Project Controls (Unit 37)

An APC Candidates Guide.

Unit 37– Outlines the specialized competencies required for Project Controls. This field, which has its roots in the USA and has seen significant growth—particularly in the petrochemical industry—focuses on the key areas of cost, time, risk, and scope.

These areas are identified as essential components for the role of a Cost Engineer.

It is important to note that this unit should be read in conjunction with Units 3, 4, 30, 35, and 36, which cover Cost Estimating, Cost Planning, Project Risk Management, Earned Value Management, and Cost Engineering, respectively.

The competencies outlined assume that the Cost Engineer will be involved in all aspects of Project Controls, particularly in identifying and addressing variances from the project baseline.

The document describes the following steps and elements involved in this process:

• Develop Baseline: This includes defining the project scope, schedule, budget, contract terms and conditions, and the project controls plan.

• Measure Progress and Performance: This entails monitoring and measuring progress against the baseline using cost and schedule monitoring tools.

• Identify Variances: Recognizing actual and potential deviations in the project execution plan, scope, cost, and schedule.

• Validate Impact: Verifying identified variances through data review and discussions with responsible supervisors.

• Identify Cause: Investigating the reasons for any variances and quantifying their impact.

• Recommend Solutions: Assessing available options and their effects on scope, cost, schedule, and risk in collaboration with the project team.

• Facilitate Decision Making: Presenting options to the appropriate management level for a decision.

• Approve and Implement: Putting the chosen solution into action.

The Element Performance Criteria for Unit 37 encompass a wide range of activities, including:

• Preparing Estimates: Creating screening, budget, and definitive estimates.

• Budgeting: Defining the project budget, establishing the plan, and managing adjustments.

• Cost Forecasting: Defining the scope, creating a plan, forecasting cost and schedule, reconciling forecasts, and conducting reviews.

• Cost Controlling: Providing cost control information, highlighting overruns, recommending corrective actions, and monitoring costs.

• Key Performance Indicators: Measuring production trends, budget variances, estimation accuracy, and forecast variances.

• Cost Management and Reporting Systems: Understanding and utilizing relevant software and ERP systems.

• Funding: Initiating requests, obtaining approvals, and managing the release and allocation of funds.

• Cost and Commitments: Handling actual, accrued, and committed costs.

• Scheduling: Using cost-loaded schedules to derive performance indices and variances.

• Scheduling Systems: Knowledge of systems for managing cost-loaded schedules.

• Schedule Reporting: Identifying and evaluating impacts on contractual milestones.

• Scope Risk: Conducting risk assessments, management workshops, reviews, and quantitative analyses, including Monte Carlo simulations.

• Scope Integrated Cost-Benefit Analysis: Identifying outcomes and execution factors, collating options, and recommending a solution.

• Scope Change: Capturing, approving/rejecting, incorporating, and documenting changes.

• Project Controls Reporting: Generating reports on trends, schedule impacts, progress, costs, engineering, construction, government/client interactions, and financial statuses.

In summary, Unit 37 details the competencies required for a Cost Engineer to effectively manage project controls in infrastructure projects, particularly within the petrochemical sector, emphasizing the integrated management of cost, time, risk, and scope throughout the project lifecycle.

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Disclaimer: This information is for general knowledge purposes only and should not be considered legal advice. It is essential to consult with a qualified legal professional for any legal matters or concerns.