Techniques to be applied in achieving project economics

The utilisation and management of capital allocated to a specific project is essential to achieving successful quality standards. Sound cost management systems and procedures must be implemented to ensure that the best quality, scope and specification for specific projects related to pre-set budgets, are realised.

The role of the cost engineer and/or quantity surveyor is vital, regarding cost management in construction projects.

The following will assist in achieving project economics:

  • Cost design
  • Viability calculations
  • Advice on investment alternatives
  • Cost benefit analysis
  • Cost planning
  • Cost control
  • Life cycle costing
  • Net present value calculations
  • Cash flow predictions
  • Valuation/market assessment
  • Cost reporting (Nilsson, NORDNET, 1997).

 

BackForward