Without a methodology of cost control, any construction project will prove very difficult to manage successfully. Reliable Contracting Group maintains an accurate cost coding on all projects from inception to completion, which is integrated into our accounting system. The initial budget is established using the bid estimate and is updated and reviewed monthly, at a maximum. Every item purchased on the project, all subcontracts on the project, and all labor performed on the project will be cost-coded and charged to individual budgets so that we know plus or minus one week where we stand relative to cost.
Again we focus on performance as it relates to cost control. Estimators get numerous quotes on all items – equipment, materials, and subcontractors – before presenting recommendations to the project manager for a final selection. In addition to day-to-day communications, monthly management meetings are held on every project. The program manager, the project manager, the treasurer, the accounting manager, the subcontract administrator, and the president discuss all aspects of the project, including financial standing, schedule impacts, and staffing adjustments among other issues—all of which contribute to the bottom line.
This continual attention to cost ensures that Reliable, and ultimately the owner, will realize the success of an in-budget project completion.