Statusing a project based on Physical % complete

By Les Zinger

Overview
There are many misunderstandings of what % complete actual means and
what it represents on any construction project. This paper will explain the
reporting progress via Physical % Complete based on Actual Quantities
Installed. The goal of this paper is to help management understand the
following:

The best method is based on physical % complete for the activity. This
is determined by the actual quantity installed vs. the budget quantity
for that activity. If the activity is a major activity with a substantial
duration and quantity of 1 the activity will be broken down into steps
for progressing.
There are only 2 methods in which activities & projects can
relate to each other one of these must might assigned to each
activity in which identifies a quantity :
o Monies ( cost value)
o Man-hours
o There must be a common denominator to related dislike
quantities for creating a weighted value for the project.
Monies or Man-hours are the only possible common
denominators that exists in complex multiple project
integrated schedules.
In order to related the activities and projects together to
calculate weighted values they must have either one or the
other, Money or Man-hours, as the common denominator.
Only one method can used to determine the common
dominator either cost or man-hours. These cannot be intermingled.
To determine which will be used will be the evaluating the
available data provided in the task order and the best method
of obtaining the information for the missing line items.
To determine the missing man-hours it will require an estimate to be
developed for the work. The primary group to determine an estimate
would be the field staff SMEs. If a contract is based on providing a
specified number of people vs. installing specific quantities and tasks

then the contract along with supporting drawings could be sent to KC

for estimating support.

In depth analysis of the methodology to calculated acutual physical

% complete

o Physical percent complete In order to use this method

you need 2the budget quantity of the item to be installed
and either the cost for labor for each activity or the total
man-hours for each activity (preferred).
o The quantity of the item to be installed based on the units
per each line item in the Eskom task order or contract, in
some cases the quantities are provided in the scope. When
the quantities are provided in the scope one the 3
documents (Scope, Task Order, Contract) must have either
or both the cost or man-hours for those quantities to
support the contract value.
o MONIES - The labor cost of that activity. (Eskom 95% of
the time supplies all the material, thus the amount stated
in the task order has a very high reliability to compose of
98-100% total labor). This cost along with the quantities,
unit rates, total cost should be in the Eskom Task orders
line items when they are property completed.
o Man-Hours - With a correctly resource (Man- Hours)
loaded schedule the total number of man-hours for that
activity can used in lieu of the activity cost. When manhours are assigned to each activity the man-hours
becomes the common denominator which is the basis for
the earned value of the integrated schedule.
Currently the best and most accurate method of
calculating the outage actual % complete within an
acceptable level of error is physical % complete.
o For this method to work it requires 2 events:
The engineers must develop a clear and defined
scope with quantities to be: Inspections,
Refurbishment, replacement and repairs

The outage coordinators to prepare correct and

accurate task orders from the contracts unit rates,
estimates and scope documents.
A task order should mirror the scope documents
addressing each item with a budget.
Each task order line item must contain:
Quantity to be installed
Unit rates for installing the item
The unit rates should be for cost and manhours
The schedules at a minimum should related back to
each line item in the contract/task order and balance
to the task order in both cost & man-hours.
From the signed Task orders we should have the
basis to quantify man-hours and costs for the line
items so they can be imported into P6.
The budget quantity and total man hours or cost for
each activity will provide the data necessary to
determine physical % complete of that activity and
man-hours earned by tracking the actual quantity
installed to the budget quantities.
Either the monies or man-hours gives the common
denominator required to relate that activity to all
other activities in the same project and to all the
other projects in the schedule. This is a method of
calculating an accurate weighted value.
Each time addition activities or projects are added
with man-hours to the program the weighted valves
and % completes will adjust based on the data added
or deleted.
The key to making this successful is to include any
quantity changes due to scope change. As additional
scope and activities are added or deleted they must
contain both the quantity to be installed and the total
of the activity as per the approved change order.
If scope changes reduce the scope for these activities
the affected quantities and cost must be reduced as
per the approved change order.
This will require both Engineering and the
outage controllers to complete their changes
3

documentation on time and in accordance with

the PCM for change management.
Several formats exist in P6 for adding the cost, manhours and quantities (Expenses, Resources,
labor/non-labor unit box on the right hand section of
the activity detail view) which will have to be
followed along with a global change to aid in the
calculations for deriving at the performance %
complete.
The performance % complete will be valid for every
WBS, project and will roll up to the total outage
performance % complete.
This will enable the schedule to give accurate
physical % complete rolling up from the activity level
through the total program level. As scope is added
and delete it will affect the % completes from the
projects to the overall outage.