Project Control and Monitoring
Introduction
Project Control and Monitoring ensures that project objectives (Scope, Time, Cost, Quality) are met by comparing actual performance against the baseline plan. Deviations are identified early to implement corrective actions. Without effective control, projects can spiral out of control. Consistent monitoring allows project managers to proactively manage resources, update schedules, and manage stakeholder expectations efficiently.
Key Concepts
S-Curve
A graphical display of cumulative costs, labor hours, or percentage complete plotted against time. The curve is typically flatter at the start and end, and steeper in the middle (peak production).
Earned Value Management (EVM)
An integrated method for measuring project performance by comparing the planned value, earned value, and actual cost. It answers the question: 'Are we getting value for our money?'
Baseline
The original approved plan (scope, schedule, cost) used as a reference point for monitoring progress.
Earned Value Parameters
Core EVM Metrics
- Planned Value (PV) or BCWS: Budgeted Cost of Work Scheduled. "What we planned to do."
- Earned Value (EV) or BCWP: Budgeted Cost of Work Performed. "What we actually accomplished."
- Actual Cost (AC) or ACWP: Actual Cost of Work Performed. "What we actually spent."
Performance Indices
Variances and Indices
- Schedule Variance (SV): . (Negative = Behind Schedule).
- Cost Variance (CV): . (Negative = Over Budget).
- Schedule Performance Index (SPI): . (< 1.0 = Behind Schedule).
- Cost Performance Index (CPI): . (< 1.0 = Over Budget).
Forecasting
EVM Forecasting
- Estimate at Completion (EAC): Forecasted total cost based on current performance.
- Typical Formula: .
- Estimate to Complete (ETC): Cost required to finish the remaining work.
- .
Key Performance Indicators (KPIs) and Claims
Non-Financial KPIs
- Safety KPIs: Total Recordable Incident Rate (TRIR).
- Quality KPIs: Number of Non-Conformance Reports (NCRs) issued.
The Claims Process
When a contractor believes they are entitled to extra time or money due to an unforeseen event, they submit an RFI, followed by a notice of delay, and eventually a formal Claim.
Important Formulas
Variance Analysis
Variances indicate the absolute deviation from the baseline in monetary or schedule terms.
Cost Variance (CV)
Indicates if the project is under or over budget.
Variables
| Symbol | Description | Unit |
|---|---|---|
| Cost Variance (Negative = Over Budget) | - | |
| Earned Value | - | |
| Actual Cost | - |
Schedule Variance (SV)
Indicates if the project is ahead or behind schedule.
Variables
| Symbol | Description | Unit |
|---|---|---|
| Schedule Variance (Negative = Behind Schedule) | - | |
| Earned Value | - | |
| Planned Value | - |
Performance Indices
Indices indicate the relative efficiency of the project work.
Cost Performance Index (CPI)
Measures the cost efficiency of the project.
Variables
| Symbol | Description | Unit |
|---|---|---|
| Cost Performance Index (< 1.0 = Over Budget) | - | |
| Earned Value | - | |
| Actual Cost | - |
Schedule Performance Index (SPI)
Measures the schedule efficiency of the project.
Variables
| Symbol | Description | Unit |
|---|---|---|
| Schedule Performance Index (< 1.0 = Behind Schedule) | - | |
| Earned Value | - | |
| Planned Value | - |
Progress Measurement Methods
Determining the "Earned Value" (EV) requires accurately measuring physical progress on site. Several rules of thumb are used depending on the type of work:
Measurement Techniques
- Units Completed: Used for repetitive tasks (e.g., if 500 of 1000 bricks are laid, task is 50% complete). This is the most objective and accurate method.
- Incremental Milestone: Used for tasks with easily identifiable sequential steps (e.g., Formwork complete = 30%, Rebar complete = 60%, Poured = 100%).
- Start/Finish (e.g., 50/50 Rule): 50% progress is earned when the task starts, and the remaining 50% is earned only upon completion. Used for very short-duration tasks where detailed tracking is not worth the effort.
- Level of Effort (LOE): Used for management or security tasks where physical progress isn't tangible. EV simply equals the Planned Value (PV) for that time period.
Key Takeaways
- Introduction & Concepts: Project control requires measuring actual site performance against an established baseline schedule and budget.
- Earned Value Parameters: Understanding the difference between what was planned (PV), what was earned (EV), and what was spent (AC) is the foundation of EVM.
- Performance Indices: SPI and CPI are powerful metrics that immediately indicate if a project is performing above or below 1.0 (the baseline efficiency).
- Forecasting: EVM data allows project managers to mathematically predict the final project cost (EAC) based on current performance trends.
- Important Formulas: Variances give absolute monetary or time deviations, while indices provide a relative measure of efficiency.
- Integrated Management: Earned Value Management (EVM) is powerful because it integrates scope, schedule, and cost into a single performance measurement framework.
- Objective Measurement: Subjective estimates of "percent complete" (e.g., "I feel like we're 80% done") destroy the value of EVM. Progress must be measured objectively using units completed or strict milestones.
- Early Warning System: EVM indices (CPI and SPI) act as an early warning system. By month 3 of a 12-month project, the cumulative CPI is generally a highly accurate predictor of the final cost.
- Trend over Point-in-Time: A single negative variance might be an anomaly (e.g., paying for bulk materials early). Management should focus on the trend of the indices over several periods.
- Action Required: Monitoring without control is just observation. If EVM forecasts an overrun (EAC > BAC), the project manager must implement corrective actions immediately (e.g., changing methods, replacing underperforming subs).