In this post, we are going to see how Rabio can be implemented with Cost Control operations and procedures in a construction project.
What is Cost Control in Construction?
In general, cost control is the procedure to identify and reduce expenses of a construction and increase profits. Cost control starts with the budgeting process. In any construction project that follows a cost control procedure, it all comes to compare the actual construction costs with the budgeted expectations. If actual costs are higher than planned, management has the information it needs to take action for the development of the construction project.
You can read a definition for Construction Cost Control here
Cost Breakdown Structure
For the development of a construction project, it is recommended the use of Cost Breakdown Structure (CBS) which is a cost allocation to the lowest level of the Work Breakdown Structure (WBS).
The CBS is a breakdown of the costs of the various components and elements of the contruction project’s structure including all works or services done by the subcontractors. The CBS is used to continuously check & compare the actual costs with the budget, and integrate to the cost control management system.
Construction Cost Control with Rabio
Rabio’s core structure can follow a cost breakdown structure using cost centers and cost categories.
The basics of a cost breakdown structure which are Budget & Actual Costs can be implemented in Rabio’s database. Using the easy extension of data compare Rabio’s sytem Earned Value, Forecast, Projection can also be followed while the development of a Construction Project with Rabio.
Using the smart reporting system, Rabio can produce a series of reports that can give to management all the necessary information for critical decisions.
Rabio VS Spreadsheets
In most cases, cost control departments are using tons of spreadsheets files. Using Rabio does not mean that spreadsheets will stop being used, but they will not be the main data recording system.
This critical role can easily be assigned to Rabio software. The powerful database back end will take over the hard work ensuring data integrity, online multi user-access, data integration with external data sources and flexible reporting capabilities.
Rabio Demo for Construction Cost Control
Rabio’s online demo comes with cost control data for two construction projects which are a simple and an extended case. The demo user has access to data and full reporting of :
- Construction Simple : in this case only Budget & Actual Costs are recorded.
- Construction Extended : in this case are recorded :
- Original Budget
- Agreed Variation Orders
- Earned Value
- Actual Costs
- Forecast Earned Value
In both cases, cost centers are grouped as :
- Direct Costs
- Indirect Costs
Categories are also grouped.
Try the demo
Rabio’s demo is available online.
To access the demo you can follow the instructions here.
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