Surplus Of Caution
Cost-Conscious Practices Can Build A Reserve That Staves Off Late-Stage Budget Overruns
Midsize to large engineering and construction projects have a reputation for overrunning their budgets. On a recent project, I was determined to finish under budget. So I started the project by building a war chest. My idea was to reduce expenditures at the front end, especially during engineering and procurement phases, and develop a reserve fund that could be spent toward the end of the project when resource (manpower and equipment) requirements peak and expenses mount.