Mechanisms for control project costs

1. Establish a baseline: Before you can control costs, you need to understand what they are. Establish a baseline by collecting data on all project costs, including materials, labor, and overhead. 2. Set a budget: Once you have a baseline, you can set a budget for the project. Be sure to include a buffer to account for unexpected costs. 3. Track costs: Closely track all project costs and compare them to the budget on a regular basis. This will help you identify cost overruns early so you can take corrective action. 4. Control materials costs: One of the best ways to control project costs is to control materials costs. Work with your suppliers to get the best prices and terms, and consider using lower-cost alternatives when possible. 5. Control labor costs: Another major cost component is labor. To control labor costs, optimize your staffing levels and utilization, and use project management software to track employee time and project progress. 6. Control overhead costs: Finally, don't forget to control overhead costs such as rent, utilities, and insurance. Make sure you are only paying for the space and services you need, and shop around for the best rates.

  • (1) Project manager monitors and controls project costs.

  • (2) Change control process is in place and used to track and manage changes to project scope, schedule, and budget.

  • (3) Project schedule is updated regularly and used to track progress and identify potential cost issues.

  • (4) Regular project status reports are generated and reviewed by the project manager and project sponsor.

For view the full checklists, please signup now.

Register now