Cost Management Software Help Us Stay Within Time And Budget

Cost Management Software Help Us Stay Within Time And Budget

Despite the fact that many estimators still make use of simple spreadsheet tools, the last few years have brought various advanced project cost estimating software to the market. These software when integrated in our business, enable us to stay within the time as well as budget.

Cost estimating models

An advance data software tool helps us in performing regression analysis on the data. We can make use of this in order to to analyze the historical project cost data as well as the quotations. This further allows us to find cost estimate relationships (CERs).

Cost Management

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For instance, by studying the relation between the heating area, the material type of heat exchanges and the cost, we might be able to find a formula which can help us predict the cost for future equipment in an accurate manner so that we won’t have to face any cost escalation.

Bench-marking projects

To calibrate as well as benchmark the project data, it is always advisable to to set-up an in-house bench-marking tool. This is because it can allow us to have a project history as well as a bench-marking solution which will fit our needs.

Cost Control

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In order to execute bench-marking, we need to compare the different ratios as well as the characteristic values of the projects.

Further, in order to compare the projects, it is important to adjust for the scope changes, different locations or market conditions before comparing the metrics. For this, a well trained cost engineer may able to help.

We must make sure to choose a tool which gives us a quick as well as easy way to access our company’s historical data in order to establish the bench-marking studies. This should further be able to generate averages, ranges of normalized costs for each individual element of a given project for the location and time adjustment.

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