Build Under Pressure: Mastering Cost Control in Turbulent Times

In 2020, 69% of construction projects went over budget. This was often due to “unforeseen events,” according to KPMG. But while inflation and instability push the limits of budgeting, cost control can still help you prepare for the road ahead.

This isn’t about guesswork. With real-time tracking, you pull from the latest budget information, giving you smarter estimates, in-depth dashboards, and the flexibility to adapt on the fly. The goal isn’t to cut corners, it’s to build with confidence, even when conditions change. With the right tools and approach, cost control becomes your competitive edge.

How to Control Costs on a Construction Site

It might sound like an insurmountable task to the modern project manager. But integrating cost control in construction is easier than ever with the latest tools. Let’s take a look:

Use Real-Time Cost Tracking Tools

You can’t control what you can’t see. If your budget’s out of date, you’re already behind.

Real-time tracking gives you a clear picture of where your money’s going, not last month, but today. With tools like 4PS Construct, you get live updates across every site, so you can catch issues early and act fast. No more guesswork. No more waiting for someone to send over the latest spreadsheet.

Instead, you can:

• Keep budgets and forecasts up to date
• Spot overruns before they become a problem
• Make faster decisions when costs start creeping

Real-time data gives you control. You know what’s been spent, what’s coming up, and where the risks are — without waiting on reports. That clarity helps you make decisions quickly and keep costs in check while the job’s still live.

Strengthen Estimating and Forecasting

No one can predict the future. There is no “construction crystal ball.” But a good estimate is not just a random number. It’s based on how well you understand the market, your suppliers, and the job itself.

The past few years have proven that events can be unpredictable. With prices changing fast, relying on outdated rates or rough averages is risky. Companies need to rely on live data, updated regularly, and based on real-world information.

That way, you can spot when a particular aspect begins to balloon in costs.

A strong forecasting process helps you:

• Base estimates on current supplier rates and past project data
• Add contingencies for known risks or long-term volatility
• Update projections as prices or scopes change

You can’t be 100% precise. But you can do your best to be as accurate as possible. The more accurate your starting point, the fewer surprises later on.

Build Flexibility into Contracts

When costs and timelines shift, rigid contracts become a liability. Flexible terms let you respond without scrambling.

Use escalation clauses for high-risk materials. Consider unit rates or phased agreements to limit exposure. And negotiate payment terms that give your suppliers room to deliver, especially on longer jobs. The right structure won’t slow you down. It gives you options when things don’t go to plan.

It also protects your margins. If material costs spike mid-project, a well-written clause can prevent you from absorbing the full hit.

Establish Strong Supplier Relationships

In one sense, prices are set by the market. But, ultimately, they’re really set by your supplier. Strong supplier relationships have helped more than one business weather an economic storm.

Partner with reliable vendors to secure better pricing and priority supply. Consider bulk purchasing or early ordering to lock in prices. Stay in regular contact — not just when you need something. A quick call to check on lead times or flag upcoming demand helps suppliers plan ahead, and shows you’re serious about the partnership.

Track supplier performance across projects. Who delivers on time? Who communicates delays? Over time, that data helps you make better decisions and avoid repeat issues before they cost you.

Manage Inventory Strategically

Holding too much stock is a risk. On the one hand, it covers you if a project grinds to a halt. On the other, it ties up your cash. It’s a balancing act familiar to most construction companies. The secret to cost control is deciding where that balance lies.

Avoid over-ordering in price spikes. Watch the numbers over time, and increase stock when you get stuff cheap. It’s also sensible to increase stock levels just as crises hit. Anyone buying up raw materials in March 2020 saved themselves a lot of money.

Try this:

• Use just-in-time delivery where it makes sense — but build in some buffer
• Track usage closely to cut down on waste, shrinkage, and theft
• Align purchasing with live project data so you’re not guessing what to order

Inventory isn’t just going to sit in your yard. It affects your cash flow, risk levels, and ability to deliver on time. Handle it with intent.

Improve Project Efficiency

Making your existing resources go further is the smartest thing any company can do. That’s money left on the table and if efficiency were easy, everyone would already be doing it.

The answer is to analyse your current workflows by identifying:

• the weaknesses
• the limiting steps
• the areas where costs frequently overrun

Cost control in construction is about minimising anything that leads to costly delays and rework.

Next, develop a structure for each project. Plan the sequencing of trades carefully, avoid downtime between tasks, and ensure materials arrive when they’re needed.

Train your teams to work clean, communicate clearly, and flag problems early. Over time, these small adjustments build a more efficient site: one where jobs get done right the first time, and every resource pulls its weight.

Regularly Review and Adjust Budgets

Even the best budgets fall apart if you set them once and never look back. Budgets aren’t or shouldn’t be static objects. They’re a living, breathing part of the projects that change as it does. Constantly updating numbers and reviewing costs helps you catch issues early, before they spiral into major overruns.

Involve commercial, finance, and site teams in the review process. Look for patterns: scope creep, missed variations, delayed approvals. Then adjust your forecasts accordingly.

With 4PS Construct, you can track actuals against budget in real time, flag variances automatically, and update forecasts without digging through spreadsheets, so your financial picture is always accurate and up to date.

See how 4PS Construct helps you stay in control

Take control of construction costs, before they take control of you.

4PS Construct gives you live cost tracking, forecasting, contract management, and supplier tools — all in one connected system.

• Explore construction estimating software
• Book a demo and take the guesswork out of cost control