Cost control is the process of planning, predicting and controlling the cost of a building project. It takes place throughout the duration of the project, from the earliest estimates through design, procurement and construction to the final account.
Before construction, cost control is mainly about setting a realistic cost limit, preparing cost plans and carrying out cost checks so that the design stays within budget. After the contract is let, it focuses on managing change, valuing variations, forecasting the final cost and reporting to the client. The aim is not only to record costs but to give early warning so that decisions can be made before money is committed.
- Regular cost reports showing the anticipated final cost against budget.
- Prompt assessment of the cost of proposed changes.
- Managing risk allowances and contingency.
Related terms: cost plan, cost checking, cost report, final account.
