chapter  15
Cost systems
Pages 12

Traditionally, the industry used to record costs and compare these with the budget (section 15.2). The problem with this approach is it provides historical information when it may be too late to do anything about it on the current contract, although it does provide feedback after analysis for the future. However, where there is repetitive work the information can be analysed and used for the rest of the contract. For example, it was established that the foundation slab of the first of four 16-storey blocks of flats had cost a considerable amount of money compared to the budget. On analysis it was concluded the main cause was the method adopted. By this time, the second block’s foundations were too far advanced to change, but a revised method was adopted for blocks three and four.