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Project Management, Reporting, and Controls

Project Management, Reporting, and Controls. Key Risks / Controls. Focus for Today. Procurement Management Contract Management and Compliance Cost Management and Reporting Risk Management. Procurement Management. Grant Covenants – Create an Abstract Key Requirements? Disadvantaged firms?

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Project Management, Reporting, and Controls

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  1. Resource Planning & Management Associates, LLC

  2. Project Management, Reporting, and Controls Resource Planning & Management Associates, LLC

  3. Key Risks / Controls

  4. Focus for Today • Procurement Management • Contract Management and Compliance • Cost Management and Reporting • Risk Management Resource Planning & Management Associates, LLC

  5. Procurement Management • Grant Covenants – Create an Abstract • Key Requirements? • Disadvantaged firms? • Prevailing wages? • Project Delivery Requirements? • Fixed Price? • Time and Materials? • Time limits on funds expenditures? • Utilize a checklist to ensure that any covenants are covered in the procurement process Resource Planning & Management Associates, LLC

  6. Procurement Management • Establish clear-cut selection criteria on the front end and then utilize a scorecard to document the vendor selection process: • Licensing & Insurance • Financial Performance & Capabilities • Bonding • Criminal Matters – Civil Suits • Project Experience, Qualifications • Safety Record Resource Planning & Management Associates, LLC

  7. Procurement Management Resource Planning & Management Associates, LLC

  8. Procurement Management Resource Planning & Management Associates, LLC

  9. Procurement Management Resource Planning & Management Associates, LLC

  10. Procurement Management Resource Planning & Management Associates, LLC

  11. Procurement Management Resource Planning & Management Associates, LLC

  12. Contract Management • Prior to signing • Use the Grant Abstract to align contract(s) to any specific covenants or requirements. • Review T’s & C’s • Are allowable and unallowable costs clearly defined? • Home office overhead, travel costs, markups, printing, etc. • How are contract changes/modifications going to be handled? • Invoice issuance and certification? • Schedule management issues? Liquidated damages? • Insurance and Bonding Requirements Resource Planning & Management Associates, LLC

  13. Contract Management • Review T’s & C’s Cont’d.. • Reporting Requirements? Frequency? • Submittals? • Utilize submittal schedules • MAKE SURE YOU INCLUDE AN AUDIT CLAUSE • Develop a Contract Abstract: • Timing and Frequency for: • Reporting • Submittals – Schedule, Payroll Certification, Lien Waivers • Invoices • Key Clauses • Cost Provisions serve as basis for invoice checklist Resource Planning & Management Associates, LLC

  14. Contract Management Resource Planning & Management Associates, LLC

  15. Cost Management • Invoice Analysis • Create a checklist from the Contract Abstract • Scan for Unallowable Costs • Confirm Overhead Rates and Profit Rates are correct • Check for Markup on Markup, Markup On Sales Taxes, Etc. • Contract Lien Waivers Submitted? • Prevailing Wage and Certified Payrolls Included? • Provides evidence of due diligence and puts the contractor/vendor on notice that costs are being reviewed carefully. • Large projects ($50M+), consider conducting a full-blown contract audit at 30% and 80%. Resource Planning & Management Associates, LLC

  16. Cost Management Resource Planning & Management Associates, LLC

  17. Cost Management • Change Order Management • Confirm that the change is legitimate • Identify and track the source of the change • Costs may be recoverable • Information should be tracked for future supplier evaluations • Prepare independent “blind” cost estimates prior to reviewing vendor’s specific proposal • Provides an objective basis for negotiation • Demonstrates due diligence on the part of the governing agency • Confirm that proposed change is calculate in accordance with contract T’s & C’s Resource Planning & Management Associates, LLC

  18. Cost Management Resource Planning & Management Associates, LLC

  19. Cost Management • Cost Performance Monitoring • Insist on bi-weekly or monthly project schedule updates from your staff and/or vendors • Need to move beyond….Budget – Actuals - Open Commitments = Cost to Finish • Use Earned Value Analysis to tie project schedules to costs • How much work was planned to have been done at any given point in the project? • What is the budgeted cost of that work? • How much work has been done to date? • How much of the budget has been expended? Resource Planning & Management Associates, LLC

  20. Project Budget Resource Planning & Management Associates, LLC

  21. Budget to Actual • This only provides us with a partial picture Resource Planning & Management Associates, LLC

  22. Budget Burn Rate • Now we realize we’ve got a significant problem. We’ve pretty much burned the construction budget but we’re only about 80% of the way through the work. Resource Planning & Management Associates, LLC

  23. Estimate to Complete • It looks like we’re going to end up about 20% over budget on construction cost. • Doing this analysis provides early warnings as to where the project is headed. Resource Planning & Management Associates, LLC

  24. Risk Management • Establish a Risk Identification Process • Determine the Participants • Project Managers • Financial/Accounting personnel • Vendor Reps • Stakeholder/ Constituent Reps • Define risk categories • Political • Physical • Logistical/Procurement • Financial • Design / Construction Resource Planning & Management Associates, LLC

  25. Risk Management • Identify potential risks • Project team brainstorming • Constituent surveys, interviews, workshop • SWOT Analysis • Analyze the Risk • Qualitative Analysis • Prioritize • Quantitative Analysis • What’s the probability that this risk will occur? • What will the impact be in Dollars • What will the impact be in Time? • What will the impact be in other areas? • Reputation, credibility, public safety, etc… Resource Planning & Management Associates, LLC

  26. Risk Management • Identify and Chose a Risk Response Strategy for SIGNIFICANT Risks • Elimination or Avoidance • Transfer - Insurance, Hedging, Contracting, etc.) • Mitigation – Are actions available that will minimize impact on cost, schedule, quality, or objectives? • Acceptance – Generally chosen if costs of mitigation outweigh the benefits • Monitor • Assigned to a responsible party to document, monitor, and provide periodic status reports • Report • Needs to be an integral part of the management cycle Resource Planning & Management Associates, LLC

  27. Risk Management Resource Planning & Management Associates, LLC

  28. Risk Management Resource Planning & Management Associates, LLC

  29. Robert Stickney, PrincipalResourcePlanning & Management Associates, LLC 2439 Nashville Avenue New Orleans, LA 70115 Voice: 504.621.2927 Email: rstickney@rpm-associates.com Resource Planning & Management Associates, LLC

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