We can mitigate the impact of these problems and even prevent them arising in the first
place by implementing Project Controls. The Project Controls function, i.e. timely analysis,
reporting and recommendations, facilitates informed decision-making and can also help
to anticipate other problems so that action can be taken to avoid them occurring.
It is essential that the Project Controls function is established early - the influence that
can be exerted by identification of problems or adverse trends diminishes over time as
can be seen in the diagram below:
Often, one or more of these root causes will subject the project to delays and cost
overruns. The impact of these adverse events is shown in the diagram below.
Cost and schedule overruns
Profit/fees
Contingency
Design and
construction costs
Cost contingency
Design and
construction costs
Cost overrun
Original budget
Total contract price
Contract budget baseline
Cost
Time
Cost at completion
Actual
Plan
T
i
m
e
c
o
n
ti
ngen
cy
Delay
When a project suffers, the typical `casualties' are cost and schedule. And, in fact, these
two factors are considered the focus for the Project Controls function - together with
risk management and earned value management/reporting. However, embracing a wider
scope beyond just cost and schedule can provide better analysis and reporting. Project
Controls potentially includes a number of other disciplines:
·
Estimating, budgeting and forecasting
·
Planning and scheduling
·
Cost management
·
Earned value management
·
Contract management
·
Document management
·
Risk management
·
Change management
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