The Industry Has Abandoned Cost Control

Cost control was once a simple and effective process managed in the field. Crews tracked their production against estimated unit costs on a daily basis and corrective action could be taken right away. Over time, responsibility shifted to accounting departments, where accuracy to two decimal places became the priority. The result is cost reports that are weeks late and are too old to help field teams fix problems as they occur. Today, most contractors rely on delayed financial reports that measure costs but don’t control them. This chapter explains why timeliness matters more than precision and shows how companies have lost sight of real cost control. The author illustrates, through examples, how quick intervention can turn losing work into profitable performance, while finger-pointing and delay only make losses worse. The solution is to put cost control back in the hands of operations, where immediate action can prevent small problems from becoming financial disasters.