Matt Stevens Ph.D. the author of “The Construction MBA” and “Managing a Construction Firm on Just 24 Hours a Day” has created an effective mobile app for today’s construction environment: The Cost to Complete Analysis Calculator.
Risk Management is a key practice in all construction. This mobile computing app helps all project shareholders proactively manage one of the largest risks - cost overruns.
The app uses estimated units versus actual units installed (versus estimated units) to calculate the percent complete. This is the most efficient way to calculate construction progress. The other variable - labor hours expended to date (versus estimated labor hours) - produces the cost to complete.
Additionally, labor cost dollars (or whatever your country's currency is) can be used separately or concurrently in the app.
Tasks items should be assembled construction items that are easy to measure. Some examples of these are 1) linear feet of wall 2) square yards of paving 3) square feet of forming 4) linear feet of duct 5) units installed.
Additionally, when setting up a project, each task item should have a separate line that includes task setup and clean up. This assures that each work item does not suffer from an excessive learning curve at the beginning that makes the projections very inaccurate during the first part of the task. Also, a specific demobilization task code allows for the cost to be accurately captured for the next project.
The resulting worksheet may be emailed or printed. This allows daily updates and close monitoring of potential cost overruns.
This app can be used by contractors, sureties, funders and owners to manage cost dynamics of a project. That is, an early and ongoing projection of cost-to-complete and cost-at-completion.
