Construction projects rely on strong communication across the entire team to ensure everyone is working from the same information and there are no misunderstandings getting in the way of quality and productivity. Miscommunications among the project team can lead to costly and potentially disastrous results, not to mention a frustrated and angry client.
It’s been fascinating to watch the stock market soar over the past 6 months while the world has continued to be stuck in one of the worst economic declines in a century. Why is it that the stock market can be so out of step with reality when there is so much uncertainty out there? I can’t say I have a clear answer for that, but my theory is that investors are confident that the pandemic is short-lived and a rebound is imminent once vaccines are rolled-out over the upcoming months. It’s also likely a case of investors shopping for bargains as price dips are somewhat routine currently. The economics of construction projects (and the project management software to run them), is not unlike other market segments in that some industries have been hit hard by the pandemic, while others have flourished.
It’s one of those boring details that is frequently overlooked – but ignoring it can cause havoc in project reporting. I’m talking about the importance of aligning project financial reporting to a specific point in time in order to have any chance at meaningful metrics on the state of the project. Major projects are steeped in complexity, with a high pace of activity going on every day. It’s tricky to measure and report on frenetic, in-flight projects like that because putting a halt to things simply isn’t an option, “Hey everyone, just stop what you’re doing so we can get a reading on what’s going on.” That’s just not going to happen. So, you have to set regular, theoretical, lines-in-the-sand at incremental points, and measure the project at those increments so that you can produce reports, even though things will keep moving on. It’s a bit like trying to measure the flow of a fast mountain river tumbling over rocks and cliffs – you have to just jump in and go for it while the river keeps pounding on past you.
Statistics show that more and more Oil and Gas contractors are moving forward and embracing better technology to streamline their businesses. Contractors in many industries have been a bit late to adopt software as a means to improve their profitability - but that is changing fast. This is partly due to the near-collapse in oil prices that haunted the industry over the past five years; which has recently been creeping up into the $60/bbl range to make things profitable again. During that period, companies had been searching for ways to remain profitable, and many turned to technology such as project cost management solutions to secure that profitability. This momentum is continuing, as companies aren’t prepared to take a risk on another fall in prices.
In this article I’m going to go through the basics of how, after creating a change order in 4castplus, you can go on to make any revisions to purchase orders based on the details of that change order. First, however, I’ll clarify a bit of terminology in terms of the difference between a change order and PO revision:
For any organization, their corporate data is one of the most important assets they possess. The information they gather on a daily basis forms the core of who they are, where they’ve been and where they’re going. The monumental technology changes going on in the world today have made ‘Data’ the central element that determines success or failure for most any company.
On any day of any major construction project, a ton of information is being collected about that project. Including: costs, hours, activities and progress; along with a variety of documents, photos, invoices and receipts. Feeding all this data to the project managers is critical to enable them to bring the project to a successful completion on time and on budget.
The thing is, all this data that’s collected needs to be both accurate and complete, otherwise it’s not much use to anyone. Not only that, but it also has to be timely – meaning that, giving project managers data that several weeks old doesn’t really help much. It needs to be current, like from today, otherwise you’re managing the past, which is not only ineffective, but frustrating.