L27 (Cost Control)

L27 (Cost Control) - CVEN 349 Civil Engineering Project...

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LECTURE # 27 Spring 2010 Dr. Ivan Damnjanovic CVEN 349: Civil Engineering CVEN 349: Civil Engineering Project Management Project Management
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Who Collects The As-Built Information Who Collects The As-Built Information And When Is It Collected? And When Is It Collected? We are going to assume that it is collected by the Contractor’s Project Manager or Field Superintendent. We are going to assume that it is collected on a regular basis at the construction site.
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Class Exercise Class Exercise At what point in the project is work accomplished measured? At what point in the project is cost information collected? If you have a choice, is it better to collect cost and schedule information, toward the beginning, the middle, or toward the end of a project?
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Cost Incurred versus Work Actually Accomplished Work Actually Accomplished There are three elements: (1) Cost incurred to date and (2) Work actually completed, and (3) the schedule. There may be little relationship between cost and results. That is, the project may be incurring costs but there may be few results to show for it. Costs incurred are easy to measure; % complete (work accomplished) may be difficult to measure.
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There are Several Approaches Used to Collect the % Complete to Collect the % Complete Units Method – easily measured pieces of work requiring about the same amount of effort. Incremental Milestones – any work item involving parts that must be handled in sequence. Start/Finish – any work item where a % complete is easy to measure or compute Opinion – any piece of work where other methods are too difficult. Cost Ratio – used only on administrative tasks active over the life of the project.
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Base Course Construction Base Course Construction Day As-Planned Running Ft As-Built Running Ft As-Built % % Complete $$ Cost % Cost 1 2 3 960 480 4.5% 5% 51,000 $ 9% 4 960 720 6.8% 11% 102,000 $ 18% 5 960 1,110 10.5% 22% 153,000 $ 27% 6 960 1,110 10.5% 32% 204,000 $ 36% 7 960 1,110 10.5% 43% 255,000 $ 45% 8 960 1,110 10.5% 53% 306,000 $ 55% 9 960 1,110 10.5% 64% 357,000 $ 64% 10 960 1,110 10.5% 74% 408,000 $ 73% 11 960 1,110 10.5% 85% 459,000 $ 82% 12 960 1,110 10.5% 95% 510,000 $ 91% 13 960 480 4.5% 100% 561,000 $ 100% 14 15 16 17 The “learning curve” causes  ramp-up and ramp-down which  causes deviations from average.
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This note was uploaded on 05/28/2010 for the course CVEN 349 taught by Professor Damjanovic during the Fall '09 term at Texas A&M.

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L27 (Cost Control) - CVEN 349 Civil Engineering Project...

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