In today’sscenario construction industries which include design and constructabilityissues, land acquisition issues, adverse political changes, shortage of talent,time and cost related issues, rising material and labour costs, structuralchanges. Time and cost are two main factors in a construction and they are usedfor planning the construction project due to which there is increase inimportance of time and Cost optimization in construction projects. Optimizationis a systematic effort made to improve profit margins and obtain the bestresults under given circumstances or situations. Traditionally used methods forthe cost effective project scheduling in construction management include Time-Cost Optimization with Network Analysiseither the Critical path method (CPM) or the program evaluation and reviewtechnique (PERT) combined with trial-and-error procedure. Critical PathMethod (CPM) was developed to optimize the organization of complex proceduresof an activity network and also to identify critical activities in a networkcritical path.
Because activities in the network can be carried out inparallel, the critical path is the length of the longest path from the start ofproject to its finish. Program evaluation and review technique (PERT) wasoriginally designed to orient time elements of a project and adoptedprobabilistic time estimate to determine the probability that a project couldbe completed by a given date. Microsoft Project is a projectmanagement software program which is designed to assist a project manager indeveloping a plan, assigning resources to tasks, tracking progress, managingthe budget, and analyzing workloads.
Project creates budgets based onassignment work and resource cost. As resources are assigned to the task and theprogram calculates the cost equal to the work times the rate, which rolls up tothe task level and then to any summary tasks level and finally to the projectlevel. The execution of the scheduled task work based on the resourceavailability as defined in the resource’s. All resources can be defined inWork, Material and Cost. Hence, by thesemethods we could control the time, cost and maintain a close watch on theproject.