Project Management Activities

Cost Control

Certain basic control functions must be established to achieve a successful project, that is, one in which costs are within budget and work completed within the scheduled time frame. Met-Chem utilises its estimating and cost control software package as the major tool for effective project cost control and through periodic reports, keeps the project management and client informed of current and projected levels of spending. Services delivered include:

Feasibility Stage

• finalise the Capital Cost Estimate on the basis of work breakdown structure (WBS).

Execution Stage

• finalise the project WBS and identify budget allocated to predetermined facility and activity groupings;
• formulate the detailed coding structure whereby the detailed cost elements are suitably grouped by classification or by activity;
• formulate control estimates before bid request. Analyse bids. Provide assistance to contract and purchasing groups for bid negotiation;
• enter commitments;
• prepare monthly cost to budget comparisons and cost to complete estimates for each active account;
• analyse current over (under) runs and non budgeted items and provide explanations for monthly reports and project meetings;
• provide cost analyses for alternative designs or contract strategies to correct potential cost overruns.