Too often construction companies fall into the trap of only establishing a new project master record in their construction project management software after they have won the business. It makes more sense to do it after you decide to bid on the work and it should really be a part of your project management processes PMP certification .
In fact the controls should be in place before that. Companies need to have in place a formal review process taking into account the project roles and responsibilities that says “OK Mr Development Manager you have got $100,000 for getting new business – but if you want to spend more than $5,000 of your budget, then first you need formal approval from senior management.”
This would then require “ticking the boxes” on a number of issues as part of due diligence before the company even created the new project master record. If your managers are looking at a lot of new opportunities and if there are no project management processes in place, then the cost of assessing all of these opportunities can amount to a major expense. Large organisations can spend between $20,000 and $30,000 in the evaluation of a single opportunity.
If your construction project management software includes an integrated Risk Management system then it can assist the project management processes by providing for project roles and responsibilities to be assigned, costs to be applied to risks and to enable alerts that will help following up. The project costing reports would then include a complete costing basis from which it can calculate the final forecast cost.