Project Cost Management

OVERVIEW

MICA KSA advocates a proactive approach to project cost management. We target areas of potential cost overruns, constructability issues, and can develop value-added alternatives to keep clients in control of the project costs and overall project success.

The construction industry is characterized by complexity and a great deal of diverse activities which greatly impact on price fluctuations and can drive up costs significantly if control is not exercised. We fully understand the complexities of each project, appreciating their differing requirements and priorities.

An efficient cost control service can maximize the use of available resources thereby reducing the negative effects of higher costs.

Project Cost Management copy

METHODOLOGY

The MICA procedure of cost control management during the various phases of the project is complemented by the presence of a team of MICA specialists who work in tandem with the contractor’s team to ensure the implementation of activities, analysis of data and the problem-solving method throughout each stages of the project as follows:

SERVICES AVAILABLE

  • Planning Project Cost Management System.
  • Follow up and Gathering Data of Project Cost Management System.
  • Analysis and Control of Project Cost.
  • Lessons Learned and Cost Database.
  • Project Cost Management Software.

ROADMAP FOR A COST MANAGEMENT SYSTEM

Work begins at this phase when the MICA CMS team meets with the contractor's team immediately upon receipt of the letter of award. Both teams will prepare an internal time schedule corresponding to the client-driven baseline schedule which will facilitate a series of activities for planning and designing the basics of a management cost control system as follows:

  • Conduct a study of the company and the project and identify the areas of direct and indirect cost.
  • Design cost centers and cost account of the project related to the company roles.
  • Prepare a new version of the tender analysis related to the basics of cost control system and confidentiality of the company.
  • Allocate resources, equipment, indirect cost and prices on an internal baseline time schedule for issuing main programs of the project.
  • Develop a follow up system for cost control (Forms – Reports – Charts – KPIs – Criteria's and tolerances).
  • Prepare a program of cash flows (In – Out), financial gap analysis and proposals for treatment.

FOLLOW UP AND DATA GATHERING FOR PROJECT COST MANAGEMENT SYSTEM.

This phase is initiated once the outputs from stage 1 have been approved. Site mobilization and punch list completion that results from the role of the MICA CMC team in this phase are:

  • Reviewing of data and information gathered from sites and internal departments of the company by the contractor team and the approved forms of cost control system.
  • Preparation of requests for correction and queries on data submitted to obtain the precision required in the management of cost control.
  • Updating the files of cost control programs with adjusted data.

Talk to our consultants today to determine how we can help your organization achieve its desired levels of cost management.