Integrated Cost Management Solution
One-to-one cost matching made possible through:
And ONLY this can produce:
In summary, ICMS has been designed over 30 years, exclusively for the Construction industry, using state of the art technology to provide the organisation with daily project cost information, including accrued costs on ALL cost elements, coupled with effective project controls, all integrated with a feature-rich back office enterprise accounting system.
Cost estimating, forecasting, and planning are a part of Project Cost planning. Cost planning is the projection of future costs. Cost tracking is backward-looking: it is accounting for what has already occurred.
Cost tracking refers to following the cost of various activities through the Candy and BuildSmart cost management system and is accomplished through the use of cost coding of activities and their associated costs. It includes methods such as time collection (the use of resource time sheets) and expense accumulation. This type of data collection associates costs and activities for the various activities being performed, enabling accurate analysis and optimal decision-making. While every stage of the cost management system is important, cost tracking is one of the most critical stages, because weaknesses in data collection will have the most detrimental effect on the other stages. Inaccurate data will lead to poor risk assessment and poor planning.
The Project analysis stage of estimating and planning considers individual costs and related activities, while the decision stage evaluates and forecasts the entire cost management system and provides an opportunity to make appropriate changes and initiate best practices. The Candy BuildSmart system offers an opportunity to improve the risk management as a whole.
The Candy BuildSmart cost management is central to the idea of cost management. While Candy includes the ability to show how resources are committed, BuildSmart shows when and why resources were committed to a task or project. Through a comprehensive review of the entire portfolio of resources available, cost monitoring leads to an improved understanding of how resources can effectively be used in optimal cost benefit on a project through task and cost code management.
The related concept of resource utilisation on a project is especially applicable to planning and forecasting, because many changes can be implemented to have a direct effect on the cash flow. Keeping a cost-monitored system is an on-going process that requires continuous review, not only on site but at management level too. Similarly, a cost management policy can also be seen as a risk mitigation policy and is therefore a part of everyone’s job.
While different cost accounting systems include different components that may seem essential to financial management level, the indispensable element is an overall understanding of the interrelationship between project activities and actual costs as well as the ability to manage and track these cost relationships is to an organization’s advantage.
Identification of actual costs against the budget is a critical element throughout the cost management process. Identifying actual costs begins with understanding the difference between direct and indirect costs.
A direct cost can be seen in various ways:
Candy has a unique ability to combine complex worksheets with multiple resource allocation in the Bill of quantities rates. Direct and indirect costs are broken down among labour, material, plant, overhead and subcontractors, each of which has a unique resource code. These costs are all easily traceable to specific activities through each activity having a Cost code and provide accurate cost information one imported into the BuildSmart cost management system.
The allocation of indirect overhead costs is often more complex, since overhead costs can be used by many project activities and across many projects. Maintenance costs for example are incurred regardless of whether or not the barriers are used in any specific events, and need to be managed within the BuildSmart ledger and allocated to particular resources codes.
Cost recovery of project activities is essential: However, regardless of the extent to which an organization engages in cost recovery, it is beneficial for each organization to have a well-defined cost accounting system. Having such a policy will facilitate financial control, including procurement, pay roll, plant and human resource management, ensuring an equitable financial structure, and distinguish an organization’s on-going success.
Good cost management and risk mitigation is an integral part of good project management and an organizational and individual responsibility. Cost management monitoring is an on-going and interrelated process that requires frequent review to continue functioning successfully and being able to monitor risk mitigation.
What the integrated CCS Cost Management Solution can do which others cannot
We have an interactive link between our Estimating and Planning tools that is like no other system. We also share critical information between Estimating/Planning and Cost management/Accounting functions like no other system.
CandyEstimating integrates with BuildSmart Procurement for precise quantity and rate information to achieve accurate purchasing, the first step in effective cost control.
The integrated system organizes cost information simultaneously by task/activity as well as by cost type, so as to allow a one-to-one comparison of cost information that must be organized in different ways for the purposes of estimating, project management and accounting.
BuildSmart is web-based where needed, to allow information to be entered where it is produced and to allow real time comparison of actual costs to expected costs, so as to be in time to take effective corrective action.
BuildSmart facilitates the return of actual costs to estimating to improve the accuracy of future estimates and the securing of more profitable work.
BuildSmart is built on best practice and can therefore be implemented in a few weeks with guaranteed costs, not the months and years and often open ended costs that other solutions often require.
A few of the many other needs that the combined system also facilitates:
Taken together, these uniquely powerful tools provide management with superior information with which to produce more net revenue and benefit from a strong competitive advantage.
The more one knows about the unique challenges of construction, the more it is obvious there is only one choice in systems to secure work, control costs and protect margins – CCS.