Project Management - Time-Grid Diagram
Project Management - Controlling Resources
Project Management - Cost Control
Project Management - Financial Planning
Construction Project Cash Flow
Table 2-5 Form for estimating expenditures during construction
Table 2-6 Estimated receipts during construction
Table 2-7 Estimated expenditures and receipts during construction
JOB LAYOUTThe time-grid diagram combines bar chart and activity-on-arrow network features.
~Float times are visually represented to scale
Solid arrow lengths = activity durations
Vertical dashed arrows show sequential relationship of dependency, then no arrow
Horizontal dashed arrows show float time for a single activity or a group of activities
Planned project progress may be compared with actual project progress on the diagram.
If a project delay occurs in a critical activity the entire project will be delayed or CP activity(s) must be accelerated to compensate.
If a project activity which is non-critical is delayed and delay is < its free float, no problem:
~But, if delay is > its free float or its shared total float, then project may have a new critical path.
Chart, networks or diagrams should be updated periodically with particular attention to critical path activities or candidate CP activities.
~Would not want to expediite the wrong activities.
~Prior to CPM, tendency was to speed up everything.
~Balance resources for each day’s work.
~Each activity estimated optimumly for lowest cost. Minimum total project costs at optimum construction time.
~Increase material flow, labor hours a/o equipment
~Work on one or more CP activities.
~Select activity(s) with least cost increase impact.
Job resources to be controlled: labor, equipment & materials.
Need analysis of types & quantities needed as related to network or time-grid diagram time scheduling.
~ activity identification and duration estimating
~ activity relationships and network diagramming
~ labor, equipment, and material analysis for scheduling
~ material delivery keyed directly to network start dates
~ prepare equipment use schedule
Job site layout considerations:
~construction area (limits) (see Figure 2-12, p. 52, Class Notes)
~security fencing/access gates
Cost control versus bookkeeping
~Bookkeeping enables a contractor to read the financial bottom-lines after the fact. A profit-loss indicator.
~Cost control allows on-going analysis of labor and equipment in terms of performance and costs.
~Analysis is by comparing actual productivity and costs with budgeted values and evaluating significant variances. "Course" or "speed" corrections are then made.
Typical control system features:
~Construction cost accounts for charging labor time, materials, equipment and support costs. It keys budget and actual expenses for analysis.
~Cost control analysis/evaluation
•job productivity ratios (output/input)
~Decision making, change and follow-up
Productivity improvement initiatives (some examples)
~Participatory management techniques
~Bid formulation cost estimating and bid offer
~Project expenditure and income forecast (cash flow) (see pgs 51-52)
~Partial and final payment processing (retainage factor) (see pgs 51-52)
~Availability of working capital
~Analyze firms capacity versus commitments
Project cost versus time is a function of scheduling
A construction schedule may be used to estimate the amount of funds that a contractor must provide in financing a project during construction. Most construction contracts specify that the owner will pay to the contractor a stated percent of the value of work completed during each month. The payment for work completed during a month is usually made by the tenth of the following month. Upon completion of the project, the retained funds, often 10 percent of the contract value of the work, is paid to the contractor. An analysis of the construction schedule will indicate the approximate expenditures and receipts through any desired dates. The excess of expenditures over receipts indicates the amount of financing which the contractor must provide from sources other than the owner.
The estimated expenditures are determined as illustrated in Table 2-5. The amounts shown are the costs of materials, equipment, labor, and general overhead. Although a contractor does not pay an outside party for the use of the equipment, unless it is rented, he must make monthly payments, or other periodic payments, on the equipment until its cost is liquidated. Thus it is proper to include the cost of owning and operating equipment as an expen-diture.
Table 2-6 illustrates a form that may be used to estimate the receipts from the owner of the project. The prices received during construction are 90 percent of the contract prices for the respective items. The receipts for a given month are payable to the contractor by the tenth of the following month.
Table 2-7 illustrates a form that may be used to determine the estimated expenditures and receipts for the end of each month during construction. At the s, shown for the end of June and payable by the tenth of July, amount to $59,568. Thus there is a difference of $124,860 - $59,568 = $65,292 which the contractor may have to provide from another source for 10 days.
Information contained in this table should assist a contractor when he discusses with his bank a schedule of financial assistance that he may need from the bank.
• Amount payable by the tenth of the following month.
• Amount payable by the tenth of the following month.
One of the first duties of a superintendent when he assumes the responsibility of starting construction is to prepare a job layout for the project. On this layout he will draw to scale the area available for offices, warehouses, storage of materials, equpment, and earth, and constructing forms and fabricating reinforcing steel. In preparing the job layout, the superintendent should endeaver to arrange all areas to reduce the time consumed in carrying materials from storage areas to the project. Materials that are similar in use should be stored close together, where possible. The general office and warehouse should be located near the main entrance in order that persons visiting the project for business purposes will not have to travel around the construction areas to reach the office. This should reduce the danger of injuries to visitors and the confusion that frequently is associated with the presence of strangers around a project. If the general warehouse is near the entrance, it will facilitate the delivery of material to be stored in the warehouse. However, if a warehouse is needed to store heavy materials, such as machines that will be incorporated into the project, it may be desirable to consider using additional warehouses, located nearer the project.
Figure 2-12 illustrates a job layout for a multistoried reinforced-concrete frame building. The contractor is fortunate in having adequate area for easy storage of all materials at the job site. This is not commonly the case.
This document was produced using an evaluation version of HTML Transit 2
