ABSTRACT
This chapter examines both good and bad techniques for cost control. Cost control begins at that time by assigning cost codes to the elements of work identified during the work breakdown phase when developing the estimate. After a project has been awarded, the project team must correct any errors, buy out subcontractors, and input the estimate into the cost control system. Lean cost control techniques have been borrowed from production industries such as automobile manufacturing and applied to construction. As-built estimates are developed to create unit price data that can be used on future estimates. Development of the as-built estimate is the last step in the cost control cycle, which leads into an improved database and the next project estimate. Most of the land cost was leveraged. The bank had made several extensions on the land and construction loans, and was threatening foreclosure.
