Performance Monitoring and Controls
Project Controls is an integral part of any successful project team. Depending on organisational preference, an integrated Project Controls function can cover Cost Control, Planning, Risk Management and where applicable Change Management. The output from the controls team is used as a guideline as to the performance of the project at any given point in time. It also provides indication as to the likelihood of the project finishing on time and budget.
The main, regular output of any Project Controls team is aligned to the respective sections in the contract. The final output is usually a period-end dashboard. This dashboard advises important critical statistics from each of the main project functions, such as H&S, Delivery, Construction, Commercial, Quality, Risk and Planning.
Producing a timely, concise, and accurate dashboard, that is easy to digest by senior management and clients, can be considered an artform, due to different personal preferences and the volume of stakeholder input required.
There is a number of KPI’s that can be monitored. The most critical KPI in terms of performance, and one that many of our clients seek to establish is Earned Value (EV). In terms of indication of project finishing on time and budget, the main KPI’s are Schedule Performance Index (SPI) and Cost Performance Index (CPI).
Earned Value Management (EVM) is generally outlined in the contract (depending on contract strategy) but essentially understood to be how the project contractors quantify performance. EV tracks performance of the project plan and compares it to the budget spent. This KPI essentially tells the management team how the project is performing to that point in time, this is generally tracked weekly. This KPI is normally displayed as a percentage or a factor of 1 but can be more useful to track EV on an s-curve using trend analysis techniques showing weekly performances.
Schedule Performance Index (SPI) takes EV into account by using the Earned Value performance figure and is divided by the planned value. This KPI allows project teams to ascertain how close the project team are delivering in comparison to the baseline plan. This KPI is normally displayed as a percentage or a factor of 1.
Cost Performance Index (SPI) takes EV into account by using the Earned Value performance figure and is divided by the Actual Cost. This KPI allows project teams to ascertain how close the project team are delivering in comparison to the approved budget. This KPI is normally displayed as a percentage or a factor of 1.
We at Viviad believe that all project controls professionals must have an appreciation of planning, risk management, contract management and dispute resolution methods. All roles above are constantly evolving, which is why we believe that those who do not seek to expand their horizons will soon fall far behind.
The Viviad Project Controls function can assist in the following areas:
• Producing a bespoke dashboard
• External review of Project Controls function with supplementary report and recommendations
• Provide training and mentoring for your Project Controllers
• Embed controllers to allow for a more complete service to your client