Title: The Great Divorce: Cost Loaded Schedule Updating
Abstract: Cost and resource loaded CPM network schedules provide detailed planning information to the owner's project management team. Cost curve projections from the baseline schedule graphically depict the planned rate of project expenditures. Resource loading provides evidence that the contractor has planned thoroughly, identifying all resources and equipment required to complete the project. There is no downside to a cost and resource loaded baseline schedule, which is why many owners require them for projects above a certain size. But network schedules are designed to measure and manage time, not dollars. During the course of construction, resource or cost drivers can make CPM schedule calculations invalid. Unpaid remnants of activities in progress (paid to 97% and holding) can distort the schedule by increasing out-of- sequence reporting. Schedule updates must provide valid projections of completion in order to support the management team. This paper will evaluate the problems inherent in using cost-loaded schedule updates as the basis for progress payments. The author recommends steps toward a divorce of the cost tracking from the schedule tracking during the course of construction.
Publication Year: 2011
Publication Date: 2011-01-01
Language: en
Type: article
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Cited By Count: 1
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