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Construction Project Cost

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Construction
School
Miami Dade College
Type
Homework
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Running Head: CONSTRUCTION PROJECT MANAGEMENT 1
Construction project management
Student Name
Institutional Affiliation

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CONSTRUCTION PROJECT MANAGEMENT 2
Construction project management
PART 1
QUESTION 1
Construction cost estimating infers the process of anticipating the cost of building a
structure. Contractors use these estimates to decide before bidding for a tender. On the other
hand, the structure owners use them to identify themselves with the budget requirements,
feasibility, and scope of the project. Failure to incorporate cost estimation can lead to cost
overruns and stalling structures. Clients should, therefore, demand cost estimates from multiple
sources like independent estimators and contractors. Nonetheless, there is a key part of
construction management called cost control. This is the process used by managers to contain
project expenses by managing overhead costs, materials, and labor to complete the project on
budget. Cost control depends on the cost estimation and continuous monitoring of every aspect
of the project. A successful project must run within the cost estimate and necessitates cost
control (Voutchkov, 2018).
QUESTION 2
Below are examples of “direct" and "indirect" costs in a construction project.
Direct costs
Indirect costs
1
Labor
personnel department costs
2
Material
accounting department costs
3
Equipment
officers' salaries
4
manufacturing supplies
rent

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Running Head: CONSTRUCTION PROJECT MANAGEMENT Construction project management Student Name Institutional Affiliation 1 CONSTRUCTION PROJECT MANAGEMENT Construction project management PART 1 QUESTION 1 Construction cost estimating infers the process of anticipating the cost of building a structure. Contractors use these estimates to decide before bidding for a tender. On the other hand, the structure owners use them to identify themselves with the budget requirements, feasibility, and scope of the project. Failure to incorporate cost estimation can lead to cost overruns and stalling structures. Clients should, therefore, demand cost estimates from multiple sources like independent estimators and contractors. Nonetheless, there is a key part of construction management called cost control. This is the process used by managers to contain project expenses by managing overhead costs, materials, and labor to complete the project on budget. Cost control depends on the cost estimation and continuous monitoring of every aspect of the project. A successful project must run within the cost estimate and necessitates cost control (Voutchkov, 2018). QUESTION 2 Below are examples of “direct" and "indirect" costs in a construction project. Direct costs Indirect costs 1 Labor personnel department costs 2 Material accounting department costs 3 Equipment officers' salaries 4 manufacturing supplies rent 2 CONSTRUCTION PROJECT MANAGEMENT 5 Commissions 3 utilities PART 2: ...
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Very useful material for studying!

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