Cost Management
Project costs are measured and analyzed in many ways throughout a project, from planning, programming and design to bidding, construction, turnover, and post occupancy. First costs, cost-benefit ratios, and life-cycle costing are a few examples of how a project's cost-effectiveness can be evaluated. The control of costs requires continual and systematic cost management and monitoring to compare actual costs incurred against targeted budget numbers. These cost management processes start with the establishment of budgets based on actual estimates for related work. They need to align with scope and quality requirements and be based on realistic, current market conditions. Comparing budgets to actual costs throughout the building process is critical. The process continues with milestone estimates, value engineering, procurement strategies, and change order management to ensure the project is timely and cost effective.