In the design and implementation of a project cost control system, the individual characteristics of the organization performing the project and of the project itself must be considered. However, the following criteria should be considered regardless of the specific situation:
• Validity. The information reported must accurately reflect actual versus estimated costs.
• Timeliness. The cost data must be reported early enough so that managerial action can be taken if a problem arises.
• Cost effectiveness. Collection and reporting of cost data must be done in a way that does not hinder project progress.1
Cost control systems can work ...