Implementing a Cost Management Plan in Your Next Build

cost management plan for construction projectsWith so many moving parts involved in every construction project, you’re almost guaranteed to see scope creep and cost overruns if you don’t maintain strict control. An effective cost management plan for construction projects helps you stay on budget and on schedule.

What a CM Can Do for You

A Configuration Management (CM) system gives you a way to accurately anticipate, approve, execute, and track all changes to your project. All relevant paper and electronic documents are added to the CM system to ensure no information is lost. More advanced CM software automatically analyzes data andĀ alerts you to developing problems. Potential benefits include:

  • Reduced administrative costs
  • Less repetitive data-analysis work for your managers
  • Faster responses to Requests for Information (RFIs)
  • Faster processing of Change Orders

Best Practices for Implementing Your Next CM

A cost management plan for construction projects works best when it’s fully prepared before the project begins. Establishing baselines for scope, cost, and schedules from the beginning makes it easier to spot and prevent scope creep.

Define a schedule for the release of status reports to managers. These reports should detail the project’s present state and any changes that have occurred. Develop a change management plan that establishes a set of procedures for the consideration and approval of changes. Include a way to audit the success of each project and document any valuable information gleaned that can be put toward improving future projects.

Look for a CM software that offers Sentiment Analysis (SA). SA technology mines documents for specific words and determines if they’re used in a good, bad or neutral manner. It picks up on words that require attention, such as “delay,” and notifies managers in real time.

Data and text visualization capabilities also add value to your CM software. These analytical tools process live performance data streams to create charts, text clouds, timelines, and other visuals that let you review the status of your project at a glance.

To learn more about choosing a cost management plan for construction projects, contact us at Construction Monitor.

One thought on “Implementing a Cost Management Plan in Your Next Build”

  1. I think that the use of light steel framing can save a company a lot of money and time as well…construction companies should start looking into this as the Earth is taking a big knock we need to use materials that are not harmful to the eco-system tat are recyclable. there are many benefits of light steel framed buildings lets save our Earth.

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