CE 131

Introduction to Construction Engineering

Project Control

Dr. Jae H. Pyeon

Associate Professor
Civil and Environmental Engineering
San Jose State University
1

Project Control
• To maintain control of the cost and time budgeted
for the project

• Before construction
– Project cost & schedule estimates
• During construction
– Changes occur
– Measure cost and schedule performance

• The project control system should identify any

deviation early and allow a correction to be made.
2

1
 3

Budget vs. Actual

2
 Cost and Schedule Performance
• The first step in evaluating the status of a
project
– Compute the earned value of the activities
completed during the reporting period

Earned Value Analysis

• Most common method of project performance
measurement
– Integrates scope, schedule, and cost measures
– Involves calculating key values for each activity at the
work package level
• Standard calculations
– Identify variances
• Compares work that has been planned with work that has
been done
• Variance = difference between plan and actual
– Requires a healthy project culture that supports
honest, accurate, performance reporting
6

3
 Earned Value System

• Used to monitor the progress of work and

compare accomplished work with planned

• Three factors that form the foundation of EVA

– Budgeted Cost of Work Scheduled (BCWS)
– Actual Cost of Work Performed (ACWP)
– Budgeted Cost of Work Performed (BCWP)

Variance Calculations

4
 Variance Example

• Framing Activity
– Budget = $5,000 & Duration = 5 days
• One carpenter
• 40 work-hours (8 hr/day)
– After three days, the job is determined to be 40
percent complete.
– To date, $2,550 has been paid out on the
activity
• What are the schedule and cost variances
and indices?
9

Schedule and Cost Variances

• Schedule Variance

• Cost Variance

10

5
 Schedule and Cost Indices
• Schedule Performance Index

• Cost Performance Index

11

Productivity Index
• Introduce the credit work-hour factor
– Measuring the actual work being accomplished in the
field

• An error in estimating
– 65 hours instead of the 40 hours estimated

• This indicates a productivity level greater than planned.

12

6
How to calculate cost and duration

13

14

7
 Labor Unit Price
• The estimated cost of labor for installing
300 ft of conduit
– The unit price of $4.70 for labor
Labor cost = 300 ft x $4.70/ft = $1,410

8 hrs / 80 ft = 0.1 hr/ft (Labor hours) 15

 $4.7/ft  $47/hr (Electrician hourly cost)

The Scheduled Labor Cost

• Used to adjust the estimated labor to reflect the

true cost of labor

• Installation: 80 ft per day (300/80 = 3.75  4 days)

– 4 days with one electrician
Labor cost = 1 x 4 days x 8 h/day x $47.00/h
= $1,504
– 2 days with two electricians
Labor cost = 2 x 2 days x (8 h/day x $47.00/h)
= $1,504
16

8
 Total Installation Cost
• The estimated cost for installing 300 ft of conduit
– The unit price of $11.55/LF for Total O&P
Labor cost = 300 ft x $4.70/ft = $1,410
Material cost = 300 ft x $4.13/ft = $1,239
O&P cost = 300 ft x $2.72/ft = $816
Total cost = 300 ft x $11.55/ft = $3,465

– 4 days with one electrician

Labor cost = 1 x 4 days x 8 h/day x $47.00/h = $1,504
Material cost = $1,239, O&P cost = $816 (↑)
Total cost = $1,504 + $1,239 + $816 = $3,559

17

Any Questions?

18