Project Cost Management
Track and manage all your project costs automatically
Integrate and track project costs from your operations automatically so you always know exactly where your project stands financially.
Effectively managing project costs is crucial to their success. Learn what you should be looking for in a complete project cost management solution.
Govern All Project Costs Together
There are two basic types of costs in every project.
Direct CostsDirect costs are the materials, space or subcontractors used for a project and have an explicit cost you can allocate to the project.
In the form of labor, machinery or other resources, the main factor used in calculating the cost is time.
Many treat these costs differently simply because they may be tracked or managed in different systems. You need to bring all these together, so you get a holistic view of your entire project costs. From there you can manage the financial aspects of your projects more effectively.
Key Project Cost Management Capabilities You Need
You can’t rely on guesswork. From building estimations and budgets to tracking costs as the project progresses, you need accuracy. You need a system that connects all the sources of your different costs and gives you accurate costs across the project.
COST BREAKDOWN STRUCTURE
The cost breakdown structure (CBS) is the central planning structure against which all financial activities are planned and managed. The CBS is a multi-level hierarchy that allows you to define the exact level of details required to efficiently manage a given project or contract.
ESTIMATE AT COMPLETION
EAC is critical to understanding how a project is expected to finish and make course corrections. You need a formal and automated method for consistently conducting EAC to manage your project costs effectively.
Projects rarely finish the way they are planned. You need a systematic way to track and incorporate change orders into your project as they occur.
When tracking your project costs, you need to quickly see when costs and associated margins deviate from acceptable limits. Setup thresholds for your key cost metrics and be alerted instantly when they go off track.
Oftentimes, reporting the financial status of projects takes considerable time and effort. You need real-time project financial reporting that is easy to digest. Maximize control over your business.
Consistent Estimate-at-Completion Calculations
Estimate-at-completion (EAC) is critically important to effective project cost management.
Typically, most create a project budget and then track actuals as the project progress. However, they do not consistently compute EAC and Cost-to Complete (CTC). While comparing BAC to actuals will give you variance from the original budget, you will not be able to reassess how the project is actually expected to finish.
By periodically evaluating CTC and EAC, controllers can predict and record variances before they materialize and in time to take corrective action. It is also crucial in spotting trends and making mid-project corrections.
Better Project Cost Management = Better Business Performance
Consistent real-time visibility into the financial status of your projects, so you always know where your business stands.
Govern your costs through systemized control mechanisms that automatically track and evaluate your costs across all projects.
Predict and record cost variances before they materialize, in time to take corrective action.
Advanced Project Cost Management with Adeaca PBA Project Financials
Manage your project costs in one system and transform how you manage your business.
- Align your financials with your operations in real time, so your financial reports always reflect the current operational plan
- Leverage the WBS to feed your CBS with the most accurate cost estimates from the updated timeline
- Automate the change order process to eliminate manual workloads
- Evaluate cost to complete with real-time work estimates from the schedule
- Report on the financial impact of schedule changes immediately
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