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Construction project management software is the new norm in the AEC industry. They offer myriad benefits that have helped construction professionals take their businesses to the next level. One such use is that of cost control. This article explores the role of cost control in construction, why cost control is a significant problem for project managers, and an in-depth comparison of construction project management software vs. construction cost management software.
What is cost control in construction projects?
Cost control in construction refers to managing and reducing the expenses associated with a construction project. This includes budgeting, estimating, and tracking actual costs throughout the project. Some common methods used in cost control for construction projects include:
- Accurate and detailed cost estimating, including contingency plans for unexpected expenses.
- Regular budget and cost tracking, including construction cost management software to monitor project expenses and progress.
- Effective project management, including clear communication and coordination among all project stakeholders.
- Value engineering involves analyzing the project and identifying ways to reduce costs without compromising the quality or scope of the project.
- Managing and controlling change orders to effectively manage changes to the scope of work that can significantly impact project costs.
Construction companies can reduce expenses and increase project profitability by implementing these and other cost-control measures. It’s important to note that cost control is not the same as cost reduction. Cost reduction is focused on reducing the project’s overall cost, while cost control is focused on ensuring that the project stays within budget.
Cost control is the top priority of construction managers. One of the primary responsibilities of a construction manager is to plan, organize and oversee the project. A construction project manager must also ensure that the project meets the quality and safety standards and the client’s requirements. Unfortunately, there are various reasons why project managers often struggle with cost control. Some common reasons for project managers working with cost control include a lack of clear project scope and objectives, poor communication and collaboration within the project team, unexpected changes or delays, lack of proper planning and budgeting, and inadequate cost tracking and reporting processes. Project managers may also struggle with cost control due to competing priorities, limited resources, and the complex and dynamic nature of many projects.
Overcoming limitations of construction costs:
Luckily, construction project management software solutions have paved the way for managers to complete their projects on time while meeting all the necessary standards. Most construction project management software have in-built features for budgeting that allow companies to finish their projects on time and within the decided cost. Any additional cost incurred in the project is also adjusted in the budget. Other than construction project management software, some software solutions have solely been dedicated to managing construction costs. Such solutions are known as construction cost management software. Construction cost management solution is a tool AEC professionals use to track and manage the costs associated with a construction project. These types of software typically include features such as budgeting and forecasting, cost estimating, and project management. They can help construction companies to keep track of expenses, identify areas of overspending, and make data-driven decisions to control costs and increase profitability.
Construction cost management software vs. construction management software:
Construction cost management software and construction project management software are tools used in the construction industry, but they have different focuses and functions.
Construction cost management solutions are specifically designed to track and manage the financial aspects of the project. It can help construction companies to keep track of costs, identify areas of overspending, and make data-driven decisions to control costs and increase profitability. This software typically includes features such as budgeting and forecasting, cost estimating, and project management.
On the other hand, construction project management software is a more general tool used to manage various aspects of a construction project. It can include project scheduling, resource management, and document management. Construction project management software can also include cost management features, but it’s not the focus of it. Examples of construction management software include Procore, BUILDFitters, Buildertrend, and CoConstruct.
The deciding factor – which solution should you opt for?
Construction cost management is more focused on the financial aspect of the construction project. In contrast, construction project management software is more focused on the overall project management aspect of it. Therefore, the simple answer to this query is that the type of software you need depends on your construction company’s specific needs and goals. Both construction cost and construction management software have advantages and can be useful in different ways. Ultimately, a construction company that wants to have better control over the cost and financial aspects of the project would find construction cost management software more beneficial. In comparison, a company that wants to have better control of overall project management would find construction management software more beneficial.
However, in today’s quality-focused environment, companies are increasingly looking for comprehensive solutions that can handle all aspects of project management, including cost management. Construction management software is often a better option in this case, as it offers a more holistic approach to managing a construction project.
Conclusion:
In conclusion, while construction cost management software can be useful for tracking and managing costs, construction management software can provide a more comprehensive solution that can help companies better manage all project aspects, including cost management, and achieve their quality-focused goals.