Assignment on Management Costing
Added on 2021-04-17
11 Pages2659 Words36 Views
Leadership ManagementProfessional DevelopmentNutrition and Wellness
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Running Head: Management Costing1Role of Client Quantity Surveyor in Management CostingName of StudentName of InstitutionName of CourseName of InstructorDate of Submission
Management Costing2Role of Client Quantity Surveyor in Management CostingManagement costing can be described as the process which involves not only adequate planning but also control of costs in a business. It is one of the pivotal task in the management ofbusiness. This challenge could be associated with the numerous and critical formalities which accompany the whole exercise (Ashforth & Kreiner, 2009). When a phase is inadequately addressed, the outcome may have adverse effects on the general performance of the organization.This outlines the pivotal position of management costing in ensuring successful business projects. Generally expense forms are usually used to record the cost and the expense in any given business. The process comprises collection, analysis and the evaluation of data before a report if given in relation to budgeting statistics (Berg & Huebner, 2011). This is achieved by putting in place an effective system for management of cost. In this paper, the role of client quantity surveyor in the management stage shall be discussed with a careful reference to the Irishpublic works contracts.A quantity surveyor is tasked with managing all costs which are associated with building and civil engineering projects. This duty may range from the original calculations to the ultimate statistics hence indicating a clear trend in the financial flow likely to take place in each of the phases of a project. The clients quantity surveyor plays a crucial role in minimizing the project cost and enhancing money value related to the project. In addition, a quantity surveyor also remains keen in seeing to it that the statutory building regulations are met (Bolman & Deal, 2007). Quantity surveying may take more than one form, for instance, one can work for the client or perhaps as a contractor. This therefore implies that an individual can be involved in a project when it starts by estimating the cost of the work and project the final outcome.When the project is ongoing, the quantity surveyor is expected to monitor any changes which may alter the
Management Costing3cost. The surveyor is also expected to create reports to indicate profitability hence projecting the intended return on investment that is likely to be accrued from the project. The implementation phase in management costing involves outlining of a specific design, model or business idea which is then discussed and executed based on the agreement of the board. Consequently, implementation follows any opening thinking for something to be actualized. After highlighting the important aspect of management costing and defining a client’s quantity surveyor, the roles shall then be discussed in the successive parts of this paper (Carolyne, 2010). Cost planningTo begin with, a clients QS plays a crucial role in determining the fiscal feasibility of a project. Before venturing into any initiative, it would be necessary to consider its feasibility, effectiveness and the possibility of achieving all the laid down goals and objectives. One way of forecasting the feasibility of a project is by outlining the costs that would be associated with eachphase. This is achieved by locating the life cycle budgets and controls of costs which in turn enhances quality delivery of the initiative outcomes set within a given period of time. In management costing, the cost plan helps to control the estimated costs during the design and construction is ongoing (Davis, 2009). The cost plans are living artifacts, just like the plans for project management hence they are managed throughout the design of any proposal. Cost planning results provide the right guidelines for cost control through the progress of any initiative .Cost control ensures that the operations get to stick within the outlined budget to avoidadditional costs in the implementation process.The costs which are normally estimated include; ball park estimates and high level estimate. With a vivid outline of the cost implications of a project, the management is able to make the necessary adjustment in order to ensure that the implementation stage doesn’t overly drain the company’s resource stock. The quantity surveyor,
Management Costing4having laid down the effective cost plan then gives the company enough room to note which parts of the budget can be scrapped or the parts to be enhanced to ensure a holistic balance in all the crucial aspects of the project (Dempsey, 2007).Estimating This involves accurate cost estimation in order to deliver an effective project plan. Cost estimation utilizes a number of techniques that improve project practicability (Eisenberg & Eschenfelder, 2009). An accurate estimation of the project cost goes a long way in providing the management with the necessary guidelines hence the enhancing the success of each phase of the project. Once the quantity surveyor has done the cost estimation, the management can then have a clear direction on the right steps to take when it comes to sourcing for funds aimed at supporting the whole process. For instance, with the projected cost, the company can be able to pick on the most effective approach in obtaining the required starting capital. This could in form of loans depending on the reigning current rates or other forms of outsourcing perhaps from the company’s profit areas or sales (Frumpkin, 2007).In order to effectively estimate the cost of a project, the surveyor needs to factor in the formed deliverable oriented work packages, historical data as well as the chart of accounts. In addition, there is the inevitable need to consider the risks duration of activities resources and unit rates of resources. Other cost estimation techniques include analogies with similar projects, parametric, modeling. All these go a long way in estimating the individual activities packages and rolls up the costs to a project that determines the level of cope. Once a definite scope has been constructed, the next phase of management costing can easily flow in. Both cost planning and estimation play a crucial role in guiding the principles of effective project management.
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