welcome 2-day conference – project management in construction sector 1

Welcome

2-Day Conference – Project Management in Construction Sector 1

Managing Time and Cost in

Construction Projectspresented by

A N PrakashAN Prakash CPMC Pvt.. Ltd

prakash@anprakashpmc.com

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Managing Time and Cost in

Construction Projectsis

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Which of these projects are completed on time and / or within budget ??

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Construction Projects

• are Complex

• are Chaotic

• have Changes

• have Conflicts

• Discomfort

and

• Imbalance

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Interest of all stakeholders in a project are

• On-time Completion

• Within Budget

BUT WITH

• Maximum Efficiency

• Highest Performance

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Commonly project conditions are

Dynamic

An Unknown Unknown !!

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an Example in Hong Kong Airport

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Causes for Cost & Time overrun

• Inflation ?• Errors and omissions ?• Changes ?• Underestimation ?• Wrong plans ?• Faulty execution strategy ?

Any others ………….

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There are 113 !!!

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and many more

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Some Empirical Formulas proposed

by Researchers

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Root causes Grouped

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With experience, now the situations are

Predictable to a great extent

A Known known

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• Has Evolved from Simple Gantt Chart To PERT, CPM.

• From Manual Calculations Use of Computers

• Continue To Evolve In Terms Of Its Capabilities

• Project Management Tools-- Time Management

-- Cost Management

-- Resource Management

-- Change Management

-- Data Management

-- Document Management

• Techniques-- Earned Value Management (EVM)

• Tools-- Building Information Modeling (BIM)

Evolution of Tools and Techniques for Managing Time and Cost

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Some Recommendations Conduct cost and schedule risk analysis

o Cost elements are time dependent

o Not all costs will increase when schedules are extended

Avoid Stagnation, elevate to create alternatives

Identify time bound deliverables

Avoid Analysis Paralysis, many times it an opportunity lost

o Be persistent yet consistent

o Use meetings to avoid road blocks

o Be transparent

Have strong project governance

Create and evolve an effective communication strategy

Understand the requirements completely

Have and agree on well-defined scope and specifications

Contd ….

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Create comprehensive multilevel plans

Acquire ability to manage multiple project resources

Convince and buy strong sense of commitment by all stakeholders

Avoid interruptions else payback in terms of productivity in project cycle and revenues

Fewer mistakes, envision the problems

Visualise for better productivity and better paybacks

Enhance competencies in Contract Management

Shorter turnover time in decision making

Superior project execution plans

Some Recommendations

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Thank You