Management of every entity aims at maximizing the returns and minimizing the costs. This is the fundamental aspect related to the project cost management. (Smith, 2014). This makes it clear that appropriate management style is important for an entity to prosper. There are various projects the management deals with simultaneously, but these are based on individual importance. The time and other resources to be allocated on a particular project depend on its individual importance.
So, if a project is significant, then the management would look into other matters related to cost and project completion. Managing cost for a project requires expertise, and most of the larger companies tend to have the services of professional surveyors, economists, and engineers etc, who perform the task of managing costs for a particular project.
Project cost management involves the ...view middle of the document...
Whether they are engineers, surveyors or economists, all are affected by this. This is where the use of common framework can work out well for the profession.
I f there is a single framework applied throughout the world, then project cost management can become easier to implement and effective in terms of the results it yields. In addition, comparison between the results of two companies would be easier to be made. For instance, if there are separate project cost management methodologies employed within one organization, and the other organization has its own practices, which differ significantly from the rest of the market, then it would not be possible to compare the cost management techniques prevalent in both the entities.
Therefore, if there were a common framework, then project cost management would make it easier to understand the business environment of the companies, without having to spend much time. This is because comparing the cost management techniques would then yield the desirable outcomes. The article also states the difference in the terms used for cost management is another hindrance towards the implementation of efficient project cost management techniques. (Smith, 2014).
The above mentioned methodologies can help in framing a sound and effective project cost management strategy. It will also be helpful for the professionals to follow the same framework throughout the world. It is important that a single framework be employed, and in addition, the differences in the project cost management terms be overcome.
These differences can be overcome if there is a single cost management framework, which the management and engineers/economists can look forward to in terms of implementation of project cost management techniques. It would make the working easier and effective for the project cost management professionals.
Smith, P. (2014). Project Cost Management – Global Issues and Challenges. Procedia - Social and Behavioral Sciences .
Xiao, Q. R. (2014). Project cost management and application of information technology to improve.