A Comparative Study of Cost Control Techniques used in Project Management
Businesses and government organizations are clamoring for more transparency into project and programmed performance these days. With tighter budgets than in the past, stakeholders demand absolute assurance that money are being wisely used. As a result, project controllers are expected to provide timely data that may help businesses make better spending decisions.
The most major roadblocks to successful cost reduction are outlined in this article. These issues arise from a variety of sources, ranging from organizational preparedness to process and system design. Then, referencing case studies of both contractors and owners in industries including utilities and oil and gas, we identify the project controls best practices including process standardization, system integration, and report automation that organizations are implementing to achieve higher-quality information more rapidly and to realize more efficacious projects. The Project Controllers should thoroughly scrutinize common conditions like work speciation’s, geotechnical reports, waste management and other such activities that could directly affect cost.The shareholders of a publicly held company are particularly interested in a system of cost control, for they realize that tight control gives a company considerable influence over its cash flows and reported profits.