Why Do We Need Good Construction Cost Management?

Construction Cost Management

What is the most important thing when you are constructing a project? Is it the manual labor, or is it the raw materials? Many people may also say that engineers and architects are the most critical part of the construction project. But that is only half the truth because no construction project can commence without a proper budget. You need a budget to quantify the amount of manual labor that you need to hire.

Along with that, you also need to include the cost of the raw materials, the plot expenses after purchase, the architect’s fees, the furnishing, the designer’s fees, and a lot of other miscellaneous costs. There are so many expenses that need to be taken into consideration. People who do not have much knowledge about managing the cost of construction projects need to know about the purpose of cost control in construction.

But before you learn about the importance of good construction cost management, you should know that there are professionals trained in cost management and work as cost managers for various construction projects. So let’s get to learn more about them.

What Is the Profile of A High-Quality Construction Cost Manager?

The cost manager is an irreplaceable member of the designing and construction team as they have a vital role in the entire construction project. Their roles often combine the duties performed by accountants, estimators, and economists; thereby, it can also be said that they save a lot of money from hiring external budget team members. Because the budget is the most crucial part of the entire project construction project, without a cost manager or quantity surveyor, the project may not have a good value in the real estate market. This is because you may have to incorporate things in your budget that are low in quality, which may prove unattractive at the end of the project in terms of its value and cost-effectiveness. So if you are in the real estate business and you plan to sell or let out the construction project after its completion, then you need the help of a cost manager.

How Does The Cost Manager Or The Quantity Surveyor Make Your Budget?

The first thing that the quantity surveyor does is to survey the plot and determine how the design can reduce the cost and design team. Later on, the cost manager establishes a budget that might go through many changes while the project is being completed. To calculate the budget, the cost manager estimates the number of elements like raw materials and manual labor that will be needed and the time required to complete the construction project. After much calculation and consideration, a final budget will be produced in front of the user. There will be a space for incidental and miscellaneous costs. Based on the user’s necessity and demand, the budget will be further designed to suit the user’s purpose. So the purpose of cost control in construction is to provide for emergencies and enhance the projects’ value in terms of their future use.

What Other Services Do Cost Managers Provide?

Project owners often hire cost managers for various other services that are crucial for completing construction projects. So, if you are willing to hire a quantity surveyor for your upcoming project, here are some other services that you can expect from them:

Managing the Value of the Project

As mentioned above, every project or completed building has a cost-effective value in the real estate market. So, no matter how high or low the budget was for the project, it should be suitable for the project’s future use. Otherwise, it would be rendered as a project with much less monetary value in the real estate market. So many people hire quantity surveyors to estimate the project’s total value and help the designing team in processing a budget that would increase the real estate value.

Lender Services

The construction budget is not an ordinary budget because it mostly deals with millions of dollars. So there is a probability that the project budget is not adequate or is exceeding the limit. There also lies the possibility that the budget is impractical and does not include many other costs. So people often employ cost managers to verify and review the project budget provided by a designing team.

The cost managers make the project possible within the user’s finance and help the user have a completed construction project that can become a good investment in the future. So, in short, the purpose of cost control in construction is to ensure that the user can benefit from the completed project.