Principles of Cost Control, Cost Control During Programming Process & Cost Control
During Design Process
Brent Jarryd P. Luego ,
Eastern Visayas State University, Tacloban City, Philippines
Abstract
Every construction project must start with a cost control
plan. When planning and developing, architects and
designers must carefully consider a range of factors and
issues. This study also covers information on cost
control, including the principles of cost control, of
which important points are discussed, as well as cost
control during the programming process and cost
control during the design process, both of which are
expanded on and defined in relation to the principles.
Cost overruns are prevalent in the construction
sector, which typically leads to arguments
regarding the price discrepancy between customers
and contractors. Technology may assist you in
boosting production and profitability through
improved planning and the elimination of frequent
issues or elements that cause cost overruns. By
ensuring that the work progress matches time
estimates and projections of material, labor, and
overhead expenses, construction cost management
techniques may assist avoid cost overruns and
schedule issues in building projects.
Introduction
One of the challenges in the construction industry
is cost overruns, which usually result in
disagreements between clients and contractors
about the price difference. If this problem is not
fixed, work may be seriously slowed down and
projects may have to be canceled. Alison G. claims
(2021), we must first identify the underlying causes
of the problem in order to understand how to
manage cost overruns in construction projects. The
majority of the time, overruns are a sign of more
significant management issues, as well as
improperly created schedules and budgets, from the
very beginning of the project. However, most
project overruns are the result of poor analysis or
planning before construction even begins.
Budgetary repercussions from severe weather or
other uncontrolled events can occasionally occur.
Through better planning and the reduction of
common problems or components that lead to cost
overruns, technology may help you increase
productivity and income. Therefore, construction
cost management methods may help reduce cost
overruns and scheduling problems in building
projects by ensuring that the work progress fits time
estimates and predictions of material, labor, and
overhead expenditures. In this lesson, we will learn
how cost control ideas function. Additionally, we
will discuss and understand cost control during the
project's programming and design phases. In
chapter 3 titled "Cost Control in Building Design,"
the goal and guiding principles of cost control are
as follows:
Flanagan and Tate (1997) define the
purpose of cost control:
1. To provide the customer good value for
their money.
 In order to receive value for money, a
client's purchase must strike a
balance between quality, suitability
for the intended use, initial capital
cost, and product life cycle cost.
2. To achieve the required spending balance
across all the building's components.
 The division of costs across functional
groupings (like elements) should take
into account the demands of both the
customer and the designers.
3. To limit spending to the client's permitted
amount.
 The initial estimate becomes the
customer's allowable amount if the
client approves it. The budgeted
construction costs are shown by this
number. As long as the customer
doesn't approve more work, variants,
or design modifications, the final cost
shouldn't go beyond the initial
estimate. This proves that the original
estimate needs to be realistic and
carefully put together.
Flanagan and Tate (1997) identify the
principles of cost control as follows:
There must be a structure, and it must be followed. Two
phases make up the process of creating a frame of
reference:
a) Creating a reasonable first cost estimate.
b) Plan how to allocate the funds among the
various building components.
1. A system for feedback or inspection is
necessary.
2. There must be a way to take corrective
action.
Approximate estimating techniques that do not
meet the aforementioned requirements are
incapable of effectively controlling costs
during the design process. As a result, it is
critical to remember these principles and their
applications.
Cost Control During Programming Process
Project risk is directly decreased by efficient cost
planning. Steps should be taken to ensure that the project
development budget opportunities and risks are fully
recognized and assessed.
The three steps of the cost planning process are
described as follows in Ferry and Brandon's Cost
Planning of Buildings, a book by Kirkham:
Phase 1. Establishing the budget and clearly
describing it. Within fields other than
construction project management, this is
referred to as scoping or framing.
Phase 2. Planning and managing costs during
the design phase. Because design choices
directly affect overall performance, this stage is
crucial.
Phase 3. Cost management during the
procurement and construction phases. Just as it
was when Ferry and Brandon initially
suggested the approach, the later portion of this
phase is still relevant today. But as
procurement has developed, choices about it
are now occasionally made before design, even
in Phase 1. Therefore, it is crucial that cost
planning recommendations take into account
the effects that particular procurement choices
would have on design and construction costs.
Cost Control During Design Process
The following context emphasizes crucial elements of
cost management throughout the design phases, in
particular the briefing, sketch plan, and working
drawing stages, as described in Dissanayake's study's
third chapter, "Cost Management in Building Design":
1. Cost Control in Briefing Stage
Creating a thorough and clear brief and a
reasonable initial estimate are essential tasks at
this point. In conventional practice, a realistic
estimate is created using the estimating
process.
The first of three cost-control concepts is to
establish a reasonable initial estimate. The
research cost model complies with two
requirements of cost control's first principle at
the briefing stage. Only the first need of
conventional cost planning—creating an
accurate first cost estimate—can be fulfilled.
Single rate estimating methods fall short of
producing a reliable first cost estimate.
2. Cost Control in Sketch Design
Stage
The proposal outlines and plan design phases
are included in this stage. Usually, a rough
budget plan is made initially. The entire cost
plan includes substructure, superstructure,
interior finishes, fittings, services, outside
works, preliminaries, contingencies, and
allowance for unforeseen design results and
escalation. A thorough cost plan is made during
the Scheme design stage. At this stage, the
second component of principle one is satisfied
by conventional cost planning. However, at the
Briefing stage, the research cost model satisfies
the two requirements of principle 1. At this
point, it is possible to analyze the design and
cost data incorporated into the suggested cost
model and replace any false assumptions. As a
consequence, during the Sketch design stage,
cost and design details are adjusted for the
research cost model.
3. Cost Control in Working
Drawing Stage
All design, specification, construction, and cost
choices must be taken at the detail design stage.
The entire building must be fully developed,
and each design must include accurate cost
estimates. Corrective measures are done when
needed. Cost Control Principles 2 and 3 are
consequently being used at this time. Elemental
costs are compared to goals in traditional
elemental cost planning. If the goal is
 exceeded, funds are transferred from an Kirkham R. (2015). Ferry and Brandon’s Cost Planning
element with extra funds. If this isn't of Buildings. Retrieved From:
practicable, the issue can be resolved by https://download.ebookshelf.de/download/0002/8983/7
lowering the quantity (downsizing), raising the 3/L-G0002898373-0004674291.pdf
specification level, or doing both. In order to
maintain the building cost within the Taylor DP. (2022). Understanding Cost Control in the
reasonable initial estimate, the research model Construction Industry. Retrieved From:
cost model now compares cost targets to
https://www.fool.com/the-
elements. If necessary, corrective measures are ascent/smallbusiness/construction-
then done. management/articles/costcontrol-in-
construction/#:~:text=Cost%20control%20in%20const
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Therefore, supervisors must monitor labor,
material, and overhead expenses in order to keep costs
in check and complete the project on time and under
budget. Cost control is what is referred to as this in the
building sector. Without cost management, a project's
budget can be quickly depleted, leaving the
construction industry with little to no profit or even a
loss. Therefore, efficient cost control is crucial for the
success of every construction company. A suitable cost
management plan and development budget are also
required to ensure a project's success. This cost control
plan covers cost control principles, cost control during
the programming phase, and cost control during the
design phase. It is an essential component of
construction planning and is particularly vital in
deciding the project's final cost.

References
Dissanayake A.(n.d.). Cost Control in Building Design.
Retrieved From:
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203.pdf?sequence=7&isAllowed=y

Ellis G. (2021). 6 Common Causes of Cost Overruns in

Construction Projects. Retrieved From:
https://constructionblog.autodesk.com/commonconstruc
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eSUB Construction Software (2019). 5 Tips for

Construction Cost Control. Retrieved From:
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%20
helps%20project,within%20scope%2C%20and%20on
%20budget.

Gleeson P. (n.d.). Construction Cost Control

Procedures. Retrieved From:
https://smallbusiness.chron.com/construction-
costcontrol-procedures-80517.html