Definition of Project Controls :
There are many definitions of Project Controls used across industries and indeed across companies within industries. Project Controls are a professional function not widely recognised as a set of specialised skills in their own right. They are a function that is critical to achieving successful project and programme outcomes i.e. delivering required benefits to cost, time and performance. For the purposes of this portal, the field of Project Controls are defined in following ways:
"Project Controls are the data gathering, data management and analytical processes used to predict, understand and constructively influence the time and cost outcomes of a project or programme; through the communication of information in formats that assist effective management and decision making.
“Source – Pat Weaver’s White Paper”
This definition covers all stages of a project lifecycle from initiating and scoping the project, through to closure, final learning from experience and analytical analysis of overall project performance.
Anil Godhawale, Founder of Project Controls Online has made an attempt to simplify this by suggesting, "Project Controls is all about sharing the right information (KPIs) with the right stakeholders at the right time to ensure the right decisions are made at the right time"
Where does Project Controls sit?
Project Controls Online ("PCO") is the largest repository of Project Controls knowledge and information. We started in 2009 and have grown from strength to strength, achieving a presence in 7 continents and over 190 countries. We are the first point of call for Project Controls providers and consumers, as the go to place for the exchange of information on a cross-industry global scale.
Component Elements of Project Controls.
(Source - APM)
Depending upon how Project Controls are viewed will influence what is considered as the component parts of the function. Here it is assumed that Project Controls are concerned with estimating initial baseline performance metrics, determining the current status of the project, estimating future potential of the project, identifying any variances (baseline to current position and baseline to potential future position), and considering appropriate action to be taken to recover any positive variance. Here variance refers to actual differences identified in project control documents and also the potential variations possible from project threats, issues and opportunities. On this basis the component elements of Project Controls are about measuring and monitoring controlling variables, these are principally time and cost aspects:
Planning and SchedulingThis is not an exhaustive list of all attributes of Project Controls, but we believe it encompasses the key important ones.
Project Structure from A Project Controls Perspective.
On the US front, Project Controls has increasingly been promoted by industry organizations as well as state and federal governments as the differentiator for program & project management. As an over 50-yearold industry organization specializing in cost engineering/project controls, AACE International has brought industry best practices to both the process and the commercial construction industries, with a complete body of knowledge called the Total Cost Management (TCM) Framework providing “an integrated approach to portfolio, program, and project management”.
The TCM addresses best practices across the full life cycle of programs, projects, facilities, and services. The TCM is the guide to the development of AACE’s over 100 Recommended Practices on topics ranging such as scheduling, cost estimating, earned value management, risk management, and forensic analysis and the basis for respected certifications in project controls disciplines.
Importance of Project Controls :
The successful performance of a project depends on appropriate planning. The PMBOK Guide defines the use of 21 processes that relate to planning out of the 39 processes for project management, (Globerson & Zwikeal 2002). The execution of a project is based on a robust project plan and can only be achieved through an effective schedule control methodology. The development of a suitable Project Control system is an important part of the project management effort (Shtub, Bard & Globerson 2005). Furthermore, it is widely recognised that planning and monitoring plays a major role as the cause of project failures. Despite the continuous evolution in the project management field, it appears evident that the traditional approach still shows a lack of utilisation of Project Controls and there have been a number of articles published to support the importance of control in the achievement of project objectives. It has been proved time and again that Project performance can be improved if dedicated Project Controls’ systems are in place. An IBC 2000 Project Control Best Practice Study carried out by IPA identified that good Project Control practices reduce execution schedule slip by 15%. Project Controls’ cost range from 0.5% to 3% of the total project (including cost accounting), therefore, to break even, Project Control needs to improve cost effectiveness by around 2%. A sample study carried out by the IBC Cost Engineering Committee (CEC) in 1999, showed cost improvements for the projects in the study, was more than 10%. It is noted also that NPV (Net Project Value) also benefits from schedule improvements. Success factors are based on good Project Control practices, which result in good cost and schedule outcomes.
The fact that one failed project can potentially wipe out an entire year’s profit helps put the value of Project Controls into perspective. More information on importance of Project Controls can be seen at
Additional Project Control Definitions
EUROPEAN CONSTRUCTION INSTITUTE, 2002. PROJECT CONTROLS VALUE ENHANCING PRACTICE, HIGH LOUGHBOROUGH, UK. ECI
- The setting and monitoring of targets
- Analysis of performance
- Identification and anticipation of inefficiencies
- Implementation of preventative and remedial actions.
AACE INTERNATIONAL, 2016. RECOMMENDED PRACTICE NO. 10S-90 COST ENGINEERING TERMINOLOGY. MORGANTOWN, WV. AACE INTERNATIONAL.
PROJECT CONTROL – A management process for controlling the investment of resources in an asset where investments are made through the execution of a project. Project control includes the general steps of:
1) Project planning, including establishing project cost and schedule control baselines;
2) Measuring project performance;
3) Comparing measurement against the project plans; and
4) Taking corrective, mitigating, or improvement action as may be determined through forecasting and further planning activity.
PMI
PMBOK Guide Fifth Edition
A project management function that involves comparing actual performance with planned performance, analysing variances, assessing trends to effect process improvements, evaluating possible alternatives, and recommending appropriate corrective action as needed.
Carson, C, Oakander, P., Relyea, C. (ed). CPM Scheduling for Construction Best Practice and Guidelines. Newtown Square, PA: Project Management Institute Project Control: The continuous process of
(1) monitoring work progress;
(2) comparing it to baseline schedule and baseline budget [what was supposed to happen or what was planned];
(3) finding any variances (deviations from baselines), where and how much, and analysing the variances to find out the causes; then
(4) taking corrective actions wherever necessary to bring the project back on schedule and within budget.
ASSOCIATION FOR PROJECT MANAGEMENT, 2008. INTRODUCTION TO PROJECT CONTROL, PRINCES RISBOROUGH,UK. APM PUBLISHING.
Project controls are the practice of assessing if the proposed work is worth doing, of preparing for work before it is done, of thinking about what might go wrong before it is done, and of doing something about it if it does. Project controls involve the specialisation of core project management skills of managing scope, time, cost, risk and change.
Once the work has started, project controls are about measuring what has been done objectively, forecasting what might happen in the future, and assessing and suggesting action to correct any failings or exploit any successes.
The core elements of project controls
Project controls help you take a structured, formal approach to delivering a project through the project life cycle. It is recognised as the analytical element of project management.
The core elements of project controls include:
Why its important ?
Good project controls contain costs, assure delivery and protect investments.
With effective project controls, you will increase the likelihood of successful outcomes, improving the basis on which projects are launched, identifying and mitigating issues to save time and resource costs.
Project controls reduce project failure - Without project controls to monitor the project, the project may fail due to poor scope definition, poor execution, poor estimating of cost and schedule, poor performance and cost escalation. There can also be a failure to deliver project benefits to the stakeholders.
Who is responsible for project controls?
The scale and complexity of a project or programme will influence who works on project controls. On a small project the project manager may carry out and be responsible for project controls roles. On larger projects, a team of project managers and project controllers – along with specialists such as planners, schedulers and risk managers – will oversee the controls function.
Figure 1: Project controls sizing – the scale and complexity of the project will influence the demarcation of the roles
Source: Senior Managers’ Guide to Project Controls ©QinetiQ
How do project controls benefit project managers?
| Factors for successful project delivery | Project controls inputs |
|---|---|
| Effective governance: The project has clearly identified leadership, responsibilities, reporting lines and communications between all parties. | Providing clear management information and certainty regarding the schedule, cost and risk position. |
| Goals and objectives: The overall goal of the project is clearly specified and recognised by all stakeholders. It is not in conflict with subsidiary objectives and project leaders have a clear vision of the project outcomes. | Providing assessment of progress towards the project goals, and forecasting the project's benefits and outcomes. |
| Commitment to project success: All parties involved in the project are and remain committed to the project’s success. Any lack of commitment is recognised and dealt with, and project leadership inspires commitment in others. | Highlighting areas of underperformance and suggesting recovery actions. |
| Capable sponsors: Sponsors play an active role in the project’s life cycle. They assume ultimate responsibility and accountability for the project outcomes. | Providing sponsors with management information and facilitating reviews. |
| Secure funding: The project has a secure funding base. Contingency funding is recognised from the start and budgets are tightly controlled to ensure maximum value is realised. | Supporting the generation of the business case or proposal with justified and credible cost estimates. |
Source: Conditions for project success
BCECA – BRITISH CHEMICAL ENGINEERING ASSOCIATION
Project Control Mangers Committee - Project Controls Definition
Project Controls is the collective description applied to that group of technical disciplines that are responsible for defining and communicating project baselines, monitoring and reporting against them and recommending corrective action when deviations occur or are projected to occur.
Those included disciplines are:
- Estimating
- Cost Engineering
- Planning and Scheduling
To achieve this they draw on the relevant areas of engineering and commercial practice, and relevant historical experience.
Dimensions
The dimension of any Project Control organisation will internally be defined by the elements that comprise the make up of the baselines for which it is the keeper.
- Scope
- Schedule
- Cost
- Contract
Externally Project Controls should promote and engage in professional associations both specific to and allied to the E & C industry, embrace further knowledge and technology enhancement, and introduction and development of future generations into the profession.
Interfaces
Project Controls spans the full width and breadth of the EPC processes and embraces interfaces with technical and financial disciplines, internally, and upstream and downstream of the employing entities relative position, very often on an international basis.
Reporting directly to the Project Manager/Director creates a privileged position from which to facilitate the management and execution of a venture, and as such must be conducted with the highest standard of ethics and business practice.
Objectives
- Providing timely, pertinent and objective management information.
- Promoting team understanding of and commitment to project/organisational objectives including scope, cost and schedule baselines.
- Demonstrate commitment to work cost estimation, scheduling and budgeting that conform to international standards and do not compromise the health and safety well-being of those that will be performing at the work-faces. Creating pre-emptive awareness of potential problem areas, which may give rise to deviations from any one or combination of the established baselines, and develop/propose solutions to those trends.
- Facilitate team communication, and commercial understanding of the execution deal.
- Support informed management decision-making.
- Creating value added to short- term project executions and longer term enterprise wide objectives for both Owners and Contractor.
- Conduct business in a manner that upholds the highest standards of business ethics and integrity.
IFATE
As per iFATE’s Project Controls technician qualification, Project controls are responsible for Analysing progress and performance data on engineering, manufacturing, construction and infrastructure projects.
A Project Controls Technician controls, monitors and systematically analyses progress and performance data on engineering, manufacturing, construction and infrastructure projects. They require strong analytical skills and a practical approach to interpret technical information. They use specific, complex software tools to undertake a wide range of project controls tasks, including: identifying the right data for scrutinising progress; setting baseline targets; tracking progress and performance; forecasting trends; identifying, modelling and anticipating deviations from baseline; assessing the impact of design/construction changes; and using insight to recommend early preventative and remedial actions.
Project Controls includes the technical disciplines of estimating, planning, scheduling and cost engineering for which this apprenticeship gives a comprehensive grounding leading to roles such as project controller, estimator, planner, scheduler and cost engineer. Typically job holders work in large project teams on complex projects in sectors such as construction, manufacturing, engineering, energy and infrastructure – where detailed progress /performance tracking, and an understanding of on-site hazards, health and safety requirements and compliance is critical. This hands-on role is crucial to ensuring the successful delivery of complex projects and a shortage of skilled professionals provides opportunities for a secure, fulfilling long-term career.
MORE DEFINITIONS FROM COMMUNITY
- ⮞ Project Controls is a process that encompasses the resources, procedures, and tools for the planning, monitoring, and controlling of all phases of the capital project lifecycle. This includes estimating, cost and schedule management, risk management, change management, earned value progressing, and forecasting.
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⮞
Project controls, it is all about providing the right information, at right time, at the right level to assist project leaders to make the right decisions. Many professionals still struggle to understand project controls real value add for project success. It is simple, Project controls provide 3 things:
- Early warning
- Accurate forecast
- Effective change and risk control. Project controllers may not have a crystal ball that can predict the project’s future but have tools and expertise that can help to make the right decision, at right time.
- ⮞ We are the group that keeps the project driving between the ditches.
- ⮞ Project Controls is the medium in which project performance and decision-makers integrate. It is a critical friend, aiming to assure truth and advise on future achievability. They do this through a deep comprehension of people, process and analysis.
- ⮞ As simple and obvious as it may seem, it is a very complex definition, which shows the degree of knowledge and experience that a person has in the field of project control. Culture is also a determining factor in the definition. Ideas and concepts are worth launching!
- ⮞ Project Controls is about systematic analysis of progress and performance data on capital projects. by: identifying the right data for scrutinising progress; setting baseline targets; tracking progress and performance; forecasting trends; identifying, modeling, and anticipating deviations from baseline; assessing the impact of design/construction changes, and using insight to recommend early preventative and remedial actions.
- ⮞ It's all about volume of work done (VOWD) and the cost to complete the contractual scope of work as per schedule.
- ⮞ Project Controls is all about data and communication.
- ⮞ Project Controls is the art that turns Project Management into a science.
- ⮞ Project Controls are the trusted advisors of the Project Managers, helping them to steer through the challenges of delivery, mapping the path of where they have been, where they are going and the cost of getting there.
- ⮞ Project Controls is eyes and ears of project management helping to deliver projects on time, budget with no surprises.
- ⮞ Project Control is the function that reduces entropy by bringing order. It can be compared to the control unit in a car where you plug in the cable and it gives you all the information on where a problem is in order to fix it.
- ⮞ Project Controls is simple. Plan the work. Work the plan. All the tools already exist and are stated in contract or PO Exhibits or Appendixes.
Project Controls is like a Police force
Project Controls are the police of the project. When the project and Project Managers are in trouble and need help Project Controls is there to help get it/them out of trouble and assist the project when bad things happen.
Additionally, if the delivery team is intentionally looking to do something out of governance then Project Controls is there to (figuratively) slap the PM on the wrist and say “no, you can’t and should not do that”.
The Project is a car, The PM is the owner, and Project Controls is the chauffeur
If the project is a car and the Project Manager (PM) owns the car but the Project Controls Manager (PCM) is the chauffeur then the car goes nowhere without both being in alignment. The PM as the owner provides the destination and deadlines while the PCM as subject matter expert navigates the fastest, safest and most economical route. The car doesn’t move without the PMs instruction and the car can’t move easily wihtout the PCM who holds the keys.
If a project was a golf game, Project Controls is the Caddie
In golf, a caddie is the person who carries a player’s bag and clubs, and gives insightful advice and moral support. Not too dissimilar to the role Project Controls plays on projects in supplying analysis, advice and being a sounding board for decisions.
Who then is the “player”? Well the Project Manager of course and like golf the biggest opponent is often him/herself.
If the Project was a rally car, the PM is the Driver and the PCM is the Co-driver
The PM as driver is in full control of the steering wheel, accelerator and brakes but without the PCM navigating and assisting the PM on turns and bends it becomes increasingly difficult and unsafe. The PCM needs to know the map and terrain extremely well and the relationship and communication with the PM has to be in total alignment to be able to go at maximum speed.
Project Controls is the conscience of a project
Your own conscience judges how moral your actions are and makes you feel guilty when you do bad things. It’s the thing that guides us as individuals to do the right thing.
Project Controls in many ways is best placed for this role on projects. Whether or not you listen to your conscience is a different debate!
Project Controls is a Critical Friend
“A critical friend can be defined as a trusted person who asks provocative questions, provides data to be examined through another lens, and offers critiques of a person’s work as a friend. A critical friend takes the time to fully understand the context of the work presented and the outcomes that the person or group is working toward. The friend is an advocate for the success of that work.”