How do you update and revise your cost estimates and budgets throughout the construction phases?

2 Cost tracking and reporting

The second step is to track and report the actual costs incurred and committed during the project execution. You should use a cost management system or software that can collect, organize, and analyze the cost data from various sources, such as invoices, purchase orders, change orders, timesheets, and progress reports. You should also compare the actual costs with the baseline estimate and budget, and calculate the variances, trends, and forecasts. You should report the cost status and issues regularly and transparently to the project team, management, and clients.

3 Cost control and adjustment

The third step is to control and adjust the costs based on the project changes, challenges, and opportunities. You should implement cost control measures, such as reviewing the scope, schedule, and quality of the project, negotiating with suppliers and subcontractors, optimizing the use of resources, reducing waste and rework, and managing risks and contingencies. You should also update and revise your estimate and budget accordingly, and document the reasons and approvals for the changes. You should also communicate the cost implications and expectations to the stakeholders, and seek their feedback and support.

4 Cost review and evaluation

The fourth step is to review and evaluate the costs at the end of each construction phase or milestone. You should compare the final costs with the baseline estimate and budget, and identify the causes and effects of the deviations. You should also assess the accuracy and reliability of your cost management system or software, and the quality and timeliness of your cost tracking and reporting. You should also document the lessons learned and best practices from your cost management experience, and apply them to the next phase or project.

5 Cost auditing and verification

The fifth step is to audit and verify the costs after the project completion or delivery. You should conduct a thorough and independent audit of the project costs, and verify that they comply with the contract terms, regulations, and standards. You should also reconcile the final costs with the payments received and made, and resolve any disputes or claims with the stakeholders. You should also obtain and provide the necessary documents and records to support your cost audit and verification, and close out the project accounts.

6 Cost improvement and innovation

The sixth step is to improve and innovate your cost management skills and methods for future projects. You should seek feedback and suggestions from the stakeholders, and conduct a benchmarking and analysis of your cost performance and results. You should also research and learn about the latest trends, technologies, and techniques in cost estimation and budgeting, such as parametric modeling, artificial intelligence, cloud computing, and blockchain. You should also update and enhance your cost management system or software, and train yourself and your team on how to use it effectively.