Leverage the financial benefits of implementing project controls in the construction industry

Discover how project managers in construction can avoid cost overruns or slippages in schedules by implementing project controls.

WHY PROJECT CONTROLS IN CONSTRUCTION MATTERS

Before carrying out a construction project, the project manager who leads these projects conducts a thorough assessment to determine the project delivery date, possible risks and total estimated cost.

This lets them detect potential issues that could arise and possibly slow down the progress of construction projects and even cause them to grind to a halt.

The result of project delays can lead to severe financial consequences, such as overrunning the planned value (PV) of overall project costs. Project delays increase costs and can cause friction between project stakeholders which can even lead to legal disputes.

To avoid this from happening, construction project managers should place emphasis on implementing effective project control measures, as it can bring about many financial benefits to a construction project team.

THE FINANCIAL BENEFITS OF IMPLEMENTING PROJECT CONTROLS IN CONSTRUCTION

Change order management

Change order management

It is not uncommon for amendments to be made to a written contract when a construction project is underway. Project controls provide a systematic approach to managing change orders, ensuring that changes are documented, assessed for impact on cost and schedules, and approved in a controlled manner.

Tracking and measuring progress

Project controls enable project managers to measure the progress of a construction project in comparison to their original review and set key performance indicators (KPIs). Regular reporting on project expenditure allows stakeholders to make informed decisions, which facilitates better financial control.

Tracking and measuring progress
cost estimation

Accuracy of cost estimation

Project controls help project managers create accurate cost estimates by considering various factors such as manpower, materials, equipment, and overhead costs. Accurate cost estimates lead to more realistic project budgets. This facilitates fewer risks with cost overruns while keeping within budget.

Effective management of budgets

Project control ensures that project managers can track spending on construction projects at any stage. It helps them gauge current spending against the planned budget to keep an eye on cost variances. It helps to identify any discrepancies early in the project, preventing financial surprises later on.

management of budgets

COLLABORATE WITH COMPASS CONSULT TO ENSURE EFFECTIVE PROJECT CONTROLS

Handling a single or a portfolio of construction projects is no easy feat. There are many factors that a project manager has to consider before carrying out a construction project. After all, it is not uncommon for large-scale projects to experience project delays or cost overruns. 


At Compass Consult, we are committed to helping project teams manage their portfolio of construction projects in order to optimise their project outcomes. Through proper planning, execution, and strategic management at every stage of a project and for every project, we will ensure that the entire project lifecycle is carried out seamlessly and that every stakeholder is satisfied with the final outcome. 


With our sophisticated construction project management software, expert consultants, and your best interests at heart, we can help you manage your construction projects seamlessly, regardless of how complex your portfolio of construction projects is.  


If you’re looking for a reputed provider of project controls consultancy, contact Compass Consult today and get ongoing support to improve your project outcomes.

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FAQs

How can project controls in construction result in cost savings?

Project controls provide accurate cost estimates, efficient budget management, early identification and mitigation of risks, resource optimisation, and effective change order management.

What are common key performance indicators (KPIs) monitored through project controls in construction?

This includes cost variance analysis, schedule variances, earned value metrics, return on investment (ROI), and overall project profitability.

How can accurate cost estimates influence construction project outcomes?

Accurate cost estimation helps create realistic project budgets, reduces the risk of cost overruns, and provides a solid foundation in financial planning and management throughout the project lifecycle.

Looking to enhance your project controls and strategies? Contact Compass Consult today.

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