Planning in Construction project management should established cost in construction activities, this cost is the baseline throughout the project and to be monitored. Almost majority of the construction projects failed in the cost, so pay attention with your cost of a project activity.

Estimate of Cost for construction activity or simply Activity Cost Estimates

Is the application of measurable method to establish cost of the resources needed to complete the activity. Cost estimates are often expressed in currency units, such as dollar, peso etc., and will be progressively elaborated and refined when data and information are available.

Generally, cost of an activity refers to cost pertaining to materials, manpower or labor, equipment, services, and contingencies. Estimate of cost can be performed by using analogous estimating, parametric estimating, three-point estimating, or bottom-up estimating.

This document is to be created during the second step in managing construction projects.

Here are the contents of activity cost estimate;

parametric and analogous estimate

Analogous Estimating

  • WBS ID
  • Activity Description
  • Quantity ( total quantity of materials for specific activity to be performed area in square meters, cubic meters. etc.)
  • Unit Rate ( amount of currency per unit )
  • Amount ( currency unit like $)

Parametric Estimating

  • WBS ID
  • Activity Description
  • Quantity ( total quantity of materials for specific activity to be performed area in square meters, cubic meters. etc.)
  • Unit Rate ( amount of currency per unit )
  • Amount ( currency unit like $)

Estimate of Cost for construction activity can acquire data from the following documents

Project schedule
Human resource plan
Risk register
Scope baseline

Estimate of Cost for construction activity can provide data to the following documents

Procurement Management Plan
Funding requirements
Risk register
Change requests
Requirements Management Plan
Requirements Traceability Matrix

Did hear the word s curve in construction projects?

The s curve ;

s curve

Cost performance baseline is a time phased budget at completion of the project.This is commonly presented in the form of       s curve for monitoring and controlling the cost for the project. This document is often created during the second step in managing construction projects.

What are the contents of cost performance baseline or the s curve?

Time period
Cost
Cost Baseline
Expenditures

S curve can acquire data from the following documents.

Contracts
Activity cost estimates
Project schedule
Scope baseline

S curve can provide data to the following documents.

Quality Management Plan
Procurement Management Plan
Make-or-buy decisions
Change requests

Creating an estimate of cost for all activities requires high level of expertise and that is why we hired quantity surveyor the Q.S. for our construction projects, our baseline for cost basically presented in the form of s curve , a simple graphical representation of costs that need to be submitted , monitored and displayed in the site offices.

Please share your thoughts below…

Succeed in Project Management for Construction!

Marvin

Please share your thoughts below…

Succeed in Project Management for Construction!

Marvin

– See more at: http://constructionprojectmanagementpro.com/construction-management-planning-part-four-schedulenetwork-diagram/#sthash.pAlOTw2F.dpuf

Please share your thoughts below…

Succeed in Project Management for Construction!

Marvin

– See more at: http://constructionprojectmanagementpro.com/construction-management-planning-part-four-schedulenetwork-diagram/#sthash.pAlOTw2F.dpu

Please share your thoughts below…

Succeed in Project Management for Construction!

Marvin

– See more at: http://constructionprojectmanagementpro.com/construction-management-planning-part-four-schedulenetwork-diagram/#sthash.pAlOTw2F.dpuf