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INTRODUCTION <br /> CAUSES OF COST OVER-RUNS Capital costs of building projects often overrun <br /> their budgets during the design and construction <br /> • Poorly defined building programs. stages. Sometimes these overruns are radical. To <br /> avoid these problems it is essential to establish <br /> • Inadequate pre design feasibility and maintain cost control over a project from its <br /> and site studies. inception through to its completion. It is also <br /> necessary to be aware of the impact of initial <br /> • Poorly de£med agreements on capital expenditures on the operating and <br /> maintenance costs for the life of the facility. <br /> responsibilities between the <br /> client and the designer. As a person responsible for construction, the <br /> client have tremendous responsibilities. Buildings <br /> • Poorly prepared initial budgets. have become more sophisticated; users have become <br /> more demanding. The availability of building <br /> • Lack of cost control measures. materials and systems and their costs change day by <br /> day. New techniques in both design and budget <br /> • lack of provisions for escalationday. <br /> have emerged in response to these <br /> in budget. pressures. This booklet defines cost control, how <br /> cost control can be implemented and who is best <br /> • Marketplace conditions. qualified to be responsible for cost control. <br /> • Poorly de£med time schedules. <br /> • <br /> • <br /> 2 <br />