What are Project Controls?
Project controls are the processes of monitoring and managing time and cost on a construction project. The function covers all stages of a project from beginning to end.
Strong management of project controls helps you assess whether budgets and timeframes are achievable. Establishing these processes early, will allow you to set realistic targets for your project.
As a project continues, data and analytics can tell you whether you are on track. They can warn you if you begin to steer from the plotted course. This will mean you’re able to put plans in place to mitigate delays and overspends.
How do project controls differ from project management?
It might, at first glance, appear that the two functions cover the same or similar responsibilities. However, there are some key differences between project management and project controls management.
Project management covers a much wider scope. A project manager takes responsibility for every aspect of the project. This includes people management and resources, quality, safety and a host of other processes.
Project controls management on the other hand focusses on two key areas: time and cost. The key purpose is to keep the project on track to complete within the original budget and timescale. If this is not attainable, then mitigation will keep the time and cost overruns down.
So why do we need good project controls?
According to a McKinsey report, 98% of mega projects face cost overruns or delays. In the best case, this means that most projects are not as profitable as they should be. But in the worse cases, this means many projects end in expensive disputes. The leading causes of disputes include slow progress, changes and poor time management.
Moreover, one global report regularly cite the following reasons why disputes arise on projects:
- Poorly drafted claims.
- Failure to understand or comply with contractual obligations.
- Errors in contract documents.
- Unrealistic contract duration or completion date.
- Failure to properly administer the contract.
An experienced project controls team can effectively manage your contract administration. This will reduce the risk you carry and increase your chances of recovering due entitlement. A strong project controls team makes all the difference.
What does good project controls look like?
The 2nd edition of the SCL’s Delay and Disruption Protocol advocates:
- Keeping of good records of actual progress, variations, changes of programme logic, mitigation or acceleration.
- Effective contract administration ensuring compliance with the procedural requirements of the contract notices.
Looking out for these types of problem can be the difference between a profitable project and failure. An experienced project controls team can help you set up achievable and realistic budgets and programmes. They can spot those early warnings that things might be about to go off track. Most importantly, they can help you make adjustments accordingly. By investing in project controls throughout the project, you are able to effectively manage expectations of time and cost. This ensures the project is on track to complete on time and within budget.
Commercial Managers and Quantity Surveyors
Commercial managers and quantity surveyors oversee the financial aspects of a project. Quantity surveyors work on the day to day commercial tasks managing costs and risks. Commercial managers, focus on maintaining the big picture. They are ultimately accountable for the commercial performance of the whole project. Having a tight control over the financial aspects is crucial to success.
The commercial team will normally commence their roles on award of the project. However, their experience and commercial acumen can be invaluable in the initial concept or tender process. Here they can provide accurate cost planning, value engineering and feasibility studies. They can ensure the correct procurement route is adopted, and you receive or submit accurate tenders. Most importantly that you are fully aware of your contractual obligations from the outset.
Once the project is awarded the, the commercial team will focus on managing the risk and opportunities of the project. This means you’ll secure the best cost outcome for the project. This will include preparing budgets, procuring the works and negotiating with the supply chain. They will advise on contractual matters, including helping select the right contract for your project. They can also help with appointing specialist contractors and advising on your contractual obligations.
As the project continues, a good commercial team will monitor your KPIs, the project’s progress and keep good records. They will manage interim applications and ensure accurate cost reporting. All requirements to ensuring the best cashflow position is achieved.
Mitigation of risks is key to ensuring success. The commercial team will manage change, identify risks and carry out contract administration. Good commercial project controls will identify any deviation from plans early. This means you can take steps to minimise the costly effects of change or disruption.
As the project draws to completion, the commercial team will finalise the project account with both the employer and supply chain. A good commercial team will ensure all due entitlements are included and properly substantiated.
Programme Management
Programme managers plan and coordinate construction projects. Their role is vital to making sure projects are completed on time or any delays are effectively mitigated. A good programme manager will ensure programmes are dynamic management tools.
Even projects that appear simple and straightforward need careful planning and monitoring. From managing resources on site, to ensuring work won’t be disrupted by external factors.
Construction projects are notorious for change. As change happens, a programme manager will monitor the effect on the programme and make adjustments where necessary. Early warnings will allow the project team to take mitigating actions.
A properly prepared and achievable programme must be prepared at the start. This programme should detail the manner and sequence of works. This baseline programme should then be updated to record the actual progress of the project. If changes are made, the effect on milestone or completion dates should be shown.
By doing this, a good programme manager will be able to inform the project team of the planned or revised start and finish dates of activities. It should be clear what progress has been achieved to date and any impact that the rate of progress may have upon the completion date.
A good programme manager will proactively monitor a project as it progresses, maintaining robust programme records. These will include updated programmes, revised programmes and look ahead programmes. All of which allow you to effectively manage the progress of the works and understand any causes of delay.
Find out more
No project ever runs perfectly to plan, but with good project controls, any change or disruption can be managed for success. Nexus Consult supports companies with their project control needs. Our experience means we can help you plan successful projects and make sure they stay on track.
If you need support with the time or cost aspects of your project, get in touch today or visit our services page for more details on how we can support you.
