The key to successful project control is the fusing of cost to schedule whereby the management of one helps to manage the other. Project Control: Integrating Cost and Schedule in Construction explores the reasons behind and the methodologies for proper planning, monitoring, and controlling both project costs and schedule. Filling a current void the topic of project control applied to the construction industry, it is essential reading for students and professionals alike.
Table of Contents:
Foreword xiii
About the Author xv
Introduction xvii
1 The Basics 1
The Concept of Project Management 1
History of Project Management 2
Approaches to Project Management 3
The Traditional Approach 4
The Initiating Process 4
The Planning Process 5
The Executing Process 6
The Monitoring and Controlling Process 6
The Closing Process 7
Benefits of Proper Planning 8
The Role of the Project Manager 9
Lead the Project Team 10
Create the Project Plan 10
Develop the Project Schedule 11
Monitor the Progress of the Project 11
Control the Project 12
Take Corrective Action 12
Achieve the Project Goals 12
Goals of the Project 12
Contractual Performance Obligations 13
Financial Objectives 13
Prevent or Minimize Delay 13
Avoid Claims or Litigation 14
Control the O?]P?]C Relationship 14
Increase Market Share 14
Role of the Contract Documents 15
Study the Plans and Specifications 15
Identify Discrepancies Early 16
Visit the Project Site 16
Understand the Project Constraints 16
Determine Potential Problem Areas 17
Understand Contract Procedures 17
The Schedule and Budget 18
Summary 18
2 Introduction to Project Control 19
Overview of Project Control 19
Project Control Terminology 21
Project Control Formulas 30
The Project Control Cycle 30
Plan to Achieve Goals 31
Execute Work According to Plan 32
Measure the Progress 32
Identify Variations 32
Analyze Cause of Variations 32
Implement Corrective Actions 33
Execute Work and Measure Changes 33
Summary 34
3 Pre?]Construction Planning 35
Initiating the Control Process 35
Pre?]Construction Planning 36
Key Personnel and Responsibilities 38
The Contractor’s Group 38
The Design Professional’s Group 42
Owner’s Group 43
Regulatory Group 44
The Plan—the Roadmap 45
Establishing a Baseline for Schedule Control 47
Establishing a Baseline for Cost Control 48
The Communication Plan 49
Summary 50
4 The Schedule 53
Basic Scheduling Concepts 53
Types of Schedules 54
The Checklist 54
The Schedule Board 56
The Bar Chart 56
The Look Ahead 57
The Linear Schedule 57
Advanced Scheduling Methods 58
Program Evaluation and Review Technique 58
Critical Path Method (CPM) 59
The CPM Schedule as a Management Tool 59
Tasks 60
The Work Breakdown Structure 60
Task Types 61
Task Descriptions 63
Task Durations 63
Interdependencies 67
Complex Relationships—Lags and Leads 68
Milestones and Constraints 70
Float 71
Updating the Schedule 72
Summary 73
5 The Budget 75
Fundamentals of the Estimating Process 75
Types of Estimates 77
Organization of Estimates 77
The Budget 83
Deconstructing the Estimate to Build the Budget 87
Project Cost Report 91
The Budget as a Management Tool 91
Summary 92
6 Integrating the Schedule and the Budget 93
Schedule of Values 93
Matching Cost Values to Tasks 96
Planned vs. Actual Values 99
Summary 102
7 Calculating and Analyzing Progress 103
Measuring Performance 103
Units Completed 103
Incremental Milestone 104
Start/Finish 105
Cost Ratio 105
Experience/Opinion 105
Weighted or Equivalent Units 106
Earned Value 107
Fixed Budget Approach 107
Variable Budget Approach 108
Choosing a Fixed or Variable Approach 109
Schedule and Cost Performance 110
Summary 114
8 Analyzing and Reporting Variances in Schedule and Cost 115
Understanding Project Analyses 115
S?]Curves 115
Tracking Gantt Chart 120
Control Charts 121
SPI and CPI Charts 122
Causes of Variances 123
Cost Variances 124
Schedule Variances 124
Variance Thresholds 125
Root Cause Analysis 127
Reporting Project Status 129
Summary 132
9 Recognizing Trends and Forecasting Performance 133
Recognizing Trends 133
Using Trends to Forecast 136
Estimate at Completion 136
Estimate to Complete 137
Variance at Completion 138
To?]Complete Performance Index 138
Project Percentage Analysis 140
Summary 141
10 Productivity 143
Understanding Productivity 143
Productivity Index 144
Factors Affecting Construction Productivity 145
Controllable Factors Affecting Productivity 146
Uncontrollable Factors Affecting Productivity 146
Recommendations for Improving Productivity 147
Summary 148
11 Acceleration and Schedule Compression 149
Acceleration 149
Actual Acceleration 150
Constructive Acceleration 150
Forced Acceleration 151
Schedule Compression 152
Time?]Cost Trade?]off Analysis 153
Time?]Cost Trade?]off Concepts 154
Recovery Schedule 158
Summary 159
12 Resource Management 161
Resources 161
Resource Allocation 162
Resource Management 163
Resource Profile 164
Splitting Tasks 166
Material Management 167
Material Management in Practice 168
Summary 169
13 Risk Management 171
Components of Risk Management 171
Risk Identification 172
Risk Assessment 172
Risk Response Plan 175
Risk Response Control 177
Risk Contingency Planning 178
Contingency Plan Funding 178
Probability Analysis 179
Contract Modifications and Impact on Risk 186
Summary 187
14 Project Closeout 189
Initiation of Project Closeout 189
Objectives of the Closeout Process 190
Contract Closeout 191
Administrative Closeout 192
Archiving Project Files 192
Lessons Learned Meeting 193
Lessons Learned Documentation 194
Project Closeout Report 195
Summary 195
Appendix A Practice Review Questions 197
Appendix B Answers to Practice Review Questions 205
Index 215
About the Author :
WAYNE J. DEL PICO, CPE, is President of W. J. Del Pico, Inc., which provides construction management, litigation support services for construction-related matters, and construction education. He has more than thirty years of experience in construction project management and estimating and has been involved in projects throughout the United States. His professional experience includes private commercial construction, public construction, retail construction, and residential land development and construction.
