Re-Engineering Cost Management of Capital Project for Effective Project Delivery

Abstract

This paper addresses cost management and its primary significance as a measure of project success. All projects are managed and measured by success criteria of several types, cost being only one of many important metrics-but as a resource cost and as a measure possesses unique attributes which differentiate it from other project measures and requires unique considerations and methodologies in order to provide for its effective management. This paper considers:

Cost as the standard measure of project success-having higher visibility and requiring extremely effective methodologies for managing and communication; Cost management vs. cost accounting-requiring different methodologies and a higher level of involvement by the project team; Cost management as a process, not a discipline, requiring the integration of effort and inputs from multiple persons using prescribed methodologies