Cost Management of Business-Residential Complex
Session
Civil Engineering, Infrastructure and Environment
Description
Cost management is the most complex part of project management and construction management in general. In fact, construction cost management is a management strategy of the company, which aims at effectiveness, efficiency and generally optimization of the construction process, through an innovation and continuous improvement of quality and services. Cost management of a construction project is the most complex part of project management and construction management in general. It is a complete management of the whole process, which includes; cost estimation (process, which approximates the requirements of monetary resources to complete the project activity), budgeting (which summarizes the cost estimates for individual activities or work package, in order to design basic reference costs) and cost control ( as a project status monitoring process to mature project budgets and manage changes from base reference cost). The model applied so far for cost management in Kosovo has been at a modest level, therefore we insist that this model cost management model and other management practices brought by this master thesis to be taken as basic data for integration of data from kosotso management, holistic quality management and project management in general.
In this master thesis, the evaluation of the costs of the project "business-residential Muratori" was detailed, including data on: evaluation and analysis of activities and timelines, justification and distribution of resources, technologies and money, the quality of work, products and services, selection of contractors, purchase of materials, execution of additional works, improvement of defects, etc. Such an evaluation method is based on three evaluation models, as; (i) that of a rough estimate based on capacity (eg, number of premises, number of apartments, etc.) and size of facility (area 𝑚2, volume 𝑚3); (ii) evaluation according to the elements or functional matrix of the working groups (eg construction site, preparatory works, earthworks, masonry works, installations, etc.), and (iii) the parametric model (using formulas that link the costs of one or more independent variables and parameters that significantly affect the total construction cost, the values of which constitute the total cost structure and overall quality management.
Based on research in the literature and those in the workshop where the project "business-residential Muratori" was being developed in Pristina, after compiling a diagram of activities, evaluation and classification of costs, through discretionary, quantitative and qualitative methods with combinations of statistical analysis and the graphic data processing was done on the basis of which we classified and estimated the costs for all time points, as well as we identified the key performance indicators of the project. Cost management according to this research approach in addition to guaranteeing a successful quality management system, it provides practical tools for setting goals and measuring their flow, and above all guarantees top leadership, market and customer focus, focus on human resources and workforce empowerment, as well as organizational performance results. Also using as key indicator; cost change (NK), change from plan (PO), cost performance indicator (PIK) and plan performance indicator (PIP), which are in fact determinants not only of project value but also of balancing and distribution of human resources, technical as well as materials, for each part of the working package and parts of the project, as well as finally the tools for total quality control as one of the guarantors of being competitive in the market.
By integrating and combining mathematical, economic and engineering concepts, also referring to indicators; cost, time, quality, safety, scope and functionality, as the six determinants of the value of this construction project this management model will serve as a basis for the development of similar construction projects. The study data would be useful to management science and construction professionals for accurate cost design, progress of physical projects, design of activity time diagrams, cash flow movement, allocation of required resources and calculation of deadlines, and for this reason we insist that this thesis be a useful guide for the scientific community and especially for professionals who would be committed to putting the quality of products in direct proportion to the values spent.
Keywords:
project, cost management, evaluation, quality, control.
Proceedings Editor
Edmond Hajrizi
ISBN
978-9951-550-47-5
Location
UBT Kampus, Lipjan
Start Date
30-10-2021 12:00 AM
End Date
30-10-2021 12:00 AM
DOI
10.33107/ubt-ic.2021.300
Recommended Citation
IBRAHIMI, Izet and Krasniq, Gëzim, "Cost Management of Business-Residential Complex" (2021). UBT International Conference. 317.
https://knowledgecenter.ubt-uni.net/conference/2021UBTIC/all-events/317
Cost Management of Business-Residential Complex
UBT Kampus, Lipjan
Cost management is the most complex part of project management and construction management in general. In fact, construction cost management is a management strategy of the company, which aims at effectiveness, efficiency and generally optimization of the construction process, through an innovation and continuous improvement of quality and services. Cost management of a construction project is the most complex part of project management and construction management in general. It is a complete management of the whole process, which includes; cost estimation (process, which approximates the requirements of monetary resources to complete the project activity), budgeting (which summarizes the cost estimates for individual activities or work package, in order to design basic reference costs) and cost control ( as a project status monitoring process to mature project budgets and manage changes from base reference cost). The model applied so far for cost management in Kosovo has been at a modest level, therefore we insist that this model cost management model and other management practices brought by this master thesis to be taken as basic data for integration of data from kosotso management, holistic quality management and project management in general.
In this master thesis, the evaluation of the costs of the project "business-residential Muratori" was detailed, including data on: evaluation and analysis of activities and timelines, justification and distribution of resources, technologies and money, the quality of work, products and services, selection of contractors, purchase of materials, execution of additional works, improvement of defects, etc. Such an evaluation method is based on three evaluation models, as; (i) that of a rough estimate based on capacity (eg, number of premises, number of apartments, etc.) and size of facility (area 𝑚2, volume 𝑚3); (ii) evaluation according to the elements or functional matrix of the working groups (eg construction site, preparatory works, earthworks, masonry works, installations, etc.), and (iii) the parametric model (using formulas that link the costs of one or more independent variables and parameters that significantly affect the total construction cost, the values of which constitute the total cost structure and overall quality management.
Based on research in the literature and those in the workshop where the project "business-residential Muratori" was being developed in Pristina, after compiling a diagram of activities, evaluation and classification of costs, through discretionary, quantitative and qualitative methods with combinations of statistical analysis and the graphic data processing was done on the basis of which we classified and estimated the costs for all time points, as well as we identified the key performance indicators of the project. Cost management according to this research approach in addition to guaranteeing a successful quality management system, it provides practical tools for setting goals and measuring their flow, and above all guarantees top leadership, market and customer focus, focus on human resources and workforce empowerment, as well as organizational performance results. Also using as key indicator; cost change (NK), change from plan (PO), cost performance indicator (PIK) and plan performance indicator (PIP), which are in fact determinants not only of project value but also of balancing and distribution of human resources, technical as well as materials, for each part of the working package and parts of the project, as well as finally the tools for total quality control as one of the guarantors of being competitive in the market.
By integrating and combining mathematical, economic and engineering concepts, also referring to indicators; cost, time, quality, safety, scope and functionality, as the six determinants of the value of this construction project this management model will serve as a basis for the development of similar construction projects. The study data would be useful to management science and construction professionals for accurate cost design, progress of physical projects, design of activity time diagrams, cash flow movement, allocation of required resources and calculation of deadlines, and for this reason we insist that this thesis be a useful guide for the scientific community and especially for professionals who would be committed to putting the quality of products in direct proportion to the values spent.