Electrical Estimating Methods, 4th Edition

CHAPTER 11 Project Cost Control and Analysis

Some type of an internal accounting system should be used by contractors to logically gather and track the costs of a construction project as the work progresses. While this is not estimating as we know it, there are several reasons why this makes good estimating sense. First, the cost data collected can be analyzed to determine if the project was financially successful and, second, to compare actual costs to estimated costs. With this information, a cost analysis can be performed for each activity—both during the installation process and at its conclusion. This information or feedback becomes the basis for management decisions throughout the duration of the project. This historical cost data can then be used to fine-tune the unit costs in future estimates. While cost control is not the primary subject of this text, a brief overview is vital to a successful understanding of the estimating process.

COST CONTROL

The cost categories for an electrical project most often tracked are major items of construction (e.g., lighting, power, service), which can be subdivided into component activities (e.g., wire, conduit, fixtures). These activities should coincide with the system and methods of the quantity takeoff and ultimately the estimate. The accuracy of the data and its assignment to the proper cost categories is crucial to the value of the results. For instance, cost categories for an electrical project might include breakdowns such ...