Cost Management cannot be achieved overnight and a large process is involved in it. The strict and disciplined actions based on proper communication with the stake holders help to achieve the goals.
I. Pre contract phase
- Initial budgetary estimate
- Preliminary cash flow
- Identification of items for advance purchase
- Value management (consultants)
- Cost monitoring (against design progress)
- Preliminary cost plan & Cash flow
II. Tendering & documentation phase
- Value Engineering
- Procurement strategy- packages, tendering & contracts
- Preparation of standard & consistent BOQ
- Preparation of Tender documentation
- Tender review & analysis
- Preparation of Letter of award & contracts
III. Post contract cost control & monitoring
- Cost Control & Administration
- Revised cash flow & financial advice based on tenders
- Change management strategies
- Progressive cost plan & monitoring of costs
- Monthly project cost report
- Intent & Check measurements/quantities, material reconciliation
IV. Post-contract financial management
- Standard procedures for progress payments
- Attend Meetings
- Monthly valuations & progress payments
- Preparation of Final Accounts
- Financial & contractual close-out