind schedule • Actual Labor over estimated => either over estimate or ahead of schedule • Track those activities which are critical or carry the highest labor • F16-4 work package cost control

  11. Management reports • Need to develop a monthly forecast for project • Direct labor, direct material, major purchase order items, subs, job site admin, equip rental, {taxes, permits, insurance}, Fee • Each gets a separate page with a 1 page summary of project • F 16-5 • Need to keep on top of costs

  12. AS Built estimate • Important historical tools • Especially important on unit price estimates

  13. Schedule control • Monitoring progress of each activity • Determine impact of delayed activities on completion • Need to ensure substantial completion by contract date • Should do an as built schedule - historical

  14. Earned value • Technique for determining estimated and budgeted time of work completed to date • On work package curve put in curves for actual man-hours and earned value • Earned value = man hours worked time % complete F16-6,7 • Gives a measure of productivity • Subtract actual time used from time scheduled – horizontal dist • Subtract actual cost from earned value of work performed – vertical line

More Related