In the fast-paced world of construction, managing project costs effectively can mean the difference between success and significant financial loss. A recent study published in *Rekayasa Sipil* (translated as “Civil Engineering”) sheds light on how advanced software can help identify potential cost overruns early, offering a lifeline to projects at risk of budgetary pitfalls. The research, led by Ratih Yuliani Gunawan of PT. Waskita Karya, explores the use of SAP S/4 HANA, an Enterprise Resource Planning (ERP) application, to mitigate cost increases in construction projects.
Gunawan’s study focuses on the University XYZ building project, where cost control is paramount. “Rapid evaluation of cost control is crucial to mitigate potential project cost increases,” Gunawan explains. “A cost overrun can potentially harm the company, making effective cost management an essential aspect of construction project implementation.”
The research delves into various aspects of cost management, including project implementation budgets, work breakdown structure (WBS), and cost breakdown structure (CBS). By analyzing these components, Gunawan aims to identify potential cost overruns early in the project lifecycle. The use of SAP S/4 HANA provides real-time information about project budget conditions, enabling more informed and timely decision-making.
One of the key findings of the study is the importance of top management support, vendor support, user training, and the reporting capabilities of SAP S/4 HANA in the successful implementation of the software. “These factors significantly influence the early detection of potential cost increases,” Gunawan notes. The analysis of the final project costs based on the SAP S/4 HANA Project System module indicates a potential construction cost increase, highlighting the software’s role in identifying and addressing these issues proactively.
The implications of this research are far-reaching, particularly for the energy sector, where large-scale construction projects are common. Effective cost management can lead to significant savings and improved project outcomes, ultimately benefiting stakeholders and the broader economy. As the construction industry continues to evolve, the integration of advanced software solutions like SAP S/4 HANA is likely to become increasingly important in ensuring project success.
Gunawan’s work, published in *Rekayasa Sipil*, offers valuable insights into the potential of SAP S/4 HANA in early cost overrun detection. As the construction industry grapples with the challenges of cost control, this research provides a roadmap for leveraging technology to achieve better financial outcomes. The study not only highlights the importance of effective cost management but also underscores the role of advanced software in shaping the future of construction project implementation.