AET 4243
CONSTRUCTION PROJECT MANAGEMENT
Chapter Conclusions - 11

Project control is a continuous cycle in which project managers identify a goal, measure results, analyze, make adjustments, and report results. It is an action-based process with a feedback loop that can cycle as often as necessary, depending on the nature of the project. The estimate and the schedule establish the cost and timing goals. As the project proceeds, the actual results are compared to the target dates and costs established by the estimate and schedule. Significant deviations from the plan should be analyzed so that corrections can be made either in the ongoing project or in the company's data base so that future estimates and schedules will not repeat mistakes. Project control should be viewed as a learning process in which team members exchange information, make adjustments, and record results

In establishing the initial project plan, the team integrates the estimate and the schedule to arrive at the most optimum schedule and budget for the project. Estimates and schedules are usually prepared independently; but as the final preparations are made for the project, every effort should be made to integrate the two. When projects are shortened, indirect costs are saved while direct costs go up. The optimum duration is the duration at which the project can be constructed for the least cost. This is found by analyzing the project's critical path and crashing critical activities as long as the direct cost of shortening the project is less than the indirect cost of the project.

Field performance is periodically measured with the actual results compared to the set standards. The level of detail is determined by the cost coding system adopted for the project. As the level of detail increases, the cost of managing the control process increases.

Performance is calculated by computing cost and schedule variances and performance indices. Productivity performance is also measured. Managers use these calculations to analyze the project's performance and make changes if necessary. Actual performance data and any other information about the project need to be documented and stored. Management decisions need to be communicated promptly to all key project participants. A timely response from management gives feedback to the field and provides ample opportunity for the field to implement any recommendations The last control responsibility is for management to continually report on the progress of the project. Reports should be timely, should indicate key variances between budgets and actuals as well as project trends, and should forecast the project's completion cost and date.

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