COST AND SCHEDULE
Introduction text would go here.
Core Ideas and Benefits
- Project risk is inherent in construction and is magnified by communication gaps between the owner, contractor and architect.
- Employing controls that work to expand profitability, diminish overall project risk and increase customer retention.
- Successful projects are those with teams that achieve a truly integrated approach to mitigating risk and clear communication between all parties
- Clear definition of terms and measurable tasks to communicate to the owner and others progress and any impacts to cost and schedule. Terms like communication frequency or project status report content can be risk if not well defined.
- Importance of process ownership, open communication and effective integrated controls from notice to proceed and contracting through final punch list and delivery
- Crucial in managing costs is the objective/action or raising potential cost increases, decreases of cost performance problems as early as possible. This allows for informed decisions to be made, or actions to be taken to mitigate such problems, early in their development in a cost effective manner.
- Cost and quality control procedures can prevent added costs due to inaccuracies, misinformation or delays
- Capture all costs for the job and baseline project budget along with careful monitoring of both
- Risk of unforeseen costs
Change Order Management
- Creates an early identification system of any potential deviations from the established base line budget or schedule
- Should reflect the agreed upon and any potential changes to the contract documents that would affect schedule and/or scope.
- Preparation of change order pricing and any schedule impacts
- Incorporation of approved change orders into the budget
- Tracking of change orders that are outdated, outstanding, approved or unapproved.
- Providing any justification requirements, supporting documentation and/or qualifications to pricing or impact estimates
- More than just a forecast of what is to come and the order of events – Important tool for planning and sequencing of production and delivery of necessary components
- Also seeks to identify internal or external constraints
- Use to distinguish the status of items with a long procurement time
- Can be used to develop contingency plans and time frames
- The objective of monitoring the schedule is to detect any performance or timeline problems as early as possible to that corrective actions can be taken if necessary.
- Coupled with monitoring the schedule is frequent monitoring of physical progress