TIME AND COST COTROL

It is crucial for the owners of a certain project that the consultants and contractors were
able to manage to construct according to the approved cost and finish date. Herewith, we can say
that, time and cost, were important components of any construction activity. These things are
necessary to record, analyze, and control the project flow and its movement. This is for the reason
that series of problems and a sum of variations are often encountered during the course of the
whole construction. Documents are frequently and necessarily prepared and obtained in order to
make sure that the cost and time are in the right track and is unobjectionable.

MANAGEMENT METHODS APPLIED

A. PERT/CPM

The (PERT)-Program Evaluation and Review Technique chart is a project

management tool used to schedule, organize, and coordinate tasks within a project. This is a
management technique developed by the Americans in the 1950s. A similar methodology, the
Critical Path Method (CPM) was developed for project management in the private sector at about
the same time.
This is vital because this is the tool that enables you to create and formulate decisions and
plan project strategies as the project progress and evolves. Resource Leveling, Fast tracking,
Crashing are examples of strategies to get your project back on track; they all require a clear
understanding of tasks dependencies, resource allocations.
While, the Critical Path Method (CPM) is a systematic project management technique
for process planning that defines critical and non-critical tasks with the goal of preventing timeframe problems and process bottle necks. The CPM is ideally suited to projects consisting of
numerous activities that interact in a complex manner.
In applying the CPM, several steps can be summarized as follows:

Define the required tasks and put them down in an ordered (sequenced) list.

Create a flow chart or other diagram showing each task in relation to the others.

Identify the critical and non-critical relationships among tasks.

Determine the expected completion or execution time for each task.

Locate or devise alternatives (backups) for the most critical paths.

Just having CPM and PERT alone can be more harmful if it is not updated as scope,
conditions, or assumptions change. It can actually be harmful as it provides an inaccurate view of
what needs to transpire.
PERT and CPM are just pieces of paper if there is no discipline to accurately and
completely analyze the project into its time based components and monitor or maintain the
document based on performance and the given climate.
These documents are often being done in computer software such as:
Primavera
o Primavera is an amazing and easy to use project management software tool which
is not just used by project managers. Designed to make managing large or
complex projects a piece of cake, Primavera is the ideal tool for anyone who is
involved in planning, monitoring and reporting on the progress of any big task,
development or venture.
MS Project
o This program was developed by Microsoft.
o It is used to aid project manager in developing a plan, assigning resources to
tasks, tracking progress, managing the budget, and analyzing workloads. The
application creates critical path schedules, and critical chain and event chain
methodology third-party add-ons are available.
Microsoft Excel
o This is the most common spread sheet application often used to enlist, tabulate,
and calculate data.
o This software was also developed by Microsoft.

o It features calculation, graphing tools, macro programming language and pivot

tables.
o It is commonly used in monitoring the cost and cash flow of the project. The
PERT or CPM and cash flow can be analyzed using this application.

Figure 5.1 Checklist of Supporting Documents and Attachments for PERT / CPM

A. Bar Chart

The Bar Chart, or Gantt chart, is a visual presentation of the sequence of

construction events for the road-widening and construction. As you can look to
it, the Bar Chart is a grid sheet with the construction activities listed vertically
in the first column and a timeline across the top in the first row. The time a
particular event (construction activity) is to occur is simply shaded in.

B. Line Graphs

A line graph is a visual presentation that uses points connected by lines to show
how something changes in value (as time goes by, or as something else
happens). In this projects case, it is utilized in order to demonstrate the actual
versus the target schedule and accomplishments.

C. S-curves

The S-Curve is a graphical representation of the cumulative expenses of a

project over its time duration. From its definition, one could see that the Scurve is actually a graphic plan of the cash out flow portion of the Cash Flow
Statement. It has been a practice, however, to super impose the income profile
on the S-curve. The income appears as stair-steps. The area between the
outflow and the inflow represents the working capital requirements of the
contractor.

Slippage from S-curve indicates the changes between the actual accomplishment and the
projected or planned accomplishment. The comparison is in terms of cost variances versus
the time allotted for a completion of a particular job.
If the actual accomplishment curve is below the planned curve, it means that the
project is experiencing delays. On the other hand, if it is above the curve, it means that the
schedule is way ahead or advance.

Figure 5.2 Construction Schedule, S-curve, PERT CPM, Bar Chart and Cash Flow

Figure 5.2 shows the Bar Chart and S-curve Diagrams demonstrating the Construction
Schedule of the Project. It also includes the slippage from the s-curve.
For the bar chart, the project is set to be accomplished in 240 Calendar days as per the
contract but due to many delays that occurred in the construction project it was moved to a
greater extent. The schedule is however submitted by the contractor was plotted in the bar chart
and was divided to four quarters. This is divided to such because progress billing and payment is
done on a quarterly schedule basis with reference to the percent accomplishment of the project
done by the contractor.
The figure also shows the PERT (Program Evaluation and Review Technique). In here,
we can see the different vital dates that should be taken note in the duration of the project. These
vital dates consist of the date when the project is officially executed, different suspension dates
that will temporarily halt the project operation and when these suspension orders will be lifted
and the project resumed. Lastly it shows the end date of the project.

Based from the gathered data from the DPWH North Manila Engineering District, the figure above shows the slippage
values from May to November 2015. The blue is the positive slippage while the red is the negative slippage.

Supporting Document showing the slippage of the construction schedule is as shown in the
following images.

Figure 5.3 Project Profile showing slippage and its corresponding amount

Figure 5.4 Page 2 of the Project Profile

Figure 5.3 and 5.4 shows the project profile that has slippage. If there are negative
slippages as shown above, catch up plans will be issued by the contractor in charge of the project
in hopes of bringing the project up to date to the set schedule.

CATCH UP PLANS
a) Workers are encouraged to work overtime. From the regular work
hours of 7am to 4pm, workers extend their working time until 9pm.
This is a great help to the additional percentage of completion.
Working on weekends was also being implemented to catch-up the
schedule.
b) Crashing of work activities was also done to serve as a catch-up means.
Workers are simultaneously working on two areas of construction.

COST CONTROL
In construction, it all boils down to the right estimate and performance of the works in
the project. If the estimate is correct and the construction process is flawless, definitely there
will be no problem in the cost control. Conversely, mistake would always spring up to the
situation most especially in construction.
The construction budget will naturally come from the government since the project is
owned by the DPWH. The stating the amount of expenses the road project will incur will be
provided by the DPWH.
Total budget for the project was Php 35,961,083.78. The Department of Public Works and
Highways conducted the bidding for the project last March 7,2015 and there were eleven
qualified contractors to do the project. It was Alleyway Construction who won the bidding with
bid amount of Php 35,961,083.78. This contractor was also declared as the lowest calculated
responsive bidder.

Figure 5.5 Bill of Quantities

Figure 5.6 Page 2 of Bill of Quantities

Figure 5.7 Page 3 of Bill of Quantities