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Reducing Construction Cost

 

The activity time for project constructions are normally estimated for some given level of resources. However, on several occasions, the length of the project time of activities, were reduced, by injecting additional resources.

Project managers must have certain options at his command that will allow shortening of the time referred to as “Crashing Certain Activities” and the most obvious options is the use of additional funds to support additional personnel, have more efficient equipment and relax some work specifications.

The goal in evaluating the time cost trade-off is to identify a plan that will maximize the amount of direct and indirect project costs. This will aid the manager in his making of a rational decision on which activities if any to be crash and to what extent will the crashing be possible.

Those activities on the critical path are potential candidates for crashing. The shortening of non-critical activities will not have an impact on the total project duration. From the economic view, activities should be crashed according to crashing costs.

The benefits might be in form of incentive payments for early project completion as part of the government contract or savings in the indirect project costs.

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