The Cost Control Procedure provides management information in order to know and control project costs. Costing information is also necessary to assist in preparing future estimates and conceptual budgets.
The company must maintain the Total Costing System and the Labor Costing System on all projects over $1,000,000 in value. Also, all projects with a labor content over $100,000 will be placed on both costing systems regardless of contract value.
The Cost Control Procedure applies to all construction project managers, supervisors, and project administrators. (2 pages, 497 words)
Standard cost codes should be developed and utilized in order to communicate our costing information in a clear manner to all who use it. A certain amount of flexibility should be built into the standard cost coding system to accommodate various construction clients and projects.
Cost Control Responsibilities:
The Project Manager and Project Superintendent are jointly responsible for the preparation of the budget for a project.