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Project Time Control In Building Construction
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CHAPTER ONE
INTRODUCTION
Construction has turned into an ever more complex mesh of relationships between increasingly accelerating processes, decisions and actions. At the same time, however, there is a development toward sustainable
Just as any other project, a construction project includes certain development phases that differ from each other in terms of the amount of time and financial funds needed for their completion. In financial terms, the construction phase of a construction project is by far the most dominant one. Research has shown that sometimes up to 95% of the total project cost is spent on the completion of this particular phase, which is why the costs incurred during the construction deserve special attention in terms of cost dynamics i.e. cost allocation in relation to time.
In the case of construction projects, the analysis of cost allocation in relation to time is a pressing issue. It partly pertains to the analysis of the regularity of the relationship between these two variables during various project phases or, in other words, the analysis of the possibility of applying the s-curve method in regards to certain activities and problems.
When a construction contract is concluded, the total cost of works is defined, while the data about the monthly allocation of cost, for the presentation of which the s-curve method is mostly used, remain unknown. Research concerned with the use and development of the scurve method is very rare in Croatia. The analysis of literature [3], [4], [5], [6], [7], [12], [13], has shown that in several published works related to this topic and the authors mainly focus on the study of the curve trend analysis and the development of the information system for planning and controlling project cash flows.
The conducted research produced the data on construction projects executed in Croatia that were further analyzed on the basis of statistical methods for database processing and system theories. Various theoretical methods of project management, construction organization and planning were used in conducting specific parts of the research. Regression methods and best-fit analyses, especially the quantitative and qualitative analyses of the theory of risk
management, were used in drawing up a methodology proposal for modeling the cost scurve.
Project time control is that element of a project that keeps it on-track, on-time and within budget. Project time control begins early in the project with planning and ends late in the project with post-implementation review, having a thorough involvement of each step in the process. Each project should be assessed for the appropriate level of control needed: too much control is too time consuming, too little control is very risky. If project time control is not implemented correctly, the cost to the business should be clarified in terms of errors, fixes, and additional audit fees.
Control systems are needed for cost, risk, quality, communication, time, change, procurement, and human resources. In addition, auditors should consider how important the projects are to the financial statements, how reliant the stakeholders are on controls, and how many controls exist. Auditors should review the development process and procedures for how they are implemented. The process of development and the quality of the final product may also be assessed if needed or requested. A business may want the auditing firm to be involved throughout the process to catch problems earlier on so that they can be fixed more easily. An auditor can serve as a controls consultant as part of the development team or as an independent auditor as part of an audit.
Businesses sometimes use formal systems development processes. These help assure that systems are developed successfully. A formal process is more effective in creating strong controls, and auditors should review this process to confirm that it is well designed and is followed in practice. A good formal systems development plan outlines:
1.1 BACKGROUND OF THE STUDY
The survey shows that most projects encounter cost and time over-runs (Williams Ackermann, Eden, 2002,pl92). According to Wright (1997)'s research, a good rule of thumb is to add a minimum of 50% to every time estimate, and 50% to the first estimate of the budget (Gardiner and Stewart, 1998, p251). It indicates that project is very complex and full of challenge. Many unexpected issues will lead the project cost and time over-runs. Therefore, many technologies and methods are developed for successful monitoring and control to lead the project to success. In this article, we will discuss in the construction phase, how can a project manager to be successful in time and budget control. Another part we will discuss what pitfalls will wait for the manager in his endeavors to monitor and control the project.
An activity duration estimate must be based on the quantity of resources expected to be used on the activity. The estimate should be aggressive, yet realistic. Throughout the performance of the project some activities will take longer than their estimated duration, others will be done in less time than their estimated duration, and a few may conform to duration estimates exactly. Over the life of a project that involves many activities, such delays and accelerations will tend to cancel out one another.
CHAPTER ONE -- [Total Page(s) 3]
Page 1 of 3
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