The fourth and last article that relates to “How to Enforce the Culture of “100% Committed to Achieve” in Managing the Contractor’s Contract Price on Capital Construction Projects?”, will address how to how a single version of the truth cost performance status report of the contract agreement between the Project Owner and Contractor, project budget as well as the commitment contract agreements between the contractor and internal and external entities that the project’s scope of work was outsourced to.Those articles have detailed how to build the overall cost model shown below, manage all changes to the contract, budget, and commitments, and manage interim progress invoices against the contract and all commitments. The different transactions or records of the cost management business processes will be the data source for generating the integrated cost report to provide a single version of the truth of the project’s cost performance status.
The cost ledger module of the PMWeb Project Management Information System (PMIS) solution will automatically capture the financial details of each business process transaction. Those financial details will be grouped by their type such as original budget, budget revisions, income contract, commitments, change orders, requisitions, etc.
This data will become available to create cost worksheets by selecting the cost record type and whether it is approved or pending approval that will be displayed as columns in the cost worksheet. There is also the option to add alias columns by creating formulas to use the values of the different record types available for the cost worksheet in creating new values or measures. There is no limit to the number of cost worksheets that can be created and used in PMWeb.
The cost worksheet will provide a real-time single version of the truth reporting of the project’s financial status. The financial data can be grouped by the cost breakdown structure (CBS) levels created by the contractor to manage all cost-associated data. The cost worksheet allows the reader to drill down to the source of each reported cost record to trace the details of the relevant business process transaction. In addition, the cost worksheet can be exported to MS Excel in case there is a need to run what-if scenarios, make changes to the reported cost information while keeping the data source intact or just for customized reporting or presentation.
It is a common requirement that the cost worksheet will be one of the many cost reports that need to be produced and shared with stakeholders. Although PMWeb comes ready with more than 150 ready-to-use forms, reports, and dashboards, each contractor can design their own cost worksheets and cost dashboards to display the needed information in the required format while respecting each contractor’s branding requirements.
In addition, there is the option of creating other reports that consolidate cost data from different business processes managed in PMWeb. For example, one of the default ready to use PMWeb reports available to be viewed in the report that summarizes the budget and commitment contracts details managed on each project. The report will summarize budget adjustments, approved and pending commitment change orders, and interim payment certificates issued against the commitment contracts. Similar to other PMWeb reports, the report reader can drill down to trace the transaction that has provided any of the displayed cost information.