Case Studies Civil Construction Works

Transcription

1 Case Studies Civil Construction Works

2 CASE STUDY OVERVIEW The purpose of this case study is to illustrate the benefits of implementing a Earned Value based Performance Measurement (EVPM) system to undertake both financial performance and production analysis of Key Trade elements also known as commodities. SCOPE OF WORK The scope of the project was to build a new Rail Maintenance Facility located in North Australia to service coal train engines and rolling stock. The study focuses on the tracking of budget and the performance of key construction commodities. PROJECT CONTROL SYSTEM Planning software used was Microsoft Project to hold scheduling information only. Primavera P6 could have been used. The Contractor s Cost Payment plan and corresponding Bill of Materials Quantities was held within the EVENGINE PROJECT CONTROL data sheet. The contract was administered as a Schedule of Rates Contract based on agreed commodity cost rates. The project schedule was modified to facilitate cost plan and control system integration and EVPM control points. EVPM updates were subsequently REMOTELY made by the on site Scheduler and Quantity Surveyor taking Digital Photographs at prearranged locations and with the in place quantities measured, the data was then forwarded on to the Supertech home office for analysis and reporting.

3 STEPS TO SETUP AND MAINTAIN THE EVPM CONTROL SYSTEM Step 1 Set the Level of Control and Reporting to be exercised on the project. This was set at facility and trade commodity level visible within the project Engineering, Procurement, Construction Management (EPCM) schedule and corresponding Bill of Materials Quantities for estimated cost, work hours and quantities for key commodities. Step 2 Import the Cost Plan to EVENGINE then map the schedule and import the contract dates. Step 3 At each report period refresh the EVENGINE held schedule date data with: The Actual Start and Finish dates for completed tasks. The Reforecast Finish dates for uncompleted tasks. The Current Forecast Early and Late dates for the remaining tasks to reflect suppler/trade commitments to completion. Step 4 Update the corresponding Bill of Material Quantities using the EVENGINE Project Control Sheet where: The Physical %Complete for schedule of rates tasks for materials is based on the actual measured and remaining quantity placed. For hourly reimbursement Physical %C is based on spent hours and those remaining to completion. The Physical %Complete for Fixed Cost items are assessed as either as % or as a proportion of their completion. Typical tasks for this treatment include the Managing Fee. Step 5 Sufficient data is now available to run both the EVPM performance reports for cost, key commodities and contract administration activities such as the issue the certificates for Trade Contractor Payment. Update of Scheduling Information Update the Bill of Materials based on the QS site Measurement

4 EVPM PROJECT REPORTS The following represent a range of EVENGINE reports run and used to brief the client as to contractor progress and undertake contract administration. The individual reports shown were selectively collated into a simple Dash Board. COST AND CONTRACT ADMINISTRATION REPORTS The Combined Metrics Histogram and S-curve details the Earned Value (EV) basis for the Lump Sump Contract payment versus the Planned Value (PV) value of work scheduled for completion each period. At the Status Date The Combined Metrics Histogram and S-curve details the Earned Value (EV) the basis for the Schedule of Rates Contract, The Actual Cost (Cost to the Contractor of Completed Work) and the Planned Value (PV) value of work scheduled for completion at the report period. Also shown is the expected trend of costs and the Earned Value to completion. Also shown is the PV2 which represents the Early Baseline. Interpretation of the data the project is late and overspent for the work completed.

5 EVPM PROJECT REPORTS (Continued) The Project Summary Report is in two parts, Part 1 details all of the Earned Value Performance Measurement Metrics, Indicators and predictors. Part 2 details the Earned Schedule Metrics, Indicators and Predictors. Those listed form the basis of Total Project Financial control in compliance with the Project Management Institute s PMBOK Practice Standard for Earned Value Management andaustralian Standard AS 4817 Project Performance Measurement Using Earned Value. The case study Project Summary Report indicates the project EV slightly ahead of the Late Baseline PV at a Cost higher than Budgeted. The To Complete Performance Indices predict it unlikely the project shall be completed on Budget (BAC) and more likely to be close to the Estimate At Completion (EAC). For a definition and application of the tabled range of Metrics, Indicators and predictors reference the Earned Value Theory and Practice Webinar through the Webinar Button on the EVENGINE website. Not shown nor covered by he Guidelines and Standards but part of EVENGINE functionality is to undertake Earned Value analysis using units of Work (Hrs) and selected commodities based on Material usage units (Qty). By carrying the Sell Price (Revenue) Earned Value can be extended to undertake commercial Profit and Loss analysis.

6 EVPM PROJECT REPORTS (Continued) The EV% versus PV % metrics can be represented in a combined tabular and Integrated Report and Graph representing contract (CA) performance. The report could also be produced by Area/Facility, Resource and any other EVENGINE available codes. By visual inspection contract performance can be visualized and interpreted from the tables and the metrics superimposed on the Gantt bars representing the contract timeline. The data for the case study indicates the project shall meet the Late Contract Baseline requirements.

7 EVPM PROJECT REPORTS (Continued) Schedule Variance Report details gains and slips in the schedule by Let Contracts (Cost Accounts CA) in calendar days. The report is used to forecast the expected handover of facilities for operation and assess the schedule performance at the Report Status Date. For the case study the option selected was to use the Early Baseline dates for tracking purposes. Using the Late baseline would show contractors just meeting the expected facility handover dates. Cost Management Report selected to summarize progress and performance by Let Contracts (CA). Used to access a contractors financial performance and expected cost at completion. Cost Management Report selected to summarize progress by Area and Facility. Used to assess the expected cost of the project by facility and also used for asset management purposes.

8 EVPM PROJECT REPORTS (Continued) Certificates of Payment summarizes and details the payments due to the contractor. Shown are the Certificate of Payment based on the total project approved cost the BAC. The money on release shall be used to pay the contractors engaged on the project. Individual contract claim certificates are issued separately. The Certificate is the difference between the Earned Value calculated for the previous and this period. Shown is the Continuation sheet by cost account, this can also be done by Task which details the makeup of the certificate of payment. Shown is the Certificate Summary sheet which tracks the Payment History of all certificates issued. As certificates of claim and payment are based on Earned Value this can significantly save on contract administration costs as all is integrated and calculated from a single source EVPM system data repository.

9 EVPM PROJECT REPORTS (Continued) Productivity Reports (Daily, Weekly and Monthly) tracks actual selected commodity placement rates against that planned and required to complete the project as planned. The histogram is used to plan the size and fleet plant mix required based on achieved production rates versus that required. Illustrated is the production rate for earthworks indicating a significant increase in plant deployment post status date. For concrete works this indicates a small on site concrete batch plan with a capacity of 250 mx3 per 8 hour shift. The histogram also indicates an underutilization of the batch plant over a four week period. This was subsequently filled by bringing forward some of the building and plant foundation works. Other commodities tracked included Structural Steel, Rail installation works and used to determine the installation gang sizes and shifts to be worked. CONCLUSION The separately held EVENGINE Cost and Material budget and usage data used to determine the Physical % Complete significantly accelerated the processing of contractor payment claims. The tracking of daily, weekly actuals against production targets gave advanced warning for scheduling additional plant and equipment to meet schedule.

10 ORDER A TRIAL Experience the ease of setting up an Earned Value Based Project Management Reporting System. Why not Trial our EVENGINE STANDARD Entry Level product free or select EVENGINE PREMIUM or EVENGINE PROJECT CONTROL. Certificates of Payment, Cost Management Reports and the Combined Integrated Graph report functionality for the case study was produced by EVENGINE PROJECT CONTROLS. Visit the Web Site and follow the Trial Registration process.