Estimating Purchasing and Cost Control - Essay Example

Only on StudentShare

Extract of sample
Estimating Purchasing and Cost Control

Cost management is an integral part of financial control and management in any for profit and non-profit organisation, notwithstanding the industry or sector. The same applies particularly to the engineering and construction sector in which the huge amounts of financial and other resources pumped must be accounted for to stakeholders such as the government, project funders and the public/customers.Unfortunately, for various reasons, many countries’ construction sectors lag behind in the use of cost control techniques such as the Cost Value Reconciliation (CVR) and Earned Value (EV), two rather common methods of cost control. Many a stakeholder cites the technical skills and the huge resources required as the reasons many constructions firms and financial managers do not apply CVR in their cost control practices. Most affected by the cost and skill requirements of CVR and other cost control techniques such as CVR and Earned Value (EV) are the small and medium-sized construction and engineering firms that lack the wherewithal to design and implement these techniques of cost control. The other reason for the little use of cost control techniques such as CVR and EV is the apparent lack of literary coverage and information on these methods, implying that stakeholders are not quite conversant with the metho.Nonetheless, these methods are generally used in the construction and engineering industry to measure and monitor project progress, profitability and performance for their strengths. ...Show more

Summary

Cost management is an integral part of financial control and management in any for profit and non-profit organisation.The same applies particularly to the engineering and construction sector in which the huge amounts of financial and other resources pumped must be accounted for stakeholders …
Author : louie95
Estimating Purchasing and Cost Control essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Estimating Purchasing and Cost Control"
with a personal 20% discount.
Grab the best paper

Related Essays

Estimating and purchasing cost control
Despite the fact that most construction contractors and managers take part in project procurement and bidding processes, these processes are not considered part of the process of cost estimation, which is somewhat independent. The commonest approach to cost estimates used in the construction industry is the definitive estimate, which is prepared using contract documents containing full project designs, plans and specifications.
10 pages (2500 words) Essay
Cost Control
In general, construction cost control consists basically of monitoring actual performance against cost estimates and identifying the variances. The traditional cost control system are good in contract management but cannot be practiced during the execution of the project.
3 pages (750 words) Essay
Painful vs. Painless Cost Control

According to the research findings, it can, therefore, be said that cost control is necessary to have savings for future prospects and thus certain reformats could be painful while others may sound to be painless. A health care organization must keep more of painless cost control in consideration for better outcomes.

5 pages (1250 words) Essay
Schedule and Cost Control Techniques
The single estimates related with the projects can be achieved through the use of different techniques. PERT is one such tool which can help achieve the single estimates for project by combining three different estimates together to get a best available estimates based on weighted average.
3 pages (750 words) Essay
PURCHASING
If these processes are not operated in an appropriate manner, accomplishment and achievement of desired objectives can never be possible. When we talk about such processes which are essential for the achievement of targeted goals and objectives,
8 pages (2000 words) Essay
Cost Control
The actual costing for 33250 units is shown as $ 1322750. Therefore there is a variance of $ 25762.5 from the flexed budget and the actual cost.
5 pages (1250 words) Essay
Schedule and Cost Control Techniques:
The realization of revenue and recognition of cost are acknowledged on periodic basis (Bevilacqua, 1987). The percentage of completion accounting method allows project managers to report income on the project as the works progresses and being done. This method is
2 pages (500 words) Essay
Estimating
Generally this method of height estimation is based on the assumption that the floor to floor height of building such as the church is 3.5m (Gibson, 67). The Shrines bell tower is located at the 8th story and therefore the approximate height of the Bell tower can be
1 pages (250 words) Essay
Project Cost Control
trategy that must be devised towards the cost control is to identify the areas and domains within the organization and project that lead to the incurring of costs. The definition of costs is also imperative as often activities are taken for granted which amount to costs in the
2 pages (500 words) Essay
Estimating
The number of floors will be multiplied by 15ft since the average floor height is known to be between 10ft to 15ft depending on the number of floors present. The maximum number of feet will be used since no data is available on the image. As
1 pages (250 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT