Several decades ago, organizations used to manage all their finances using big paper-based ledgers, where they’d spend much of their day “doing the books”. These large ledger books worked for hundreds of years, however it would be a challenge to find any modern company today that runs their business on paper-based accounting methods.
As the saying goes, “You don’t get what you deserve, you get what you negotiate.”
Every contract is negotiable, and by negotiating, you can achieve more than you would if you simply accepted what was offered; or refused.
How do you figure out percent complete on a project? How is it you go about objectively assigning a reasonable and accurate measurement of how far along you are on an item of work? How many times have you asked, “Hey, where did that number come from?”
Most any manager, VP or director who has to oversee the work of his or her team of project managers has a big worry about this very thing. They know the temptation that exists for a project manager to leverage a little creative license with the numbers to make the project look a little rosier than it is in reality. Customers on the receiving side of a progress draw are equally aware of the tendency to big-up the progress numbers in order to fatten the invoice.
I’m going to start with a basic assertion: to be effective and successful in their job, Project Managers need good information and the right tools. These two things are an absolute must. A bit more specifically: project managers first need current, accurate and complete project data; then secondly, they need the right tools to analyze, and report on that data.
This is especially true when managing large construction projects, where there are so many moving parts, changes, documents, contractors, costs, schedules, etc. to stay on top of. There are other things they need of course, but without these two key things, construction project managers are left feeling around in a dark room, desperately hoping to find a light switch.
Any organization that executes on major projects will know the importance of gathering information on how far along they are on a project. In other words, evaluating Percent Complete. Evaluating that by activity, by phase, by project, etc. At 4castplus, we refer to this as a "Progress Measurement" and it serves as a critical function for calculating analytics such as Earned Value Management (EVM) metrics. Measuring progress however, is a tricky thing to do; and can cause companies to not bother with it if they don’t have a good system and process in place. This is unfortunate as it is a vital part of project management and project controls on major projects. Without it, you’re flying in the dark.
Taking the Leap? 10 Questions You Need to Ask When Looking at Construction Procurement Software Solutions
Your choice of construction procurement software can have a significant influence on the costs, productivity and success of your projects. If you’re looking for a software solution to enable the management of procurement on your construction projects, you want to make sure your teams are armed with the right amount of power and ease of use – after all, a significant amount is riding on what happens in procurement. For most major projects, a substantial portion of the total project costs are issued through purchase orders and subcontracts. You really need to get that right!
Successfully managing construction projects is highly dependent on the quality of the data that’s captured about those projects. Whether you’re using the data to manage costs, bill your clients, pay your subcontractors, determine progress – or all that and more – the quality of that data is crucial to the success of the project. Current, Accurate and Complete – these are the key cornerstones of quality information. What’s more, getting quality data right from the start – i.e. from when it’s first entered into the system – saves organizations tremendous time, money and effort in executing on projects. Not only that, it reduces the chances and effects of any potential claims, disputes, safety issues and delays. Mistakes and omissions bleed energy and money from your organization. The result is not just costly, it’s often embarrassing – and you are particularly vulnerable if you have any manual “double-entry” of data from system to system.
Before I get started on the details, I’ll give you a quick definition: A CPI Forecast allows project controls professionals to predict the performance of their project using a subjective CPI value rather than the calculated CPI that’s determined based on past performance.