#4 Understanding the tools for Cost management/control

Cost planning / Omkostningsplanlægning

The aim of a Cost Plan is to redistribute the elements into works packages for the purpose of budget and cost control during the design phases, for procurement while defining the tender strategy and during the tender phase and for cost control during the construction phase of the building project.

Cost planning is a constant and reiterative process, that develops in steps of increasing detail as more design information becomes available. A cost plan provides both a work breakdown structure and a cost breakdown structure.

It provides cyclic information for future feasibility studies, and allows to focus value engineering efforts by understanding main cost impacts of the different packages to the over all project economy.

Having a standard Cost Plan breakdown for all projects, ensures the company will be able to take intelligence decisions for future development projects, based on actual and historical information.”