L1 - Cost Management Overview

Question 1

Objectives of Cost Management

Answer 1

Control Cost.
Deliver within budget.
Provide a realistic budget: Conceptual and detailed estimates.
Failure leads to cost overruns.

Question 2

CM Role in Cost Management

Answer 2

Create an implement a system to control cost.
Control cost growth.
Design cost management plan (CMP).
Deliver within Budget.
Provide financial forecast.
Manage project costs and cash flow.
Communication.

Question 3

Project Team and Cost Control

Answer 3

Owner: First among equals.
Designer: Technical aspects and aesthetics.
Contractor: Completing work within its budget.
CM: Overall cost control.

Question 4

Cost Control Stages

Answer 4

Pre-Design, Design, Procurement:
-Gather cost info.
-Provide cost estimates.
-Employ "value analysis".
-Guard against cost growth.
Construction, Post-Construction:
-Play a role in the payment process.
-Manage the change order and claims process.