Cost Estimation Versus Cost Controlling
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Izam/Samer,
If I may add to the discussion and in addition to what Samer has said;
S-curve can be develop by showing:
For Accounts section:
Cash In/Out (Payment In from PCs / Payment out to suppliers, subcons, etc.), and could be track by comparing planned vs. actual
For Cost Control:
S-curve that will show
Planned Value (PV or BCWS)
Earned Value (EV or BCWP)
Actual Value (AV or ACWP)
Dear Izam,
You are correct, you always have two reports. One from site and the other is from your Financial Department controling the spenditure on the project.
Best Regards,
Samer
Is it fair If Im declare that Cost actual will equivalent with progress actual? It wont right? Is all about how we run capex and opex? So the question how we do to manage it? Is it we will come out two reports of S-Curves and monitoring report?
Dear Izam,
Cost Estimation is done prior to the start of the project.
Cost Control is done once the Letter of Commencement is issued to the Contractor.
Usually you will have a budget (excel or other) stating the amount of money dedicated for every activity required to complete the work. You can start with general headlines like; Design, Engineering, Procurement, Fabrication, Excavation, Construction, Erection works, Testing and Comissioning.
Testing and commissioning cost depends on the equipment that you are testing. This can be a large Turbine or a small HVAC equipment. And it can be done by specialist with fixed contracts.
Hope this information was helpful.
Best,
Samer