Our Project
Monitoring Approach

According to PMI Global Construction Survey, conducted online in September, 2020, participated by 40,000 PMPs in construction industry with 5-15 years’ experience, the top 4 overall challenges faced by construction industry are:

 

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The survey asked 40,000 PMPs working in construction industry for 5-15 years across North America, LATAM, EMEA, India, China and APAC countries.

 

Construction organizations waste an average of $127 million for every $1 billion spent (12.7%) on projects and programs due to poor project performance, compared to the global average of $114 million for every $1 billion spent. (Pulse-2020)

 

Similar results have been reported by Said School of Business; “Performance data for megaprojects speak their own language. Nine out of ten such projects have cost overruns. Overruns of up to 50 percent in real terms are common, over 50 percent not uncommon.” Cost over-run in major construction projects have run typically from 50-1900%, making it one of the most common problems in infrastructure projects.

 

The next major problem is ‘time delay’. “Delays are a separate problem for megaprojects and delays cause both cost overruns and benefit shortfalls. For instance, results from a study undertaken at Oxford University, based on the largest database of its kind, show that delays on dams are 44 percent on average. Thus if a dam was planned to take 10 years to execute, from the decision to build until the dam became operational, then it actually took 14.4 years on average.”

 

One of the reasons for projects failure, especially in case of megaprojects is their complexity and size, minimizing visibility into areas having deviations and variations at early stages. The problem is often in not noticed and identified until it is fully-blown and have started causing significant damage in terms of time delays and cost over-run.

 

For large projects especially, calculating the resources utilized during project execution up to lowest level of work to calculate exact cost and time on a frequent basis is really important and requires a scientific approach. This helps in forecasting the right timeline and budget required on a regular basis and is the key to prevent cost over-run blown out of proportions.

 

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Our project, program and portfolio monitoring system, P3® calculates and compares data of hundreds of smaller work pages in the project with their actual baseline and rolls up this data to a control account level for baseline comparison. The cost data is used to forecast the future budgetary requirements on the near future timeline. This data is then used to statistically modelled the uncertainties, risks and likely outcomes of different strategy options also.

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