Project Management 4.

Project Management 1
MONITOR COSTING SYSTEMS ON MEDIUM RISE BUILDING AND CONSTRUCTION
PROJECTS
Student Name
Class
Tutor
Institutional Affiliation

Project Management 2
Task 3: estimated vs. actual cost
The foundation of running a successful project begins with effectively budgeting for all activities
prior and during the construction phase. This helps in careful plan for the investments put into
the project. Having a clear understanding of the financial cost of the project is vital to its
completion. Estimated costs can be achieved from the history of previously constructed similar
projects, (Myers, 2017). Actual cost can be arrived at when the payments of project requirements
are made.
Prices are dynamic based on the economic factors prevalent in the market. This is mainly
affected by price inflation and availability of the required products. The following are the
common variables that require cost estimation;
i. Land acquisition
ii. Project site planning and feasibility tests
iii. Engineering and architectural designing of the project
iv. Project construction
v. Construction supervision
vi. Financing of construction process
vii. Legal agreements including insurance and tax
viii. Office expenses
ix. Furniture and equipment
x. Inspection