What is the purpose of cost forecasting in construction management?

The purpose of cost forecasting in construction management is primarily to project future costs based on trends. This process involves analyzing historical data and current market conditions to estimate future expenses associated with a construction project. By anticipating costs, project managers can budget effectively, secure necessary funding, and make informed decisions about resource allocation.

Forecasting allows for better financial planning and monitoring throughout the lifecycle of a project. It helps in identifying potential financial issues early on, allowing for timely adjustments in strategy or execution. Ultimately, accurate cost forecasting is essential for maintaining the financial health of a project and ensuring its successful completion within budget constraints.