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Dear PP Experts,
We have a road project and it is under a remeasured contract. There are differences between BOQ Quantities (loaded in the programme) and the actual quantities such as volume of excavated materials, etc. This means that the activities in the P6 schedule loaded with the BOQ quantities will not represent the correct planned progress.
Sample scenario is this.
Planned: Activity 1 has 1000 cum of excavated material
Actual: Activity 1 has 1300 cum of excavated material (100% done)
Therefore: the progress is only for 1000 cum and not on 1300 cum.
Question is, how to reflect the correct appearance (might be addition or subtraction from the original scope) of the updated program. I would very much appreciate it if you could give guidance for calculating progress and producing curves on the remeasured contract.
Appreciate your time an effort.
Regards,
Celso
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Earned Value is so dumb that it promotes keeping the baseline fixed. As per DOD the father of the creature you have 5 options.
http://www.acq.osd.mil/evm/docs/OTB-OTS%20Guide%20121205.pdf
3.5.6.2.1 Eliminate all Variances:
3.5.6.2.2 Eliminate the Schedule Variance (SV) Only:
3.5.6.2.3 Eliminate the Cost Variance (CV) Only:
3.5.6.2.4 Eliminate Selected Variances:
3.5.6.2.5 Retain All Variances:
It was the main reason behind the Big Dig failure.
http://warnercon.com/wp-content/uploads/2012/08/AContinuouslyChanging1.pdf
The DOD warns against its use on fixed price contracts.
http://www.goaztech.com/media/documents/evmigoct06.pdf
"2.2.3.7 Exclusions for Firm Fixed Price (FFP) Contract Type. The application of EVM on FFP contracts and agreements is discouraged, regardless of dollar value.
Hi OL
Was it an official remeasurement agreed by both sides? Was then any reason why it wasn't re-baselined as well?
This is management's not planners' decision.
Basically you have two alternatives:
1. Build a new plan and make this the new baseline. But you'll have a rupture in all s-curves and reports, which often must be explained. P6 can examine both BL simultaneously.
2. Leave the old BL, then you can better explain variances (e.g. EOT claims, ...)
Which alternative to choose will depend on the current situation. So you'll make your proposal.
During my first lesson at University in planning I learnt that it is just by chance if reality meets plan or forecast. Variances do happen.
Good planning!
Dieter
Email: PPadmin@planningplanet.com
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