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    Cost Control & Monitoring

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    Angela Dichoso
    Cost control and engineering aims to minimize project costs without compromising quality. It involves planning budgets, communicating targets, monitoring spending, and taking corrective actions. The process manages materials, labor, overhead, equipment, and subcontractors. Benefits include improved profitability, cost reductions, and greater productivity. Responsibilities of cost control engineers include budget monitoring, invoice verification, cost reporting, and ensuring expenditures remain within budget. They also manage changes to the project scope and pricing through change orders.

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    Cost Control & Monitoring

    Uploaded by

    Angela Dichoso
    220 views18 pages
    Cost control and engineering aims to minimize project costs without compromising quality. It involves planning budgets, communicating targets, monitoring spending, and taking corrective actions. The process manages materials, labor, overhead, equipment, and subcontractors. Benefits include improved profitability, cost reductions, and greater productivity. Responsibilities of cost control engineers include budget monitoring, invoice verification, cost reporting, and ensuring expenditures remain within budget. They also manage changes to the project scope and pricing through change orders.

    Original Description:

    PRESENTATION ABOUT COST CONTROL CREDITS TO OWNER

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    Cost control and engineering aims to minimize project costs without compromising quality. It involves planning budgets, communicating targets, monitoring spending, and taking corrective actions. The process manages materials, labor, overhead, equipment, and subcontractors. Benefits include improved profitability, cost reductions, and greater productivity. Responsibilities of cost control engineers include budget monitoring, invoice verification, cost reporting, and ensuring expenditures remain within budget. They also manage changes to the project scope and pricing through change orders.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    220 views18 pages

    Cost Control & Monitoring

    Uploaded by

    Angela Dichoso
    Cost control and engineering aims to minimize project costs without compromising quality. It involves planning budgets, communicating targets, monitoring spending, and taking corrective actions. The process manages materials, labor, overhead, equipment, and subcontractors. Benefits include improved profitability, cost reductions, and greater productivity. Responsibilities of cost control engineers include budget monitoring, invoice verification, cost reporting, and ensuring expenditures remain within budget. They also manage changes to the project scope and pricing through change orders.

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    of 18

    By: FAJumadiao

    To define Cost Control/ Cost


    Engineering

    How Cost Control/


    Engineering Benefits you

    Cost

    Cost Control/ Cost Engineering


    Process

    Minimizing costs the company must expend without


    sacrificing the end product (Services) that the
    Customer Receives.

    PLANNING:
    Initially a plan or set of targets is established in the Form of budgets
    and standards.

    COMMUNICATION:
    Communicate the plan to those whose responsibility is to
    implement the plan.

    MOTIVATION:
    A process that initiates, guides and maintains goal-oriented
    behaviors.

    REPORTING:
    Comparisons has to be made with the predetermined targets and
    actual performance. Deficiencies are noted and discussions is
    started to overcome deficiencies.

    DECISION-MAKING
    Corrective actions and remedial measures are taken or the set of
    targets are revised, depending upon the administrations
    understanding of the problem.

    MATERIALS

    LABOR

    OVERHEADS

    EQUIPMENTS

    SUBCONTRACTORS

    ADVANTAGES OF COST CONTROL

    Helps the project/ company to improve its


    profitability and competitiveness.
    Helps in Cost reduction
    It is indispensable for achieving greater
    productivity

    1. Responsible to control and monitor the total project expenditures.


    2. Verify and checking of invoices and claims from suppliers ,
    subcontractors, and vendors, to ensure that all project expenditures are
    properly recorded and captured.
    3. Provide planning and cost controlling report/ support for the project
    which includes variation orders, monitoring of milestone progress for
    customers billing processes.
    4. Prepares technical and commercial reviews of tenders.
    5. Prepares project costing.
    6. Ensures that the expenditures are kept within the project budget.
    7. Monitor the status of purchases, invoicing, delivery up to the
    closure of the project.
    8. Monitors Financial progress of the project.
    9. Prepares budgetary cost of the project. Comparing budget
    amount versus actual cost.

    CHANGE ORDERS

    Changes to the Construction contract that occur after


    award of the Contract. It is a document that
    contractually alters an original agreement between
    the signed parties.
    The term VARIATION usually means a change,
    modification, alteration, revision or amendment to
    the original intent of the contract and/or its works.

    ADDITIONAL WORKS
    EXTRA WORKS (Elective Changes)

    Changes in clients requirements

    Revisions and modifications in the original


    designs

    Amendments or changes in the provisions or


    requirements.

    DESIGN MODIFICATIONS

    ERRORS & OMMISIONS

    FORCE MAJEURE
    ADDED COST INCENTIVES

    CHANGED CONDITIONS
    ADDITIONAL/ REDUCED WORK
    SCOPE
    OWNER DIRECTED
    ACCELERATION OR SLOWDOWN

    DELAYED, DENIED, OR
    RESTRICTED ACCESS TO
    A PROJECT SITE
    ADJUSTMENTS TO
    UNIT PRICING

    WORK SEQUENCING
    DELAYS TO OWNERSUPPLIED SERVICES &
    MATERIALS

    Description of the Proposed Change


    Necessity of the Proposed Change
    Origin and Originator of the Proposed Change
    Classification of the Proposed Change

    Bid Plans vs For Construction Drawings (FCD)


    For Construction Drawings (FCD) vs Condtruction Bulletin
    Clients Request
    Change in Specification
    Provisional Items
    Remeasurable Items

    Labor Escalation
    Extended Overhead Claim
    Additional Attendance Fee
    For Considerations

    CM
    Prepares
    CO Form
    Receive
    Construction
    Bulletin from
    client

    START

    Determine
    Possible
    Change
    Orders
    Reconciliat
    ion with
    Clients
    Representat
    ive

    Receive
    SIT/
    PMI/WAO
    from CM

    Determine
    Other
    Possible
    causes of
    Change
    Orders

    Approval
    of the CO
    form

    30-45
    days

    Prepare a
    Cost
    Proposal

    Evaluation
    of the Cost
    Proposal

    14
    days

    7
    days

    Sign &
    Submit the
    Cost
    Proposal

    Revenue,
    Billings,
    and
    collections

    ENGG

    ENGINEERING
    DIVISION

    Cost & Contracts


    Department

    OPERATIONS/
    SUPPORT GROUP

    OPTNS

    Cost Control &


    Monitoring Section

    SENIOR COST

    Oversee 2 or more
    projects;
    According to Area
    or Client

    ASSOCIATE COST
    JR COST
    QS/ UNDERSTUDY

    One or more for


    each Project
    depending on
    project
    requirement

    Claims and Changes Specialist


    Construction Manager
    Contract Management Specialist
    Cost Analyst
    Cost Engineer
    Cost/ Construction Estimator (or Estimator)
    Planner/Scheduler (or Scheduling Engineer)
    Pre-Construction Manager / Engineering Manager
    Project Controls Engineer
    Project Manager
    Quantity Surveyor

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