🔧 Enhancing Project Cost Controls in EPC Organizations: Key Inputs and Outputs 🔍
Dear BIVILLEPM Community,
Inputs for Project Cost Controls or Project Cost Engineering for an EPC organization include:
1. Project Planner’s Inputs: Project Management System (PMS), periodic updates, and progress reports.
2. CFO/Accountant Inputs: Actual cash expenses and Asset Owner payments recorded accurately based on the appropriate accounting codes.
3. Contract Manager/Project Manager/COO Inputs: Contract value and payment milestones weights.
4. Cost Estimator/Project Engineer’s Input: Project control budget provided by the estimators in the Engineering and Operations Team.
5. HR Inputs: Project payroll budget and expenses aligned with Planners Manpower Plan, accounting records and validated.
6. Procurement Manager Inputs: Expenses for materials, equipment, and service contracts aligned with accounting records, Engineering and Operations Team and validated.
Process:
- AACEI, GPC, and PMI Standard Processes Tailored to Organizational Needs.
Outputs for Project Cost Controls/Cost Engineering:
1. Earned Value Management (EVM) Report 💰
2. Project Cashflow Report 📊
3. Plans, Procedures, and Basis documentation 📝.
It’s important to thoroughly review the standards as many are designed to be tailored to specific use cases. Borrowing from the Lean-Six Sigma philosophy, eliminating unnecessary processes is crucial for efficiency.
Disclaimer: The above process is not aligned with Asset Owner Companies such as Shell and NLNG; it is designed for Contractor Companies such as SAIPEM and BIZVILLEPM.
#ProjectManagement #CostEngineering #EPC #ProjectControls #CostManagement #Procurement #HR #Finance #GeorgeNWOGU #BIZVILLEPM 🌐🚀
Best regards,
Engr. George (Chìsom) ÑWÒGU (MBA, PMP®️)
Motto: Humanity First, then Smart and Green. 🚀
My name is George Nwogu, a Senior Project & Planning Manager, COO and Global Trainer from Nigeria. I’m the Founder of Bizville Project Management Limited
Services from Bizville Project Management are:
- EPC, HSE, PMT & MGT Manpower Development and Training
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