Sheila Belayutham CHAPTER 6 CONTROL

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1 CHAPTER 6 CONTROL

2 LEARNING OUTCOME Students will be able to: Understand monitoring and control in construction. Understand the monitoring and control methods in construction.

3 MONITORING & CONTROL It s important to have a schedule, BUT it s more important to use it.

4 Introduction Begins with the identification of the owner s objectives and ends when those objectives have been met. Purpose is to guarantee that the project s design, budget and schedule are met by the project team. If any objectives begin to deviate, correction can be made. Action-based process that encourages continual monitoring of operations. Compare project standards and variances noted.

5 What is monitoring? Understanding what is happening on a project Obtain information about the project by some means. What is control? Actions taken in response to the information.

6 WHAT TO MONITOR AND CONTROL? Cost Time Quality

7 PROJECT MANAGEMENT CONCEPT Three major phases of project management (PM): Planning -thinking, scoping, listing, organizing, identifying Scheduling -time phasing, sequencing activities, estimating durations Control -utilizing feedback, monitoring, assembling facts, accessing alternatives, making decisions

8 MONITORING & CONTROL Monitoring and control of the progress of work can be achieved through proper program of work, which are logically planned, constantly reviewed and closely monitored. It is important to anticipate all events and build contingency plans into the project for any unexpected deviation that often occur.

9 MONITORING & CONTROL Monitoring and control is important to ensure that the project will be smooth in operation. Monitoring work progress is to compare the actual work progress against the planned work progress.

10 MONITORING & CONTROL Program refereed to: Master program Monthly program Weekly program Sub contractors program Material procurement program

11 MONITORING & CONTROL The classical control stages involve three stages: Measuring the state of the system. Comparing these measurements with the desired state of the system. Taking corrective action to return the system to its desired state or to minimize some loss function.

12 MONITORING & CONTROL In a construction project context, the steps in the control cycle could be considered as: 1. Make a plan 2. Implement the plan 3. Monitor actual output and record it 4. Report actual and planned parameters and their variations 5. Take action

13 MONITORING & CONTROL The first four stages constitute the monitoring process. Monitoring provides quantitative information on which control action may be based. In the absence of formal information from monitoring the management will take control action based on their informal information systems; hunches, belief and advice.

14 WHY MONITOR AND CONTROL? So that project could be completed within the agreed duration stated in the contract. To refrain from getting LAD. To maximise profit. To maintain company s good image. If progress too fast, could also increase cost. If progress too slow, could also increase cost.

15 Project Control Standards (Targets) To begin the process, managers first establish standards. Cost, schedule and quality are the basis of these standards. Standards are use to check progress and provide direction. Drawings and specification quality control. Measurement standards serve as a goals for the project participants.

16 Actual Second components of the project control system. Includes accurate cost, schedule and quality information about the project. Actual performance compare to planned performance provides progress. On-site review, walk-through and quantity reports can provide information on the progress of the project.

17 Basic Control Theory

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21 Preparing a Project for Construction Project must be broken down to a suitable level of detail to be monitored and controlled. Cost, time and quality control can be set up in schedule of activity. Baseline establishes the goals for the project and allows the management to measure how well the project proceeding. Estimates Cost baseline. Schedule Time baseline.

22 COST CONTROL May be described as a process whereby a construction project is intentionally managed in every way possible so that: The client s authorized cost of construction project (contract sum) is not exceeded. The contractor does not lose profit.

23 COST CONTROL At the project s production phase, it is the duty of the client's professional advisers to constrain the actual project cost to conform to the planned project expenditure. It is the duty of the contractor s QS/ manager to oversee the contractor produces the project within its original tender sum.

24 COST CONTROL To achieve these objectives, the following elements must prevail: Planning formulate production cost plan. Monitoring continuous comparison of actual with planned. Action rectification of divergences from planned.

25 FACTORS AFFECT COST CONTROL Changes during construction. Shortage of skilled labor. Unforeseen shortage of essential materials. Delay in checking and approval of workmanship. Inadequate machinery/ plant. Unreliable sub contractors.

26 FACTORS AFFECT COST CONTROL Variation orders to meet changes by the client, site constraints, designers, additional requirement by regulatory authorities. Failure by the contractor to meet or comply to requirement/ specifications. Wastage of materials. Improper maintenance of equipment resulting in frequent breakdown.

27 Cost Baseline Estimate is the tool used to establish the cost of a project. Conceptual estimate establishes the initial cost for the project. As design proceeds, it will tighten the budget. Bid price/contract price is the cost baseline. As the project moves to construction stage, the estimate becomes detailed (material quantities, labour rates, equipment rates).

28 Time Baseline When schedule combine with estimates, cash flow can be projected. Schedule must be managed and continually updated. Using WBS, networks schedules, bar charts. Baseline schedule identifies the key milestone dates and key material delivery dates. Start and finish of each activity is shown. Can t tolerate with delays.

29 Sheila Belayutham

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31 S-CURVE The above is a baseline S curve. Baseline means the initial plan for the project. An S curve is basically is a cost loaded schedule. This slide represents the weeks plan cost (Y axis) against the planned time (x axis). That intersection point creates the S curve. Once your baseline S curve is established, then you begin to measure the variance from your plan to the actual. An example is that the actual is below the line then you are spending less than planned. If it is above the plan line you are spending more than planned in relationship to the schedule.

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