Developments in project cost control

Abstract

Estimating factors, cost ratios and quantity ratios are estimating tools, developed from an analysis of the historic cost of capital investment projects. Whilst a plant is being built, however, these relationships are not static, but dynamic. Not only the relationships in themselves but also their changing value during the life of a project can be used to facilitate project cost control. The “S-curve” is the classic example in this field, but others have now been developed.

Using a case study, this paper illustrates the way in which the development and analysis of such ratios can contribute both to an assessment of the progress being made and the forecasting of potential trends whilst a project is under construction. The cost control engineer is thereby in a better position to give “early warnings” to project management in relation to the estimates of cost and time.