How do you manage project costs sustainably?

To clearly understanding the scope of work and proper accurate estimation of scope are the most imporatant pillar of to manage project costs sustainably

Defining the correct scope is one of the most crucial tips for achieving your goals. This action not only establishes the baseline but also manages stakeholders' expectations and provides a clear map for your team.

In my experience, when you are defining the project scope, the project is actually well advanced, with probably months of work undertaken already, along the with a client/product owner having established fixed ideas and expectations on what is to be achieved and for how much. The most sustainable projects, from a cost perspective, begin by closely managing expectation at the outset and garnering a deep understanding of what is in the mind of the client/product owner - what do we need to achieve, what are the outputs, what will it look like, feel like, how we will we interact with it. Aligning vision, expectation and reality at this point is where success happens. Don’t build the wrong thing righter.

The reference point for effective and sustainable cost management is the Cost Management Plan. Cost is best managed by managing schedule and scope. This is because cost overruns, most of the time, is as a result of scope creep and schedule delays. It is therefore important for the project team to clearly know the scope and to also know the budget limits for tasks and activities assigned to them. This ensures that all team members work towards delivering the project within budget.

Reduce operational cost , keeping them at the certain level . Also keeping the costs at the certain ratio with the revenue . Bring technology since it will reduce the costs eventually.

Cost planning and estimating in civil engineering and infrastructure projects are crucial for informed decisions. By incorporating sustainable practices, construction projects can minimise environmental impact, reduce operational costs, and enhance value for future generations. Carbon estimation is essential for accurately assessing environmental footprints and prioritising sustainability. Transparent communication of environmental implications empowers clients to make decisions aligned with their sustainability goals.

This is the the stage where the cost estimates from the requirements which were high level will be refined in detail. Due to the fact that multiple teams are involved in the cost estimate, each team will need provide assumptions and risks.

I thik power BI can give hand in this task by data visualization for every step of the construction process,I thik power BI can give hand in this task by data visualization for every step of the construction process

Tracking the project costs on a monthly, quarterly and annual basis will help closely monitor the costs. The variance analysis will provide a good idea on the direction the cost is going so, the sooner we know it can be controlled the better.

If at all it comes to a point that the cost is not under control due to whatever the reason, the quality and timelines should not be compromised. At this juncture in the project, a decision will have to be made as to what will need to be given away in order to complete the project or will the plug be pulled on the entire project. Will it be cost, requirements or timelines that will be compromised will always be a tough one.

Agreed, better to be up front and transparent on the reality of the current challenges. The truth will come to the light at some point and it’s best to remain with integrity and approach it as an advisor not as an adversary.

Risk Management: Develop a robust risk management plan to identify and mitigate potential risks and uncertainties that may impact project costs. By proactively addressing risks, you can minimize cost overruns and unexpected expenses.