Monitoring project performance

1. Contract Management
CCM821S
Monitoring Project
Performance
HOPE CHIGUDU

2. Monitoring Project Performance
Learning Outcomes:
• Project Control Cycle
• Factors Impacting Project Performance
• Tracking Quality, Cost and Time
• Assessing Overall Project Status
• Documenting Project Performance
• Evaluating Project Performance

3. Monitoring Project Performance
Introduction:
• The CM team has one main goal – complete the project for the contracted dollar amount and within the agreed
time. (In theory with a competent team, everything should easily fall in place as planned).
• Every purchase order, subcontract, material invoice, and employee time card must be monitored, tracked, and
recorded to ensure that the project plays out according to plan and will meet the project (quality, schedule and cost)
goals.
• If any of the goals appear to be headed in the wrong direction the PM and the Sup. Work together to determine the
best course of action to correct the situation.
• Thus, its imperative to systematically monitor and report accurately field information to aid management to make
informed decision that improve overall chances of bringing the project in on time and within budget.

4. Monitoring Project Performance
The Project Control Cycle:
• Construction is dynamic, and no two projects are ever alike. This is regardless of your many years of experience.
• The CM team should plan (anticipate challenges) for the successful completion of the project.
• A plan is not good enough if not monitored throughout the project. The monitoring process should be methodical.
• This encapsulate the roadmap of the project in terms of time, cost and schedule.
• Necessary adjustments will be made if the projections indicate that goals will not be met.
• Project control requires continuous monitoring and evaluation of actual performance relative to the estimated
performance for all aspect of the job that have an impact on cost, time and quality.

5. Monitoring Project Performance
The Project Control Cycle:
• The project control cycle begins with the project plan and ends with the final project debriefing and evaluation.
• There are 7 fundamental steps to the process:
i. Develop the plan
ii. Establish the project benchmarks
iii. Monitor the project performance.
iv. Identify performance deviations
v. Evaluate corrective options
vi. Make adjustments as needed
vii. Document, report, and evaluate results.

6. Monitoring
Project
Performance
The Project Control Cycle:

7. Monitoring Project Performance
Factors Impacting Project Performance:
• Weather conditions
• Quality of the workforce
• Quality of the supervision
• Incorrect sequencing of work
• Change Orders (VOs)
• Overcrowded job site
• Defective materials
• Inadequate tools and equipment
• Late deliveries

8. Monitoring Project Performance
Tracking Quality, Cost, and Time:
 Management Elements and Tracking Tools
o Quality – Plans and Specifications
o Cost – Estimate
o Time - Schedule
• Quality – Requires a comprehensive quality plan. May employ a QA officer.
• Cost – Allowables: Actual cost need to be allocated and compared with the right benchmarks.
• Time – Schedule control (tracking, resourcing/outputs discrepancies) 3 x Remedies (Overtime, Increase crew & Day + Night Shift)

9. Monitoring Project Performance
Assessing Overall Project Status:
• CM often use the Earned Value Analysis for determining the overall status of the project relative to both
cost and schedule. Can be used on an activity or the entire project.
• 1st Step - determine the % of work done.
• 2nd Step – determine the earned value. Where (Earned Value) EV = % work done x budget/hours for that work.
• Final Step – determine the actual money spend and hours worked.
• Cost Variance = Earned Value – Actual Cost
• Schedule Variance = Earned Work hours – Actual hours.

10. WORKED EXAMPLE
Q: A project has a total of 3000sqm of floor tiling, and the tiler has only installed 1500sqm to date. The net selling
rate per sqm is N$7 and 262hrs were estimated to complete the work. The record on site shows an actual cost of
N$11,300 and 136hrs worked to date. What is the Cost and Schedule variance?
A: Step 1: % of work done = 1500m2/3000m2 = 50%
Step 2: Cost EV = % work done x Total Budget i.e. 50% x 3000 x N$7 = N$10,500
Time EV = % work done x Planned total schedule hours i.e. 50% x 262hrs = 131hrs
Step 3: Actual Cost – N$11,300 and Actual time – 136hrs
Cost Variance = Cost EV – Actual Cost i.e. $10,500 – $11,300 = - N$800
Schedule Variance = Time EV – Actual time i.e. 131hrs – 136hrs = - 5hrs
In conclusion: the project is losing money and running behind time.

11. Monitoring Project Performance
Documenting Project Performance:
• Throughout the entire project control process, information is being gathered and utilised to check status
and make adjustments and changes to the project budget and the schedule as needed. This will be critical
for future projects (Estimators + Schedulers). Insanity definition?
• Management Report – weekly, monthly, quarterly, biannual or annual reports, contract reports etc:
• These reports answers the four fundamental questions;
 How is the project doing overall? Is it on target or off target?
 What sections of work appear to be most vulnerable?
 Is overall productivity improving or declining?
 What the projected completion date and budget outcome?

12. Monitoring
Project
Performance
Cost Report - Typical

13. Monitoring Project Performance
Debriefing?

14. Monitoring Project Performance
Evaluating Project Performance:
• Debriefing is necessary and vital at the end of the project. Its an opportunity for learning for all team members.
• What are the issues/topics to be discussed?
Target goals and achievement, On-site field team performance, office support, owner issues, designer issues, building
inspections, communication issues, subcontractor performance, vendor and supplier performance, unusual
circumstances or conditions.
• What value is derived from this discussion?
• Debriefing should not take half a day, record all the lessons learnt and making comparison with prev. projects.