The success of a construction project largely depends on the way requirements are defined or interpreted. Describing the requirements and needs is the first step towards studying schedule and cost control. It becomes crucial for project managers to incorporate these requirements into a project plan and implement an effective project control system so that a project is successfully completed on budget and on time.
What is schedule and cost control?
Schedule and cost control comprehensively includes the following four aspects of project work which are primary concerns for any project management and control team:
1. Directing progress
Directing progress is a project management element which refers to the efforts involved in directing the progress of a project against the project plan. Efforts that have an impact on the cost, schedule, and scope are important in this regard. Almost every decision influences one or all of these three factors as they are interconnected. For instance, a decision related to cost will affect the schedule and scope. Similarly, scope affects schedule and cost. If a project is behind schedule, bringing it back on track will lead to increased cost. Likewise, if it becomes difficult to meet the schedule, the scope can be modified. Directing progress in a manner that reduces negative impacts is vital to effective project management.
2. Directing actions
Directing actions is more about taking the right actions to reduce the gap between the actual and planned progress. For example, if a project is reported to be over budget, certain steps can be taken to bring the cost back into line with the planned budget. Adjustments can be made regarding scope and schedule. However, it becomes difficult to keep the overall progress on track when such adjustments are made.
3. Controlling results
Controlling results is about being aware of the fact that there must be a strategy to manage the risk and negative impacts on the project as a whole. There must be a mechanism to keep everything stable, especially cost and schedule. Actions that can create troubles must be avoided. Being able to predict and control the consequences of the actions taken will help project controllers move the project back to its planned track.
4. Conserving resources
Controlling resources is a critical project management element which can be a challenging task for managers. Resources are always limited making it difficult to run large construction projects properly. Therefore, conserving resources in the most optimal way possible is essential to project success.
About Specialty Plant Services
SPS is a leading project controls company in Canada. We have the resources, experience, and tools to control large construction projects. We provide third-party cost management, estimating, scheduling, and additional project control services to industries: manufacturing plants, pipelines, oil and gas, infrastructure, and fabrication shops. Contact us or visit our website for more information!