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2009 15

COST MANAGEMENT AND PLANNING IN CONSTRUCTION


PROJECTS
ABSTRACT
This research aims at emphasizing the significance of sound management and cost
planning from the beginning of the project undertaking in order to facilitate the proper
establishment for conducting and systemizing the project costs. Also, to determine the major
obstacles that affect the management and scheduling of construction costs and to suggest
solutions through demonstrating the roles of the parties involved in the project. According to
the preliminary information, data, and exploratory readings collected about this matter, the
research hypothesis is formulated as follows:" In fact, there is a critical need to determine the proper fundamentals of cost conduct and
planning according to a sound clear system, taking into account what is currently applied and
followed in order to assess these procedures and improve them as mach as possible."
In order to meet the aims of this research, a scientific methodology is pursued in :- the presentation and review of most the local and international references that are directly
relevant to the research, and aided by reports and articles from the internet from websites of
engineering facilities of relevancy.
- the case study for five projects. which are currently under construction in Iraq, analyzing
them thoroughly in order to point out about their positive and negative aspects.
- the open questionnaire and the regular closed questionnaire forms based on the data and
information collected through the theoretical review and the open questionnaire to conclude
and examine some concepts concerning the actual management status of cost planning.
The research hypothesis has proved to be workable. Thus, it was possible to define the major
obstacles that affect the process of construction cost management and planning; also, to suggest an
appropriate plan for cost management and planning using a formula that facilitates the process of
establishing and conducting all the details of construction cost to handle the weakness points on
time, and to be able to propagate for cost management and planning and to inform the relevant
parties or beneficiaries about how to take the proper decisions according to modern methods.
KEYWORD
(Cost, Contracts, Management, Planning, Project, Estimation, Monitoring, control, budget,
Resources).

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PROJECT Cost Management


Cost Control

Cost Budgeting

Cost Estimating

( )5

Resource Planning

()Pmbok:2003

* (.)Resources Planning


.
.

* (.)Cost Estimating

(. )5009:

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* (.)Cost Budgeting

* (.)Cost Control
.


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15 2009

(.)Pmbok:2003

( )Life-Cost Cycle (

) Value Engineering

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)(Estimate can occur at any stage of this process

) )Cost Planning
Cost Analysis

Cost Plan

Cost limit

( (Cost Checks
R.I.B.A

M

Feed
Back

Completion

K

Site
Operation

J

Project
Planning

Tender
Action


Drawing
Working

Details
Designs

Site Operation

G

Bill of
Quantities

F

Production
Information

Detail
Design

Scheme
Design

Record

Contract

Drawings

Drawings

Production
Information
Drawings

C

Outline
Proposals

Pilot
Details

Sketch Plans


Scheme
Design
Plans


Out line
Design
Plans

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Feasibility

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* ) Cost Breakdown Structure(CBS

( )CBS

().)Cost Center(CC
* ((Milestone Chart

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,

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15 2009

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2009 15

"" :
.1984
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. 1997
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.1998
.1987 ""
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.1982 .

")" (
.1993

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