What are the best techniques to Control Cost in Construction Projects? Also Enlist and discuss the Cost Control Metrics?

1- Prepare a WBS for the BOQ items related to CSI Codes.

2-Keep a separate BOQ but with the Budgeted cost of all the items not the selling Price.

3- keep a track of the monthly update of the % of Completion for each Item.

4- Update your Budgeted cost BOQ with the updated % from one month to the other. by this updated BOQ you will get the Earned Value EV. for each code, item and per division also.

5- Compare the EV with the Actual Cost AC on monthly basis.

6- the cost variance CV= EV-AC.

7- if CV +ve I am under Budget

8- if CV -ve I am over Budget...... Alarm

To control cost in construction projects, make proper project planning and budgeting. Workout the details of resources required including manpower, material, equipment etc. See if the work can be outsourced to sub-contractors without negatively affecting project schedule, quality and budget.

Closely monitor actuals with budget. Simultaneously study the cost to complete.

Negotiate hard on tender/performance bonds etc. both for giving and taking.

Do ABC analysis for each element of cost and put procurement efforts accordingly.

In case of material where prices are fluctuating, fix the prices with suppliers or agree with client on price escalation.

Keep proper track of variations, document the terms of variation and ensure that it has been claimed correctly.

By using Earned Value calculations

Budget cost for work performed BCWP and

  Actual Cost of work performed ACWP

Cost Variance CV= BCWP/ACWP

Hi

Can one recommend me book to study to improve Cost Control and Cost Engineering Skills ??

At the begining of Project one should have proper esimated budget along with Planned work flow schedule and entire scope of work has to be converted in to W.B.S and construction schedule should follow W.B.S. end of the month Physical Site Progress has to be monitered along planned work and along with estimated budget and shall be compared with Actual cost. reasons for back lag has to be Identified and the Balance remaining work has to be rescheduled and Estimated Cost to be completed (ETC) has to be calculated, this way every month progress / schedule of works has to updated and corresponding measures has to be adapted to control the Progress as well as Cost of the Project

 You can easily control the cost  by REVERSE BILLING METHOD  , if you are from the contracting party,. Ask you management to set the profit and expense benchmark within each cost code.