Quantity Surveyors

1
5 Benefits of Project Cost Management
Cost management is considered as the key factor
behind the success of any project. Before
beginning any project, the first question that
arises is the cost of project. Engineers
consider project cost management as the series of
activities, which leads to estimate, allocate,
and control the overall costs of the project.
Project cost control management is very important
to control the cash-flow of overall project in
meeting the target. Cost is one of the three
constraints, which impacts the quality of the
project. Any deviation in projects costs impacts
the other two constraints of project quality
i.e., schedule and scope. Therefore, it is very
important to keep project cost management on
high priority in order to attain the required
project goal. Exceeding project costs is one of
the common elements behind failure of every 4 out
of 5 projects. So, project cost management plays
a very important role in managing and controlling
the flow of cost for various resources in
different tasks of the project. Following are
the benefits of project cost management Decreased
Expenses Implementing cost management in a
project enables the project manager to directly
control the flow of cost for resources in an
appropriate manner. Cost management helps the
project manager to limit the overall paychecks of
different employees at different levels.
This will allow the project manager to hold back
more amount and use it for future resources. By
using project cost management technique, a
company can easily reduce its overall capital
expenses.
2
Operational Efficiency Project cost management
can directly help in determining the total sum
required for each task within the project. This
helps in managing the activities based on
determined costs of the project and therefore,
enables the project tasks to run smoothly. Other
than this, project cost management also helps in
comparing the estimated project costs with the
actual cost of each task and identify the
components, whose costs are required to be
controlled. Identify Procurement
Effectiveness Every project requires vendors to
gather required resources for the project. Major
portion of the overall project budget is
utilised for procurement activity, so it is very
important to effectively manage it. Project cost
management helps in identifying various vendors
and selecting the most profitable vendor for
ordering required project resources. Streamline
Technology In many cases, it has been identified
that the overall project cost increases either
due to implementation of unnecessary technologies
within the project or due to lack of technical
upgradation in the project. With the help of cost
management, one can easily determine the
necessity of technology and accordingly implement
it for project completion. This helps the
project manager to utilise the saved cost for
other beneficial tasks. Thrift
3
Thrift basically explains the quality of saving
money and utilising it for other business
purposes. Project cost control management enables
the project manager to reduce the cost on each
task and apply it on other useful tasks.
Utilisation of saved money due to project cost
control directly helps the company to meet its
fiscal years goal.
Contact Us Call us 0430194637 Mail Us
info_at_bidkon.com.au Visit http//bidkon.com.au