Studies on Cost Accounting and Cost Control in Construction Project of the Site

Abstract

Accounting plays a crucial role in the success of any business, but it is particularly vital in the construction industry, a complex field that typically requires the Coordination of multiple subcontractors and multiple jobs in any given year. This thesis undertook to study the accounting practices of a Builder.Cost control is an important issue in construction project management. It is widely practiced by contractors in India and needs to carry out throughout the life of a project. A brief interview with a contractor found out that the contractor lack the knowledge of cost control system and cost accounting system.Hence, a study is carried out to study the cost control and cost accounting method in a construction project, to identify the cost control and cost accounting method frequently used by contractor during the construction stage and to identify the problem faced by the contractor in controlling the costs on site. The study is carried out in the Bangalore.A total of 20 questionnaires were sent to the contractor and the data analyzed using the average index and frequency analysis. From the study, the main problem faced by the contractor are shortages of material, labour or mechanical plant, difficulty in collection of cost data, ever-changing environment of construction work, qualified expertise, duration of the project and additional costs to carry out the cost control system