How Cost Control Software Improves Forecasting Accuracy in EPC Projects

A 2023 review found that forecasting accuracy is rarely measured against actual outcomes, leading to persistent cost overruns and unresolved challenges in managing expenditure. However, with the right cost control software, EPC teams can gain more reliable forecasts that accurately assess project progress and predict future performance. In this post, I’ll be discussing how to improve forecasting accuracy by integrating real-time data, budgets, and schedules with Mpower Project Controls & Cost Management Software to help EPC teams stay prepared. 

Contents

• Why is Forecasting for EPC Projects So Difficult?
• What is Cost Control Software?
• How Does Cost Control Software Improve Forecasting Accuracy?
• Benefits of Using Cost Control Software for Forecasting
• Summary: Improve Forecasting Accuracy with Cost Control Software
• FAQs: Cost Management Software & Forecasting

Why is Forecasting for EPC Projects So Difficult? 

Even as EPC projects move into the FEED stage and forecasting accuracy improves to within 10%, cost overruns remain a persistent issue. 

Scope changes are frequent, often driven by client revisions or unforeseen site conditions. These changes ripple through budgets and schedules, making it difficult to maintain a stable forecast. Additionally, the complexity of scheduling and resource allocation can throw off estimated timelines, especially when delays in procurement or labour shortages occur. 

Another hurdle is the integration of actuals, budgets, and forecasts across multiple disciplines. Engineering, procurement, and construction teams often work in silos, which leads to misaligned data and inconsistent reporting. Without a unified system, it's hard to get a clear picture of where your project stands financially. 

Finally, many teams must contend with limited visibility into real-time cost performance. When data is outdated or fragmented, it becomes harder to anticipate risks and adjust course before issues escalate. 

What is Cost Control Software?

Cost control software is a project management tool designed to help teams monitor, manage, and forecast project costs with greater accuracy. In EPC projects, this kind of software keeps financial performance aligned with project goals when dealing with huge budgets and tight deadlines. 

Cost control software supports forecasting through several core functions: 

• Budget Tracking: Maintains and compares original, current, and forecast budgets to ensure financial visibility throughout the project lifecycle 
• Change Order Management: Applies approved variations directly to budget positions, allowing forecasts to reflect real-time changes in scope and cost 
• Earned Value Analysis: Calculates performance metrics like CPI and SPI to assess progress and predict future cost outcomes 
• Integration with Scheduling Tools: Aligns budget forecasts with updated project timelines, ensuring time-phased accuracy as schedules evolve 

How Does Cost Control Software Improve Forecasting Accuracy?

Cost control software is designed to tackle the core forecasting challenges in EPC projects by providing a fully integrated cost control environment. It connects budgets, actuals, schedules, and change orders into a single, dynamic forecasting platform. The following outlines the cost control solutions EPC projects leverage in Mpower software for better cost management on their projects: 

Budget Lifecycle Management

Mpower automatically maintains the original budget, current budget, and forecast budget position throughout the life of a project. This continuous tracking ensures that teams always have a clear view of how financial expectations evolve over time. By preserving historical budget data and reflecting approved changes, Mpower supports more accurate forecasting and better financial accountability. 

Change Order & Variation Handling

Change orders are a major source of forecasting disruption in EPC projects. Mpower addresses this by applying change orders directly to the relevant budget line items. Depending on their approval status, these changes affect either the current or forecast budget position. This real-time adjustment ensures that forecasts reflect the latest scope and cost realities, reducing lag and manual errors. 

Earned Value Management (EVM)

Mpower automatically calculates industry-standard earned value metrics and KPIs, such as Cost Performance Index (CPI) and Schedule Performance Index (SPI). These metrics provide a performance-based lens for forecasting, allowing teams to project future costs based on actual progress. This helps identify potential overruns early and supports more proactive financial planning. 

Scheduling Integration

Forecasting is only as accurate as the schedule it’s based on. Mpower integrates scheduling data directly into the forecasting process. When project dates shift, the software re-spreads budget forecasts over the updated schedule, maintaining time-phased accuracy. This ensures that cost projections remain aligned with delivery timelines, even as plans evolve. 

Actuals Summarization & Cash Flow Visibility

Mpower summarizes periodic actuals against relevant budgets, allowing the remaining value to be re-forecast with precision. This enhances visibility into future cash flow needs and supports better financial planning across the project lifecycle. It also helps teams understand how past performance impacts future expectations. 

Primavera P6 Integration

Mpower integrates seamlessly with Oracle Primavera P6, one of the most widely used scheduling tools in EPC project management. This integration allows Mpower to pull in live schedule data, which strengthens forecasting accuracy and earned value analysis. By aligning cost and schedule performance in real time, teams gain a more holistic view of project health. 

Benefits of Using Cost Control Software for Forecasting

Accurate forecasting enables EPC teams to make better decisions, respond faster, and project stronger outcomes. 

With Mpower, you can expect the following benefits: 

• Improved Accuracy and Reliability: Forecasts are built on real-time data and automatically updated as budgets, schedules, and change orders evolve 
• Faster Response to Project Changes: Integrated change order handling allows teams to adjust forecasts immediately, minimizing disruption and delay 
• Enhanced Decision-Making: Access to live cost performance metrics and earned value data empowers teams to make informed, proactive decisions 

Summary: Improve Forecasting Accuracy with Cost Control Software (Mpower)

Accurate forecasting is essential for keeping EPC projects on track, but it’s often undermined by their complex nature and constant changes. Mpower’s cost control software integrates budgets, schedules, actuals, and change orders into one dynamic platform, helping teams forecast with greater accuracy. If you're ready to improve forecasting accuracy and reduce financial risk, download the Mpower brochure to see how it can support your next project. 

FAQs: Cost Management Software & Forecasting