Cost Management

Avoiding the Misuse of Budget Contingency Reserve on Capital Construction Projects by Enforcing the Best Practices of Transparency and Accountability While Unlocking Trapped Budget Reserve

Every capital construction project has risks that may affect the cost, schedule, or quality of the completed work. The likelihood of these risks must be assessed so their typical cost can be calculated. The result is the contingency reserve also called known-unknown risks. Typically, a 5-10% calculation of the construction Read more…

By Tony, ago

How Can Organizations Take Advantage from Their Past and Current Experience in Managing Change Orders to Build an Unbiased Assessment of Schedule and Cost Impact of Change Order Risks as well as Their Occurrence Likelihood on their Capital Construction Projects’ Portfolio?

Similar to any risk assessment, assessing the exposure of change orders risk on a capital construction project requires assessing the likelihood of the risk occurrence as well as the impact that this risk could have on the project’s completion date and budget should it occur. To improve the occurrence likelihood Read more…

By Tony, ago

Using Checklists to Expedite the Final Account Process on Capital Construction Projects

Final Accounts for capital construction projects are prepared to show the final cost of projects that have been completed by the contractors. Final Accounts include the costs associated with rectifying defects identified during the defect liability period, all scope of work additions, alterations, deductions resulting from project changes, and other Read more…

By Tony, ago