Capturing Project Schedule Status
The contractor will update the project’s integrated schedule at the end of each month. The PMWeb schedule module will be used to import this schedule to maintain a record of the baseline schedule, revised plans, and updated schedules. This will enable the bank to have an immediate comparison between the scheduled versions to identify if there are any variances.
In addition, all extension of time (EOT) requests must be captured and reported. The PMWeb custom form builder will be used to capture the details and status of those requests and their impact on the project’s completion date.
Capturing Details of Progress Invoices Made by The Contractor
At the end of each month, the contractor would submit the monthly progress invoice for the project owner to approve. This will be the projected revenue that the bank will use to repay the project’s loan. The percent completed for work in place could be either based on a physical assessment of completed works or linked to the project schedule to import the percent complete from the related project schedule activity.
Single Version of the Truth of Project’s Financial Status
The cost data captured in the budget, budget adjustments, commitments, change orders, progress invoices, revenue contracts, change orders, requisition, payments made, and payments received need to be consolidated in a single report to provide a single version of the truth of the project’s financial status. The PMWeb cost worksheet module will be used to define different spreadsheets to report the additional cost transactions captured by PMWeb modules and stored in the PMWeb cost ledger.
Forecasting the Estimated Cost at Completion
The planned budget spending earned value of actual progress achieved and the actual cost incurred in making this progress will provide the input to assess the estimate to complete the balance of the project’s scope of work. Adding the actual cost to this estimate will provide the estimated cost at completion, which will identify if there will be a variance at completion when compared to the original budget at completion. PMWeb forecast module uses the earned value to provide those calculations so they can be reported.
Maintaining the Project Issues Log
The bank’s authorized representative assigned to the project must maintain an updated register of all issues that could impact the project’s performance if they are not resolved within their due auction date. Those could be issues that relate to the relationship between the bank and contractor, contractor and subcontractors, and suppliers, among others. The PMWeb custom form builder will be used to create the issue form so they can be tracked and resolved.
Capturing the Project Progress Narrative
It is vital for the bank’s authorized representative assigned to the project to provide their progress narrative of the current project status. The progress narrative form could include specific sections to evaluate the contractor’s quality, safety, and project management practices. The PMWeb custom form builder will be used to create this progress form, for which the captured content will become part of the project’s monthly progress report or dashboard.
Maintain All Important Project Documents
All contract documents and revisions to those documents, critical project communications, and project documents for the different credit risk management processes, among others, must be appropriately stored and saved. The PMWeb document management repository will be used to upload and store all project documents and records and attach those documents and records to the related credit risk management process.
Lessons Learned Repository
Since exposure to credit risk continues to be the leading source of problems in banks worldwide, banks should be able to draw valuable lessons from past experiences. The bank’s authorized representative assigned to the project must capture and report on those lessons learned. The PMWeb custom form builder will be used to create the lessons learned document template to enable sharing of this knowledge among the bank’s credit risk management team.
Report, Monitor, and Evaluate Project Performance
A standard dashboard should be used to report, monitor, and evaluate each project’s performance. The dashboard will include the key performance indicators extracted from the above credit risk management processes. The PMWeb reporting tool will be used to design the dashboard in the form and format required by each bank.
Report, Monitor, and Evaluate Projects Portfolio Performance
Having all financed projects on a single repository will enable the bank to have a single real-time version of the truth on the credit risk exposure for the complete projects’ portfolio. The PMWeb reporting tool will be used to design the projects’ portfolio dashboards in the form and format required by each bank. This dashboard can be filtered to display the information specific to a particular contractor or project owner, projects in trouble, among others.
About the Author
Bassam Samman, PMP, PSP, EVP, GPM, is a Senior Project Management Consultant with over 35-year service record providing project management and controls services to over 100 projects with a total value of over US $5 Billion. Those projects included Commercial, Residential, Education, and Healthcare Buildings and Infrastructure, Entertainment and Shopping Malls, Oil and Gas Plants and Refineries, and Telecommunication and Information Technology projects. He is thoroughly experienced in project management, including project management control systems, computerized project control software, claims analysis/prevention, risk analysis/management (contingency planning), design, supervision, training, and business development.
Bassam is a frequent speaker on Project Management, Strategic Project Management, and Project Management Personal Skills. Over the past 35 years, he has lectured at more than 350 events and courses at different locations in the Middle East, North Africa, Europe, and South America. He has written over 250 project management and information systems articles featured in international and regional magazines and newspapers. He is a co-founder of the Project Management Institute- Arabian Gulf Chapter (PMI-AGC) and has served on its board of directors for more than six years. He is a certified Project Management Professional (PMP) from the Project Management Institute (PMI), a certified Planning and Scheduling Professional (PSP), an Earned Value Professional (EVP) from the American Association of Cost Engineers (AACE), and a Green Project Management (GPM).
Bassam holds a Master’s in Engineering Administration (Construction Management) with Faculty Commendation, From George Washington University, Washington, DC, USA, Bachelor in Civil Engineering – from Kuwait University, Kuwait, and has attended many executive management programs at Harvard Business School, Boston, USA, and London Business School, London, UK.