When construction field work begins, the control estimate and control schedule are used to establish baselines to measure progress and variation. An earned value system should be established to estimate actual physical progress and to establish a basis for predicting future effort and to schedule time required for completion.
It is important to note that cost and schedule control systems provide more than reactive accounting—they provide timely information for management intervention. Cost overruns and schedule delays are predicted, not just reported. Timely information allows the opportunity to influence scope, project team size, interferences, late deliveries and other project characteristics to mitigate the overall impact of negative occurrences.
Cost Management
Project cost is typically reviewed monthly. The cumulative effect of change is tracked and predicted for all hard-dollar contracts. Cost is predicted by analyzing work progress, amount spent to date, committed cost and amount predicted to complete. The cost management accounting system summarizes the cost of individual pieces of scope and predicts total construction cost. Short-term projects may require more frequent analysis and reporting. These projects often predict cost on a weekly, or even daily, basis.
Schedule Management
Typically, the schedule is reviewed each week. This is best done at a meeting led by the owner’s construction manager, where all contractors are represented. Each representative reports schedule progress, delays and potential interferences. The owner’s construction manager enables the coordination of multiple schedules and analyzes schedule progress. Problem areas are addressed and remedies defined to bring schedule progress back toward the plan committed to the business owner. Again, short-term projects may require more frequent analysis and reporting. These projects often predict schedule each day, or sometimes each shift.
Change Management
Change is inevitable and often desirable. The project change management system should identify and document all variation from the contract drawings and specifications and provide a process for technical approval and project authorization. The change order documentation should identify not just the cost impact of the change, but also any schedule, quality and safety considerations. These are key issues to be addressed in the decision-making process. Proposed change should be dealt with in a timely manner. Once authorized, the change should be incorporated in the project scope of work. Excessive change can add complexity and cost beyond that identified in individual change orders.
Creative Builds
At Creative Builds, we have a proven record of completing commercial construction projects on time, on budget and with the highest quality standards, and have extensive experience in the commercial construction market. Our process works, but we’ll let our projects speak for themselves!