Essentials of Design Phase Cost Management and Budget Control

摘要

Cost management and budget control are essential throughout a project's design phase. This starts from the conceptual stage and continues to the bid stage to ensure the owner that there will not be a budget overrun. It is well known that the ability to influence final costs is more during the design phase than the construction phase. But yet, there is more focus in the industry on cost control during the construction phase than the design phase. As the design progresses from the conceptual to the bid stage, the process is dynamic and that is why more attention is required to establish the adequacy of owner's budget during the design phase. A cost conscious-approach is required by all the team members involved in the design phase which primarily consists of the architect, the estimator, and the owner. Budget control can be achieved by setting an organized methodology and following a design to cost approach. Also important is a pro active design team in which the team members are committed and understand their roles and responsibilities. this needs to be supported by good estimating techniques to project accurate costs. This article discusses the objectives and approaches to the design phase of cost management, the methodology for effective budget control, the roles and responsibilities of the architect, the estimator, and the owner's considerations. The article also addresses the importance of accurate cost estimating and special considerations in estimating. The article is written from the context of traditional design-bid-build projects.