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Topics: Project management, Cost, Costs Pages: 41 (6946 words) Published: September 30, 2014
Project Cost Control Tools & Techniques

Jason Owens, jason@jasonowens.com
Scott Burke
Matthew Krynovich
DJ Mance

Last Updated: 1/15/07

Project Cost Control Tools & Techniques

Contributors:

Introduction

Owens, Jason, jason@jasonowens.com
Burke, Scott
Krynovich, Matthew
Mance, DJ

The formatting and minor edits of this document have been
updated since its original creation. Contact information for some of the contributing authors has been removed for reasons of
privacy and in no way indicates a lesser degree of contribution. All project team members have contributed equally to this paper.

Copyright © 2007 All rights reserved. No part of this document may be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without written permission.

Jason Owens, jason@jasonowens.com

Page 2 of 26

Project Cost Control Tools & Techniques

Introduction

Executive Summary
This paper reviews certain tools and techniques that can be used in order to help those responsible for managing a project to potentially better control and manage project costs. The aspects of life-cycle costing are presented and opportunities for optimizing cost management are presented. Finally, a table summarizing the recommendations are presented in the conclusion.

Jason Owens, jason@jasonowens.com

Page 3 of 26

Project Cost Control Tools & Techniques

Introduction

Table of Contents
Executive Summary ..........................................................................................................3 Table of Contents ..............................................................................................................4 Table of Tables...................................................................................................................4 Table of Figures .................................................................................................................4 Introduction........................................................................................................................5 Analysis ..............................................................................................................................7 Analysis of Cost Estimating .......................................................................................................... 7 Communication ............................................................................................................................................ 7 Being Realistic ............................................................................................................................................. 9 Uncertainty................................................................................................................................................. 10 Big Picture ................................................................................................................................................. 12 Techniques in Tandem .............................................................................................................................. 12

Analysis of Cost Budgeting......................................................................................................... 13 Contingency and Allowance Budgeting ..................................................................................................... 14 Strategic Budgeting ................................................................................................................................... 16 Cost Budgeting Conclusion ....................................................................................................................... 17

Analysis of Cost Control ............................................................................................................. 17 Introduction...


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building services cost estimation
Moselhi, Osama. Risk Assessment and Contingency Estimating. AACE International Transactions,
(1997): A.06.1-A.06.6.
Mullaly, M.E. (2001). Project managers vs. bean counters: a radical approach to developing budgets. Retrieved
from http://www.gantthead.com November 2006.
Mullaly, M.E. (2001). The good, the bad and the ugly: communicating estimates to your customers. Retrieved
from http://www.gantthead.com November 2006.
Park, J., & Seo, K. (2004). Incorporating life-cycle cost into early product development. Proceedings of the
Institution of Mechanical Engineers -- Part B -- Engineering Manufacture, 218(9), pp
Tammo T. Wilkens, (1999) Earned Value, Clear and Simple. Los Angeles.
Warko, J. (2001). Curiosity: The prerequisite for good estimates. Retrieved from
http://www.gantthead.com November 2006.
Winters, F. (2003). The top ten reasons projects fail (part 8). Retrieved from
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Zastrozny, E. Practical Cost Estimating for the South African Chemical Process Industry, Republic of
South Africa: SASOL., (1974):35-39 and 158-171.
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