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Cost
Reporting &
Forecasting
Scope
Development
Conceptual
Estimate
Available
Detailed
Estimate
Available
Procurement
Construction
Startup
Cost
Impact
High
Low
Project Time LineInitiation Phase Closeout Phase
Cost Target
Developed
Only at this stage do
traditional PSoR starting
Controlling, Reporting &
Monitoring the project
*
*Commonsense says
the more you know
and the sooner
the better the outcome
But Owners often forget
and have to be reminded
Following slide is to try and get the message ‘home’ graphically
How to manage cost during the project
Cost
Reporting &
Forecasting
Scope
Development
Conceptual
Estimate
Available
Detailed
Estimate
Available
Procurement
Construction
Startup
Cost
Impact
High
Low
Project Time LineInitiation Phase Closeout Phase
Cost Target
Developed
Cost
Reporting &
Forecasting
Scope
Development
Conceptual
Estimate
Available
Detailed
Estimate
Available
Procurement
Construction
Startup
Cost
Impact
High
Low
Project Time LineInitiation Phase Closeout Phase
Cost Target
Developed
As the project moves to the ‘right of time’
Scope, Schedule & Cost information ‘deepens
and hardens’
Cost
Reporting &
Forecasting
Scope
Development
Conceptual
Estimate
Available
Detailed
Estimate
Available
Procurement
Construction
Startup
Cost
Impact
High
Low
Project Time LineInitiation Phase Closeout Phase
Cost Target
Developed
Project Team need to realise
The better the Scope is realised the greater Cost & Schedule accuracy
Change during ‘bid’ the less Cost & Schedule Impact
Change during Construction/Start Up still possible
After Award we are locked into a CONTRACT
The Cost of Change can be prohibitive
But
Cost
Reporting &
Forecasting
Scope
Development
Conceptual
Estimate
Available
Detailed
Estimate
Available
Procurement
Construction
Startup
Cost
Impact
High
Low
Project Time LineInitiation Phase Closeout Phase
Cost Target
Developed
Highly influential decisions are made on little data
How does the data typically grow?
Stage Data type
rows
Data type Description Source
Cost Target 100 Major Elements In house historical data
or Industry ‘best guess’
Conceptual
Estimate
400 High Level WBS Algorithms , historical
data bases, $/ft
Detailed
Estimate
4000 Full WBS, CBS, OBS by
Work Packages
MTO s from 90% or better
drawings
Cost Baseline 4000 - 7000 More detail WBS, CBS,
OBS by Work Package,
Contract Packages, PO s
& CO s
Estimate, Commitments,
& Forecast
Forecast at
Completion
7700 More detail WBS, CBS,
OBS by Work Package,
Contract Packages, PO s
& CO s
Estimate, Commitments,
& Forecast
+ Trends, Allowance for
Change
Final Cost 8000 More detail WBS, CBS,
OBS by Work Package,
Contract Packages, PO s
& CO s
Commitment & Spends
including Claims &
Credits
*
• Need to be able to anticipate data structure at
different stages
• The data needs to be able to ‘nest’ between
each stage for
• Continuity
• Comparison
• ‘Future-proofing’

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