Cost minimization in project management and a case study in construction sector

At the present time, conditions of competition forces firms to reduce their costs to win the tenders. Concerning project management decisions, cost is the most important factor. All Project managers wishes to complete their project withinsoonest time and minimum budget. In this regard, cost minimization on every stage of the project has became mandatory. Especially when calculating the budget on the planning stage, the ways for reducing the project costs shall be investigated.Therefore, lots of methods have been developed since 19th century. The methods are based on determining the project life time initially, have been developed to calculate the projects costs and still are very popular in Project management. The main goal of this study is to set forth the relation between project management, planning and cost minimization systems. In this direction, in the second chapter project, project constraints and project management concept were investigated; in the third chapter project management stages were touched on; in the fourth stage, Project management methods were told; in the fifth stage, the methods on minimization of project costs were touched on; in the sixth and last stage, the cost minimization of a project were shown in a virtual case study. In case study, Project management systems like CPM,PERT and Earned Value Analysis were used and the precautions to reduce the project cost that a project manager could take were discussed.