As a project manager or anyone working on a construction project you have a lot on your mind. Estimates and cost management plays a large role in the success of your project. You need to know all the costs associated with the project, so it can move ahead. You’ll need manage a project effectively and have an effective cost management strategy in place when dealing with the construction project. Here is how you can go about that.
Managing a Project
There are several things that you’ll be doing when managing a construction project. These might include:
· Negotiating cost estimates and gathering up a budget
· Setting work timelines
· Picking efficient construction strategies to complete the project
· Working through the budget with your client
· Discussing technical details about the project with professionals
· Supervising the workers on the site
· Working with building specialists
Costs play a large role at every stage of the project. Here are how the costs will relate to how the project is managed.
Outline the Project
The first thing you need to do is outline the project. This is where you can the initial rough estimates for the project you wish to complete. Research is done here, and you need to understand all the facts about the project you wish to do. You can’t hope to start a project unless you know what it’s going to entail or if it’s even feasible. You’ll probably have a budget that you need to work with. You will be speaking with your team and determine all the associated costs within the project that you’re doing. You will develop a project plan and what it’s going to entail. Estimates will be rough, but as you work things out, the costs will come more into focus.
Intermediate Estimates
As you move into planning out the project, you’ll have intermediate estimates. These costs will help you refine and finalize the associated costs for your final project. Here you may need to look at alternatives to construction materials or different systems if your initial estimates aren’t within your budget. You may have to find new ways to fit everything into the project. You can’t do this unless you understand the intermediate costs of the project. Your costs will change as you work on it. You need to stay accountable for the entire project. The project must be on track according to the schedule and the budget assigned to it.
Detailed Final Project Estimate
Here is where everything for the project is detailed. The final estimation for the project will be given. Costs have probably changed at this point, so you need to know what has changed and what may be required to complete the final project. In some cases, risks surrounding the project may have to be outlined here, and you may need other contingencies in place. A pre-bid estimate will be prepared as you finalize what the project will likely cost.
Conclusion
Project managers have a lot of work to do when managing a project. Getting estimates for everything before the project goes ahead is a crucial step to ensuring that the project can stay within its budget and be completed on time.