Introduction

Mega construction projects withstand a level of complexity like no other. More than ever, organizations are searching for ways to increase efficiencies, reduce costs, increase productivity, collaboration and automation on their construction projects.  To achieve this, the project team needs to apply a significant level of rigor in the planning and management of projects and deliver key metrics and projections to all project stakeholders throughout its execution.  Calculating a reliable month-over-month forecast requires that the project team has not only done sufficient upfront project planning, but they’re also performing ongoing monitoring, measurement and management of the project in order to produce an accurate report for the project's financial stakeholders.

When it comes to project controls, budgeting and cost tracking, the Cost Breakdown Structure (CBS) plays an integral role in the management of construction projects.  For many organizations, designing a standardized CBS can present a number of challenges as there aren’t a lot of models and standards out there to draw ideas from.  The reality is, you’re kind-of on your own to define how you want to break down your project’s costs into logical buckets for careful management of its finances.