For most clients, the overall success of a project is heavily dependent upon the financial position of the project as it draws to an end. At KURIT we understand the importance that the implementation of an effective cost management plan can play in improving the likelihood of achieving a ‘financially’ successful project.

 

Whilst most understand the importance of managing cost and changes during the construction phase, many client fail to recognise the importance of identifying and measuring anticipated costs during the feasibility and concept phases of a project, when assessing its financial viability. The development of clearly defined cost profile/ framework at this stage of a project will form the benchmark against which all actual spend is measured.

 

As the project moves towards the design coordination and implementation phase(s), all costs whether proposed or actual, incurred or just likely should be recorded and reconciled against the project’s cost profile. To help ensure costs are controlled and kept in line with initial expectations, as set out in the cost profile, any deviation between planned and actual expenditure should be challenged. All analysis derived for the ongoing analysis of the cost management process should be fed back to project team to aid future decision making on the project.

 

​The implementation of a proactive cost control process allows for early decisions to be made on what direction and where appropriate the benefit of additional or reduced cost expenditure should be made. Good cost management, robust change control mechanisms and consistent reporting procedures are invaluable to the financial success of a project. 

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As most projects are cost led, the financial viability of the project evolves as the project advances, with expenditure and forecast cash flow being regulated in accordance with available funding. The implementation of a KURIT cost management plan, allows clients to understand the financial position of a project at any stage which intern allows for more efficient decision making, more effective management of financial risk and ultimately improved cost efficiency