Integration between cost estimation and cost control

More often than not, cost estimation and cost control are performed by separate divisions of companies or even outsourced to different companies altogether. In itself, this doesn’t have to be a problem. However, integrating cost estimating and cost control departments or promoting the interaction between these parties can provide many benefits.

Why collaboration between estimators and cost controllers matters

A good cost controller is in touch with what happens in the field while an estimator is usually in touch with the yard and engineering departments, meaning that together they have the full picture. By integrating cost estimating and cost control, and ensuring these departments work closely together, their combined knowledge can feed valuable information to the project lead and work floor more efficiently.

Now imagine what you can do if both the cost controller and the estimator are using software that is both cost estimation software and cost control software? The information exchange can become quite instantaneous even if the users are far apart. The changes in the cost control document can be directly fed by the information supplied by the estimator at a custom level of detail. Once the project is finished the cost estimator can directly analyze the cost data from the project that was just closed out and directly provide the cost controller with better estimations for upcoming projects. Too often that last step does not happen, and valuable information is just lying there waiting to tell its story.

Key benefits of integrated cost estimation and cost control

• A shorter line of communication improves handling speed;
• More information can only lead to better judgment;
• Evaluation of cost control projects can lead to better estimates;
• Better estimates can lead to better insight in cost control;
• Better estimates and better cost control lead to better projects;
• Better projects lead to happy management and investors.