Stage 1 Preconstruction Stage 2: Procurement

Conceptual Planning
Stage3: Construction

Design
Stage 4: Project Close-out

Fundamentals of Project Control

Chapter 11
 Introduction
The purpose of the project control process is to guarantee
that design requirements, budget and schedule are met by
project team.
Project control begins with a plan composed of design
documents, an estimate, and schedule
The plan involves checkpoints throughout the project cycle.
As the project advances, the actual work is compared to the
original plan. Actions maybe taken based on this
comparison.
The expected cost and duration to complete the work must
be continually updated and reported. Why?
 Project Control Objectives
Check progress against acceptable standards at key dates
standards of quality are defined by the specs.
Standards of quantity are defined by the drawings
standards of budget are defined by the estimate.
Standards of time are defined by the schedule.
Measurements of actual performance on the project
actual performance is monitored, documented, and
compared to the planned performance.
A project control report is then produced. The report is
based on data from time sheets, daily reports, purchase
orders, etc.
 Based on this comparison, an evaluation of the
performance can be done and actions can be suggested
to meet the goals of the project.
Data in the report are then analyzed, variances are
examined, and actions may be taken.
Example of a site clearing report:
Budget Actual Variance
Quantity(acres) 5 acres 5 acres -
Equipment (hrs) 40 hrs 48 hrs 8
Labor (hrs) 40 hrs 48 hrs 8

Why variance? Weather, site conditions, approach,

estimate, or worker performance? What should we do
for the next similar activity?
 Project Control Cycle
Examine Figure 11-3
 cost schedule engineers coordinate the data from the
field and compare the performance with the original
plan. They also prepare recommend adjustments to
the plan based on the field data.
data are then stored as historical records for future
use.
In the mean time, status reports are delivered to the
managers to decide the best course of action. The
project management may seek outside support, such
as consultants.
Final instructions are given to field personnel.
Control cycle is repeated as often as necessary.
 Optimum Project Duration
Node notation used in the book:
float of i-j = LETj - (EETi + durationi-j)
i Activity j
duration float
LET EET LET EET
It might be more economic to pay the extra cost to
finish the project earlier if other returns are higher.
Finishing the project earlier saves indirect expenses
and may result in a bonus.
The extra cost comes from the increase in direct costs
of material, labor, and equipment because of working
extra hours
 Crash
the process of accelerating an activity or multiple
activities to shorten the overall duration of the
project.
crashing is effective when activities on the critical
path are crashed.
As the project finish earlier, the direct cost
increases and the indirect costs decreases.
crashing is a good idea when the total costs are
reduced as the project is shortened. In other
words, when savings in the indirect costs are more
than the extra cost of the direct costs.
 The relationship between the direct, the
indirect, and the total cost can be displayed
graphically. Figure 12-3 is the relationship
between the cost (Y) and finish time (X)
In that curve, point A is the normal finish time.
As the project finish earlier, the direct cost increases
and the indirect costs decreases. This is true down to
day 30.
The direct cost will be more than the indirect cost if
the project finishes in day 29.
The optimal duration is day 30, which is the lowest
point in the total cost curve.
Example