Contracts Part 2: Cost Control TSYH 3461

Upon successful completion, the student will be able to:

Module 1 - The Pre-Construction Stage

• Discuss the need for the project feasibility and subsequent establishment of a budget.
• Identify the principal players within the project who are most concerned with the costs, and discuss their general responsibilities and contributions.
• Define some of the terminology associated with project costing.
• Discuss how the project schedule affects costs and influences cash flow.
• Discuss how the Code of Accounts may be put together to better enable the responsible parties to monitor and control costs.
• Discuss the types of contracts which may become associated with a project.
• Describe the contract tendering and award process and the implications of costs on the decision-making process.

Module 2 - The Construction Stage

• Define the factors which help to control the costs during the engineering stage of the project.
• Define some of the elements of the purchasing system which affect the project costs.
• Discuss the need for a set of project procedures.
• Discuss some of the main components to be considered in the construction site planning for a project as they relate to the control of costs of the project.
• Discuss some of the main elements of the construction documents which are most concerned with costs.
• Define some of the cost reporting systems which could be adopted on the construction site which would be beneficial in the cost reporting and control exercises undertaken by the project team.
• Discuss some of the standard methods of controlling costs of the job.
• Discuss the need to forecast project costs.

Module 3 - The Post-Construction Stage

• Help to finalize the engineering costs.
• Help to finalize the purchasing costs.
• Terminate construction contracts.
• Understand the potential for claims arising from the project work.
• Understand how to settle construction contract disputes.

Effective as of Fall 2003