Cost Control and Procurement
BT 365 COST PLANNING AND CONTROL
Lecturer: J.K. Ofori-Kuragu September, 2006
Course Objectives / Course Outline:
At the end of this course, you will know: 1. What Cost Control is. 2. Purposes of Cost control. 3. Elements of Cost Control 4. The Introduction to Cost Control Systems. 5. Cost Analysis and Cost planning 6. Costs in Use 7. Introduction to Value Engineering
Recommended Texts • A. Ashworth Cost Studies of Buildings • Ivor Seeley Building Economics 3rd edition upwards • Douglas J. Ferry & Peter Brandon - Cost Planning of Buildings • Any good book on Cost Planning/ Cost Control • Any Books by any of these authors
COST PLANNING
This can be defined as controlling the cost of a project within a predetermined sum during the design stage. This involves preparing a cost plan and doing cost checks.
COST CONTROL
Seeley (1993) defines Cost Control as “all methods of controlling the cost of building projects within the limits of a Predetermined Sum throughout the design and Construction stages.
NB: “Cost” as used here refers to the cost to the client not the contractor.
IMPORTANCE OF COST CONTROL
1. The need to complete building projects is becoming increasingly important to clients. Very few clients will tolerate delays arising from the need to redesign schemes when tenders are too high. 2. The needs of building clients are increasingly becoming more complex as a result of which estimation of probable costs is becoming more difficult. In turn, more effective systems of cost control are required for projects from inception up to the completion of the final account as well as controlling costs during the life cycle of the scheme. 3. Clients of the construction industry are becoming larger, more efficient and adopting more sophisticated techniques for forecasting and controlling costs. As a result, the Construction Industry requires professional
Lecturer: J.K. Ofori-Kuragu September, 2006
Course Objectives / Course Outline:
At the end of this course, you will know: 1. What Cost Control is. 2. Purposes of Cost control. 3. Elements of Cost Control 4. The Introduction to Cost Control Systems. 5. Cost Analysis and Cost planning 6. Costs in Use 7. Introduction to Value Engineering
Recommended Texts • A. Ashworth Cost Studies of Buildings • Ivor Seeley Building Economics 3rd edition upwards • Douglas J. Ferry & Peter Brandon - Cost Planning of Buildings • Any good book on Cost Planning/ Cost Control • Any Books by any of these authors
COST PLANNING
This can be defined as controlling the cost of a project within a predetermined sum during the design stage. This involves preparing a cost plan and doing cost checks.
COST CONTROL
Seeley (1993) defines Cost Control as “all methods of controlling the cost of building projects within the limits of a Predetermined Sum throughout the design and Construction stages.
NB: “Cost” as used here refers to the cost to the client not the contractor.
IMPORTANCE OF COST CONTROL
1. The need to complete building projects is becoming increasingly important to clients. Very few clients will tolerate delays arising from the need to redesign schemes when tenders are too high. 2. The needs of building clients are increasingly becoming more complex as a result of which estimation of probable costs is becoming more difficult. In turn, more effective systems of cost control are required for projects from inception up to the completion of the final account as well as controlling costs during the life cycle of the scheme. 3. Clients of the construction industry are becoming larger, more efficient and adopting more sophisticated techniques for forecasting and controlling costs. As a result, the Construction Industry requires professional
References: Seeley, Ivor Building Economics Macmillan Basignstoke 1993 Kenyon, A W An Architect’s thoughts on the profession of quantity surveying The Quantity Surveyor (July / August 1964) Harris, F & McCaffer R Modern Construction Management EPP Books, Accra 2005 Asworth, A Cost Studies of Buildings Longman, Harlow 1994 Ferry J D & Brandon P S Cost Planning of Buildings BPS Books, Oxford 1994