Cost Control & Financial Management
Cost control is one of the most important processes in any capital project. The basic objectives are to give the client good value for money, achieve the required balance of expenditure between the various parts of the project, and keep the final expenditure within the client's approved budget.
In principle, cost control consists of three basic steps; namely, (1) establishing an overall cost target, (2) checking any deviations, and (3) taking remedial action where necessary. In practice, the process of cost control embraces a range of professional activities such as cost analyses of previous projects, cost planning/estimating, cost studies of various constructional options, cost checking during the design stage, cost reconciliation during the tendering stage, and cost monitoring during the construction stage.
The cost estimates and financial reports which are regularly produced by the quantity surveyor form an important aspect of the financial management of capital projects. These periodic financial reports enable clients to anticipate and control their future financial commitments.