Construction Project Cost Control & Resource Optimization
Plan of Work
- Assessment of current expenditure, depending on the duration of activities.
- Optimizing the use of resources.
- Assessment by the construction team, particularly the Head of Work, regarding expectations of compliance with the work period.
- Drafting of decision-making calendars, procurement, and supplies.
- Clearance for implementation, optimization possibilities for time management.
- Assessment of the number of equipment and facilities necessary for compliance with the program.
- Through monitoring, assess increases that may need to be made to meet deadlines.
- Establishing benchmarks.
PAS (Project Analysis Summary)
- After the estimate, obtain data from the score, subtracting the amount of the sale of the construction budget, including financing. This result is R. CURRENT.
- With an analysis that allows for cost optimization pending (internal management), determine the monetary value of savings to be gained in a fairly possible manner, plus gains to external management, plus the previous results, which equals R. POSSIBLE.
- If to the previous result we add those improvements both internally and externally in management, whose achievement is possible but with some difficulty, we get the R. OPTIMUM.
These three results (R. CURRENT, R. POSSIBLE, R. OPTIMUM) lead to APO (Achievable Project Outcome), a very interesting parameter to set targets for work and enterprise.
Cost Control
The study of standard unit costs, total, allows us to know which units have room for improvement (positive or negative). This is used for external management by changing the units or reducing their measurement to obtain an improvement in the results.
Prices for contractors and supply are an indication, not definitive data. The emergence of a significant gap between the sale price and the standard means that in conducting the project/procurement, we appreciate that the price is wrong, or that we have a successful assessment of any of the items. To contrast these units, we can look at the history of the company (service provisioning) for reliable data.
Verification of measurements and their contrast with the project may result in a leeway in managing the results, whether the city knows or not.
Resource optimization.
A comprehensive study of overhead allows us to assess the potential savings on the set.
Control Spending
Compare actual costs with the standard and with the relevant sale price. We need to know the number of units of each activity that occurred. These are used in traditional methods of measurement and partly reflected in the monthly production, reflecting the number of units produced for each activity and its mark to sale. The control of overhead is important. We know if we are doing amortization and expenses under our initial budget.
Production Control
This is done by analyzing the complaints, including assigning the cost of a particular work or to the means, both mechanical and materials, to the various activities we have designated in our relationship.
Monthly Production
Reflects the number of units produced for each activity and its sale price valuation, which in some cases, the existing pool is in the Certification Proyecto. This is not the bill that we passed to the Administration.
Certification: A document that certifies the right to payment, based on the measurement of units executed and applied unit prices.
Funding
Once income and expenses are calculated for each month, and the amount of capital ready to source every month is obtained, the applicable rate of interest is provided on this, producing the monthly cost of financing.
The cumulative figure for the amount of source of funding payments represents the cost paid by way of funding.