Construction Project Managers handles the responsibility of keeping the project going according to plan. Which means, they shoulder the responsibility of managing the project, so it finishes on time, within the budget without compromising the building codes, plans, and specs.
Financial management plays a heavy role in managing a construction project and is one of the most important tasks of CPMs. It’s seen throughout a construction project, from planning and budget allocation to controlling costs during the process and assessing a project’s cost performance until its completion. The whole aim of the process is to stimulate cost reduction while improving the organization.
The success of a project depends on the performance of resources when controlling costs. Resources such as labor, materials, machinery, and money affect the outcome of the project and could possibly end up in getting unnecessary delays and cost escalation.
Poor cost management techniques and laxity in supervision can create problems for cost control. A study showed that a lack of knowledge of cost control techniques becomes the biggest problem in project management. Starting a construction project with effective cost management would prevent any setbacks that may occur.
This infographic from Bizprac will be including the importance of cost management in any construction project.