1 / 29

Project Management, Reporting, and Controls

Project Management, Reporting, and Controls Key Risks / Controls Focus for Today Procurement Management Contract Management and Compliance Cost Management and Reporting Risk Management Procurement Management Grant Covenants – Create an Abstract Key Requirements? Disadvantaged firms?

MartaAdara
Download Presentation

Project Management, Reporting, and Controls

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Resource Planning & Management Associates, LLC

  2. Project Management, Reporting, and Controls Resource Planning & Management Associates, LLC

  3. Key Risks / Controls

  4. Focus for Today • Procurement Management • Contract Management and Compliance • Cost Management and Reporting • Risk Management Resource Planning & Management Associates, LLC

  5. Procurement Management • Grant Covenants – Create an Abstract • Key Requirements? • Disadvantaged firms? • Prevailing wages? • Project Delivery Requirements? • Fixed Price? • Time and Materials? • Time limits on funds expenditures? • Utilize a checklist to ensure that any covenants are covered in the procurement process Resource Planning & Management Associates, LLC

  6. Procurement Management • Establish clear-cut selection criteria on the front end and then utilize a scorecard to document the vendor selection process: • Licensing & Insurance • Financial Performance & Capabilities • Bonding • Criminal Matters – Civil Suits • Project Experience, Qualifications • Safety Record Resource Planning & Management Associates, LLC

  7. Procurement Management Resource Planning & Management Associates, LLC

  8. Procurement Management Resource Planning & Management Associates, LLC

  9. Procurement Management Resource Planning & Management Associates, LLC

  10. Procurement Management Resource Planning & Management Associates, LLC

  11. Procurement Management Resource Planning & Management Associates, LLC

  12. Contract Management • Prior to signing • Use the Grant Abstract to align contract(s) to any specific covenants or requirements. • Review T’s & C’s • Are allowable and unallowable costs clearly defined? • Home office overhead, travel costs, markups, printing, etc. • How are contract changes/modifications going to be handled? • Invoice issuance and certification? • Schedule management issues? Liquidated damages? • Insurance and Bonding Requirements Resource Planning & Management Associates, LLC

  13. Contract Management • Review T’s & C’s Cont’d.. • Reporting Requirements? Frequency? • Submittals? • Utilize submittal schedules • MAKE SURE YOU INCLUDE AN AUDIT CLAUSE • Develop a Contract Abstract: • Timing and Frequency for: • Reporting • Submittals – Schedule, Payroll Certification, Lien Waivers • Invoices • Key Clauses • Cost Provisions serve as basis for invoice checklist Resource Planning & Management Associates, LLC

  14. Contract Management Resource Planning & Management Associates, LLC

  15. Cost Management • Invoice Analysis • Create a checklist from the Contract Abstract • Scan for Unallowable Costs • Confirm Overhead Rates and Profit Rates are correct • Check for Markup on Markup, Markup On Sales Taxes, Etc. • Contract Lien Waivers Submitted? • Prevailing Wage and Certified Payrolls Included? • Provides evidence of due diligence and puts the contractor/vendor on notice that costs are being reviewed carefully. • Large projects ($50M+), consider conducting a full-blown contract audit at 30% and 80%. Resource Planning & Management Associates, LLC

  16. Cost Management Resource Planning & Management Associates, LLC

  17. Cost Management • Change Order Management • Confirm that the change is legitimate • Identify and track the source of the change • Costs may be recoverable • Information should be tracked for future supplier evaluations • Prepare independent “blind” cost estimates prior to reviewing vendor’s specific proposal • Provides an objective basis for negotiation • Demonstrates due diligence on the part of the governing agency • Confirm that proposed change is calculate in accordance with contract T’s & C’s Resource Planning & Management Associates, LLC

  18. Cost Management Resource Planning & Management Associates, LLC

  19. Cost Management • Cost Performance Monitoring • Insist on bi-weekly or monthly project schedule updates from your staff and/or vendors • Need to move beyond….Budget – Actuals - Open Commitments = Cost to Finish • Use Earned Value Analysis to tie project schedules to costs • How much work was planned to have been done at any given point in the project? • What is the budgeted cost of that work? • How much work has been done to date? • How much of the budget has been expended? Resource Planning & Management Associates, LLC

  20. Project Budget Resource Planning & Management Associates, LLC

  21. Budget to Actual • This only provides us with a partial picture Resource Planning & Management Associates, LLC

  22. Budget Burn Rate • Now we realize we’ve got a significant problem. We’ve pretty much burned the construction budget but we’re only about 80% of the way through the work. Resource Planning & Management Associates, LLC

  23. Estimate to Complete • It looks like we’re going to end up about 20% over budget on construction cost. • Doing this analysis provides early warnings as to where the project is headed. Resource Planning & Management Associates, LLC

  24. Risk Management • Establish a Risk Identification Process • Determine the Participants • Project Managers • Financial/Accounting personnel • Vendor Reps • Stakeholder/ Constituent Reps • Define risk categories • Political • Physical • Logistical/Procurement • Financial • Design / Construction Resource Planning & Management Associates, LLC

  25. Risk Management • Identify potential risks • Project team brainstorming • Constituent surveys, interviews, workshop • SWOT Analysis • Analyze the Risk • Qualitative Analysis • Prioritize • Quantitative Analysis • What’s the probability that this risk will occur? • What will the impact be in Dollars • What will the impact be in Time? • What will the impact be in other areas? • Reputation, credibility, public safety, etc… Resource Planning & Management Associates, LLC

  26. Risk Management • Identify and Chose a Risk Response Strategy for SIGNIFICANT Risks • Elimination or Avoidance • Transfer - Insurance, Hedging, Contracting, etc.) • Mitigation – Are actions available that will minimize impact on cost, schedule, quality, or objectives? • Acceptance – Generally chosen if costs of mitigation outweigh the benefits • Monitor • Assigned to a responsible party to document, monitor, and provide periodic status reports • Report • Needs to be an integral part of the management cycle Resource Planning & Management Associates, LLC

  27. Risk Management Resource Planning & Management Associates, LLC

  28. Risk Management Resource Planning & Management Associates, LLC

  29. Robert Stickney, PrincipalResourcePlanning & Management Associates, LLC 2439 Nashville Avenue New Orleans, LA 70115 Voice: 504.621.2927 Email: rstickney@rpm-associates.com Resource Planning & Management Associates, LLC

More Related