Website Upgrade Incoming - we're working on a new look (and speed!) standby while we deliver the project

Tips on using this forum..

(1) Explain your problem, don't simply post "This isn't working". What were you doing when you faced the problem? What have you tried to resolve - did you look for a solution using "Search" ? Has it happened just once or several times?

(2) It's also good to get feedback when a solution is found, return to the original post to explain how it was resolved so that more people can also use the results.

MS Project (Cost follow up)

1 reply [Last post]
Fri, 2009-11-13 13:04
Abdulaziz Al-Khulaqi
User offline. Last seen 9 years 51 weeks ago. Offline
Joined: 6 Nov 2009
Posts: 3
Groups: Petro-Chem / Oil & Gas
Dear All,

I am new member in the Planning Planet and I started to use MS Project in order to control the construction progress but I face one problem related the cost follow up as agreement with the contractor the cost of construction is lump sum and on daily basis I have to give money to the contractor according to the job progress therefore I request any one to advice me how I can control the cost follow up through MS project.

Thanks in advance for help,

Regards,
Al-Khulaqi
Top

Replies

Fri, 2009-11-13 17:41
#1
Trevor Rabey
User offline. Last seen 2 years 47 weeks ago. Offline
Joined: 29 Nov 2005
Posts: 530
Groups: None

Identify the scope if the project by decomposing it into its component tasks.
Then, simply agree in advance on the payment for each task, and when each task is finished, pay for it.
In the US this is called a Schedule Of Values.
You don’t have to have an amount > $0 on every task and the agreed payment amount does not have to be related to the cost of the task. You don’t even have to know the cost of the task. That is the contractor’s problem, and his business, not yours.
You have to make a decision whether you are paying by time or by progress. It is better (for you) if you pay only for tasks when they are finished and do not pay anything for partial completion of tasks. This provides an incentive for the contractor to get things finished and to stick to the schedule. If you pay for partial completion you will have the added complexity and difficulty of having to measure and agree on the progress of each task and it will just get messy for no benefit for either party.
Top