Project Control: Control of Work and Cost Versus Time

Project Control: Control of Work and Cost Versus Time Part 08-04 January 5, 2020 CVEN 349 - Maxwell

Purpose • Describe how to use a linear approximation of the combined sets of S-Curves to: • Determine current project status with respect to schedule and budget. • Project budget and schedule variances at the close of the job. • Recap possible counter-measures for the four possible general situations. CVEN 349 - Maxwell

Learning Objectives • Given a set of As-Planned and As-Built (to date) construction project control data points, be able to determine: • Current Schedule and Budget Variances for a simple work package. • Probable Schedule and Budget variances at the completion of the work package. • Determine adjustments in work and expenditure rates to complete the work as planned. • Assuming that the “non-flat part” of the S-Curves can be ignored. CVEN 349 - Maxwell

Assumptions • A complex project can be decomposed into simple, independent Work Packages. • The Work Package under consideration has no ramp-up or ramp-down; i.e., work proceeds linearly. • The amount of work accomplished can be quickly and accurately measured. • The daily cost rate for the Work Package can be computed from labor rates, equipment rental rates, and material placement rates. • The cost and work rates can be held constant. CVEN 349 - Maxwell

Example Problem: As-Planned • A good example of a work package that will have small ramp-up/ramp-down effects is the construction of a large concrete slab. The project is to pour and trowel finish a 50,000sf slab, 8” thick. Forms and rebar are in place. You estimate (using the Means Manual) that your crew can place and finish 2,500sf/day at a cost of $3,000/day. • That is, you plan to complete 50,000sf, in 20 days, at a cost of $60,000. CVEN 349 - Maxwell

Example Problem: As-Built The project manager checks progress on a regular basis and finds: • At day 5, • 16,000 s-f have been completed, and • $ 18,000 has been spent. CVEN 349 - Maxwell

Problem Summary • Estimate (As-Planned): • 20 days (PS, Planned Schedule) • 50,000 sf (PW, Planned Work) • $60,000 (PC, Planned Cost) • Progress to date (As-Built) • 5 days (AS, Actual Schedule) • 16,000 sf (AW, Actual Work) • $18,000 (AC, Actual Cost) CVEN 349 - Maxwell

Exercise #08-04.1 Based upon a procedure similar to S-Curve analysis: • Individually determine the current job status with respect to schedule and budget. • As pairs, locate any problems and be prepared to discuss. CVEN 349 - Maxwell

Answers to Exercise #08-04.1,Using “S-Curve Method” Under CVEN 349 - Maxwell

Answer to Exercise #08-04.1,Using Ratios or Similar Triangles CVEN 349 - Maxwell

Exercise #08-04.2 Something new with linear control: • As individuals determine, the schedule and budget variance upon completion? • As pairs, be prepared to discuss an “end game” strategy. • As pairs, determine the new work and spending rates to execute the “end game.” CVEN 349 - Maxwell

Answers, Exercise 08-04.2 CVEN 349 - Maxwell

Most likely Over Budget Behind Schedule Common Over Budget Ahead of Schedule Common Under Budget Behind Schedule Least Likely Under Budget Ahead of Schedule The 4 Possible Cases. CVEN 349 - Maxwell

Important Points to Remember • This technique works best for well defined, short work packages will negligible ramp-up and down. • Work progress must be easy to measure. • Check points must be established early and often during construction. • Forecasted end points are probably more meaningful than current status. CVEN 349 - Maxwell

Reminder!Class Assessment Questions • In 1 sentence what was the muddiest part of this module? • In 1 sentence, what part of this module could be improved the most? CVEN 349 - Maxwell

Project Control: Control of Work and Cost Versus Time