Non Conventional Principles of Cost Effectiveness in Construction

Abstract

Cost Effectiveness in Construction is well know pain area prevailing around in the industry for a long and lot of efforts have been made to establish an effective cost model .Unfortunately all the effort have been made to keep control on following conventional parameters • Schedule Control • Material Management • Effective Monitoring and Controlling Even various Management Information Systems and EPR modules have been used to majorly control above mentioned parameters. Above mentioned parameters are limited to the duration of construction but economics of constructed structure is more complex and require extended evaluation not only limited to the construction duration. Cost effectiveness requires a project life cycle perspective where tangible benefits should be evaluated over the period of project economic life. In spite of an effective system to keep track of above mentioned parameter construction companies are finding it difficult to sustain in such a competitive market and they are in continuous hunt to achieve the smarter way to establish cost effective model which could eventually help them to sustain , survive and flourish in today’s competitive market. Following are few project life cycle factors which should be considered for cost evaluation • Initial, Design & construction cost • Ongoing Maintenance and Operation Cost • Parts replacement Cost • Scrap and Salvage Value This paper will high light the need to exploring some other non conventional ways of controlling the cost and achieve the cost target. It will also establish the ways and mechanism to utilize the MIS to effectively apply the Non conventional principles of cost effectiveness in construction.