DEVELOPING A MODEL FOR ENHANCING COST MONITORING AND CONTROL IN THE CONSTRUCTION FIRMS

Abstract

Construction cost is one of the most important constrain for the success of the project. Cost monitoring and control in the construction firm is one of the significant processes of cost management practices that are required for the survival and growth of every construction firm. A lack of sufficient construction cost monitoring and control by construction firms contributes largely to construction cost overruns. Despite all the efforts made to control cost, some construction firms still continue to unrealize their expected profit margin at the end of the project completion, due to the fact that many construction firms’ cost control systems and models are not sufficient. This study provides a model of processes for enhancing cost monitoring and control in construction firms by making the integration of cost estimation and cost control and helping the managers to evaluate the performance and control resource consumption through output reports like cost report, productivity report, and wastage report. The model shows the inputs required as cost estimation for different project resources, and processing required to make cost baseline, actual cost, and coding system