PROJECT CONTROL

WHAT IS PROJECT CONTROL?

Project controls ensure that construction projects are completed on-time and on-
budget. They also ensure the overall quality of a project. By providing consistent
quality in a timely and cost-effective manner, project controls can significantly
improve customer relations.
 HOW CAN WE TELL WHEN PROJECT CONTROL IS NEEDED?

 RESOURCES FOR PROJECT CONTROL

 ELEMENTS OF PPROJECT CONTROL

HOW CAN WE TELL WHEN
PROJECT CONTROL IS
NEEDED?
HOW CAN WE TELL WHEN PROJECT CONTROL
IS NEEDED?

PROJECT CONTROL

GENERAL SPECIFIC
CLUES CLUES

PERFORMANCE COST TIME “PRIMITIVE” OTHER

AND QUALITY INDICATORS INDICATORS
GENERAL CLUES (Meredith and Mantel, 2006)

PERFORMANCE
• Unexpected technical problems arise
• Insufficient resources are unavailable when needed
• Quality or reliability problems occur
• Owner/Client requires changes in technical specifications
• Inter-functional complications and conflicts arise
• Market changes that increase/decrease the project’s value
GENERAL CLUES (Meredith and Mantel, 2006)

COST
• Technical difficulties that require more resources
• Scope of work increases
• Bid amount (accepted for the contract award) is too low
• Reporting of the monitoring results are poor/late
• Project budgeting for contractor cash flows not done right
• Changes in market prices of the inputs
GENERAL CLUES (Meredith and Mantel, 2006)

TIME
• Technical difficulties require more time to solve
• Scope of work increases
• Unexpected utilities needing relocation
• Task sequencing not done right
• Required material, labor/equipment unavailable when
needed
• Key preceding tasks were not completed on time.
SPECIFIC CLUES Equipment-hours
planned
actual

planned
Total Man-hours
actual
“PRIMITIVE” INDICATORS:
planned
Amt of concrete used (tons)
• More resources or less resources actual
haven been used than planned
0 500 1000 1500 2000
• Activities are taking long than
Amount input to date
planned
• Cost of activity (or of project to date) planned
Equipment-hours
is higher than expected actual

planned
Total Man-hours
actual

planned
Amt of concrete used (tons)
actual

0 500 1000 1500 2000

Amount input to date
SPECIFIC CLUES JAN FEB MAR APR MAY JUN

PLANNED
Activity 1 ACTUAL

“PRIMITIVE” INDICATORS:
• More resources or less Activity 2

resources haven been used

than planned Activity 3

• Activities are taking long than NOW

planned
• Cost of activity (or of project
to date) is higher than LEGEND
PLANNED
expected ACTUAL
SPECIFIC CLUES

“PRIMITIVE” INDICATORS:
• More resources or less resources
haven been used than planned
$
• Activities are taking long than
planned
70%
• Cost of activity (or of project to date)
is higher than expected 50%

now time
RESOURCES FOR PROJECT
CONTROL
RESOURCES FOR PROJECT CONTROL

• Money
• Machinery (Equipment)
• Materials and Supplies
• Manpower (Labor and Supervision)
MACHINERY (EQUIPMENT)
• Not a direct resource

• Rather, used to influence the amounts or quality of the other resources

MONEY
• Often used to augment labor in order to speed up project

• Can be expensive

• May involve renting or purchasing

MATERIALS & SUPPLIES
• Increase in quality or quantity may be necessary to
enhance project control

• Improved inventory systems for materials

MANPOWER (LABOR AND SUPERVISION)
• Project problems (time delays, excess costs, poor performance, etc.) are partly
due to the human element (action or inaction)

• In using Manpower as a tool for project control, PM encounters human

emotions (anger, fear, frustration, etc.)
ELEMENTS FOR PROJECT
CONTROL
ELEMENTS OF PROJECT
CONTROL

RESOURCES PROJECT
RELATED RELATED
RESOURCES RELATED

• MANPOWER-RELATED CONTROL

• MACHINERY-RELATED CONTROL

• MONEY-RELATED CONTROL

• MATERIAL-RELATED CONTROL
RESOURCES RELATED

• MANPOWER Also referred to as ”HUMAN RESOURCE CONTROL”

•Lay-off/fire any under-performing staff
• MACHINERY
•Hire staff with needed skills
• MONEY
• Assign staff with specific skills to specific
• MATERIAL activities
ISSUES:
•PM may be seen as a “stern disciplinarian”
• PM must avoid heavy handed actions,
• Fix problems without blaming people
RESOURCES RELATED

• MANPOWER Also referred to as ”PHYSICAL ASSET CONTROL”

• Decommission any under-performing equipment
• MACHINERY
• Bring in equipment with appropriate capabilities
• MONEY • Re-assign specific equipment to specific activities
ISSUES:
• MATERIAL •Equipment decisions may involve some
economic analysis
•Equipment-based control easier than manpower
based control
•Some trade-off may exist between manpower
and equipment utilization.
RESOURCES RELATED

• MANPOWER Also referred to as ”FINANCIAL RESOURCE CONTROL”

• How much money should be spent?
• MACHINERY
• How should it be spent?
• MONEY
• PM assisted by:
• MATERIAL o Project accountant
o Project Finance Manager
RESOURCES RELATED

• MANPOWER • Discontinue use of sub-standard material

• MACHINERY • Seek new sources of superior material

• MONEY

• MATERIAL
PROJECT RELATED

OPTIONS?
•Reduce project size?

•Reduce project scope?

•Terminate project?