Chapter 7.

0
CONTROLLING PROJECT INTEGRATION AND
WORK
 7.1 Project Scope Control
• The construction project scope defines the
works that must be undertaken in order to
deliver a facility, a product or a service with
the specified attributes and features
• Scope control implies controlling the
performance of all the scope related processes
in the project life cycle.
• These processes include control of the work
designs, work quality, construction contracts
and the site performance of resources
productivity, scheduled time and budgeted cost
 What is Project Scope?

• Scope refers to the detailed set of deliverables

or features of a project. These deliverables are
derived from a project’s requirements.

• PMBOK® defines Project Scope as the “The

work that needs to be accomplished to deliver
a product, service, or result with the specified
features and functions.”
 Project Scope Management
There are three processes of planning, controlling, and closing.
• Planning
– The planning process is when an attempt is made to capture and
define the work that needs to be done.
• Controlling
– The controlling and monitoring processes focus on documenting
tracking, scope creep, tracking, and disapproving/approving
project changes.
• Closing
– The final process, the closing includes an audit of the project
deliverables and an assessment of the outcomes against the
original plan.
 The Scope Statement
• The scope of a project is the clear identification of the
work that is required to complete or deliver a project
successfully.
• One of the project manager’s responsibilities is to ensure
that only the needed work (the scope) will be performed
and that each of the deliverables can be completed in the
allotted time and within budget.
• The documentation of the scope of the project will
explain the boundaries of the project, establish the
responsibilities of each member of the team, and set up
procedures for how a work that is completed will be
verified and approved.
• This documentation may be referred to as the scope
statement, the statement of work, or the terms of
reference.
 Project Scope Management
• Define project needs
• Understand the project objectives
• Define project scope
• Steps for defining the scope of a project
– To define the scope of the project, identify the
following:
• Project objectives
• Goals
• Sub-phases
• Tasks
• Resources
• Budget
• Schedule
 Project Scope Control System
• Define the parameters to be controlled (in a
construction project the parameters be design,
contract, quality, time and cost)
• Establish base lines for measuring
performances
• Recording and reporting of performances
• Monitoring and evaluation of performance
variations
• Communicate information and record keeping
 Scope Control Processes
Scope Parameters Formulation Phase Planning & Design Execution & Close-up Phase
Phase Control Phase

Scope-related Project Charter Project Definition Project Manual Project Report

Policy Documents Construction
Contracts
Work Scope Statement of Work Bill of Quantities Scope Verification Work done
Management Scope Change Statement
Control
System Design Schematic Design Construction Work (Shop) As-Built
Management Design and Drawings Drawings
Drawings
Quality Quality Policy Quality Planning Quality Control Acceptance
Management Verification Maintenance
Inspection
Cost Management Initial Estimate Detail Estimate and Cost Control Final Cost
Budget Estimate

Time Strategic Milestone Tactical Project Master Lesson Learnt

Management Plan Preliminary Plan Time Plan Detailed
Work Programme

Contract Contract Schedule Contract Contract Contract Close-up

Management of Tenders Procurement Administration
 7.2 Product Quality Control
• In a construction project, the quality
management includes the processes required to
ensure that the project will satisfy the needs for
which it was undertaken.
 Quality -related Processes
Process Description Reference
Quality Planning It involves identifying the quality standards that are relevant to ISO
the project and determining how to ensure conformance to these 8402:3.5
standards.
Quality All the planned and systematic activities implemented within the ISO
Assurance quality system and demonstrated as needed, to provide adequate 8402:3.5
confidence that an entity will fulfill requirements for quality.

Quality Control The operational techniques and activities which together sustain ISO 8402:
the product, service or quality to specific requirements. 3.5

Quality It determines the acceptability of a product or a service or stages ISO

Inspection of construction. It includes activities such as measuring, 8402:2.15
examining, and testing undertaken to determine whether results
conform to the requirements.
Quality Audit A systematic and independent examination to determine whether ISO
quality activities and related results comply with planned 8402:4.9
arrangements and are implemented effectively and are suitable to
achieve objectives.
Quality It stands for the actions taken throughout the organization to ISO 9004-
Improvement increase the effectiveness and efficiency of activities and 1:5.6
processes in order to provide added benefits to both the
organizers and its customers.
 Importance of Quality Why Quality Is Important?

• The fundamental reason for focusing on quality is the

potential for an increased profitability.
• Consumers demand and expect quality in return for
their money.
• Consumers recognize quality and are willing to pay for
it.
• Quality builds up the brand and makes the product more
profitable.
• The winner of the quality game gets the attention and
the sales.
• Better quality leads to:
• Increased production.
• Lower warranty costs.
• Lower marketing costs.
• Fewer surprises.
• Positive customer experiences delight the consumer and
 Home Assignment
• Why Quality control is important in
construction? How can you control it?
 7.3 Labor Productivity Control
• The term 'productivity', as commonly understood,
implies the ratio of output to input. Productivity
means the ability to produce.
• The input and output can be measured in physical
quantities, monetary terms or a combination of
both.
• Labor productivity achieved at the site for a given
work provides a measure of the labor's efficiency.
• It shows the total time for which the labor was
employed at work, the time he/she was productive
on work and the time he/she remained
unproductive.
• Studies carried out at construction sites reveal that the labor’s
productive work time varies from 50-70% of his total employment
time, and the remaining time is wasted for various reasons such as
idle waiting, unnecessary travelling, late starting, early quitting,
unscheduled breaks, and delays in the receipt of tools, materials and
work instructions.
• Labor productivity can be improved by cutting down such
unproductive time of the labors.
• The control process involves accounting of actual productivity,
comparing the actual with the standard, analyzing the causes for
variations between actual and standard, and finally taking remedial
measures to improve productivity.
Resources Productivity
• Workers’ productivity = Quantity of work done per man–hours
• Material productivity = Quantity of work done per unit mix of
• material(s) consumption
• Equipment productivity = Quantity of work done per equipment–
hour
 Labor Productivity Variance
Labor productivity variance
= Actual Labor productivity – Standard Labor productivity
Labor productivity index
= Actual productivity Labor/ Standard productivity Labor

Example
Consider a masonry wall construction activity with the planned and actual performance as shown below:
Solution:
Planned/ Actual
Planned Labor effort for = 8 men × 15 days = 120 Budgeted Performance
1200 M² man-days Performance
Actual Labor effort for = 8 men × 18 days = 144 Scope of masonary 1200 M² 1200 M²
1200 M² man-days work
Labor planned = 1200 M² / 120 man-days
Crew size 8 men 8 men
productivity
= 10 M² / man-days
Labor actual productivity = 1200 M² / 144 man-days
Construction time 15 days 18 days

= 8.33 M² / man-days
Therefore,
Labor productivity
variance
= 8.33 M² / man-days - 10
M² / man-days
= – 1.67 M² / man days
…..Unfavourable
Labor performance index
= 8.33 / 10 = 0.833
 Factors affecting labor productivity
• Physical-organic, location, and technological
factors;
• Cultural belief-value and individual attitudinal,
motivational and behavioral factors;
• International influences
• managerial-organizational and wider economic
and political-legal environments;
• Levels of flexibility in internal Labor markets and
the organization of work activities
• Individual rewards and payment systems,
 Typical Causes of Low Labor Productivity
(a) Un-productive time :
(b) Worker's low morale :
(c) Poor pre-work preparation by supervisors
(d) Directional failures of the project
management
Labor Productivity Improvement Measures

• Reduce unproductive time by constantly reviewing and minimizing the

causes that are contributing to unproductive time.
• Replace Labor by appropriate equipment, where economically feasible.
• Substitute inefficient working tools by appropriate efficient tools.
• Improve the method of executing work, remembering that there is always
a better way of doing a task.
• Improve the working conditions.
• Employ competent supervisors.
 7.4 Equipment Productivity Control
• The equipment productivity control is undertaken
to determine its employment time, the output
achieved and its productivity at the site.
• The main purpose of equipment productivity
control is to minimize the wastage in utilization
• Equipment Productivity Control is done as
follows:
– Equipment Productivity Accounting
• Daily equipment employment accounting
• Weekly Equipment Productivity Sheet
– Equipment Productivity Analysis
 7.5 Materials Productivity Control
• Materials productivity control aims at
minimizing the wastage in usage.
• Productivity control at the construction
responsibility centre can be broadly divided
into accounting for materials, analyzing usage
variances to determine the causes of wastage
and implementing measures to minimize
wastage.
• Material Accounting System
– The materials accounting system documents the
materials data.
– It provides the materials procurement status. It shows
the holding of the materials inventory for the incoming
works.
– It identifies and quantifies the issue of materials to the
site and it reveals the materials costs
– The materials accounting process from the demand
initiation stage till its consumption stage involves the
maintenance of up-to-date records of receipts and
issues at the project central store, monthly stock
checking of materials in the store and at the work site
and the return of unused materials after the completion
of the intended job.
 7.5 Work Schedule Control
• A schedule is necessary for the day-to-day
operation of any construction project.
• The process of creating a schedule is
called scheduling.
• The construction schedule – including monthly
progress status reports, schedule updates and
revisions – is integral to the project’s
successful completion.
• In a construction project, the controlling of time
and cost objectives involves the control of the
following interacting, parameters:
a) Time Progress Control
b) Resources Productivity Control
c) Resources Mobilization Control
d) Direct Cost Control
e) Budgeted Cost Control
f) Work Done Billing Control
Table: Control Parameters and Unit of Measure
S.No. Control Parameters
Unit of Measure
1 Time progress Calendar time unit

2. Labor estimation and utilization Man–hours

3. Equipment estimation and
utilization Equipment–hours

4. Material estimation and utilization Quantity unit

5. Project costs and income Money unit

 7.7 Performance Control using Earned
Value
• The earned value cost analysis relates the
budget costs with the time progress.
• Earned value is the value of work done at a
given point of time. Earned Value Analysis
(EVA) is a tool that compares the value of
work done with the value of work that should
have been done.
• EVA is often presented in the form of progress
or S-curve diagrams.
 Earned value actually uses three data values, which
are computed each week, month or whatever other
$max
period we wish to use. We use the term analysis date
to refer to the date when three values are analyzed

TIME VARIANCE
BCWS
ACWPt Used for plotting the Used for plotting
Program S-curve the EVA S-curve
RESOURCE FLOW VARIANCE Work Work
BCWSt COST VARIANCE Schedule Performed
SCHEDULE VARIANCE (WS) (WP)
BCWPt
Budgeted Cost (BC) BCWS BCWP
ACWP
Actual Cost (AC) ACWS ACWP
BCWP
Used for plotting the
Progress S-curve

 Three values are:

t-p t tmax Time
 Budgeted Cost for Work Scheduled (BCWS). It represents the cumulative, time-phased cost
projections made in the budget for activities that are scheduled to be performed. It shows what is
planned for execution. It answers the question related to “how much did we plan to spend as of this
date?” (How much work was planned to complete)
 Budgeted Cost for Work Performed (BCWP) or the value earned. It shows the cumulative cost
budgeted for the work performed. It answers the question related to “how much work (progress) has
been actually achieved or earned?”
 Actual Cost for Work Performed (ACWP). It represents the cumulative actual cost incurred on date in
accomplishing the work. It answers the question related to “how much have we actually spent
(amount of money)?”
 Some Derived Metrics in EVA (parameters in EVA)
1. Variances Formula Interpretation
Cost Variance CV = BCWP - ACWP  If CV is +ve, cost under run (actual budget expense is less than
planned)
 If CV is -ve, cost overrun (actual budget expense is greater than
planned)
 If CV is 0 No cost variance (actual expense is equal to planned)
Schedule SV = BCWP - BCWS  If SV is +ve, Schedule under run (actual schedule is ahead of
Variance planned)
 If SV is -ve, Schedule overrun (actual schedule is behind of
planned)
 If SV is 0 No Schedule variance (actual Schedule is equal to
2. Variances expressed in percentage planned)
CV % Over budget or under budget expresses in % , by what % does the cost
under run or over run

SV % Behind or A head Schedule expressed in % , by what % does the

Schedule under run or over run
3. Indices
Cost performance CPI = BCWP / ACWP  If CPI ≥ 1, Better Performance for Cost, less
index budget
 If CPI < 1, Poor Performance for Cost, more
budget
Schedule SPI = BCWP / BCWS  If SPI ≥ 1, Better Performance in Schedule, ahead
Performance Index of schedule
 If SPI < 1, Poor Performance in Schedule, behind
of schedule

4. Trends & Fore Cast

Estimate at Completion EAC = Total project Cost / CPI

Schedule at Completion SAC = original project duration / SPI

5. Variance at Completion (VAC)

VAC(cost) VAC = Original Project budget - EAC

VAC (Schedule) VAC = Original Project Duration - SAC

  Er. Sharma was responsible for 125 cum of excavation to be done in 10 days with the
expenditure of Rs 12,50,000. At the end of 3rd day he managed to complete 40 cum
of excavation with expense of Rs 3,75,000. Perform earned value analysis and
comment on his performance.
1,25,000*3
Soln. 125050 × 3
Total work = 125m3 of excavation
Total project duration = 10 days
0 1 2 3 4 5 6 7 8 9 10
Total project cost = Rs. 12,50,000
3*12.5 = 37.5 cum
Monitoring(Analysis) date = 3rd day from start of work
Work completed at this date = 40m3 of excavation
Expenses for completed work so far = Rs. 3,75,000
Total Excavation works = 125 cum
Budgeted Cost for work scheduled (BCWS): Excavation per day = 125/10 = 12.5 cum
Cost of excavation for 10 days = Rs. 12,50,000 Total scheduled work of excavation for
 Cost per day as per schedule = Rs. 12,50,000/10 O three days = 3*12.5 = 37.5 cum
= Rs. 1,25,000 R Total scheduled cost up to three days =
 Scheduled cost for 3 days = 3 × 1,25,000 = Rs. 3,75,000 37.5*10000 = Rs. 3,75,000

Actual Cost of Work Performed (ACWP) Budgeted Cost of Work Performed (BCWP)
Actual expenses of work performed up to Cost per m3 of excavation = Rs. 10,000
monitoring date = Rs. 3,75,000 Performed work up to monitoring date = 40m3
 Scheduled cost or Budgeted cost of work performed = 10,000 × 40
= Rs. 400000
[This is value earned from work performed]
© Er. Subash K. Bhattarai
• EVA is a way to measure the amount of work actually performed on a project (i.e to
measure its progress) and to forecast a project’s cost and date of completion.
• The method relies on a key measure known as earned value also known as BCWP.
This measure enables one to compute performance indices for cost and schedule,
which tell how well the project is doing relative to its original plan?.
• These indices also guides one to forecast how project will do in the future?
• The commonly-used budget monitoring parameters are:

• Budgeted Cost for Work Scheduled (BCWS). It represents the cumulative, time-
phased cost projections made in the budget for activities that are scheduled to be
performed. It shows what is planned for execution. It answers the question related
to “how much did we plan to spend as of this date?”

• Budgeted Cost for Work Performed (BCWP) or the value earned. It shows the
cumulative cost budgeted for the work performed. It answers the question related to
“how much work (progress) has been actually achieved ?”

• Actual Cost for Work Performed (ACWP). It represents the cumulative actual
cost incurred on date in accomplishing the work. It answers the question related to
“how much have we actually spent (amount of money)?”
Graphical presentation of Earned Value Analysis (EVA)

Study point of time

ACWP

BCWS

BCWP

Time