7 Ways to Prevent Cost Overrun
industrial project budgets can overrun easily, if you are not in control.
Industrial projects can easily go over budget if you’re not careful. Here are 7 ways to avoid cost overruns on your next project. From choosing the right contractor to watching your project timeline, we’ve got you covered.
01.
Understanding Of The Exact Requirement
Having a very Precise idea on the End goal is extremely important. This is in terms of the exact objective of the project. What is that this project will achieve and how will it positively contribute to the growth of the organisation.
02.
Consultant
A Consultant plays a vital role in the successful completion of the Project in terms of Time line and Project Cost. He should have subject matter expertise in most aspects which contribute to the successful completion of the project. The Consultant role starts from the 1st step of the Project which is Identifying and Appointing a Project Manager who can act as the bridge between all the Stake holders in this project.
03.
Expert Project Manager
This is with regards to the internal expertise in terms of Manpower to coordinate the entire project with all the agencies involved in executing the project. A clear understanding of all the requirements is necessary to ensure that the end goal is achieved.
04.
Planning
This is MOST IMPORTANT for the successful completion of the Project. When you FAIL YOU PLAN, you are actually PLANNING to FAIL. Without a plan, it is more likely that the project will fail. The ROAD MAP of the project is to be laid out as the First step in Project Management. This Road Map will guide for the entire project team and help them complete the project on time.
05.
Execution
The most challenging and exciting part of any project is the execution stage. This is where the entire team comes together to put the plan into action and overcome any technical or commercial challenges that may arise. By overcoming these challenges, the team becomes wiser and more experienced. Every project is unique and comes with its own set of challenges. However, the entire project team can benefit from the experience of overcoming these challenges.
06.
Scope Creep
The walls of a Steel building will be straight and plumb forever. Steel framing has long been recognized in commercial construction for its strength and resistant qualities. Scope creep is one of the most common contributors to problems in a project. It happens when people start doing work that’s outside of the scope of what was originally agreed upon. It’s important that everyone involved in the project – from the consultant to the project manager to the whole team – has a clear understanding of what they’re supposed to be doing. Otherwise, scope creep can take up a lot of time and money, which can lead to losses for the contractor.
07.
Communication
One of the most important aspects of industrial consultancy and project management is communication. It’s not necessary for everyone to have all the information, but it is important that every person in the team knows what they need to know. It’s everybody’s responsibility to keep all the stakeholders of a particular project activity informed about that activity. An effective and transparent communication system is essential to the success of a project, just like veins are essential to the human body.