Cost and Time Control Project completed on time
- Slides: 14
Cost and Time Control
• Project completed on time and on budget – Want to get done early – Lower costs – More profit
Cost Control • Use cost codes assigned to items during estimating – Cost codes allow PM to monitor costs and compare to estimated costs – Want total project under budget
Cost Control – Uses of actual data • Monitor costs, id problem areas, select mitigation measures • Id additional costs incurred thru change in scope • Id costs for completing work that was subbed out (back charges) • Develop a database of historical data for estimating future projects • Provide a cost report to owner
Cost Control – Steps involved • Assign cost codes to each element of work in cost estimate • Correct estimate based on buyout costs • Actual costs are tracked using cost codes • Construction process is adjusted to reduce cost overruns • Actual quantities, costs, and productivity rates are recorded and as built estimate is prepared
Cost Control – Greatest risk items • Direct labor • Equipment usage or rental • Job site overhead or project admin – Need detailed cost analysis to see where overruns are
Cost Codes • Need to be able to track actual vs estimated costs – Use same coding as on files – Many companies use CSI Master. Format system • Proj #. CSI Workpackage. element of cost • 1 = labor, 2 = equipment, 3= materials, 4 = sub • 9821. 06100. 1 – labor for rough carpentry on Huna Office Bldg
Accounting • Usually done at home office – All cost items have cost code – Must be right cost code even if it means you go over budget on item • Only way to truly track how you are doing
Work Packages • Method of breaking down estimate into distinct packages or systems that match measurable work activities • Footings including forms, rebar, pour is a work package • Get supers involved in estimating the work packages that they will oversee
Project cost curve • Graph showing estimated labor vs actual labor – Actual Labor under estimated => either beating estimate or behind schedule – Actual Labor over estimated => either over estimate or ahead of schedule – Track those activities which are critical or carry the highest labor – F 16 -4 work package cost control
Management reports • Need to develop a monthly forecast for project – Direct labor, direct material, major purchase order items, subs, job site admin, equip rental, {taxes, permits, insurance}, Fee – Each gets a separate page with a 1 page summary of project – F 16 -5 – Need to keep on top of costs
AS Built estimate • Important historical tools • Especially important on unit price estimates
Schedule control • Monitoring progress of each activity – Determine impact of delayed activities on completion – Need to ensure substantial completion by contract date – Should do an as built schedule - historical
Earned value • Technique for determining estimated and budgeted time of work completed to date • On work package curve put in curves for actual man-hours and earned value – Earned value = man hours worked time % complete F 16 -6, 7 – Gives a measure of productivity • Subtract actual time used from time scheduled – horizontal dist • Subtract actual cost from earned value of work performed – vertical line
- Cost control and cost reduction project report
- Cost control and cost reduction project report
- Cost control and cost reduction difference
- Cost control and cost reduction difference
- How is informal language different from formal language
- Project cost control
- Estimating project time and cost
- Top down budgeting vs bottom up budgeting
- Estimating project time and cost
- Crashing a project example
- Lotfi gaafar
- Cost accumulation and cost assignment
- Cost accumulation and cost assignment
- Cost pools
- Cost accumulation and cost assignment