Subcontractor Involvement Project Tracking Progress Curves. CSTM 462 Fall 2012

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1 Subcontractor Involvement Project Tracking Progress Curves CSTM 462 Fall 2012

2 Subcontractor Involvement into the Critical Path Many building contractors get very little input into the schedule from their subcontractors. Difficult to get the required information. Relationship between General Contractor and Subcontractor Adverse Teamwork Force them to meet dates in schedule

3 Required in Specifications Examples The Contractor shall utilize the CPM Progress Schedule in planning, scheduling, coordinating and performing the work under the contract including all activities of trade contractors, equipment vendors, and suppliers. All procurement, manufacture, and delivery activities for all major materials and equipment shall be identified; major means: either a specification section is dedicated to the material or equipment or a dollar value greater than $5, is associated with an item which is a component of a specification section

4 Required in Specifications Examples Assignment and coding of all activities by the performing entity such as Subcontractors, Vendors, and the Owner, shall be included. Certification: Submit certification that identifies each subcontractor and major equipment supplier and which confirms that each has participated in, reviewed, and concurs with the CPM Progress Schedule and the associated cost data as it relates to their work. Submit these certifications at the same time that the CPM Progress Schedule is initially submitted.

5 RACS Schedule Advantages Measures Necessary Manpower Request more detail to understand subcontractors work scope and schedule Measures Required Work in Place WIP Both Items are more easily tracked and measured 5

6 RACS Example Electrical Subcontract Total: = $1,000,000 ** Determined from Bill or from Labor % Hourly Rate for a Worker: = $ 40/hr Value of Labor in the Contract**: = $ 400,000 Length of Project: = 2 months (or 40 WD) Based What is the number of workers that are needed on the job every day to maintain schedule?? Advanced Scheduling and Measuring Productivity Workshop 6

7 RACS Example $400,000 (Labor) / $ 40/hr = 10,000 hours to complete job 10,000 hours / 8 hours per day = 1250 man-days 1250 man-days / 40 work days = Workers So..if you do not have a commitment from the sub to have at least workers on the job, or if the sub doesn t deliver 31 workers every day, you will fall behind. Better to know this before you award, or you will have a problem!! 7

8 To get paid monthly Percent Complete Tracking Progress on a Job Why? Know completion date Compare Planned vs. Actual Check productivity- Earned Value

9 Earned Value A common question- What is the stage of completion of the project? Or What is the physical percent complete of the project?

10 Understanding Earned Value Integration of Cost and Schedule Cost Loading From End Loading for Payment What is the stage of completion of the project? What is the basis of that assessment? Some say cost I say no way, WHY? Earning whatever was budgeted

11 Earned Value It is critical to have an appropriate way to physically progress the work activity. Installed quantity report. On specific work activities which relate to overall project completion. Will it require two systems? Yes- Time & Money Proper tracking of the system for progress reporting.

12 The Concept of Earned Value Actual Percent Complete times Total Project Revenue. What Owners want to know. Actual percent complete is the key. Earned man-hours not actual man-hours. How do you properly progress the job. Getting percent complete from your schedule.

13 Work-in-Place How do I know what percent complete I am? Activity with ten days duration At 50 percent complete? Answer A. Five Days B. Not enough information

14 Example Pour Concrete Walls- 10 Days Pour concrete walls- 100 cubic yards Total budget 1000 man-hours Actual hours to date 500 man-hours Actual poured 40 cubic yards 40% complete 50% of man hours used

15 What is the common denominator? Days Man-hours Dollars Quantities

16 Work-in-Place Installed Quantities The difference between earning and burning I need to find the actual percent complete. How do I do that? Many owners think cost. It comes from work-in-place.

17 Earned Value How do I know what percent complete is the activity- cable tray? Quantities for each activity lead to man-hours earned. Man-hours common among all activities This is a minor issue not very well understood in the industry.

18 The Field System for Tracking Estimate Quantity Take-Offs Budget Conversion/Control Budget Quantity Tracking- Installed Quantities Earned Value Determine Progress Calculate Productivity Forecast Man-hours and Completion

19 Difficulties in assessing progress Work in Place Based on Cost Issues with what part of cost Actual Percent Complete Thumb nail Visual Actual Work in Place

20 Project Monitoring & Control Establishing a Baseline Difficulties in assessing progress Understanding Earned Value Updating the Schedule Time in Contract Provisions

21 Plan vs. Actual Master Baseline Schedule In order to be meaningful, there has to be a baseline schedule to compare against in order to determine the status of the project. Baseline normally cannot change without approval Nothing says you can have different baselines for review but may not be approved by Owner Purpose of Updating the master schedule Evaluate Project Status Predict Completion Date Create a historical record Evaluate Change

22 % Complete Float is his life A line from a professional scheduler. Working with items with float Free Float- The amount of time an activity can be delayed without delaying the start of another activity. The use of Early and Late Start Curves and Schedules Project Progress Curve Time

23 Free Float Free float is the amount of time an activity can be delayed without taking away float from later activities. Used in the evaluation of float ownership amongst activities. It is a analysis provided in schedule analysis beyond the scope of calculating the Critical Path.

24 Float : Early & Late Schedules Early Schedule A C D Float B E Float A C D Late Schedule E B SK Copyright AACE International

25 % Complete Float : Early & Late Schedules Project Progress Curve Early Schedule Late Schedule Time SK Copyright AACE International

26 Progress Curves In management reporting the most looked at document is the percent complete curve. Comparison of planned versus actual. Percent Complete Planned vs. Actual Man-hours Dollars

27 Progress curve From the baseline schedule a planned curve can be drawn based on percent complete and calendar time. Tracking actual progress against plan can identify trends, issues and opportunities The steepness of the curve, the evaluation of actual work in place for each work evaluating trends. Front end loading, normal loading and back loaded schedules. Early Finish or late finish curve.

28 Planned Vs. Actual

29 Baseline and Updating Planned vs. Actual Develop baseline schedule Contract requirements Lock and load and start construction Each actual start, finish and percent complete at that reporting period. Changing the baseline Playing with the curves

30 Early and Late Start Curves

31 Tracking planned Vs. Actual

32 To 100 Percent Complete

33 What does this mean?

34 Playing with the numbers

35 Use of Project Cost/Value Information in Relation to the Project Schedule Cash Flow Projections Progress Payment Schedule Working Capital Projection Progress Measurement Can utilize the progress measurement overall to tie-in work in place.

36 Cost Planning/Scheduling Cost is the common yardstick that is used to measure the expenditure of resources on a project. Assigning costs to individual activities in a network schedule is commonly referred as cost loading, value loading or dollar loading. Activity cost vs. value (revenue). Difficult to tie the estimate, cost code structure and schedule activity structure. One main reason is the different level of detail and the ability to track costs accurately.

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