For effective project cost control and profitability, what is the key practice: keep equal to the original estimate, keep equal to the later construction budget, or keep within the approved budget while monitoring when and where job costs deviate?

Introduction / Context:
Project cost control is a continuous process that compares actual performance against a baseline, explains variances, and drives corrective action. Profitability hinges on staying within the approved budget while detecting and addressing deviations early—rather than blindly matching an initial estimate that may evolve with scope and market conditions.

Given Data / Assumptions:

• A cost budget (baseline) is established and approved.
• Actual costs are tracked by cost codes and work packages.
• Management seeks timely variance detection and corrective control.

Concept / Approach:

Earned Value Management (EVM) and standard cost control approaches emphasize monitoring Cost Performance Index (CPI), Schedule Performance Index (SPI), and variance at completion. The objective is not to force-fit costs to an outdated estimate, but to manage within budget and respond quickly to deviations with scope, productivity, or procurement actions.

Step-by-Step Solution:

Verification / Alternative check:

Industry best practices (AACE, PMI) emphasize proactive variance analysis and control rather than equalizing costs to any single estimate stage.

Why Other Options Are Wrong:

• Keeping equal to the original estimate ignores design changes and market shifts.
• Keeping equal to a later construction budget without variance monitoring lacks active control.
• 'None of these' is incorrect; proactive within-budget management with variance tracking is the key.

Common Pitfalls:

• Late reporting, which hides overruns until too late.
• Not aligning quantity measurement with cost coding, masking true variances.

Final Answer:

To keep the project cost within the cost budget and knowing when and where job costs are deviating.