Project Controls

Project control cycle for this project consists of four stages: Measure, Analys, Report
and Decision Making, each of which occur on after each other and form a loop.
Measurement is done to ensure accurate measurement of activities and KPIs critical
to the success of the project. Analysis stage address method and tools to identify
deviations and variations from the defined KPIs, qualitatively and quantitively. It helps
in taking preventive actions. Reporting process is to do with communication of required
information to the relevant stakeholder in the most understandable form. And finally,
Decision making, these are just like contingency plans, taken to contain further
disruptions and steer the project back on track. These stages are discussed in detail
in the following four sections.

1. Measuring

A. Critical activities which are slipping

i. Cost Related:
 Incorrect cost budgeting giving high variance than actual expenses over 15
years
 Non-payment of rent by the tenant, loss of revenue.
ii. Project On-time delivery
 Renter not available due to poor economic condition, increase project duration
 Customers not available at the time of sale of the property affecting project
overall time.
iii. EHS related:
 Risk of fall and body injury during renovation and maintenance activities.
Minimize LTIs.

B. Data gathering
Data gathering will be required to analysis the project variances from the key
performance indicators, ensuring that the project is delivered on time and on
budget. The data on on-time completion of activities will be collect over four
stages of the projects as shown in table 1 below. The data collected will then be
used to update GANTT chart through MS Projects .
 Table 1: Project Stages, Data Collection Methods and Frequencies
Expected
total Reporting
# Project Stage Data Collect Method
duration Frequency
(days)
1 Property Acquisition:
1A Fund mobilization 15 MS Teams meeting with team members, meeting minutes & emails Every 2 days
Emails from Real Estate agent, Notifications from Bank and Property Appraisal
1B Paper work completion
45 Company reports Every 4 days
1C Property Acquisition: 30 Notifications from Bank, Notary Officer and Title Company mails Weekly
2 Renovation
2A Insulation upgrade 30
2B Bathroom modification 30 Walk through with renovation contractors and receiving inspection of supplied
Bi-weekly
2C Utility System Upgrade 45 material. Scope of work review with the team.
2D Kitchen Upgrade 15
2E Install Safety Features
30 Fire equipment supply and installation company. Trial run report and certification Weekly
2F Cleaning / Painting 30 Walk through inspection with the cleaning company updated cleaning schedule Every 4 days
2G Complete Furnishing 30 Progress review checks with interior designer Weekly
3 Obtain HMO License
3A Safety Inspection Certification 30 Application status on the website Weekly
3B Paperwork for licensing 30 Review meeting with the Management Consultant and Real Estate Agent Every 2 days
3C Provide additional documents 30 Application tracker review by the Project Team Daily
4 Rent out property
4A Hire property marketing 30 Assigned Project team member and management consultant updates via email Every 2 days
4B Hire maintenance team 15 Assigned Project team member and management consultant updates via email Daily
4C Obtain landlord insurance 15 Insurance application status check with insurance agent Daily
4D Verify Background 15
4E Contract Preparation/legal review 30 Meeting minutes and emails with Management Consultant, Attorneyand Real Daily
4F Rental agreement & Tenant move-in 20 Estate Agent

Data collection on cost will be done on the costing and estimation engineer through
the project, through accounting system called “Quick Books”, this internet suite will
allow payments to vendors, government authorities including tax payments and
record keeping. Data on Fixed, Variable and Total cost shall be collected and
monitored weekly using MS Excel Spread Sheet, allowing Payback, Net Present
Value (NPV) and Internal rate of return (IRR) to be determined.

Data collection on lost time injury is required for phase 2 & 4 of the project where the
renovation work and upgrades are required and the project team, contractors and
visitors will be exposed to the risk the most. Accident/Incident log forms are available
in the first aid logs traceable to master entry log will be available and data shall be
collected by project team safety coordinator. This will be monitored daily.

Those activities identified or related with high risk including cost control, high
variance in NPV, IRR and PayBack due to loss of revenue, incorrect budgeting, lost
time injury and no completing the project on-time.

Once the data on current status on key performance indicators related to time and
cost are received, the project team will analyze the results, details covered in the
next section.

2. Analysis

The analysis is done to find variations prior to their occurrence in the budgeted cost
and time schedule of the project so that a preventive action can be taken. Also, the
analysis system will be able to point to the root cause of the variations. We will be
using Earned Value Analysis to analysis and determine the following cost
parameters:
 
Budget Cost of Work Performed (BCWP): Budgeted cost value for work actually
completed. It is also known as Earned Value.
 Budget Cost of Work Scheduled (BCWS): Budgeted cost for schedule of work
to be finished in a time interval.
 Budgeted Cost at Completion (BCAC): Total budgeted cost of when the
activity is completed.
 Actual Cost of Work Performed (ACWP): Total actual cost incurred in
completing the work.
Once the above are determined, the following criterion can be used access the time
and cost performance of the project.
A. Time Variance:
The variance of the schedule can be found out by using this equation = BCWP –
BCWS. If BCWP<BCWS, it means that the project is lagging behind time and speed
is slower than targeted.. If BCWP>BCWS, the speed of the project is greater than
expected. Schedule performance indicator (SPI) is another indicator used to
determine project schedule performance. It is the ratio of BCWP/BCWS. SPI> 1
means that the project going faster than the schedule and SPI<1 means that the
project is going slower than scheduled.
B. Cost Variance:
The Variance of the cost can be found using this equation = BCWP – ACWP. If
BCWP > ACWP, then the cost incurred in completing the project is less than the
budgeted (under-spent). If BCWP < ACWP, then the cost incurred in completing the
project is more than the budgeted(over-spent). Cost performance indicator (CPI) is
another indicator used to determine project cost performance. It is the ratio of
BCWP/ACWP CPI> 1 means that less than the budgeted cost has been spent and
CPI<1 means that more than the budgeted cost has been spent.
MS Excel spread sheet form no. PRJEST-001 Rev 00 (see below), will be used to
conduct Earned Value Analysis. Once data is entered for BCWP, BCWS, ACWP and
PC, the cells for Time and Cost Variance and SPI and CPI will auto-populate as
formulas have been set to calculate the same.
Form no. PRJEST-001 Rev 00 - Cost data collection and analysis sheet
Cost (£) 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Total

Fixed 350 775 180 180 1696.8 1216.8 1216.8 1725.6 1245.6 1245.6 1747.2 1267.2 1267.2 1776 1296 1269
Budget

Variable 13670 720 720 720 720 720 720 720 720 720 720 720 720 720 720 720
Taxes 6122 6360 6360 5945.3 6137.3 6137.3 6125.8 6317.8 6317.8 6261.1 6453.1 6453.1 6441.6 6633.6 6633.6
Other Tax 44713
Total cost (BCAC) 14020 1495 7022 7260 8776.8 7882.1 8074.1 8582.9 8091.4 8283.4 8785 8248.3 8440.3 8949.1 8457.6 8622.6 51346 182337
Average cost/year 10726 10726 10726 10726 10726 10726 10726 10726 10726 10726 10726 10726 10726 10726 10726 10726 10726 182337
BCWP
Earned Value Analysis

BCWS
ACWP
Percentage Complete (PC)
Time variance: BCWP – BCWS
Cost Variance: BCWP – ACWP
SPI (BCWP/BCWS)
CPI (BCWP/ACWP)
Note: The sheet is used to carry out Earned Value Analysis AFTER obtaining actual data on BCWP, BCWS, ACWP and PC. The cells for Time and Cost Variance and SPI and CPI will auto-populate.
 3. Reporting

Records keeping and reporting are the lifeblood for project monitoring and control.
Record retention policy for this project is 20 years from its start and reporting will be
done based on frequencies identified in table 1. Records will be maintained
electronically in the Estimation and Costing Engineer’s computer with back ups done
weekly once using Google Drive.

Project form no. PRJEST-001 Rev 00 will be used in conjunction with Traffic Light
System, criterion from the color have already been set in MS Excel e.g., if SPI > 1, the
cell color will change to green, else, the color will be red. The color system as been
defined in MS excel for other performance indicator such as Time and Cost Variance
and CPI.

Accident/Incident Master Entry Log will be used during phase 2 & 4 of the project and
summitted for review to the project team via email at the frequency defined per table
1. See specimen of form no. PRJEHS-001 Rev 00.

Form no. PRJEHS-001 Rev 00 Accident/Incident Master Entry Log

# Date Incident/Accident Description Location Any Injury First Aider/FF Name of the person injured. LTI(Employees/Contractor)

4. Control Actions

These are required when the project is not making progress as plan. This is the time when
decisions are required to be made. The following are some of the recommended actions
when KPIs are not met:
A. Cost performance indicator (CPI) <1, means that more than the budgeted cost
has been spent. Action: Annual cost review will result in revision rental
agreements to reflect rent, taxes and other fees to cover projected cost for the
next 12 months. Real Estate consultant to keep track of customer and revisions
of rental agreements. Replace management consultant.
A. Schedule performance indicator (SPI) <1, means that the project is going
slower than scheduled. Action: If cost budget allows, increase marketing
expense. Alternatively, review project schedule to reallocate resources to
activities lagging behind schedule.
B. High number of fall and body injury during renovation and maintenance
activities. Action: Subcontractor to place safety officer for work activities over
3 days continuous duration.