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Cost management is one of the tools that owners can employ to keep multiple and complex project issues in balance, including program and initial budget estimate, design issues, final budget and construction considerations, and project schedule. The cost management process provides a complete service from the planning stages until the project is launched into the construction phase. The cost manager not only assesses costs through each design phase, but also provides cost guidance during each design phase by providing the clients with multiple alternatives and explaining the advantages and disadvantages of each alternative. If a client wants to spend more or less money on one area of the project, the cost manager’s role is to assist the client in determining whether it is a viable option and what will be the long-term usage implications vs. cost results.
Because construction projects too often can run over budget, costing services are critical during the design and construction phases of the construction process. One of the processes that can contribute to controlling cost during the design phase of a construction project has traditionally been known as “cost estimating”. Cost Estimating, as a function of the design process, includes the “estimator’s” periodic review and interpolation of the designer’s documents, and results in the designer being provided with a project cost estimate at various times as the design evolves. The estimator’s role can be “expanded” during this phase to include additional cost related services, such as “ Contractor Reconciliation” and “ Value Management”. The aforementioned cost service, when used proactively, often proves to be extremely valuable in assisting owners and designers in managing project costs.
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