after month-end close. Accurate estimates will give accounting staff the information it needs to prepare accurate monthly
work in process schedules and financial statements.
(For more on this topic, see “Improving Profitability: Bridging
the Gap Between Accounting & Operations” by David Brown
and Brian M. Andrew in the March/April 2013 issue.)
By the time you enter the controlling stage, you have identified your risks. But are you managing them? Spend time at
the jobsite, be proactive, and give more attention to these
identified risks. Also, compare your budget with actual job
costs incurred to date on a regular basis. Stay in control by
making sure the project is still on track and the job remains
CFMs can be proactive and initiate this communication with
their PMs. Schedule a half-hour meeting at month-end with
each PM to review and discuss the status of their projects.
Regular communication with your PMs on the status of their
jobs will encourage more accountability as well.
Schedule revisions are often common in projects as well. You
may need to revise the project’s schedule to meet customer
demands and deadlines. You might also need to bring in
additional resources if more manpower or a different skill
set is needed.
PHASE 4: CONTROLLING THE PROJECT
Staying within the scope while maintaining quality is one of
the most important areas in this fourth phase. By staying with
the original scope of the project, you ensure compensation for
work performed. Maintaining quality is a continuous process
and can prevent rework or warranty work down the road. Be
diligent in always documenting work outside the scope of the
original contract with signed change orders.
MEC_PE_infogrph_ad.pdf 1 7/18/13 10:22 AM
Don’t forget the importance of sending out timely billings.
The best PMs keep up on billings or even bill ahead on a project. It is important to ensure that the company has adequate
cash flow available to cover project costs. The sooner the
work can be billed, the sooner it can be collected. A CFM
should explain to PMs how their billing practices can lead to
increased cash flow and eliminate unnecessary draws on the
company’s line of credit. A reduction in the company’s interest expense will also lead to increased profitability.
PROJEC T MANAGEMENT
CAPTURE, INDEX, STORE,
AND ARCHIVE DOCUMENTS
FROM DEPARTMENT TO
EQUIPMEN T MANAGEMEN T
PROPER T Y MANAGEMENT
various departments route documents
(invoices, contracts, estimates, drawings,
etc.) for collaboration or approval
VIRTUAL FILE ACCESS
Changes made to the document by one
department are saved. The document is still
editable by other departments.
After each department checks off,
the document is “sent” back to back
to originating department for
The document does not need to be
“moved” but simply stored for access from
paperlessenvironments.com — (225) 218-4768.