Abstract:
Cost control is very important for any industry, since it is the activity which monitors the
actual cost against the budgeted costs and initiates corrective actions if the costs are
higher than expected. The estimating activity produces the anticipated cost or the budget
and it is advantageous if the cost control activity could be linked to the estimating
process. Computers can be effectively used to link the two processes, maximising data
sharing and forwarding. In Sri Lanka most of the construction companies do not have
integrated estimating and cost control systems in order to improve their performances
although there are some " off the shelf packages" available in the market for independent
activities. Therefore, it is required to conduct research and development in this area. As
a first step, it is advisable to use readily available general software such as spreadsheets
and databases and develop low cost system to address the need. This paper presents
research work undertaken at the Department of Civil Engineering of the University of
Moratuwa to develop a simple cost control system (using a database) linked to an
estimating system (in a spreadsheet environment). A detailed study of existing literature
on estimating and cost control was carried out and the concept for integration was
established. Collection of cost data at site level is tiecessary for cost control, hence cost
collection data sheets were designed to gather cost information at sites daily and enter to
the system weekly to produce reports. It was decided to collect the maximum amount of
data with minimum paper work since personnel at work sites are generally reluctant to
undertake additional paper work. A cost control system was developed using Microsoft
Access® and was linked to the estimating system, which is in the Microsoft Excel®
environment. A test run was successfully carried out using a two storied building as an
example. The system produces four reports for variance analysis for the most recent
week, variance analysis for the whole period, percentage of work completed and cost
details (breakdown of cost under major cost areas) for each BOQ item under
construction. This information helps to monitor the behaviour of work in a better way.
