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D. Przywara and A. Rak
exceeding the planned costs (BCWS) and earned value ratio (BCWP) on the day the
project was completed. Losses incurred at the construction site illustrate the growing
deviation from costs (CV < 0.00).
The acceleration of works above their planned performance is illustrated by an
increase in the schedule indicator (SPI = 1121), and the associated positive time
deviation (SV > 0.00).
The adopted solution, although increasing the cost of the undertaking, may sometimes be the only option for managers at the managerial level before avoiding
contractual penalties for untimely completion of a construction contract.
Therefore, each delay in works execution and forecast of their untimely hand over
to an investor requires each time individual economic and financial analysis.
In such an analysis, the comparative element should be the costs of contractual
penalties, summarized with the cost of corrective actions accelerating the work above
their planned performance.
5 Conclusions from Research and Analyzes
The issue of delayed implementation of construction projects—especially long-term
and high-budget ones—is very current.
Their specificity of implementation—among others seasonality, labor shortages,
dependence on atmospheric influences, inflationary influences—forces managers to
constantly review the assumed schedules and monitor the progress of works covered
by them.
The advantage of the proposed approach of distributing the total schedule delay
to work sequences, which has not been realized until the work progress is checked,
is based on actual, current performance. The adoption of a cost estimate standard
(KNR) to calculate the unit time spent on work, in many cases out of date in terms
of technology, distorts the actual efficiency of works.
The proposed approach, in addition to increasing the number of means of production (P), can also serve remedial actions, consisting in extending the working day at
the construction site (G), and reorganization of “accelerated” schedules, by slowing
down the pace of production. In each case, however, it requires a thorough cost
analysis consisting of a profitability calculation—in combination with contractual
penalties or a bonus for early completion of works.
References
1. Przywara D, Rak A (206) Assessment of time and cost variances of the schedule using the
earned value method. Build Mater 6
2. Wypijewski P (2014) Implementation and application of controlling in a large production
enterprise. Controlling Manag Acc. Mag. 11:182
D. Przywara and A. Rak
exceeding the planned costs (BCWS) and earned value ratio (BCWP) on the day the
project was completed. Losses incurred at the construction site illustrate the growing
deviation from costs (CV < 0.00).
The acceleration of works above their planned performance is illustrated by an
increase in the schedule indicator (SPI = 1121), and the associated positive time
deviation (SV > 0.00).
The adopted solution, although increasing the cost of the undertaking, may sometimes be the only option for managers at the managerial level before avoiding
contractual penalties for untimely completion of a construction contract.
Therefore, each delay in works execution and forecast of their untimely hand over
to an investor requires each time individual economic and financial analysis.
In such an analysis, the comparative element should be the costs of contractual
penalties, summarized with the cost of corrective actions accelerating the work above
their planned performance.
5 Conclusions from Research and Analyzes
The issue of delayed implementation of construction projects—especially long-term
and high-budget ones—is very current.
Their specificity of implementation—among others seasonality, labor shortages,
dependence on atmospheric influences, inflationary influences—forces managers to
constantly review the assumed schedules and monitor the progress of works covered
by them.
The advantage of the proposed approach of distributing the total schedule delay
to work sequences, which has not been realized until the work progress is checked,
is based on actual, current performance. The adoption of a cost estimate standard
(KNR) to calculate the unit time spent on work, in many cases out of date in terms
of technology, distorts the actual efficiency of works.
The proposed approach, in addition to increasing the number of means of production (P), can also serve remedial actions, consisting in extending the working day at
the construction site (G), and reorganization of “accelerated” schedules, by slowing
down the pace of production. In each case, however, it requires a thorough cost
analysis consisting of a profitability calculation—in combination with contractual
penalties or a bonus for early completion of works.
References
1. Przywara D, Rak A (206) Assessment of time and cost variances of the schedule using the
earned value method. Build Mater 6
2. Wypijewski P (2014) Implementation and application of controlling in a large production
enterprise. Controlling Manag Acc. Mag. 11:182