Project Cost Control

Reasons for Project Cost Control PROGRESS PAYMENTS CHANGE IMPACT CONFORMANCE TO PLAN PROJECT FINAL COST PROJECT DATE OF COMPLETION

Project Cost Control Reasons For PLANNING PERFORMANCE MEASURING PERFORMANCE COMPARING ACTUAL AND PLANNED PERFORMANCE ADJUSTING PLANS AS REQUIRED

WORK BREAKDOWN REDUCTION OF COMPLEXITY SHORT PLANNING INTERVALS COST ESTIMATING SIMPLIFICATION COST COLLECTION SIMPLIFICATION COST / SCHEDULING

VARIANCES COST : SCHEDULE : DEVIATION FROM BUDGET. NO CONSIDERATION FOR PLANNED SEQUENCE. SCHEDULE : A COMPARISON BETWEEN PLANNED AN SCHEDULED ACTIVITIES.

100 90 80 70 60 50 40 30 20 10 5 10 15 TIME PERIOD REPORT DATE % COST BAC % COST 100 90 80 70 60 50 40 30 20 10 BCWS BEHIND SCHEDULE AV ACCOUNT. VARIANCE ACWP CV COST VARIANCE TO DATE SV SCHEDULE VARIANCE BCWP (EARNED VALUE) 5 10 15 TIME PERIOD

Progress by DISCIPLINE

ENGINEERING

DRAWING MILESTONES START DRAFT - 20% DRAFT COMPLETE - 65% OFFICE CHECK - 80% OWNER REVIEW - 85% FINAL DRAFT - 90% APPROVAL WITH HOLDS - 95% FINAL OWNER APPROVAL - 100%

DISCIPLINE WGT. VALUE % ESTIMATED DRAWINGS BUDGETED MANHOURS DISCIPLINE CIVIL ARCHITECTURAL STRUCTURAL MECHANICAL PIPING ELECTRICAL INSTRUMENTATION 20 35 50 40 15 200 1250 2500 1500 4000 3000 15000 8.3 16.7 10.0 26.7 20.0 100 TOTAL ENGINEERING VALUE

TOTAL PIPE DWGS. DWGS. IN MILESTONE MILESTONE VALUE % DISCIPLINE % COMPLETE MILESTONE 10 5 50 START DRAFT DRAFT COMPLETE OFFICE CHECK OWNER REVIEW FINAL DRAFT APPRV. W/ HOLDS FINAL APPROVED 20 65 80 85 90 95 100 4.0 6.5 8.0 8.5 9.0 9.5 20.0 TOTAL PIPING DISCIPLINE PROGRESS 65.5

WEIGHTED VALUE PROJECT CONTRIBUTION DISCIPLINE % COMPLETE CIVIL ARCHITECTURAL STRUCTURAL MECHANICAL PIPING ELECTRICAL INSTRUMENTATION 90 70 80 75 65.5 60 50 8.3 16.7 10.0 26.7 20.0 7.5 11.7 6.6 17.4 12.0 5.0 TOTAL ENGINEERING PROGRESS 67.7 %

PROCUREMENT MEASUREMENT

PROCUREMENT MEASUREMENT MATERIAL TAKE OFFS PURCHASE REQUISITIONS PURCHASE ORDERS

FUNCTIONS FUNCTION % WEIGHTED VALUE ESTIMATED QUANTITIES ESTIMATED MANHOURS FUNCTIONS MATERIAL TAKE-OFF (DWGS) PURCHASE REQUISITIONS PURCHASE ORDERS 150 200 100 400 700 26.6 46.7 26.7 TOTAL PROCUREMENT VALUE 1500 100

TAKE OFFS DRAWINGS REQUIRING TO'S DRAWING WITH TO'S COMPLETE PHYSICAL PROGRESS 150 75 50%

PURCHASE REQUISITIONS ESTIMATED PR's 200 PR's APPROVED FOR PURCHASE 50 PHYSICAL PROGRESS 200 50 25%

PURCHASE ORDERS QUANTITY PLACED = 50% DOLLAR VALUE SHIPPED = 50% 28 PO's OUT OF 100 = 14% 1 MILLION DOLLARS EXPLANTED OUT OF 50 MILLI0NS = 1% PHYSICAL PROGRESS = 14 + 1 = 15%

WEIGHTED VALUE PROCUREMENT CONTRIBUTION FUNCTIONS % COMPLETE 13.3 11.7 4.0 MATERIAL TAKE-OFFS PURCHASE REQUISITIONS PURCHASE ORDERS 50 25 15 26.6 46.7 26.7 TOTAL PROCUREMENT PROGRESS 29.0

ESTIMATED MANHOURS WEIGHTED PERCENTAGE MILESTONE MOBILIZATION & GRADE FOUNDATION COMPLETE STRUCTURAL COMPLETE EQUIPMENT ERECTION COMPLETE PIPING COMPLETE ELECTRICAL COMPLETE MECHANICAL COMPLETION COMMISSIONING 2000 4800 3600 5600 1000 6800 5200 5 12 9 14 25 17 13 TOTAL PROJECT VALUE 40000 100

WEIGHTED % % COMPLETE PROJECT CONTRIBUTION MILESTONE MOBILIZATION & GRADING FOUNDATION STRUCTURAL STEEL EQUIPMENT ERECTION 5 12 9 14 100 80 30 10 5 9.6 2.7 1.4 TOTAL PHYSICAL PROGRESS 18.7

TOTAL ENGINEERING PROGRESS

DESIGN/ENGINEERING OVERALL COMPLETE BUDGETED MANHOURS WEIGHTED VALUE % % COMPLETE PROJECT CONTRIBU- TION ENGINEERING PROCUREMENT 15000 1500 90.9 9.1 67.7 29.0 60.6 2.6 TOTAL CONTRACT PROGRESS 16500 100 63.2

PRODUCTIVITY PROFILES

PRODUCTIVITY PROFILES FACTORS AFFECTING PRODUCTIVITY PROFILES PROJECT LOCATION JOB COMPLEXITY WORKING HOURS LABOR DENSITY SUPERVISION QUALITY WEATHER MIXTURE OF NATIONALITIES DISCIPLINE

BUDGET MANHOURS UTILIZED THEORETICAL % BUDGET MANHOURS UTILIZED PRODUCTIVITY 12 23 33 42 50 57 63 76 87 100 1.2 1.1 1.O 0.9 0.8 0.7 0.6 0.5 * * * * * * * * * * 10 20 30 40 50 60 70 80 90 100 PHYSICAL COMPLETION %

CREDIT BY EARNED MANHOURS ORIGINAL ESTIMATE ESTIMATE REMAINING EARNED 2000 MHRS 1000 MHRS