Cost control techniques in the construction industry

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Cost control techniques in the construction industry

Even the best of these carts provided little more than basic transportation. Yet in the same cities of Europe, at the same time, master masons and builders created incredible stone cathedrals, using principles of design and construction that were breathtaking for the time.

Today the technologies of both manufacturing and construction have changed, but not nearly to the same degree. Part of the reason for the different degrees of change can be found in the basic differences between manufacturing and construction.

Construction is essentially the process of moving and assembling materials and equipment into a completed, operational facility. Although many construction operations are repetitive, they are performed neither in a fixed sequence nor at a fixed location.

Also, since construction, unlike manufacturing, rarely involves production of a standardized product, the demands on the material supply functions of buying, expediting, receiving, warehousing, and delivery are much more complex.

For many of these reasons, the basic construction process of building stick by stick, piece by piece, has remained unchanged since the Middle Ages. Construction is larger than any single manufacturing segment of the U. Residential work was 47 percent of the total contract awards.

Commercial work awards were 19 percent. Heavy construction—which includes utilities, pipelines, and other energy work—was 17 percent. The picture is equally impressive beyond our borders. The National Academies Press. The Great Wall of China, the space shuttle launch facility, a petrochemical plant, a neighborhood shopping center, the Erie Canal, a nuclear power plant, a single-family home—all are construction projects, yet each requires different skills and technologies.

Collectively, they represent the many sectors of the construction industry. The residential and commercial construction sectors involve the creation of facilities that are essentially structural in function.

These facilities include the service utility systems necessary to support the people who use them, including power distribution, heating, ventilation, and lighting.

By contrast, the industrial sector creates facilities incorporating industrial process systems and equipment designed to produce an end product, such as automobiles, textiles, chemicals, refined metals, or electric power.

The heavy civil sector encompasses major public works, including dams, highways, airports, and water distribution and sewage facilities—in short, most of what we now call infrastructure. Over the past 10 years the impacts of technology on the construction sector have varied by the type of construction being performed, but in general, the changes have been largely evolutionary.

In the future, however, there is a high potential for significant developments that will change the basic nature of construction.

These developments will capitalize on advances already apparent in other sectors.

Elements and Systems

They will be global in origin and in scope, with applications driven by both continued technological innovation and competitive pressures. They will include direct technological impacts on the performance of specific construction activities and major changes in the manner of managing a construction business.

This paper addresses the most significant changes in construction by examining technological trends and how they affect the entire construction sector.

These trends fall into four major areas: The benefits to the construction industry already have been significant in several respects. These include reduced interferences, which are instances where the design of separate systems, such as electrical Page 70 Share Cite Suggested Citation: CAD systems, which are used extensively in commercial and heavy industrial construction but have yet to prove cost-effective in residential work, are able to generate design information faster and more accurately and can implement midstream changes with more ease than conventional drafting can.

Construction work is able to begin earlier because the design is more rapidly developed. The savings in time-related design costs can be significant; in the time it takes an engineer at a drafting table to produce one drawing, an experienced CAD technician can produce four.

There are several ways to classify major CAD trends, including the trend toward engineering workstations as special-purpose computer terminals dedicated to the automated design process. Such standard design details as typical civil, structural, piping, and electrical schematics are now available on many CAD systems.

The trend toward lower-cost, more powerful workstations will continue indefinitely, although the cost per unit will probably stabilize. Further, most design depictions will be achieved by means of three-dimensional computer models with sophisticated, standardized design symbols and aids. Compatibility is still a problem, because vendors continue to emphasize enhanced features on their own systems, as opposed to compatibility with other systems.

Some standardization efforts have made considerable progress but require further efforts to be fully effective. For example, in the area of initial graphics exchange specification IGESa loosely organized group of CAD vendors, users, and manufacturers has recently undertaken a collaborative effort to develop IGES guidelines for standardized design symbols and common design standards for all CAD machines.Cost control in building design and construction A development budget study is undertaken to determine the total costs and returns expected from the project.

Cost control techniques in the construction industry

A cost plan is prepared to include all construction costs, all other items of project cost including professional fees and contingency. Get the latest updates! Join more than 5, people receiving our monthly newsletter (Think Nilex!), invitations to events, seminars and webinars, and technical papers, case studies, special offers and more!

Construction is the process of constructing a building or infrastructure. Construction differs from manufacturing in that manufacturing typically involves mass production of similar items without a designated purchaser, while construction typically takes place on location for a known client.

Construction as an industry comprises six to nine percent of the gross domestic product of . Are you worried about house contruction expenditure?Here is a complete guide for low cost house construction methods in your dream home.

Construction Cost Estimating and Cost Control from Columbia University.

Technological Advances in the Construction Sector

This course introduces the types of cost estimation from the conceptual design phase through the more detailed design phase of a construction project. techniques that are available in construction industry purposes but the proper usages of those techniques areminimum. Cost control techniques were identified as a tool of reducing cost overrun.

MS project, Earn Value Management, and Daily material & labour controlling were identified as cost control techniques currently used by contactors.

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