Having spent the last couple of years on project sites around the country trying to control cost on projects as a cost engineer, it has never been so clear what the key performance indicators are for one to rely on in tracking cost of projects and managing projects due to the mathematical manipulations one encounters as a contractor.
Nevertheless, this training has availed me the opportunity of knowing best practical project management tools which can be deployed in our country if well applied.
The Earned Value Management tool is one tool I just learnt of and is a must use by all contractors and clients alike, its workings are simple, simply put one only earns what he has worked for. The milestones payment systems is easily manipulated by mathematically manipulating S-curves to achieve payments on certain milestones even if it has not been achieved but with the EVM system, works that are completed are only what is paid for. It makes contractors to be responsible in ensuring what is to be done is actually done and on time which enhances payment.
This will in turn be a check on cost overrun of projects and good project delivery as per cost.
OK, Joshua, I will accept this posting but for the future, you need to be following the template I provided for you from Engineering Economy, 5th Edition, page 27. Or see what Biola or Lanre are producing each week.
ReplyDeleteLook to them to mentor you.....
BR,
Dr. PDG, Jakarta