the use of cpm in construction five

8/10/2019 The Use of CPM in Construction Five

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CHAPTER FlVE

THE CONTROL MONITOR PHASE

Since CPM users have no crystal balls, circumstances will frequently force

changes to the plan of accomp lishment for projects. Strikes, adverse weather,

shipping delays, change orders, and numerous other conditions can disrupt

the original plan and schedule. Activities are sometimes discovered to be

necessary despite the fact tha t they are no t on the arrow diagram and no t in

the schedule and certain activities in the project are found to be

unnecessary. The schedule can go out-of-date quickly for these and other

reasons.

W he n this happens, The C ontrol M on itor P hase of CPM is effectively and

valuably used. This phase enables the project manager to quickly and

eff iciently revise and refine the in pu t information, including the arrow diagram

and the duration estimates, so th at CPM can indicate the status of the p roject

as we ll as prod uce new up-to -date schedules for the activities yet to occur.

The Control Monitor Phase consists o f collecting actual job data and

subm itting it to CPM for M onitoring purposes.

M on itoring can be done as frequently o r a s infrequen tly as the user desires

or finds necessary. It uses inform ation suppiied abou t new activities, changes

to durations, com pleted activit ies and rearrangements of the arrow diagram to

indicate what effect al1 these have on the original schedule produced. In

addition, a new schedule is produced for activities remaining to occur based

on this job data.

On most projects, Monitoring is done monthly.

INPUTS

Actua l job data, as used in the Con trol M on itor Phase, include the fo llow ing

items:

1.

ddirions ro rhe arrow diagram

New activit ies caused by change

orders or by n ew approaches t o the project.

2 Delerions from rhe arrow diagram For the same reason as 1.

3.

Changes

One might decide to change an activity's code, cost or

resource requirement for any reason.

4

criviry crual Stan Dates Used for historical record keeping.

5.

criviry crual Finish Dares

For notif ication of an activity's

completion; used for h istorica l r e l r d keeping.

6

crivity Percenr Complere

A n indicat ion of wh at port ion of the cost is

payable to the contractor because of completed work upon the act ivi ty.

(Percent com plete has nothing to d o w ith the t ime aspects of the activity; it

relates only to co st. Time progress on a started bu t n ot com pleted activity is

established b y reducing the activity's d uration to the amou nt o f t ime remaining

for accomplishment as of the monitor date.)

Actua l job data is provided CPM via forms or more frequently by


2/21

marking on previously produced schedules or reports. Figure 5-1 on the

following page, illustrates a schedule marked up to show progress as of the

date indicated in the upper left corner. All the markings are self-explanatory.

The collection of job progress data by marking-up actual schedules ensures

careful and frequent reanalysis of the schedule by field personnel and

additionally produces a valuable job diary.

OUTPUTS

The Control Monitor Phase is capable of producing the following items:

Time Status Reports

Revised CPM Reports

Cost Status Reports

Requisition Backup Reports

Payment Documents

From the CPM Schedule's point of view, the objective of monitoring

progress is two-fold. One, it is desirable to determine where the project is in

relation to what was originally scheduled; and two, it is necessary to produce

revised scheduled resource analyses, etc., on the basis of what the job

situation is at the time of monitoring.

As a result of CPM progress monitoring, Cost Status Reports, Requisition

Backup Reports, Payment Documents and current, as-of-now, Cashflow

Projections are produceable as by-products.

TIME STATUS REPORTS

There are two types of Time Status Reports; one for specific (Key) activities

within a single project and one for each project in a multiproject program of

effort.

A Key Activity Status Report is illustrated in Figure

5-2

on the following

page. The activities contained in the report illustrated were identified as Key

activities by the project manager so that a synoptic status report such as this

could be produced. Note that for each Key Activity shown is:

1.

The ~'ccur rence ate The CPM EARLY START value.

2. The 'Target Date An externally supplied date by which time the activity

was to have been started.

3.

A Status Value indicating how far ahead (if positive) or behind (if

negative) of the Target Date is the schedule for the activity.

4. A Trend Value ndicating whether or not the schedule for the activity is

better than the last time the Status Report was produced (Trend Up), worse

than last time (Trend Down) or exactly the same as the last produced report

(Trend Steady).

Use of such a report provides the project manager or anyone else with

a quick evaluation of where the project is time-wise.


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C 2 & ?

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t C

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4

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FIGUR

5 1

6


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C P H A U TO M A TE D C O N TRO L S Y S TE M

L A M O l FRO H?NC.ER R E N N A T I O N P G F

K E ~CTI VITY S T A T U S R E P O R T S E W E Y C E =

TIWGET

~ O R K - W E E K

=

5 DUMMIES

NO

FINISHED NO

AS

OF

1 5 D E C 7 5 P R E D I C T E D C O M PL E T IO N

.........

C 1 J TRACE C EA D E SC R I P T I ON

1 5 6 1

'73C .

KE

t S k I T C H GEAR I N S T A L L E D

0 1 3 8 1

0 3 0 0 0

KEY

HAWGER ROOFED

0 1 5 9 0

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H A G E R F I R CP R nO F E O

q 1 5 7 7 )3 ?

K E Y 1 S T

L Q

O F F I C E D 9 Y E

0 2 0 0 0

0 3 0 0 0

K E Y

P R 3 J E C T C O P P L E T

O C C UR A N CE T A R G E T P R E V I C U S

D A T E D A T E S T A T U S T R E N 0 O C C UR A N CE


5/21

PS D F 1 5 C E C 7 5

A L L P R O J E C T S T A T L S R EP O R T

C P M 1 1 A U TO M P T ED C C h T R C L S Y S T E M

P A C E 1

S E O

=

P R C J E C T

................ F R C J E C T ..... .

I D N AM E

P R E O I C T E O S T A T U S

C O M P L E T I C h T A R G E T

1

N

D A T E D A T E C P L - OA Y S T R E N 0

P E R I O D S

1

N

T R E N )

P R E V I O L S D A TE O F

COMP L A S T

D A T E U P O A T E

A N A H B W A R E H O C S E P N A R BO S T O R AG E C C 3 D M A R 7 6 1 O C T 7 5 - 1 7 1 O W N

AW CAN A M E Rl C d N P H O l C C A l C F F I C E B L D G 2 5 P P t 7 6 2 5 S E P 7 6 1 2 2 U P

C H A S H D F F C E / S T C F A G E C l - ES A P EP K

E

A S W R E IM: l O J A N 7 0 Z 2 A U G 7 5 141 S T E A D Y

CUWIL C O L L I N S M F G ~ I L S C R B L D G

D A AB T D A V I S P B B A T O I R

ObWAR O A V I S CO '4P A N, MP RE kf OLS E

i

2 2 J U L 7 6

2 O J U L 7 6 - 2

DOWN

1 9 M A R7 7 1 5 M l R 7 7 1 4 U P

I O J U h 7 6

1 5 M4 Y 76 6 O O i h

3 1 S E P 7 7

3 1 S E P 7 7 O

S T E A O Y

C R lN K C A V I S I C E R l F K

M GF iK 6 M hi KE Y H O U S E R E G I O N A L Z C C 2 5 0 C T 7 6 3 0 C C T 7 6 - 5 S T E A O Y

U S M N W AN AG EM EN T T P A l N N G C EN TER U SA RT WT l b F E e 7 7 l S F E B 7 7

1

S T E P D Y

U SP AV F O B P A V I L I C N 1 8 D E C 7 7 I O F E e 7 8 5 3 U P

V AM AC V A H O S P I T A L A C D I T I O N C A CA L I S L A N O 1 5 F E B 7 6 2 5 F E 8 7 6 1 0 S T EA O Y

Z YT RO Z Y T R C h I N C 3 F F I C E P R CC E SS I NG C E NT ER I O J U N 7 0 2 4 J A N 7 6 - 1 3 7 D O l h


6/21

AS O F l S D E C 7 5 C PM 11 A UT CC AT ED C C N T R a S I S T E M

PACE 1

TROURL ED PROX.U.-SJA.TU f- fEPUlr . . . - .

-

qF

PPn lFCT

PR E I C T E D S T A T U S P 10M PR EV IO US DATE ff

C O M P L E T I O N T A RG E T I N N COM P L A S 1

D A T E D A T E C AL -D AY S T R E N 0 T R E M DA T E U P D A U

W m A N A f l R C

S T i l f A E

I IL

3

PAR76 1 1 M T 3 5

.?m . n Y N i

OBT AIN ROOF STEEL

A YA R D A V I S C O MP AN I b A R E M U S E 1 0 J U N 7 6 1 5 M A Y 7 6 - 2 6 D W N 2 2 W A Y 7 6 3 0 N OV 7 5

E X 1 M S O N R Y VE S1 H A L L L I P T

W D E R S L AB P L BG S OU TH H U F

Z Y TR O Z Y T R ON I N C O F F I C E # P R U E SC I N G C W T E R 1 0 J U h 7 6 2 U A N 7 6 - 1 3 7 OOYN 6 2 8 M A Y 7 6 1 5 D E C T S

L A T H P L AS T E R 4 T H FLR


7/21

Figure 5-3 i llustrates an All-Project S tatus Report. No te that it is similar t o

the Key Activity Status Report described earlier. The major difference is of

course that, for each project, only the termination date (Project Completion

Date) is considered. This n a multi-p roje ct environment is al1 that is

required to p rovide the user w ith an easily evaluated report on the status o f

each project in the program.

The optimum situation is one in which the All-Project Status Report is

s u ~ p o r t e d y Key Activity Reports for al1 projects.

Figure 5 4 is a special kind of mu lti-project status report.

It

is an extraction

from al1 the projects of those tha t are in-trouble. In the case of those

illustrated, in-trouble is defined as any tha t are behind schedule (S ta tus less

than zero) and getting worse (Trend

Down). It is possible to identify

trouble in any way desired.

REVISED REPORTS

Because time has elapsed whe n m onitoring takes place and because

changes w ill have been made to t he original inputs, the Control M on itor Phase

produces new, revised versions of al1 the reports described as available in the

Scheduling Phase. It mu st be kep t in mind, however, that w hen such revisions

occur the as o f date, or date set equal to time-zero, w ill change to th e date

monitor information was collected instead of remaining at the project start

date. This means that from the point of view of schedule calculation, each

schedule produced ignores wh at had been previously scheduled and considers

only what exists when calculations are done. Earlier in this chapter it was

stated that time progress on a started bu t no t com pleted activity is established

by reducing the activity's duration to the amount of t ime remaining for

accomplishment as of the monitor date. This is so that the calculation of a

revised schedule w ill be done properly fr om the new time-zero date.

Because of th e above, the CPM user co llecting actual job progress data

mu st take care to rev iew al1 activities that had been scheduled t o start du ring

the time that had elapsed since the schedule being monitored had been

produced. Long lead time activities, such as delivery activities or shop

draw ing preparation, if no t duration (.e., reduced to re flect time elapsed since

their duration estimates were last established), will be assumed to need as

much time as was previously indicated despite the fact that the previous

duration estimate was relative to an earlier time-zero date.

If it is desired to measure a revised schedule against what was originally

scheduled, a Relative report can be prod uce d.

Figure

5-5

is a page from a CPM schedule report in wh ich LATE STA RT and

LATE FlNlSH have been replaced by dates that have been calculated not in

the norm al backward-pass way (see Chapter for an extensive discussion of

the calculation of Late Dates via the backward pass method), but by

establishing as the starting point for the backward pass the original project

completion date.

If project progress has been less than what was originally scheduled or

if change data entered into CPM during the Control Monitor Phase has

lengthened the revised schedule, EARLY S TA RT and EARLY FINISH will win d


8/21

CPH I PUTOCATED CONTROL SYSTEM

L A H O l F B O H L U G f R R E N U V A T l O h P AG E L

RE LATIVE FLU AT REPCPT SEQUEVCk

=

T F L

~ O R K - W E E ~ - - u ~ C ~ ( ~ ~ N C - F I N I S H E D

O

AS DF 15 CE C7 5 PR EO IC TE O COMPLETION........ .2OFEB7-6

CURRENT COhTRACT COMPLETION..15JAN76

VARIANCE I h WORKING OA-YS - 24 -

0 1 3 8 0 C L 39 1 1 L A T t O C F

MTL STUOS

1ST FLR YEST

C 1 3 9 1 C 1 4 1 4 1 L b 1 H

CFF HTL

STUOS 1ST FL P EdST

0 1 4 1 4 0 1 4 2 2

2 LATH CFF

MTL STUDS

ZYD FLR YEST

F l N l S H E AR L Y EA R LY

.

RE

L

PE L

D AT E S TA RT F I N I S k S TA RT F I N I S H R F L K

0 1 4 2 2 - 0 1 4 3 5

1 LATH CFF HTL ' LOS ZYD- FLR EAST ..

1 ,1437 21 4 41

1

FLECT CFF CT3hDUl T 1ST FLR YEST

' 2 1 4 4 1 0 1 4 4 6

1 E L E CT C FF C C K I U I T 1 ST F L R E AS T

~

1 4 4 8 ' 21 45 4 1 E LE CT C FF C O hD U IT ZND F L P WFST i 9 0 E C 7 5 3 0 ~ ~ ~ 7 5 2 1 b K I I 7 54 N O V 7 5 - 2 6

' 1 4 5 4 C 1 4 5 F 1 L E C 1 C F F C O N D U IT 2 YD F L P E A S T B O E C .7 ' 3 1 U E C 7 5 2 4 h O V 7 5 2 5 N O V 7 5 2 0

0 1 4 5 0 0 1 4 6 4 2 I Y S U L C FF I PJ SU L AT IC N I S T F L R W EST 3 1 0 E C 7 5 0 2 J A h 7 6 2 5 h O V 7 5 2 7 N O V 7 5 - 2 6

0 1 4 6 4 0 1 4 6 7 I h S U L C FF I " 1 S U L A T I O N 1 S T F LR E A S T

-- - O Z J A N 7 6 0 6 J A N 7 t 2 7 h O V 7 5 0 1 D E C 7 5 - 2 6

C 1 5 i l C 1 5 0 7 1 F LB G C FF P L C C F I K T U R E S 1 S T F L k E AS T & J A N 7 6 . 0 7 J A N 7 6 O l C E C 7 5 0 2 0 E C 7 5 - 2 6

0 1 5 1 1 0 1 5 1 5 5 T PA RT C C F T C I L E T P b R T I T l O N 5 1 S T F LR E AS T 0 7 J A N 7 6 4 J A N 7 6 0 2 D E C 7 5 0 90 E C- r5

_y=

0 1 5 2 0

C 1 5 2 2 5 l P A R T C F F

T O I L E T

PARTI T IONS 2NC

FLG h E S T 1 4 J A Y 7 t

2 1 J A N 7 6 0 9 C E C 7 5 1 6 0 E C 7 5 - 2 6

0 1 5 2 5

0 1 5 3 5

5 l P d R T C F F

T 3 1 L E T P A R T I T l O h S 2 h C

FLR EbST

2 1 JA h 7 6 2 B J A N 7 6 1 6 D E C 7 5 2 3 C E C 7 5 - 2 6

'

0 1 5 3 5 0 1 5 6 5 2 I A C C ' C FF T O I LE T A C CE S SO IE S 2 PD F L P E PS T 2 A J A N 76 3 0 J a N 7 t 230Ec< 2 5 0 E C 7 5 - 2 6

i

0 1 5 6 9 0 1 5 7 2 1 G


9/21

up later in time than their Relative counterparts. It is for this reason tha t a

Relative Report does not refer to LAT E STA RT or L ATE F INISH.

Note in Figure 5-5 that the float field is headed RFL which stands for

RELATIVE FLOAT. RFL is calculated by subtracting EARLY START from

RELATIVE START, and when the revised project schedule has been

lengthened in any way, it wil l be a negative number. For this reason, some

CPM users when referring to float calculated in this manner will erroneously

cal1 it Negative Float. This practice should be avo ided since if the revised

project schedule is less in time than the original, the RFL value will be positive.

It doesn't mak e mu ch cense to cal1 it negative w hen it can be either.

The C ontro l Monito r Phase can, of course, prod uce revised versions of th e

Resource Reports and the Cash Flow Analyses described in the chap ter on the

Scheduling Phase. The,only difference in these revised versions is that they

project resource and cash posit ions for the wo rk remaining as of the m onito r

date.

COST STATUS REPORTS

The CPM user natural ly wants t o kn ow th e t ime status of his project, bu t in

addit ion, he wants to know its Cost Status. The Control Monitor Phase

produces a report tha t indicates just h o w the project looks from a cost

standpoint.'

This report whic h is called the Cost S tatus Report is prepared in the

following fashion:

As described in Chapter 4 the contractor must first prepare cost estimates

for each of the activities in the project. Then, for activities that have been

completed, as shown in the MONITOR Report, appropriate costs can be

calculated. This gives the contractor an ES TIMA TE D COS T TO DATE. This

estimated cost is then a yardstick against whic h the contractor can com pare

the ACT UAL COST TO DA TE for that

articular

phase of work. The actual

costs are relatively easily collected. Anyone who keeps books can determine

his actual costs. CPM, however, gives him at any tim e during the progress of

the project an estimate of the cost for the w ork reported as complete so th at

effective comparisons can be made. W ith this report the co ntractor does no t

have to wa it unti l the end of the project to discover the status of his costs.

Cost Status Reporring is described ar great length in Chapter of this book.

This secrion will discuss it as a function of The Control Monitor Phase.

6


10/21

The process of Cost Status Report creation can best be explained with a

sample project. Consider that th e arrow d iagram b elow represents a project for

which periodic Cost Status Reports were desired.

The f irst step necessary to be taken would be the definit ion of the costs

involved per activity. Assume that th e table in F igure

5-6

describes the costs

estimated for the com pletion of each ac tivity. This c ould be prepared any t ime

prior to the pro duc tion of a Cost Status Report, and it cou ld have been revised

at any time.

The entries in this table merely indicate h o w m uch money sho uld have been

spent for various categories (type s) of expense wh en each activity had been

f inished. For example, wh en ~ c t i v i t y is f in ished, the contractor wil l owe

somebody 488.10 for bulldozer expenses, 135.00 for general labor, and

100.00 for engineering expenses. W he n B is finished, 1,085.30 w ill be ow ed

for con crete, 309.10 for concre te labor and 80.00 for general labor. The cos ts

for

al1 activities in the project are similarly described.

The second inp ut is info rm ation a.bout w hic h activities have been finished.

Notice in Figure 5-1 that the Marked-up Schedule indicates clearly what

activities are completed. This is, thus, a good source of this second input.

Suppose that at the time a Cost Status Report was desired for the project

described above, activities A, B, C, D, C and I had been finished. W it h this

information, the ESTIMATED COST

TO

DATE for the various categories

types) of expense can be calculated.


11/21

I Activity Category Expense

1

2

A 48 Bulldozer 488.10

46

Gen. Labor 135.00

73

-

Engineering 100.00

2 3 15 Concrete 1,085.30.

16 Concrete Labor 309.10

46 General Labor 80.00

2 5 C 51 Excavation 1,955.10

73 Engineering 190.30

3 4 D 10 Architect 100.00

4 8

F

(No Expense)

4 9 G 22 Carpenter 478.35

18 Lurnber 1,009.90


5 - 6 E 38 Masonry Contract 1,800.00

6 - P 10 - Architect 75.00

73 - Engineering 50.00

6 - 7 38 Masonry Contract 1,800.00


7

10

J

(No Expense)

8 12 H 15 Concrete 975.00



9 11 K 46 General Labor 90.00

10- 13 N 22 Carpenter 195.00

18 Lurnber 555.30

11 10 M 15 Concrete 1,907.00


11

12 L 46 General Labor 195.00

12- 13 O (No Expense)

FIGURE 5 6

6


12/21

If Ac tivity A is finished, the projec t shou ld have cost $488.10 for catetory 48

Bulldozer, $135.00 for General Labor, category 46, and $100.00 for

Engineering. If Activity B also is complete, the costs indicated for it will be

added to those incurred for A. This wil l add costs in two categories

Concrete and Concrete Labor and increase the cost of one already

calculated. General Labor will go from the existing $135.00 to $215.00 because

of Activ i ty

A

($135.00 for A and $80 for B). The com pletion o f Ac tivity C will

create a cost value for category 51

Excavation, and increase the cost for

Engineering by $190.35. All othe r finished activities w ill con tribute an

amount of expense to the project.

When al1 activities reported as finished have been noted, the amount of

money

that should have been spent

based on work reported as comp lete has

been calculated. In the case of th e projec t described above, the EST IMATE D

COST TO DAT E (Table A ) wo uld have been calculated for each category and

for the project in total.

T BLE

ategory

10 ARCHITECT

15 CONCRETE

16 CONCRETE LABOR

38 MSNRY CONTRACT

46 GENERAL LABOR

48 BULLDOZER

51 EXCAVATION

73 ENGlNEERlNG

TOTAL

OR

THE PROJECT

E s t i m a te d o s t t o D a t e

A second kind of information can be calculated if the contractor has

estimated his per activity expenses. He can use the table in wh ich

al

costs are

indicated to determine wh at was the total budge t (estimate) for each category

of expense. Concrete, for example, contributes to the cost of activity B

($1,085.30), H ($975.00) and M ($1,907.00). The total budget for concrete in

the p roject described above is $3,967.30. This means that w he n the projec t has

been completed, the contractor will expect to have spent $3,967.30 for

concrete. The to tal estimate for each category of expense can be fou nd in the

same way, and if it were done for the project above, The Cost Status Report

would begin to grow as shown in Table B.


13/21

T BLE B

Category

10 ARCHITECT

15 CONCRETE

16 CONCRETE

L BOR

38 MSNRY CONTRACT

46 GENERAL LABOR

48 BULLDOZER

51 EXCAVATION

73

ENGlNEERlNG

Estimated Total Cost Estimated Cost to Date

TOTAL FOR THE

PROJECT

$8,248.50

W ith this inform ation it is possible to determine wha t percentage of the total

money to be spent has been spent based on the activities reported as

complete. The contractor can see that he has completed activities involving

27% ($1,085.30/$3,967.30) of wha t he wil l s ~ e n d or concrete, 25%

$309.10/$1,219.10) of his concrete labor budget, 100% of the masonry

contract money and so on through each type of expense. The Cost Status

Report, including this item of information, would appear as in Table C.

T BLE

C

Category

Per C ent

Est To tal Est Cost

Spent Cost

l o D ate

10 ARCHITECT

15

CONCRETE

16 CONCRETE LABOR

38 MSNRY CONTRACT

46 GENERAL

L BOR

48

BULLDOZER

51 EXCAVATION

73 ENGlNEERlNG

This informa tion is valuable in and by itself because it indicates h ow m uch

activity has been accomplished cost-wise. However, if the co ntrac tor supplies

inform ation abou t h ow m uch was actually spent for concrete, for general labor

and for al1 other items of expense, he can find ou t whether or no t he is on

schedule in terms of cost.

As a project proceeds, the contractor collects bills, invoices and so forth as

part of his normal bookkeeping procedures. These at any particular point in

time are ACTUAL COSTS TO DATE. If these actual costs are known, two

additional items of info rma tion can be calculated and placed in the Cost Status

Report. The DO LLAR DIFFERENCE is the result when the EST IMATED COST

TO D ATE for a category is subtracted fro m that category's AC TU AL COST

TO DATE. The DEVlATlON for a category is the ratio of actual costs to


14/21

estimated costs (AC TU AL COST TO DATE ESTIMATED COST TO DATE).

The DEVlATlON for a category indicates what percentage of the estimated

cost is actually incurred; the DOLLAR DIFFERENCE is the amount and

direqt ion b y whic h the ESTIMATED COST TO DAT E was missed.

er

Cent Est To ta l

C ategO v S pent ~ o s t

10

Architect

57

$

175.00

15

Gancrete

27 3,967.30

16

Concrete

Labor

5 1,219.10

38

Masonry

Contract

100 3,600.00

46

Gen Labor 39

1,085.60

48

Bulldozer

100 488.10

51

Excavation

100 1,955.10

73

Engineering

85 340.30

Es t C os t h t u a l C o s t

l o D a t e l o D a t e

Dev ia t ion

In the pro ject tha t has been used as a sample for the Cost Sta tus Repo rt, the

ACTUAL COST TO DATE entr ies must be assumed. Assuming the actual

costs indicated, the completed Cost Status Report based upon activities

reported as finished and on actual costs collected would look like Table D.

This report tells the contractor what is the cost status for al1 categories of

expense defined by him. The f inal Cost Status Report contains the inform ation

described above as well as summary type data for the entire project. The

completed Cost Status Report for the project described above is shown in

Figure

5-7

on the fol lowing page.

The Cost Status Report,

because i t indicates how much money is being

spent in relation to what was expected is a very valuable report. The project

manager can tell from this report which areas of expense need investigation,

wh ich e stimates perhaps need revision, an d h o w he is doing in general as far

as his costs are concerned.

There are variations o n the repo rt sh ow n here as a sample. One can include,

as part of the Cost Status Report, inform ation abou t the cost of change orders

or other revisions or separate the labor costs from the material costs just t o

ment ion only tw o.

One question that always arises about the procedure described above

concerns itself with activit ies that have started but have not yet been

completed. A t the tim e the Cost S tatus Report is desired, activities in this sort

of circumstances are assumed to be on schedule, and their costs are

pro-rated accordin g to h o w ma ny days they have been in progress relative

to their schedule dura tion. To illustrate: if Ac tivit y E were a six-day a ctivity tha t

had

been reported as STAR TED three days before the effective date of the

Cost Status Report, the Cost Status Report would have included only half

316)

of the costs involve d for th at activity.


15/21

COST STATUS REPORT

Total Estimated 15.069.05

Revised Estimate 14.975.15

Cost To Complete 6.810.55

Categoiy Budget

Number Name Amount

Architect

Concrete

Concrete

Labor

Masonry

Contract

Gen Labor

Bulldozer

Excavation

Engineering

Pement

Complete

Est Cost

To Date

Est Cost To Date 8.248.50

Act Cost To Date 8.164.60

Dollar Difference 83.90

Act Cost Dd la r

To Date Difer Deviation

400.60 20.00 Over .95

527.35 39.25 .O8

1955.00 O

.99

260.00

30.30 Over .89

FIGUR 5 7


16/21

REOUlSlTlON BACKUP REPORTS

Since part of the Control Monitor input data is information about what has

been completed Activi ty Percent Complete) and since one of the initial inputs

is a cost value per activity, al1 the elements are available to produce reports

that support contractor requisitioning.

Figure 5-8 presents one page of such a report. It contains al1 the activities for

the sprinkler subcontractor whose code is sprnk. The cost value per activity

was assigned by the contractor and agreed to by the owner. The PERCENT

COMPLETE figure represents the portion of al1 the work to be done on the

activity that the contractor and the owner agree should be paid for. The report

calculates for each activity how much should be paid to the contractor,

therefore. The report also sums the amount earned for al1 activities to produce

a total for the subcontractor.

All subcontractors have their own groupings of activities, and each is

treated in the manner described above. When al1 trades have been presented,

a summary report representing the totals for each is presented. Figure 5-9 is

such a summary.

An interesting feature of The Requisition Backup Report is illustrated in

Figure 5-8. Notice that one of the activity descriptions refers to

Material-On-Site and, in fact, that the cost is offset to the right of the costs

presented for other activities in a column also noted as Material-On-Site.

This feature facilitates payment for materials delivered to the site, the cost of

which is included in the cost value assigned to perhaps several activities for

which no work has yet been accomplished. To indicate that such activities

were partially complete in order to get the Requisition Backup Report to

generate an amount earned value equal to that which the contractor is due for

the material on site) distorts the project progress position of the activity and in

many cases is not allowed by the owner. The report must therefore have some

way to generate payment for materials and the Material-On-Site MOS: type

of activity is the way.

When such an approach is used, a special artificial activity coded to

represent only material and to be ignored by the CPM Schedule Reports) is

added to the CPM data set. The special coding generates the result illustrated

in Figure 5-8. In addition see fol lowing paragraphs) CPM-based Payment

Documents will accumulate Material-On-Site amounts for entry on the final

payment authorizations.

Use of MOS activities must be carefully disciplined. It must be borne in mind

that a cost has been entered into the system twice once in the cost assigned

to the artificial MOS activity and again in the cost assigned to the activities in

which the material will be used). For this reason the user must adjust the MOS

value to reflect subsequent payment via completion of work activities.

Requisition Backup Reports can be used by the contractor to justify what he

seeks in payment from the owner, and it can be used to establish what the

contractor should pay his subcontractors.

The cost values assigned each activity for requisition to the owner can be

factored by CPM by any percentage to produce higher or lower values. If in the

case of the subcontrac?or illustrated in Figure 5-8 the agreement between the


17/21

0 1 3 7 4

0 1 4 1

7

S P F UK S P f i Ih K L ' QS w i T k i H f q

0 1 4 0 8 Cl5l ;

S P F ' J K

Y c Q

I ' J S T A L L F AP T.L .dK5

1 4 1

1 5 1 ' S P r V K " 6 I :i CT /T FS T

FY- lP P .CTZL f 5

U 1 4 1 7 U 1 4 3 1

S P F Y K S F 2 I N K L C Q S F O V d3l 1 %

0 1 4 1 7

0 2 4 9 9 S f 0 h C

b r

5 P F l h K L C g S C CA V cGl - 1N

1 4 3 1 L l i t 9 S P E U C T E S T S CK T 4 KL E ;S

P?

E V

T H l S

O U C GE T P C T P C T

C C U S T

E A H L E D

P A G E 2 7

T H I d P PL I C A T I J a F A R N E U


18/21

z

-

e

O

i i L

-

A

V

d

d L A L -

" 3- ,

4 -0-

x

2 2 -

~ K d L ~ r L d u V 8 P l d i d d l

< Y > d , a , ~

. n f i o t - ~ - > ~ < ~ .n d h J s a

c U J C < 3 ~ 2 a , ~ - i . . ~ a 1 , d rc ; 9 - ~ - i ; - a c . < a

. x V d O U A 3 1 - 2 7 x ' x l i l a U . 1 m r l > . ~ . . ' I + , -

FIGUR 5 9


19/21

contractor and the sub was for 117,471.20 when al1 his work was completed.

the ratio of that amount to what had been agreed to between the contractor

and the owner ( 133,490.00) is 88 . This ratio would be the factor applicable

to the amounts earned for that sub, and the result of such factoring would

justify and support payment to the sub. Figure 5-10 is the backup for payment

to the subcontractor represented t5y the page illustrated.

P A Y M E N ~

OCUMENTS

Many owners use CPM as the initial input to an automated contractor

payment operation. One such organization is the Veterans Administration

whose payment document is illustrated in Figure 5-11. Use of such an

approach has significantly reduced the amount of time necessary for

processing of payments, the result of which is faster payment to the

contractor.

Note in the Payment Document illustrated in Figure 5-11 that a separate

entry is made to accommodate Material-On-Site values. These values are

those that were discussed earlier in this chapter.


20/21

C P M II A UT OMA T E O

CONTROL

s Y s T E n

~ n ~ O lF BD W NG E R R E N [ N * I O N

.

.-

.

. . PAG E

COST EARNEO REPORT BY TRAOE

A S O F 1 5 0 E C 7 5

TRAOE

=

SPRNK

P R E V T H I S

l lOLHT W TE R I A L

BUDGET

-

PCT PCT

c r ~R~DE .

EEDES R 1

O

ON _ -

.

_

_

.

_

-

. E ~ N E D M S I T E

0 1 3 7 4 0 1 4 1 7

S P R N U

SPRINKLERS

un R G H IN

0 1 4 0 8 0 1 5 1 9 S PR NK M R INSTALL FOAM TANKS

0 1 4 1 0 0 1 5 1 9

S PR NK MER I N S T / T E S T F O M N O Z Z L E S

0 1 4 1 7 O 1 4 3 1 S PR NK S P R I N K LE R S

F C M

RGH I N

0 1 4 1 7 - 0 2 4 9 9

S P R N K M O S S P R I N K L E R S F C A M Rt I N

6 1 4 3 1 0 1 4 4 9 S PR NK T ES T SPR I N K L E R S

ci

I

*

*

TOTAL H R TRAOE

m

Y

117,471.20

AMOUNT EARNED 10 DATE .

P R EV IO U S A M W W E A R M D

T H I S A PP L I C A T O N E AR NE D 9 36 8 0 0


21/21

C.@. CWAhGF

R C

P P EV R F P T D

S Y U .

A 1 .3

C.O. P R O C F F D 0 9 C P P F V ? E P T O N O. O T C

FIELD

C H AN GE

ne

P R E V

Q P T Q S Y M .

1 1

F I E L 0 P RO CE F9 O C F REV Q E PT 9 SVM. A 7

T I M E E X T E N S I O N S F RE V R F P T f l NO. 1 T O

I S S U E D T H I S P F R 1 0 0 s C O 2 3 CAC

Prl

H

I S S U t U T H 1 S D E R I ' 7 0 F Pn -H 1 C A N C)

I S S U E D T U 1

5

P E Q I C I C F C O - 3 4

I S S U E O T H I S PEQ1 P F C O - 3 5

I S S U E U T H l Z PF Q l C O F C q - 3 6 C A C FPC

l S S U E 0 T H I S P E R I C O P F r l - B I C A P I C )

I S S U E O T W I S P F P I C D C C ? -q 7 1 F P T - K )

I S S U t U T H I S D E Q I C C F C O - 3 8

I S S U E D T U 1 S P E R l C r F P q -K I C A N C

I S SU EO T H l S P E R I C P F C C - 1 9

I S S U E ~

T n r s O E ~ I C O r v

C R l G l N A L C O Y T R d C 7 Au OU hT

Y E T C H A N G E

C U R R E N T C O b ' 9 A C T A M G U N T

V A L U E

OF

W qP K I N P L A C F T O 1 2 - "1 - 7 5

V A L U E F W C Q K I F ( S T b L L E C

-

C U R QF V T P E R I O O

V A L U E O F M OQ K I N P L A C E TC 1 2 - 3 7 - 7 5

V A L U E F M A T E R 1 4 L O h S I T E

V A L U E O F hOo N O 1 C O UP L ET E O

E A RY EO T C C AT E ( 1 2 - 3 0 - 7 5 )

A MO UN T R E T A l N E C (1.7 30 F l X E D A M C t J N T )

T O T A L P Q E V 1 3 U S P I V M E Q T

P AY HE NT T H I S P F R 1 3 0

T O T A L P A V P E' J T T C D A T '

F I G U R E 5 11