Cost Control in Residential Construction Management

Abstract

My current idea of doing this project stems from the belief that there is a need for those individuals who use the services of the construction industry, and those that are engaged in one or other facets of it, to be involved with cost and its implication. Not only is there a need to be involved with the cost that concerns their own particular, perhaps limited participation; but also to have an understanding of the ways and forms in which other parties to the construction process need to have information about cost in order to operate on a sound and efficient commercial basis. One of the reasons why cost overrun and delays occurs in majority of construction projects in India is the absence of a good cost control mechanism for different parties involved in a project, namely the owner, the contractor and the client’s consultant. Our thesis, therefore attempts to look at a wide range of aspects of the control of cost from the point of view of the potential owner of a constructed asset through the financial feasibility studies for the investment, then through the design and, ultimately, the control of the cost of the work on a side both from the point of view of an owner and the contractor or a group actually constructing the facility. Our current work will include the various control processes so that the reasons for the different views that are taken can be understood. It draws attention to the fact that if one party to the construction saves some money by a particular device, then it can cause another party to incur the equivalent amount of cost elsewhere. Our current study would contribute to each party involved in a construction project making proper allowance for the cost that they will incur. It is important too that each participant to the process understands the various sensitivities that project cost has relation to the activities in which they are engaged and the possible consequences of changes in established cost of the work proceeds. Our work will include suggesting practical approaches to the cost control in construction project only during the execution phase. This analysis will include a feedback collected through questionnaire from contractor’s point of view. For gathering information, we have used primary methods of data collection through a series of meetings, site visits, and telephonic conservations with reputed construction companies.