By: FAJumadiao
To define Cost Control/ Cost
Engineering
How Cost Control/
Engineering Benefits you
Cost
Cost Control/ Cost Engineering
Process
Minimizing costs the company must expend without
sacrificing the end product (Services) that the
Customer Receives.
PLANNING:
Initially a plan or set of targets is established in the Form of budgets
and standards.
COMMUNICATION:
Communicate the plan to those whose responsibility is to
implement the plan.
MOTIVATION:
A process that initiates, guides and maintains goal-oriented
behaviors.
REPORTING:
Comparisons has to be made with the predetermined targets and
actual performance. Deficiencies are noted and discussions is
started to overcome deficiencies.
DECISION-MAKING
Corrective actions and remedial measures are taken or the set of
targets are revised, depending upon the administrations
understanding of the problem.
MATERIALS
LABOR
OVERHEADS
EQUIPMENTS
SUBCONTRACTORS
ADVANTAGES OF COST CONTROL
Helps the project/ company to improve its
profitability and competitiveness.
Helps in Cost reduction
It is indispensable for achieving greater
productivity
1. Responsible to control and monitor the total project expenditures.
2. Verify and checking of invoices and claims from suppliers ,
subcontractors, and vendors, to ensure that all project expenditures are
properly recorded and captured.
3. Provide planning and cost controlling report/ support for the project
which includes variation orders, monitoring of milestone progress for
customers billing processes.
4. Prepares technical and commercial reviews of tenders.
5. Prepares project costing.
6. Ensures that the expenditures are kept within the project budget.
7. Monitor the status of purchases, invoicing, delivery up to the
closure of the project.
8. Monitors Financial progress of the project.
9. Prepares budgetary cost of the project. Comparing budget
amount versus actual cost.
CHANGE ORDERS
Changes to the Construction contract that occur after
award of the Contract. It is a document that
contractually alters an original agreement between
the signed parties.
The term VARIATION usually means a change,
modification, alteration, revision or amendment to
the original intent of the contract and/or its works.
ADDITIONAL WORKS
EXTRA WORKS (Elective Changes)
Changes in clients requirements
Revisions and modifications in the original
designs
Amendments or changes in the provisions or
requirements.
DESIGN MODIFICATIONS
ERRORS & OMMISIONS
FORCE MAJEURE
ADDED COST INCENTIVES
CHANGED CONDITIONS
ADDITIONAL/ REDUCED WORK
SCOPE
OWNER DIRECTED
ACCELERATION OR SLOWDOWN
DELAYED, DENIED, OR
RESTRICTED ACCESS TO
A PROJECT SITE
ADJUSTMENTS TO
UNIT PRICING
WORK SEQUENCING
DELAYS TO OWNERSUPPLIED SERVICES &
MATERIALS
Description of the Proposed Change
Necessity of the Proposed Change
Origin and Originator of the Proposed Change
Classification of the Proposed Change
Bid Plans vs For Construction Drawings (FCD)
For Construction Drawings (FCD) vs Condtruction Bulletin
Clients Request
Change in Specification
Provisional Items
Remeasurable Items
Labor Escalation
Extended Overhead Claim
Additional Attendance Fee
For Considerations
CM
Prepares
CO Form
Receive
Construction
Bulletin from
client
START
Determine
Possible
Change
Orders
Reconciliat
ion with
Clients
Representat
ive
Receive
SIT/
PMI/WAO
from CM
Determine
Other
Possible
causes of
Change
Orders
Approval
of the CO
form
30-45
days
Prepare a
Cost
Proposal
Evaluation
of the Cost
Proposal
14
days
7
days
Sign &
Submit the
Cost
Proposal
Revenue,
Billings,
and
collections
ENGG
ENGINEERING
DIVISION
Cost & Contracts
Department
OPERATIONS/
SUPPORT GROUP
OPTNS
Cost Control &
Monitoring Section
SENIOR COST
Oversee 2 or more
projects;
According to Area
or Client
ASSOCIATE COST
JR COST
QS/ UNDERSTUDY
One or more for
each Project
depending on
project
requirement
Claims and Changes Specialist
Construction Manager
Contract Management Specialist
Cost Analyst
Cost Engineer
Cost/ Construction Estimator (or Estimator)
Planner/Scheduler (or Scheduling Engineer)
Pre-Construction Manager / Engineering Manager
Project Controls Engineer
Project Manager
Quantity Surveyor
