ABSTRACT
This chapter discusses the subject of cost management by describing techniques that can evaluate performance against budgets, analyse trends and attempt a prediction of the total final project costs. Earned-value data can be used to predict the likely completion date for an activity or a project, although a straightforward comparison of progress against the plan is probably an easier and more effective method. In the case of the bricklayers in the wall project, the answers obtained were objective, accurate and proof against fear of contradiction. The basis for allocating work values to each production activity derives from the project work breakdown, together with its associated estimates. The man-hour records must, however, is kept, because these will provide the stable and reliable yardsticks when comparative cost estimates for future projects are made. Cost monitoring and prediction are aimed primarily at containing costs within budgets but, when a project has been sold commercially for profit, the profit becomes the end objective.
