Cost management
The process of planning and controlling either all or some of the costs associated with the planning, design, and construction process to ensure a project remains within its budget.
Cost management encompasses all activities related to planning, estimating, budgeting, financing, funding, managing, and controlling costs. It ensures that a project is completed within the approved budget, providing financial stability and accountability throughout the project lifecycle.
Used in a sentence
Effective cost management is critical to ensure the project's financial success.
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Construction Accounting Software: Key Features and What To Look For
Commercial contractors manage large and complicated budgets that can have slow payment rates and volatile costs. They also have to accurately allocate job costs based on specific factors such as project, phase, or cost codes. Compliance requirements add another layer of complexity to construction budgets, since contractors have to track measures such as prevailing wages […]
Construction Collaboration: Navigating the Intersection of Project Management and Accounting
Accounting and project teams work together to move the financial aspects of projects through to completion. Data sharing allows for concurrent review to make this possible. Teams need to share budgeting, cost tracking, project billing and payables, and compliance data. These numbers are also relevant to company-wide accounting and company executives, but this article will […]
What are Committed Costs in Construction Accounting?
In construction projects, managing finances can be a challenging task — but understanding committed costs can simplify the process. Committed costs refer to expenses that are guaranteed through formal agreements, such as contracts with subcontractors and vendors. Recognizing these costs early can help create a more accurate budget and avoid financial surprises. This article will […]
Understanding Construction Financial Statements
For construction firms, effectively managing financial statements is an important building block for success. These documents play a key role in tracking performance, maintaining financial health and securing future projects. Well-organized financial statements give a clear picture of a firm’s assets, liabilities and equity at any time, offering essential insights. They help meet regulatory requirements, […]
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