Developing Cost Plan of a Hostel Building

Abstract

The construction industry is one of the most risk involving industries in the entire world, because of the involvement of so many different factors at various levels of work process. To minimize the risk project managers, have conventionally prepared project plans and schedules and WBS which help achieve the project goals and accomplish the scope laid down by the client. Conventionally the projects are viewed as construction processes which is undertaken by the client. In our study we will not view the construction process as the project but the venture involving the construction of the facility as the project. So as a project plan is developed to monitor and control the construction process, the cost plan is developed to monitor and control the cost incurred and earned in the financial project. The parameters that will constitute the cost plan are worked out in the study their relative importance and their respective weightage in rendering the project a financial success. The cost plan will help us monitor and control the costs that are incurred in the project. Various other factors will be included in the cost plans which will help it to achieve a quality output from the capital that is being invested in the project, a quality management and assurance technique will be integrated into the cost plan which will help the client in achieving true value for the capital employed. The anomalies that occur in the project will be tracked down in terms of monetary value which will better help the client to make decisions regarding changes and circumstances when they occur in the project and also the client will be aware of the value their capital is achieving which is being invested in the project in lieu of generating capital from it for a sustained period of time and also the factors will be indicated which will help better the recovery time of the capital employed in the project. As acquiring capital for the project is a huge task and liability for the client. Managing this capital to generate the output in a sustainable manner from the facility is the ultimate goal of the client. If the capital is being generated but is not sustainable then the project will eventually go to fail as the client might be spending more than he is earning during the business period of the project. Major costs during the business period could be from the maintenance of the structure or inappropriate scope defining of the facility. All the activities that will be undertaken by the client that consume resources in the form of time, money and man hours will be shown in the cost plan and their dependencies on various other tasks related to the project will be marked. Such that the client is able to monitor the project progress in terms of time and cost and the project reaches its true potential.