05 Cost Management
MAINTAIN COST AND COMMERCIAL CONTROL
Establishing and monitoring cost plans, budgets, commitments, cash flow, variations and forecast final cost to maintain financial discipline and informed commercial decisions.
KEY INPUTS
Investment budget and funding parameters.
Project brief, scope and design documentation.
Preliminary and detailed cost plans.
Approved project budget and owner-controlled contingency provision.
Defined contingency drawdown and approval procedures.
Tender submissions and procurement proposals.
Contract conditions and commercial arrangements.uirements.
MANAGEMENT AND RESPONSIBILITIES
Owner / Investor: approves budgets, funding and significant financial commitments. Establishes the contingency provision and retains authority for allocation and release of funds.
Independent Project Director: independently reviews cost performance, commercial exposure and the reliability of reported forecasts. Reviews the justification, risk exposure and implications of proposed drawdowns.
Project Manager: coordinates cost reporting, change control and project-wide financial information. Coordinates contingency requests.
Cost Consultants: prepare estimates, elemental cost plans, tender evaluations, valuations and final accounts. Assesses contingency cost justification, quantifies the financial impact and updates cost forecasts.
Architects and Engineers: identify design changes and assess their technical and cost implications.
Builders: provide tender pricing, procurement costs, payment applications, variation submissions and cost-to-complete information.
KEY OUTPUTS
Approved budget and cost baseline.
Detailed cost plans and cost benchmarking.
Cash flow and expenditure forecasts.
Contingency allocation and drawdown register.
Approved contingency release records and revised budget forecasts.
Procurement and contract commitment registers.
Valuations, variations and claims assessments.
Change and commercial risk registers.
Forecast final cost and final account.