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Pre-Contract Cost Planning and Cost Controlling
Engineering and Construction
Pages 8 (2008 words)
PRE-CONTRACT COST PLANNING AND COST CONTROLLING Name: Course: Tutor: Date: INTRODUCTION When undertaking a project such as construction, it is important for individuals involved to keep in mind cost planning as well as cost control. Cost control is a key objective in any given construction project and should, therefore, be recognized that, it is only achieved through the final decision of the manager (Potts, 2007, p.12).
A team of consultants are responsible for providing the service during the pre-contract period, as well as the information needed, and this is what is referred to as Cost Planning and Cost Controlling. Cost planning is considered important where successful planning, design and construction of projects are concerned (Mincks & Johnston, 2004, p.102). Its main objective is to provide the best value solutions to project managers. Cost planning not only enables capital cost budgets to be set but also provides a structure to accommodate as well as manage transformations to the client’s brief and design (Murdoch & Hughes, 2007, p.80). An effective Cost plan enables a client together with the design team to understand where and how finances have been allocated towards the completion of a project. On the other hand, Cost control should be provided from start to completion of the project, ensuring that the estimated final cost is always known. However, Pre-contract Cost Controlling is quite different from the Post-contract Cost Controlling. ...
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