Page 64 - CO_July_2022

GUEST ARTICLE TECHZONE Lals Enterprise Management
The Complete Cost &

Software

Services

Trusted partner for Project
Solution
Management & Cost Control

From ‘cost to complete’: One source of truth

Lalu Varghese, Construction is unique! this is back-to-front). Not to mention that
Director & CEO, Standardised accounting practices cannot the process never follows the plan; budgets
Lals Software Services be applied to this industry. We are carrying are built on a set of circumstances that is
(Authorised Distributor - costs over, constantly adapting our needs constantly shifting; soil conditions, labour
RIB CCS) in India, is a civil on site, constantly re organising our build force availability, resource suitability, and
engineer with over 30 planning which impacts our resource design changes that all add to this dynamic
years of experience in planning. working environment.
construction estimation Therefore, costs and accounts must sit There needs to be a paradigm shift within
and cost control across together; in real-time. the industry.
GCC and South Africa. However, many in the industry do not think What is unilateral is the constantly changing
Lalu shares his insights on the current practices are broken or need to circumstances, the earned value budgeting
method, and the low margins. What
be evolved.
the use of specialised Nevertheless, there is a swell of change separates the men from the boys is the use of
software to provide taking place thanks to specialised software specialised software to provide meaningful
meaningful real-time which is making some construction real-time insights into the costs, allowing
insights into the costs and businesses far more competitive than others. some companies to pinpoint small cost
avoid cost overrun. Construction companies build strong, long- advantages that can become significant
lasting structures. But they are built with agile, over a multi-year project.
adaptable and constantly changing plans. In this vein, timing becomes critical and
Budgeting in construction is developed explains clearly why costing shouldn’t happen
based on the earned value. That is to say on a spreadsheet after the accounting:
that, only after you have measured the work • The magnitude of the costs at play in
done, can you develop the budget for the the construction industry are significant
remainder of the project. (For most industries • Real-time is critical

64 CONSTRUCTION OPPORTUNITIES|JULY 2022