Construction Management Activities

Cost Control

Early in the project, the project management team establishes the project work breakdown structure (WBS) including site activities accounts. The WBS will be the reference for all future reporting included in the cost report.

The cost report lists all activities and references them to the project budget, the commitments, the actual progress and forecast to complete.

The site cost control manager will follow all site activity costs and report them on the cost report for the project cost controller.

The site cost control manager's role is very important in controlling the site activity costs in order to analyse budget comparisons and cost to complete estimates. He/she will provide explanations on current overruns or underruns and non-budgeted items for progress reports and project meetings.

The site cost control manager will assist the contract administrator in preparing forecasts, progress, estimation of particular work and verify contractor's estimates. He/she will also provide cost analysis for alternative designs or contract strategies to correct potential cost overruns.