Budgeting and cost control analysis in construction sector

A special importance Should be given on budgeting within management functions of business administration. With budgeting, businesses can better determine necessary raw materials, materials, equipment, labor, and cash for the activities of enterprises. In project-based businesses, realistic and detailed preparation of budgets will enable to use the resources in the most effective and efficient way. In the preparation of the business budgets, administrators should include experience and knowledge of the company's similar activities and projects obtained in the past instead of hypothetical estimates. The construction sector is doing project-based work and each project varies from one to another depending on the distance to design, geographical conditions, labor force and material resources. These conditions affect both positively and negatively include the manufacturing unit prices of each project, management costs, machinery and equipment costs, site costs. As positively and negatively, These conditions affect manufacturing unit prices, management costs, machinery and equipment costs, and construction site costs. All of this causes to deviations in the budget, therefore increases the importance of budgeting and cost analysis. The construction sector, considering the differences from the manufacturing sector; budget, budgeting and Cost Analysis issues are also an area that needs to be examined.