BUDGET or BLEED

by Rajasekhar Golla

Managing construction costs isn't just about having the funding and spending it on the right things. It's also about having the proper cash flow to meet expenses when they arise. There are many places where money is spent and many opportunities for costs to get out of control. Cost control in construction is the difference between making a profit and absorbing a loss in many cases. This guide breaks down what cost control is and how to improve your own processes. Cost control in construction is the process by which managers keep expenses under control by managing labor, material, and overhead costs to ensure that the project finishes on budget. Cost control relies on sound estimates and constant monitoring over the course of a project. Without cost control, a project quickly burns through its budget and leaves the construction firm with very little profit or even a loss. As a result, good cost control is a must for any construction business that wants to be successful.