How does procurement have an effect on cost and its relevance in cost control techniques?
@Aribisala Oluwaseun Obafemi Awolowo University Planning and Cost Control are strictly connected. You cannot have one without the other. I suggest you to read this short work in Open Access either on Zenodo Repository or on ResearchGate. Then to attentively execute control on bidding and procurement phases as well as in work progress and releted installaments/payments. Not to mention the final phases of tests, commissioning and warranty phases in order to proceed with final acceptance.
https://zenodo.org/records/7548747 or even at Article Some proposals for planning, management and control of long-...
Cost control in the procurement phase of construction projects is crucial for ensuring the project stays within budget and remains profitable.
Strategic Negotiation Tactics: During the procurement phase, employing strategic negotiation tactics can help in securing favorable terms with suppliers and contractors, contributing to cost control strategies
Dear friend ,
See as well modern construction management eight edition Frank Harris ,Ronald McCaffer, Andrew Baldwin and Francis Edum-Fotwe.
The main factor to be considered since construction industry is very notorious for delivering projects over budgeted costs.
Are you Project Manager when you ask that specific question ?
Because addressing the factors that could potentially create changes to the authorised cost baseline, ensuring that all requests for changes are given timely attention.
Managing the actual changes as when they arise .
Ensuring that proposed cost expenditures do not exceed the authorised cost limit by monitoring cost performance.
Monitoring value recovery on work performance against funds expended .
Your question required little more space to answer and accept arguments only fit your circumstances.
Your circumstances are unique that need to focus on your interest to apply suport quality answer you looking for .
Explore your area and you are accountable to discover the resolution you looking for,team work since also there are specific area that needs to answer you ,say for example associated cost control of modernistic type contracts such as design and build, managing agent ,partnering alliances construction management strongly feature management of the supply chain by a principal contractor .
Each subcontractor set of activities is formed into a work package ,and subsequently networked together with the other subcontracts for cost evaluation purposes.
That relevant you to use cost control system the best my advice for you in this regard ,see also Smith P (2016) project cost management with 5D BIM Procedia Social and behavioral sciences 226 ,193-200 and that edition belong to Smith from 2014 Project cost management Sciences 119: 458 -494
Procurement plays a crucial role in cost management by directly influencing the expenses incurred in acquiring goods and services for a project or organization. Effective procurement services can significantly impact cost control by ensuring that resources are obtained at optimal prices while maintaining quality standards. By carefully selecting suppliers, negotiating contracts, and implementing cost reduction strategies, procurement teams can mitigate unnecessary expenditures and streamline the procurement process. This, in turn, enhances overall cost control efforts and contributes to the financial stability and success of the project or organization.
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