PROJECT MONITORING AND CONTROL

❑ Once the construction contract is executed, it is the goal of the

construction management team to complete the project for the
contracted dollar amount and within the agreed time frame.

❑ Hence, while each deliverable is being constructed, a suite of

management processes are undertaken to monitor and control the
deliverables being output by the project.

❑ These processes include managing time, cost, quality, change,

risks, issues, suppliers, customers and communication.
The Management Processes that are Undertaken to Monitor and
Control the Deliverables
 The Project Control Cycle
The project control cycle begins with the project plan and ends
with the final project debriefing and evaluation. There are
seven fundamental steps to the process:
1. Develop the project plan.
2. Establish the project benchmarks.
3. Monitor the project performance.
4. Identify performance deviations.
5. Evaluate corrective options.
6. Make adjustments as needed.
7. Document, report, and evaluate results.
The Project Control Cycle
 The Feedback Loop
 Successful construction management and project control
depend on information and good reporting processes, which
comes from actual project performance data.
 This data originates in the field and is reported on a daily,
weekly, and monthly basis.
 The following are some of the sources of information used to
track job performance and feedback into the project control
system:
 Daily field reports
 Time cards
 Subcontractor billing statements
 Delivery tickets
 Material invoices
 Equipment time tickets
 Job logs
 Factors Impacting Project Performance
No matter how well you have planned, estimated, and
scheduled your job to go a certain direction, these are just a few
of the things that can easily impact your project’s outcome in a
negative way.

❑ Weather conditions
❑ Quality of the workforce
❑ Quality of the supervision
❑ Incorrect sequencing of work
❑ Change orders
❑ Overcrowded job site
❑ Defective materials
❑ Inadequate tools and equipment
❑ Late deliveries
 Tracking Quality, Cost, and Time

Management Elements and Tracking Tools

 Quality Control in Construction
Industry
❑ Testing and inspection.
❑Quality Control.
❑Quality assurance.
❑Total Quality Management.
Assessing Overall Project Status

 Construction managers often use a technique called

earned value analysis for determining the overall
status of the project relative to both cost and schedule.
 You can use this technique to measure individual
activity performance and total project performance.
 Earned Value
 Earned Value analysis is a method of performance
measurement.
 Earned Value is a program management technique that uses
“work in progress” to indicate what will happen to work in
the future.
 Earned Value is an enhancement over traditional accounting
progress measures.
 Traditional methods focus on planned accomplishment
(expenditure) and actual costs.
 Earned Value goes one step further and examines actual
accomplishment.
 This gives managers greater insight into potential risk areas.
 Earned Value
 With clearer picture, managers can create risk mitigation
plans based on actual cost, schedule and technical
progress of the work.
 It is an “early warning” program/project management tool
that enables managers to identify and control problems
before they become insurmountable.
 It allows projects to be managed better – on time, on
budget.
 Earned Value Management System is not a specific system
or tool set, but rather, a set of guidelines that guide a
company’s management control system.
Earned Value Management
Terms
Earned Value Management Formula and
Interpretation
Earned Value Management Formula and
Interpretation
 Q1: The following depicts a six-month schedule for a project

 After three months on the job (July 1), the contractor concluded that (Activities A, B and D
are completed) and 20% of Activity F was completed, 80% of Activity C was completed, and
40% of Activity E was completed. The project has cost the contractor a total of $535. For this
project, using earned value concepts, determine the schedule variance and the cost variance.
State if the project is over or under budget and if it is ahead or behind schedule.
Answer:
 ACWP = $535

 BCWS = A + B + C + D + (0.5)E
= $50 + $120 + $80 + $200 + $60
= $510

 BCWP = A + B + D + (20% x F) + (80% x C) + (40% x E)

= $50 + $120 + $200 + (0.2 x $300) + (0.8 x $80) + (0.4 x $120)
= $50 + $120 + $200 + $60 + $64 +$48
= $542
Project Status:-
 SV = BCWP – BCWS = $542 -510 = $32, > 0 (ahead schedule)

 SPI = BCWP / BCWS = $542 / $510 = $1.06, >1 (ahead schedule)

 % SV = 100 (SV / BCWS) = 100 x ($32 / $510)

= 6.27 (ahead schedule)

 CV = BCWP – ACWP = $542 - $535 = $7 > 0 (under budget)

 CPI = BCWP / ACWP = $542 / $535 = 1.013 > 1(under budget)

 % CV = 100 (CV / BCWP) = 100 x ($7 / $542)

= 1.29% (under budget)
 BAC = A + B + C + D + E + F + G + H + J + K
= $50 + $120 + $80 + $200 + $120 + $300 + $60 + $70 + $50 + $60
= $1,110 (budgeted at completion)
 % Complete = (BCWP / BAC) x 100% = ($542 / $1,110) x 100%
= 49% complete
 EAC = ACWP + (BAC – BCWP) = $535 + ($1,110 - $542)
= $1,103 (below budget)

∴ Conclude that the project is ahead of the schedule and performed

under budgeted. The project is currently at 49% completion stage
and it is estimated to be completed for a revised estimated cost of
$1,103, which is decrease from $1,110 the original estimation for the
overall cost of the project.
Exercise: A project has been defined that consists of 10 activities (each
requires one month to complete) for which estimated costs and duration
have been defined in table below. The project is scheduled to be
completed in six months. After three and half months the site work,
excavation, foundation, fencing are completed. The framing and rough
electrical works are half completed. The incurred costs to date are
$132,000. Determine the status of this project using earned value
method.
Activity Cost Month 1 Month 2 Month3 Month 4 Month 5 Month 6
Sitework $ 22,000
Fencing $ 10,000
Paving $ 18,000
Excavation $ 30,000
Foundation $ 50,000
Framing $ 40,000
Rough Electric $ 6,000
Rough Plumbing $ 16,000
Suspended Ceilling $ 4,000
Interior Finish $ 34,000