Project control procedures at MC Industrial are critical in achieving success for the client and MC Industrial. These procedures establish project safety, cost, schedule and quality plans. During project execution, the status of the project is periodically evaluated to identify deviations from these plans. Management can then identify the actions or adjustments that may be necessary to keep the overall project on target.
Costs are controlled by tracking costs against associated percent of completion, comparing costs to the established budget and managing future spending and budget adjustments in order to meet the desired project cost at completion. We work to keep costs within budget by:
- Establishing a project budget for original contract or PO amount
- Adding new budget items for each added scope change order
- Charging all expenditures to proper budget item
- Reporting quantities installed weekly
- Comparing actual labor performance (mh/unit) to estimated mh/unit on a weekly basis to determine deviations.
• Conducting root cause analysis of identified variations.
• Where possible, implementing change that will improve performance.
- Conducting periodic updates of forecasted costs.
• Assessing variations from current budget.
• Implementing actions to correct variations or make other adjustments to align projected costs with desired final cost.
• Adjusting contingency based on scope, issues and risk.
Our schedules are tracked by comparing actual progress to the baseline control plan. It’s basically a balance between work sequencing and manpower allocation that allows us to accomplish desired work progress. Our process for controlling schedule is the following:
- At project initiation, the baseline control schedule is developed. This is the reference document for planning and is modified only as a result of Owner approved change orders. The design of the schedule is such that it is realistic and a positive planning tool and facilitates the roll up of gross details into successively larger categories.
- Weekly working schedules are prepared which are updates of the control schedule to reflect progress to date. During preparation of the weekly work schedule, variations from the control schedule are accessed and adjustments and actions to steer progress towards the established milestones are implemented. In all cases, the working schedule is planned to keep the project as close to the control schedule as possible.
- The baseline control schedule is revised when change orders that affect schedule are received.