Project Cost Forecasting Check List

1 General Processes

1 Quantity Development and Reporting

Take-off or collection, tabulation and reporting of all quantity information based on project code of accounts and
standard units of measure
Update total forecast quantities based on current design take-offs

Review status of quantity take-offs based on latest issued or approved for construction documents (AFC or IFC)
Update total installed quantities
Load quantity forecast and installed data into the Company Progress application
2 Work Scope Monitoring / Change Management
Identify Work scope that has been deleted or added
Review pending change request or notices
Update change management log and reflect impact in the monthly project cost and schedule forecast
3 Progress and Performance Measurement
Review project progress and performance to verify and evaluate the remaining work, including any early
warnings
Review and dicuss progress impact (positive and negative) to (project team) engineering, procurement,
fabrication, construction and commissioning costs
4 Planning and Scheduling
Update schedule using best judgment for actual progress and expected start and finish dates for all current and
remaining activities

Analyze and incorporate any impact to the schedule activities and milestone dates through critical path analysis.
Review any impact form productivity and availability of resources including resource leveling, personnel
availability, staffing peaks, physical restraints, bulk commodity production rates and adequacy of major
construction equipment
Determine the impact to cost and project milestones based on the current schedule
5 Procurement Status
Verify that the status report includes items on the latest equipment list issued by engineering
Review status of open purchase requisitions to ensure any additional scope or cost is identified
Review procurement items in the bid or quotation phase for any potential cost variances
Review shipment and delivery status reports for potential improvement or delays, including a check of ETA
agianst the field need dates
Review schedule for final purchasing and deliveries dates to forecast any additional staff requirements, including
costs for expeditiing and escalation in pricing
6 Risk & Opportunity Management
Develop risk register during the estimating and planning phase
Update and review project risk and opportunity register for potential cost impact after project award, through
completion
Evaluate risk & opportunity register for potential and realized changes to contingency forecast
Evaluate level of impact for each item in the register as risk & opportunity items do not always balance with
overall contingency forecast on a project
7 Reconciliation or Variation Log
Provide explanation of all significant changes from the budget or previous forecast each month, including early
trend warnings, potential or pending contract change notices
Categorize variations by scope, pricing, productivity, etc.

2 Material or Equipment
1 Engineered Equipment and Items
Review latest tagged quipment list to make sure all items have been included in the forecast
Review major equipment purchase orders for potential bonus and penalty impact
Evaluate sales and use tax requirements

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 Review allowance items to make sure they are incorporated in the overall cost forecast; this may include tax,
freight, duties and vendor representatives
2 Bulk Material Analysis
Review quantity development for the latest design take-off for each cost code related to bulk material
procurement
Review current cost and commitment data from JD Edwards and Company
Verify that all purchase orders have been included in the current commitments
Review open purchase requisitions and RFQs for future purchase orders
Verify that major open-ended unit price purchase orders in this category are posted internally (committed) based
on an estimated or budgeted quantity or revised as design quantity take offs become available
Confirm uncommitted material costs are forecasted based on the ETC quantities at one of the following rates:
recent rates in other similar purchase orders, budget estimates or specific vendor quotes.
Utilize budget unit prices ( as necessary in the early part of the project) until firm pricing from purchase orders are
issued and more information becomes available over the life of the project
Evaluate sales and use tax requirements
Review allowance items to verify they are incorporated in the overall cost forecast; this may include tax, freight,
duties and vendor representatives

3 Labor (self-perform)
1 Engineering
Review current progress and remaining man hours
Analyze Earned Value and to-date trends
Forecast cost based on known remaining work scope and apply performance factor to ETC hours and projected
ETC wage rates
2 Procurement
Review remaining procurement status for expected completion dates for purchasing and delivery
Update staffing forecast to support any changes in the procurement requirements for the project
3 Construction
Review expended hours and by cost code
Analyze to-date and ETC wage rates (including overtime requirements)
Review progress and Earned Value by cost code
Review quantities
Review final labor forecast variances based on productivity, wage rates and EAC quantities
4 Commissioning
Review current progress and remaining man hours
Analyze Earned Value and to-date trends
Forecast cost based on known remaining work scope and apply performance factor to ETC hours and projected
ETC wage rates
5 Site Support or Indirect
Review remaining site schedule duration for each category
Forecast ETC hours and wage rates for remaining site support labor to support overall site schedule
Project and Home Office
Review and update staffing plan for project and home office

Review labor cost trends to-date and forecast ETC based on expected staff durations from the project manager
6 Site Office
Review and update staffing plan for site office

Review labor cost trends to-date and forecast ETC based on expected staff durations from the site manager

4 Subcontracts
1 Engineering

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 Review current schedule for subcontracted activity
Analyze Earned Value and to-date trends
Review work scope with project engineering manager to determine any known increases or decreases
Review and forecast any current and pending change orders
2 Procurement
Review current schedule for subcontracted activity
Review work scope with project manager to determine any known increases or decreases
Review and forecast any current and pending change orders
3 Fabrication & Assembly
Review current schedule for subcontracted activity
Review work scope with project manager to determine any known increases or decreases
Review and forecast any current and pending change orders
4 Freight Forwarding
Review current schedule for subcontracted activity
Review work scope with project manager to determine any known increases or decreases
Review and forecast any current and pending change orders
5 Construction
Review current schedule for subcontracted activity
Review work scope with project manager to determine any known increases or decreases
Review quantity development process
Review and forecast any current and pending change orders
6 Commissioning
Review current schedule for subcontracted activity
Review work scope with project manager to determine any known increases or decreases
Review and forecast any current and pending change orders

5 Indirects & Other Expenditures

1 Indirect Cost
Review project schedule and determine support requirements for site temporary facilities
Review project engineering and management team travel expenses and living allowances
2 Construction Equipment
Develop and maintain construction equipment schedule
Forecast costs based on known equipment rental rates, including mobilzation and demobilization charges and
extended shifts
Review fuel and maintenance cost

6 Escalation
Review each cost category (above the line of escalation, contingency and margin) for potential escalation in
current pricing levels over the remaining duration of the project
Analyze fluctuations in currency exchanges rates, pricing or quotation terms for products and services, evaluate
contractual terms for escalation and craft labor rates
Obtain approval from project manager for escalation account drawdown
Prepare variation log and curve for escalation drawdown
Update new or existing Risk Register items (refer to Global Project Controls Procedure - Risk Management for
guidance)

7 Contingency
Review each cost type category (above the line of escalation, contingency and margin) for potential unidentified
cost increase due to trends and risk
Review current month cost forecast variances in each cost type category to determine the possible drawdown
against the corresponding contingency account
Obtain approval from project manager for contingency account drawdown
Prepare variation log and curve for contingency drawdown
Update new or existing Risk Register items (refer to Global Project Controls Procedure - Risk Management for
guidance)

8 Gross Profit
Review total projected revenues and overall cost forecast to determine Gross Profit
When required, adjust determined gross profit in forecast and reports after project status has been reviewed with
senior management

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