1. Cost and Time Control

2. Project completed on time and on budget –Want to get done early –Lower costs –More profit

3. 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

4. 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

5. 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

6. 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

7. Cost Codes Need to be able to track actual vs estimated costs –Use same coding as on files –Many companies use CSI MasterFormat 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

8. 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

9. 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

10. 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 –F16-4 work package cost control

11. 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

12. AS Built estimate Important historical tools Especially important on unit price estimates

13. 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

14. 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 F16-6,7 –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