Construction Matters

The goal of an organization in a business environment is profit-making. However, delivering and meeting the client's requirements and expectations are key to sustaining the firm business. Effective management of cost and value is the basis for the expected profit. The cost and value are the links between the contractor and 1. The paying party or client 2. Subcontractors and suppliers (allied professionals) The scenarios 1. The contractor presents a cost to the client/ project initiator/ paying party 2. The contractor arranges, manages, and supervises allied professionals to achieve value in the project Cost is achieved through the knowledge of estimating principle, that is developing rates through (a). first principle (b). Specialist cost (c). Past experience i.e., sum. Value is the careful disintegration of bill rates/amounts into different items, packages, and frameworks that will be executed by direct workmen, subcontractors, and suppliers. The difference between the cost and va