Web Based Project Cost Monitoring System for Construction Management

8/14/2019 Web Based Project Cost Monitoring System for Construction Management

1/13

In a construction project, plans are usually drawn toensure that the construction work is carried out to thedesired quality, in the allowed time; and the constructioncost is expended within the preset budget. In fact, a proj-

ect is highly unlikely to proceed in all respects entirely according

to plan, particularly in the cost aspect. There are many variablesthat affect the cost performance for a project (project complexity,unforeseen ground condition and variations, etc.). When there isa deviation between the plan and the actual work performance,control action is definitely required.

The term cost control was defined by Seeley [2] as: Cost con-trolall methods of controlling the cost of building projects with-in the limits of a predetermined sum, throughout the design andconstruction state.

A typical management system generally consists of threetasks: 1) goal; 2) process; and 3) evaluation. In the initial stage theteam sets out goals for project policy in relation to cost control.The team manager then arranges and sets out details of the poli-

cy. Throughout the course of construction, regular meetings areheld to evaluate performance results, making sure that the target-ed cost/budget are met and consistent with the cost control poli-cy. If the results show the contrary, immediate corrective actionsare taken to correct the situation. Such management arrangementis instrumental in preventing improper behaviors/events that maylead to serious budget cost overrun. For this reason, the impor-tance of cost control/monitoring management system, in particu-lar the measurement and evaluation of performance, cannot beover-emphasized.

Despite the vast volume of works done by the industrial par-ticipants in relation to cost control and monitoring management,however, most are concerned with the first two tasks, namely goal

(how to set up project cost budget) and process (how to imple-ment cost management system). There is relatively little workdone in relation to the third task evaluation, that is the systematicmeasurement and assessment of cost performance. An online costperformance measurement and assessment system is described inthis paper.

AIMS AND OBJECTIVES

In this paper, the concept of developing an automated onlinecost control/monitoring and assessment system for construction

projects (PCMS) is discussed. One of the key functions of PCMSis as a detector of potential risks and hazards in cost managementor as a warning sign to the client and professionals that the presetcost budget is overrun and requires immediate corrective actionPCMS plays a vital role in preventing budget cost overruns and

enables effective cost control/monitoring management. The pro-posed PCMS adopts the cost control/monitoring managementmodel as the basis for its design development. To make good useof the advent of IT and database technologies, all of the functionsof PCMS were designed to be Web based. This provision enableremote access, speedy data collection, retrieval, and documenta-tion. Furthermore, a knowledge base was included in the designto facilitate online expert advice and instructions. In achievingthis, the following are the major objectives.

Development of a Web-based interface for management andassessment of data related cost performance. The interface shouldenable automated collection, evaluation, assessment, storage, andpresentation of data.

Development of an exclusive knowledge pool for cost man-agement. That is, guidelines and best practices, etc., for the pre-vention and resolution of budget cost overruns. These are derivedfrom the practical experience of experts and professionals in thefield.

Developing a portal to handle key output data in a systemat-ic manner. For instance, key and operational data are separatedautomatically through preset functions that only data of greatimportance (total expenditure per month, anticipated final expen-diture and the percentage of expenditure to the preset budget costetc.) to senior management are summarized in the executive sum-mary report.

Set up a framework for the design of benchmark group

Organizations or parties interested in knowing more about theindustry benchmarks or standards in cost management can forma benchmark group.

The overall conceptual framework (Web-based interfaceknowledge pool, output data, and benchmark groups) for thedevelopment of a Web-based cost monitoring system is illustratedin Figure 1. Through their combined effect, PCMS enablesspeedy online performance assessment and effective managementof project cost. The following sections will deal with each com-ponent in depth.

IT.09.1

2003 AACE International Transactions

IT.09

Web-Based Project Cost Monitoring System for

Construction ManagementDaisy K.L. Yeung, Dr. Sai-On Cheung, Kevin K.W. Cheung,

and Henry C.H. Suen


2/13

IT.09.2


DATAE

N

TRY

PCMS

System Administrator

Data submitted by fax,

mail (for users without

Internet access)

Users, including project

managers, officers, etc.

I. Web-based Interface

InputDataFiles

Web-based ControlMonitorin S stem

II. Knowledge

BaseAdvices, guidelines

based on expert

experience

III. Output Data

Graphs, tables, figures, etc.

Users IV. Benchmark Groups

Corrective Action to improve cost performance Special

Taskforce if

necessary

EXPERTADVICE

DATAO

UTPUT

ACTION

Figure 1Conceptual Framework of PCMS


3/13

WEB-BASED INTERFACE

The interface is the point where project data are input, sort-ed, and stored automatically in accordance to the preset condi-tions It also serves as the gateway to access the vast data containedin the PCMS, of which access is via the internet domain address.The interface consists of the account login and data-entry tem-plates. These are designed to enable speedy and systematic datacollection and assessment.

Account LoginBy entering the correct user name and password, the user can

access to the various built-in functions: contract; survey; graph;account; and help. These serve to give the user total control of thedata. Figure 2 shows the login and main functions in the defaultscreen.

Developing Data-Entry TemplatesEffective cost control management depends on a sound mon-

itoring system, which involves making measurements as the proj-ect proceeds and comparing those measurements with desired orexpected value. A list of cost control performance parameters asso-ciated with a systematic approach of handling data is proposed to(1) reflect the current performance; and (2) collect and interpretthe data. Indeed, developing parameters for the measurement andassessment of project cost performance has been the core subjectof effective management. Existing measurement tools (activitybased ratio, variances, and earned value analysis) tend to relyheavily on manual data collection and interpretation, suchapproach is losing place in the modern society with the wideapplications of Internet and database technologies. As others havesuggested, an automated and Internet-based monitoring systemcan remove geographic barriers and reduce time in transferringdata; in addition, it enables exchange of massive volumes of cost

information at high speed and at relatively low cost [1]. For thisreason, PCMS, by making use of the templates (computer-aideddata entry forms), is capable of ascertaining current performancefigures in an automated manner. The ability to conduct onlinedata collection and transfer means that much time and expensescan be saved. Figure 3 shows the various computing componentsof PCMS.

Design of TemplateRelevant data (those related to cost control performance) are

input into the template manually by the project administrator.The content and design of the template depends on the numberof performance parameters, which in turn depends on a numberof factors, such as the size, scale, and the contract duration periodof projects. Hence, like any project performance measurementtool, the set of cost performance parameters adopted is unique. Inthe proposed template, parameters are emphasized on operationparameters. It is mainly concerned with measurement of theissues, such as the cost performance efficiency, the preset costbudget, the actual expenditure, and the forecasted expenditure ofthe project. In Figure 4, the actual appearance of the data entrytemplate on screen is displayed.

KNOWLEDGE POOL

The knowledge pool contains expert advice and guidelinesthat are vital for cost control/monitoring management. It plays asupporting role to complement the automated assessment systemUpon completion of data entry via the template, the built-in pro-gram will automatically highlight those parameters that are under-performed. Expert advice will be given automatically to theunderperformed parameters from the knowledge pool. For exam-ple, data provided in relation to the parameter of planned month-ly expenditure versus actual monthly expenditure indicates that

IT.09.3


Figure 2Login and Key Functions


4/13

IT.09.4


INPUT

Templates

Collect Data

submitted via

internet or from

System

Administrator

PROCESS

PHP

(Scripting

Language)

MySQL

(Database

Backend)

OUTPUT

Automation Suite

(Web-based)

Raw Data

Figure 3Computing Components of PCMS


5/13

IT.09.5


Figure 4Data Entry Template

Clicking this bar, data

input template for theselected parameter is

entered

Budget/committedcontract sum on screen

Payments data sheet on

screen

Variation orders data

sheet on screen

Claims detail sheet on

screen

Liquidated Damages

detail sheet on screen


6/13

expenditure spent in that particular month exceeded the plannedbudget. An alert sign will be displayed, and by clicking on the alertsign, practical suggestions will be given on the screen (Figure 6refers). The practical suggestions are in fact collected from andbased on expert experience and professional practices in the con-struction field.

DATA-ENTRY PROCESS

Before embarking on explaining the data output componentof PCMS, a brief account on how PCMS works in practice is nec-essary. As mentioned in the above, PCMS is operated through a

Web-based interface. After successfully entering the contractdetails, the user can begin the data-entry process. The templateconsists of a number of parameters. There are five key controlparameters to monitor the degree of compliance on the cost per-formance. These are: (1) cost performance efficiency, (2) pay-ments, (3) variations, (4) claims, and (5) forecast final contractsum.

By selecting the bar in the operation section (Figure 4), theselected control parameter is entered. Input the data for that

parameter into the space provided and click on the submit buttonat the bottom of the template. The completed data-entry will auto-matically be transformed and stored in the MySQL database.Data stored in the MySQL database is partitioned in accordanceto the project details, i.e., project reference number, month andyear, etc. The data entry template in an on-line environment canbe found in Figure 4.

The output data contains key project data in the forms ofsummary tables, graphs, figures, etc. These are the basis informa-tion for management decision-making and are extremely usefulfor meeting discussions and presentations.

Dissemination of Collated Data-Graphical PresentationsAll input data can be analyzed through the built-in expert sys-

tem. PCMS allows the users to monitor the project performanceover a certain period. Key data can be transformed in the form ofcharts, curves, and tables within seconds by the MySQL database(an open source database). In sum, there are three functions avail-able in terms of data dissemination: 1) executive report; 2) com-paring between projects; and 3) trend/movement. In Figure 5,users can select their desired format of data dissemination.

Executive Report

The key data input is analyzed and summarized in the exec-utive report, with alert signs attached to the underperformedparameters. In Figure 6, an executive report template is displayed.Different from the data entry template, the executive report con-tains a section of key parameters (i.e., the cost performance effi-ciency, payment status, variation order status, claims status, andthe forecast final contract sum), which are the most important fig-ures/data for senior management. Furthermore, graphical presen-tations are available in this template. By clicking the graph box,key data in graphical form will be displayed on the screen. Thisprovision enables senior management to have a clear picture onthe cost performance of the project.

Comparing between ProjectsIn addition to the above function, PCMS also allows the users

to compare key parameters between similar projects (Figure 7). InFigure 8, the comparison function is illustrated in the defaultscreen. By studying and comparing the movements of the twocurves, the management can have better understanding of the dif-ferences/similarities in cost performance efficiency between twoprojects. As such, management can discuss with their subordinatesways to identify future improvement.

Trend/Movement Very often, particularly when making important decisions

simply studying performance over a month is not good enough. Itis necessary to study the performance over a period of, say threemonths or more, to really understand the movement pattern/trend, before any solid observation can be made. Hence, PCMSallows the users to choose the movement/trend of the key param-eters, including (1) cost performance efficiency; (2) accumulativeexpenditure; and (3) percentage of actual expenditure against thepreset budget (Figure 9).

BENCHMARK GROUP

Project data can also be used to set up benchmarks for theindustry by using the compare graphical function mentioned inthe above. Interested groups and organizations can form bench-mark groups, which are comprised of professionals in the samefield. Each benchmark group should have its set of goals andobjectives, so that it can be used to devise a set of exclusive bench-marks or standards by comparing the key output data (e.g., costperformance efficiency) of different projects. In doing so, bothstrengths and weaknesses can be identified and best practices canbe developed to improve the cost control standard. Like anyorganization, a systematic and well-structured framework is need-ed for the successful implementation of a benchmark group.Figure 10 is a model for the development, implementation, andmaintenance of a benchmark group in cost control managementand provides the basis for the design and establishes the contentsof a benchmark group.

COMPUTING COMPONENTS

The proposed Web-based PCMS allows instant access anddata collection, removes geographic barriers, and reduces time in

transferring data The advancement of Web and database tech-nologies makes the concept of online monitoring no longer adream but a reality. In addition, PCMS enables the exchange ofmassive volumes of information at high speed and at relatively lowcost [1]. This system also reduces human and mathematicalerrors, as data are now directly entered by the users and data col-lection and calculation is now performed by the computer. Inthese contexts, PCMS is a total automated monitoring system.

IT.09.6



7/13

BENEFITS OF PCMS

PCMS is a powerful monitoring and assessment tool. It iscapable of reducing much time for data-collection and dissemi-nation of collated data. It helps project managers and administra-tors to assess cost performance in an effective and timely manner.Performance parameters can be added or reduced to reflect thecurrent industry environment. Such flexibility is essential foreffective cost control management. It can cope with the increas-ingly complex and fast-changing social, legal, and political envi-ronments. PCMS facilitates automatic, online, instant graphicalpresentation of the performance data of the construction enter-prises, making it possible for construction enterprises to makeimportant decisions (i.e., to take immediate corrective actions inareas that are under-performing) anytime, anywhere.

The proposed PCMS streamlines the cost control per-formance measurement and assessment processthrough its Web-based interface, database, and expertsystems. The Web-based interface enables speedy col-

lection of cost performance data through the Internet, and thecollected data are stored in the database and then assessed by theexpert system. The final product in this process is the executivereport, which contains advice and graphical presentations ofimportant data all in one sheet. The primary purpose of PCMS isto reduce the risk of project expenditure overrun by directlyobserving and assessing the data submitted at the instant, so thatpreventive and corrective measures can be taken at once.

However, PCMS is never intended to replace managementinvolvement in making decisions, particularly those involvinghuman factors. Rather, the Web-based monitoring process is toimprove efficiency and accuracy and serves as a complement tomanagerial and leadership competence. The proposed PCMSenables construction management to examine financial perform-ance and compare with others within the field through a bench-mark group. Only by comparing performance, weaknesses, andstrengths can corrective measures be implemented to improve theoverall cost control standard.

REFERENCES

1. Deng Z., Li, H., Tam, C., Shen, Q., and Love, P. (2001) AnApplication of Internet-Based Project Management System.Automation in Construction 10: 239-246.

2. Seeley, H. Ivor. (1994) Building Economics. Macmillian.

Daisy K.L. YeungCity University of Hong Kong

Department of Building and Construction83 Tat Chee Road, Kowloon Tong

Hong KongE-mail: [email protected]

Dr. Sai-On CheungCity Univ of Hong Kong

Dept of Building & Const (1)83 Tat Chee Rd Kowloon Tong

Hong KongE-mail: bcsoc@[email protected]

Kevin K.W. CheungCity Univ of Hong Kong


Hong Kong

Henry C.H. SuenCity Univ of Hong Kong


Hong Kong

IT.09.7


Figure 5Output Data Request Template


8/13

IT.09.8


Figure 6Executive Report Templates


9/13

IT.09.9


Figure 7Graphic Comparison Function Request Template

Figure 8Comparison Function: Cost Performance Efficiency (Project C56 vs. Project C57)


10/13

IT.09.10


Figure 9Trend/Movement Function: Cumulative Construction Expenditure


11/13

IT.09.11


PLANNING

(Goals and objectives setting)

ORGANISING

(Divide into necessary

functional groups)

DATA SHARING and

COMPARING(Share and compare data from

different ro ects

SUMMARY OF FINDINGS

(Draw up Benchmarks)

TESTING

(Testing of Benchmarks in real

projects)

Feedback Loop

Figure 10Conceptual Model for Organization of Benchmark Groups


12/13


13/13

Web Based Project Cost Monitoring System for Construction Management

Documents

Transcript of Web Based Project Cost Monitoring System for Construction Management