Cost Planning And Cost Planning

1320 Words6 Pages
The concept of cost planning and cost control particularly in the tendering process of building project is not a new technique and have been successfully use for many years to achieve value for money on project. Involving a process of applying prices to the various elements of work that comprise the project, such as items of labour and materials so as to estimate the overall cost of the construction project. Added to the function of providing a means of determining the probable cost of the project, this technique is also used to assess achievement of best value for money of the project. The UK government describes achieving best value for money as having taken into account when making procurement decisions the optimum combination of whole life cost and quality necessary to meet customer's requirements (CPS.GOV.UK). It dictates the critical elements of the project such as design, schedule and quality all constitutes a stages where cost must be effectively planned and controlled. 2.0 Cost Planning Best Practice for Clients during the Bidding Process The bidding process of a project is the phase where cost planning and assessment of value for money should be made. This process is critical for a Client, as it is against this output that project performance would be measured. To effectively plan cost during this stage, the recommended best practice is for clients is to applied cost planning at the earliest stages of project planning. This could be during the project definition phases of the project. For instance, consideration can be given to the start and finish dates of the project, particularly if the cost a executing a project during winter months are grossly higher that doing the same scope of work in the warmer months. Cost plann... ... middle of paper ... ...the main aim being performance. Regardless of the method used, the contractor will be required to employ an effect cost planning strategy throughout the duration of the project. Recommendation of best practices for cost planning strategies as intimated by Boussabaine (2007) and Brook (2008), • Prepare cost schedule for all element of work: This will give all the consideration taken for developing the costs • Establish a systemic cost assessment through the duration of the project • Effective communicate with client on price changes • Be fully aware of project changes through the duration of the project. While the contract remains committed to meeting the needs the client, taking into the requirements for time, cost, quality and risks, the contract will also be required to undertake a value management process which will involve effective collaboration with the teams
Open Document