ABSTRACT
The project manager actively participates i n the three elements of cost management. These are cost forecasting, cost reporting, and cost containment, frequently referred to as cost control.
In i t i a l decisions are important . On a process facility, once the type of facility, the process, the capacity, the location, the general arrangement of the equipment, and the specification philosophy have been selected, the theoretical m i n i m u m cost of the proposed facility is set. This cost probably w i l l remain u n k n o w n as i t is only rarely calculated. The goal of al l of those involved w i t h the project should be to complete the w o r k at a figure close to this m i n i m u m cost. For non-process facility projects, a s imilar analogy may be used.
