Objective of Research:
Minimizing cost is a primary goal in the planning and scheduling of construction projects. Cost
however is closely related to time. In general, direct project cost increases with a decrease in project
duration and this trade- off problem is complicated by the number of variables involved.
For cost control on a project, the construction plan and the associated cash flow estimates can
provide the baseline reference for subsequent project monitoring and control. For schedules, progress
on individual activities and the achievement of milestone completions can be compared with the
project schedule to monitor the progress of activities. Contract and job specifications provide the
criteria by which to assess and assure the required quality of construction. The final or detailed cost
estimate provides a baseline for the assessment of financial performance during the project. To the
extent that costs are within the detailed cost estimate, then the project is thought to be under
financial control. Overruns in particular cost categories signal the possibility of problems and give an
indication of exactly what problems are being encountered. Expense oriented construction planning
and control focuses upon the categories included in the final cost estimation. This focus is particular
relevant for projects with few activities and considerable repetition such as grading and paving
roadways.
This research will focus on the financial terms of the project, in other words we have to minimize
the budget in order to match the donor's budget with the bidders value.