Cost Controls/Cost Management
Cost control and cost engineering provide a systematic approach to identifying and analyzing pertinent cost and schedule information. The project team to troubleshoot potential problems, assess preventive and corrective actions, and to forecast final costs uses this information.
The primary purpose of cost control is to connect the budget, the schedule, and actual cost data for accurate management reporting. Once the baseline is established, tracking installed quantities and expended man-hours against the budget makes productivity comparisons. The key to this process is accurate accounting of the quantities and costs.
One of the most important tools of any project that directly impacts both the quality and the cost is the Project Schedule. When CCCS International’ scheduling specialists present the master project schedule we have the utmost confidence in its accuracy. You can be assured that the high reliability level of our schedules and our commitment to schedule adherence will be catalysts to keeping your project on track.
The most recent addition to CCCS International’ management toolbox is the use of interactive scheduling workshops. Our workshops draw on all project resources (your representatives, A/E, CCCS International construction experts, contractors and subcontractors) to create project schedules in real time. Together, we create “what if” scenarios (adding or adjusting project components, shortening or lengthening installation times, adjusting delivery schedules or manpower estimates) to test the validity and “reality” of the project schedule.
In essence, “If A changes, then B happens, C happens, and D happens as a result.” Through these scenarios, the entire project team sees the affect their individual work has on the total picture, in real time. We believe strongly in the positive results of interactive scheduling, and now utilize it on all CCCS International managed projects. We see it as an integral component not only of project management, but of synergistic relationship building.
- Interactive total team scheduling
- Primavera P6
- Building Information Modeling (BIM)
- Expedites the process
- Real-time data
- Accurate view of the total schedule
- Builds the team
CCCS International’ procedures for procurement, expediting, and receiving have been essential for project control. Our procedures provide a procurement process which allows for the best possible pricing from vendors and subcontractors. This is accomplished with a well-defined procedure involving an approval process to allow you the final input. Developing bidders lists, bid packages, bid evaluations, and contracts administration are provided services.
Once the contract or purchase order has been written we enter the details of the purchase into our expediting program, which allows the information to interface with the project schedule. The expediting report allows the management group to monitor the deliverables from the date of purchase to the point of installation. This system is critical in managing the design and construction schedule and is an area that we emphasize in our project management.
Our receiving clerk utilizes the same expediting/receiving report for managing the storage location of the materials and equipment received for the project.
The receiving clerk files and distributes receiving reports on each delivery and enters that date into the expediting/receiving report.
A signature is required and documented when equipment or material is taken from storage by the field tradespeople. This is critical for tracking and communicating the status of the materials and equipment received, and ensures close adherence to project installation schedules.
- Experienced professionals (procurement/expediting)
- Tested and honed process
- Buying power – national, state, local
- Expediting total project materials and equipment
- Just-in time materials handling (expediting)
- Efficient on-site material flow (receiving)
- E-procurement system in place
- National database for commodity materials
- Lowest cost / best value
- On-time delivery
- Labor efficiency on job site
- Reduces owner’s administrative burden
All engineering and vendor drawings are tracked for the date of receipt, revision dates, and distribution. Shop drawings and other submittals are logged in when submitted and approved. Engineering information requests are documented through the use of CCCS International’ RFI (Request For Information) system. A standard form is used, numbered, and logged into the system. A weekly review of the RFI and shop drawing list is made to assure construction activities are not impacted by slow responses.
A written project report is tailored to the project’s specific needs. Information regarding manpower; progress, engineering, and construction concerns; safety status and a financial statement are incorporated into the report and distributed to all team members.
Weekly construction meetings, along with other planning and review meetings with team members, have agendas and timely follow up with meeting minutes.
- Complete design-to-occupancy project document control system
- Integrates photos/images
- Electronic transmission of drawings
- Accountability, real-time tracking and reporting of project status
- Accurate, up-to-the-moment information
CCCS International’s policy is to document all meetings and critical phone correspondence as it occurs. Our meeting policy begins with an organized agenda and is followed by meeting minutes to document the event. Meeting minutes will include a concise documentation of the items discussed and the results of the discussions, along with action items, responsible parties and completion dates. This information is distributed either electronically or by hard copy as the need dictates.
At the end of each month a report is issued that summarizes the status of the project. The report starts with an executive summary and contains the status of engineering, procurement, construction, budget, safety, and schedule. The narrative is supported by actual schedules, cost reports/spread sheets, and other documentation.
The goal of Project Financial and Schedule Management is to maximize project value. The mission is to connect the estimate, schedule and accounting data in order to provide timely and accurate financial information for the best possible investment decision-making during the project. The estimate provides a baseline for establishing a Control Budget and is the benchmark for financial analysis.
The first step in preparing a budget, schedule and cash flow is to understand the needs of the owner. According to those needs, the budget will be developed in a clear and concise format, and will provide the ability to drill down into appropriate project financial detail. Budget risk and opportunity analysis reports are developed and updated monthly along with a contingency management report.
A strategic level critical path schedule is developed based on the needs of the owner regarding project commissioning and completion dates, and major project milestones. The project budget and schedule are integrated to create cash flow models. The most appropriate cash flow model will influence in part the final format and content of the master schedule and budget.
Cost reporting will be customized to fit your needs and the overall project team. Cost areas will be identified, tracked and integrated into comprehensive project reports. Forecasted and actual cost data from the control budget are combined with the project schedule to produce current cash flow projections.
Combining Project Costs
The CCCS International Project Financial Management System can combine the Owner’s costs for equipment and furnishings, along with architectural/engineering and construction costs for Total Project Control. Varying types of costs (i.e. taxable and nontaxable) are tracked in detail, and can then be combined into one comprehensive report.
Committing Costs Daily
As purchase orders and contracts are generated, the costs are committed immediately in the CCCS International Project Financial Management System. This feature facilitates current and accurate forecasting of cost that is essential for sound decision making during the project.
Our policy is to maintain a quality assurance program, which applies to all design and construction activities. Our program provides for the documentation, inspection and testing required. The project team will work together to establish, implement, and maintain the program, which has been collectively agreed upon prior to the start of construction.
We take the quality aspect of construction very seriously. Ultimately, a quality project means customer satisfaction.
As an example, we are very proud of our proactive approach to the prevention of mold growth in new buildings. Our Enclosure Quality Management Procedures not only address the issue of moisture during construction, but also ensure a building enclosure that will withstand moisture penetration under extreme conditions. We utilize a rigorous evaluation and checklist system for above ceiling and in-wall inspections. This is especially important for complex electrical and piping systems.
- Comprehensive QA / QC field program in place
- QA / QC engineers on-site
- ASME Certified
- Ensures construction to industry quality standards
- Reduces cost associated with rework
- Can expedite commissioning process
A key element to the success of any project is the checkout and startup of installed systems. CCCS International has trained personnel with the experience to lead the engineering and construction checkout and startup effort. CCCS International’ approach to project commissioning includes an organized plan developed for, and tailored to, the specific project.
Our specification requires that all contractors/subcontractors submit multiple copies of Operation and Maintenance Manuals. In addition, subcontractors will be required to provide training sessions on the building systems. All required manuals, warranties, drawings and training must be provided to your satisfaction before final payment is made to the subcontractors.
Lists of equipment and systems are generated for tracking progress to fit the startup schedule. CCCS International has planned and led this effort many times on numerous projects and recognizes the importance of team participation for a successful project result.