We place the responsibility on the designers and implementers to perform within their previously established budgets.
Project costs are then collected and reported in a way that Actuals to Budget can be compared, and sound management and technical decisions can be made on the Project. Two simple but essential principles of the process must be clearly understood: there must be a basis for comparison, and only future costs can be controlled.
Project Cost Control
Our cost control, typically include:
Maintenance of project ledgers (usually electronic) showing WBS budget line items, commitments, expenditures and forecasts.
Ensuring the integrity of the project budget through approved scope changes, fiscal changes, and contingency reallocations.
Verification of invoices and their correct holdback, coding and WBS allocation.
Verification of overhead charges and their distribution.
Issuing monthly project cost reports that include forecast final costs and variances based on project team input.
Flagging significant projected overruns or under-runs.
The Project Cost controller is often a member of the corporate controller's department assigned to the project team.