CHANGES- SOURCE OF CHANGE ‘COST OVERRUN MEASUREMENT’ [email protected] htt://www.construction-productivity.co.uk
CHANGES- SOURCE OF CHANGE‘COST OVERRUN MEASUREMENT’
[email protected]://www.construction-productivity.co.uk
During construction projects, many decisions have to be made under
uncertain conditions.
The Change/re-work problem is often caused by poor project change
management.
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If any assumption is proven wrong, some decisions have to be revised.
In other words, changes are often inevitable.
Designers, engineers and other professionals have to make assumptions
based on existing available information and their past experience.
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How to avoid or reduce the negative impact of changes.
The need for effective change management is essential for productivity
improvement.
The key is:
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Managerial Technological Social factors
SOURCE OF CHANGE-MAJOR INFLUENTIAL FACTORS
The main areas pertain to
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The objective of change management is to forecast possible changes.
It can be caused by either Internal or External Factors.
Different changes may have different effects or consequences.
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CHANGES- SOURCE OF CHANGE •Identify changes that have already
occurred
CHANGES- SOURCE OF CHANGE •Plan preventive impacts & coordinate
changes across the entire project.
CHANGES- SOURCE OF CHANGE •A radical change is sudden, dramatic and
has a marked effect.
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CHANGES- SOURCE OF
CHANGE•Gradual Changes often occur during the
design development stage, where many decisions are fine Tuned and refined progressively.
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CHANGE
•Radical changes occur during construction phases.
•Project changes can also be classified as “anticipated changes” and “emergent changes”.
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•At a more detailed level, the causes of construction project change are usually generated from either design or construction activities.
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•Changes can cause cost overrun.
CHANGES- SOURCE OF CHANGE
CHANGES- SOURCE OF CHANGE •To reduce the negative effects of change, it is important to identify the main causes of change.
CHANGES- SOURCE OF CHANGE •How these causes can effect the KPI’s.
CHANGES- SOURCE OF CHANGE •Ask questions-how can poor communications lead to higher chance of change, how can...?
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• What is the relationship between a change that has occurred with total cost of a project?
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•Project characteristics, which represent the amount of information available at the early stages of a project, are often the original source of change cases as concluded from the case studies undertaken for this research - see Motawa et al. (2003b).
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Motawa.A (2003)
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Typical cause-and-effect relationship-Motawa.A (2003)
(Fi) Projectcharacteristics
Rij(Cj) Causesof change
RjkEk) Change effects
Change effects are the change consequences on the project parameters (e.g. time, cost, etc).
Rij and Rjk are two measures that represent the degree of dependency between Fi’s and Cj’s and between Cj’s and Ek’s.
They actually represent the sensitivity of the impact of one set of elements to variations in another set of elements.
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• Identification of the parties who are affected with the cost overrun.
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• Determination of the penalties or consequences to the affected parties.
CHANGES- SOURCE OF CHANGE •Consideration of the interrupted cash flow, financing costs and loss/growth of earnings.
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Indirect consequences of change would always be harder to identify and define than a directly attributable consequence.
In terms of measurement, the metrics for these items will be qualitative.
Examples of such indirect consequences include:
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•There is often difficulty in determining equitable adjustment compensation for the parties involved.
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•It may also impact on the amount of labour that is not being effectively deployed, or result in loss of learning curve.
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The team’s momentum and equilibrium may be disrupted by a change
event
Therefore causing a normally effective team to become
inefficient and ineffective for a period of time, which may
increase co-ordination failures and errors.
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Change may alter the morale
amongst the project team.
Morale is a complex issue that could
severely affect the project’s performance.
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Influential factors (related to early stage of project) Economical Technological Customers Stakeholders Environmental Legislative Procurement route Organizational factors Financial factors Sustainability Etc
Process model of Change Management
Pre-construction Activities Client brief Project objectives Specification Design/build-ability Constructability Contractual arrangement Planning Scheduling Estimating
Labour Characteristics Subcontracting Labour Direct labour
Management System Planning Communication Controlling Co-ordinating
Resource Management & Weather Labour selection Labour control Material selection Material handling Plant Waste on site Delay and Disruption on site
Motivating Factors Hygiene Factors
Construction Productivity
Project Performance Time Cost Quality Safety Customer
satisfaction
Rewards
Effort
Ability and skill of management and workers
Site/Project Manager Characteristics Experience/capability Leadership style Authority/influence Goal commitment Involvement
Job Satisfaction
Changes inConstruction
Projects
OmissionAdditionErrors
DesignchangeBad
weather
site conditionsUncertainty
Lack of propersite investigation
Changesmade by the
client
Resources
Scope
Goals
Remove any Ambiguity
RESOURCESSCOPEGOALS
REMOVE ANY AMBIGUITY
LeadershipCo-ordinationcommunication
Team work MORE LEADERSHIP AND TEAM,WORK LESSCHANGES TO THE ORIGINAL PLANS
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Changes at theHead office and
on site
Optionalchanges
(improves thechances of
expansion andsurvivor)
Essential changes(for survivor and high
productivity)
Suddenchanges
Gradualchanges
AnticipatedNot
anticipated
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Causes ofchange
EconomicalEnvironmentalTechnological
SocialGovernmental/Political
Etc.
National&
international
External
Organizational changes
Internal
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Changes
Direct Indirect
Badweather
Badworkmanship
Designerror
Reworkdue to
Omitting
Additionalwork
MaterialsMachinery/equipments
Skilledworkforce
Shortageof
Dispute
Communication
Cash flow
Materials
Lowe moraleamongstworkforce
Reorganizere schedule
change workmethods
DelayCauses:
Bottleneck-uncertainty
amongst workforce-morale change-
Lack of coordination-failure-
errors
Delay
Con-currentExcusable
Suppliers
Bysub-contractor
Causedby contractor
Non-excusable
waiting time
Caused byclient
compressible
Mistakes inthe drawings
Machinerybreakdown due to
age of machine
Not enoughsupervisors
on site
Idleness
Disruption1-Lack of material
availability2-Lack of skilled
workforce3-Shortage of
Machinery/tools4-Information
availability4-Lack of good
decision making5-Bad working
relation6-Poor supply chain
7-Accidents8-Poor site layout
Changes onconstruction site
due to:
Poordetailing
Supervisorydecisions
Not fault of:client
contractorsub-contractor
etc.
LOW PRODUCTIVITY ON SITE
Changes inConstruction
Projects
Designerror
Designchange
Badweather
site conditionsUncertainty
Lack of propersite investigation
Resources
Scope
Goals
Remove any Ambiguity
RESOURCESSCOPEGOALS
REMOVE ANYAMBIGUITY
LeadershipCo-ordinationcommunication
Team work
MORE LEADERSHIP ANDTEAMWORK
LESS CHANGES TO THEORIGINAL PLANS
DirectChange
Indirect
Badworkmanship
Changesmade by the
client
Reworkdue to
Omitting
Additionalwork
BadMaterials
Reorganizere schedule
change workmethods
CHANGES- SOURCE OF CHANGE •Changes can cause cost overrun.
CHANGES- SOURCE OF CHANGE •To reduce the negative effects of change, it is important to identify the main causes of change.
CHANGES- SOURCE OF CHANGE •Ensuring that all appropriate changes are recorded’
COST CONTROL AND CHANGES
CHANGES- SOURCE OF CHANGE •prevent incorrect, inappropriate, or unauthorized changes from being included in the project.
CHANGES- SOURCE OF CHANGE •Acting to bring expected costs within acceptable cost limits.
CHANGES- SOURCE OF CHANGE •Scope change control.
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CHANGES- SOURCE OF CHANGE •Once the construction work starts on site, the management team on site will be responsible for day-to-day cost control as well as other responsibilities.
CHANGES- SOURCE OF CHANGE •The CM,PM, must not only know the project’s costs to date, but also be able to project costs For any additional work.
CHANGES- SOURCE OF CHANGE •The CM, PM,.. is responsible for controlling costs to ensure that construction is completed within budget.
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If any changes are anticipated during the construction process, immediate steps must be taken and they are:
1. the CM must notify the senior management as soon as possible;
2. an informed decision can be made on whether or not to proceed with the change;
3. Once the decision is made can the necessary funding be obtained?
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There most be a method to report to the management the cost overrun for each activity as it happens.
Software’s such as ‘asta’ shows the cumulative cost of the project.
There is no method of estimating cost overrun for a small project or cost overrun for activities with change or disruption or delay.
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Developments in Cost Control Systems forchange management There are three reliable cost control systems in
construction management. They can be used for improving cost control in
a project. 1. Short term scheduling and control. This system was developed at Loughborough
University. Its main aims are: to bring together the planning and supervision
of a project; to obtain a zero or close to zero response time
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2. Project Cost model. This a system developed by Dr Martin Barnes for simulating future actions and thus guiding the managers to take immediate corrective action.
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3-Quantitative scheduling One of the Construction software that provides construction cost control tool for construction management is the CFF3 for cash flow forecasting.
Version three has taken into consideration the possible deviations from estimates of cost.
As well as providing cash in patterns
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It gives early warning to return back to the original estimate to carry out corrective measures.
This can be done by damping out these deviations through the remaining period of construction.
Updated estimates are provided each time an actual figure is added.
The end cost remain same as was originally estimated.
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Let MD=Cost of Material /unit A =% allowed for material wastage in
Spons, Laxton, the schedule of rate. X=% actual recorded waste after
completion of the job. Productivity change relating to wastage is
measured by the difference between the expected level of waste on site.
As normally, scheduled in SPONS or LAXTON’s price book,
The actual waste on site after the completion of the job can be calculated.
CHANGES- SOURCE OF CHANGEHELPDESK PROPOSAL
1 2
12
14 17 19
13
15
16
18
3
5
4 9
6
11
7
10
21 22
20
S
8
DU=2
DU=4
DU=2
DU=6DU=8 DU=10
DU=3
DU=5
DU=1
DU=7DU=8DU=6
DU=9DU=7
DU=1
DU=5
DU=
DU=4
DU=6
DU=14
DU=12DU=10
A
B
D
F
G
K
C P Q
DU=6
DU=8
DU=3
DU=7
DU=5
UT
V
W
Y
H
L
CC
HH
EE
AA
FFX
GG
0 0
2 2
8 8
6 21
8 2914 35
DU=4E
19 42
19 43
16 16 26 26
26 48
38 38
DD
BB
22 43
32 5319 52
12 38J
20 46
32 53
R M
65 65
58 5826 49
52 52
CHANGES- SOURCE OF CHANGEFig-1 Vining St-London
Compare Actual completion time for Activities 1-2, 2-3,..against allocated time for Activities 1-2, 2-3,
Compare Actual completion cost for Activities 1-2, 2-3,..against allocated cost for Activities 1-2, 2-3,
Compare Actual waste allowed(%) for Activities 1-2, 2-3,..against allowed waste (%) for Activities 1-2, 2-3,
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ACTIVITIES 1-2, 2-3, 3-4, 1-12, 1-9, ….(Before any changes and after changes)To measure Items such as: Time (increase/decrease), Cost (increase/decrease), Labour (increase/decrease), Material (Material
waste-increase/decrease) Machinery (efficiency increase/decrease).
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Total material cost per unit rate=MD [A-X] EC= Estimated time for Craft to carry out a unit rate of a job. HC= Hourly rate for a Craft Operative
HL= Hourly rate for a Labour Operative EL= Estimated time for a Labour to carry out a unit rate of a job.
AC= Actual time for Craft to carry out a unit rate of a job. AL= Actual time for a Labour to carry out a unit rate of a job. PR (Loss/Gain)=MD [A-X] + {(EC . HC)+ (EL . HL)}-{(AC . HC)+ (AL . HL)}
Or PR (Loss/Gain) =MD [A-X] + HC(EC- AC)+ HL(EL- AL) PR=Productivity loss/gain per unit rate.
O
Total Productivity loss/gain (for a given activity)= Productivity loss/gain for a given unit per hour x Quantity of that activity
OR = PR x TQ Labour Productivity (Pi) for time period i=WHi /Qi WHi = Total work hours charged by the crew for time period of i Qi = Quantity of work placed during period i in unit rate
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Net Rate
Gross Total Total Total Total Total Time
Total Time
Total Cost
Total Cost
Total Time
Total Time
Total Cost
Total Cost
Unit
(£) Rate Quant-
Quant-
Cost Cost Est- Est- Est- Est- Act.- Act.- Act- Act-
(Est-) (Act-) (Est-) (Act-) Craft Labour
Craft Labour Craft Labour Craft Labour
(£) (£) (£) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) 64.5
5 72.94 160 - 1167
0 - 464 688 3257.3 3969.7
5 - - - - M2
57.29
64.73 130 - 8414.9
- 63.75 315.9 447.15 1822.75
- - - - M2
40.81
46.12 225 - 10377
- 506.25
393.75
3553.9 2271.95
- - - - M2
35.24
39.82 410 16326
- 922.5 451 6475.95
2602.25
- - - - M2
13.91
15.98 440 - 7031.2
- 638 484 4478.75
2792.7 - - - - M2
5.04 5.69 1125 - 6401.3
506.25
258.75
3553.9 1492.95
- - - - M2
3.99 4.5 785 - 3532.5
196.25
102 1377.7 588.55 - - - - M2
26.88
30.37 90 - 2733.3
- 90 54 631.8 311.6 - - - - M2
Net Rate
Gross Total Total Total Total Total Time
Total Time
Total Cost
Total Cost
Total Time
Total Time
Total Cost
Total Cost
Unit
(£) Rate Quantity
Quantity
Cost Cost (Est-) (Est-) (Est-) (Est-) (Act.-)
(Act.-) (Act-) (Act-)
(Est-) (Act-) (Est-) (Act-) Craft Labour
Craft Labour Craft Labour Craft Labour
(£) (£) (£) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs)
64.5 72.94 114 - 8315. - 330.6 490.2 2320.8 2828.4 - - - - M2
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CHANGES- SOURCE OF CHANGEProductivity measurement table-related to case no.1
CRAFT/LABOUR
PRODUCTIVITY
CASE NO.1 POOR
Total MD =Cost of material
Waste Waste Craft Optve
Craft Optve
Labour Labour
Productivity Loss or Gain £
Total loss/Gain =PR x TQ
Unit
3x3 Bed House-2 Story level
Quantity (TQ)
Delivered to site
(Estimate)
(Actual)
Hrs Hrs Hrs Hrs- PR=MD[A-X]+HC(EC-AC) +HL(EL-AL)
LOSS £
Description-Activities
(Act-) % % (EC) (AC) (EL) (AL)
SUPERSTRUCTURE
Facing Brick P.C £350 PER 1000 /Common Block
156 31.14 5% 6.50% 2.55 2.58 1.95 1.97 -0.9 -140 M2
Common Brick/Block
264 18.88 5% 6.50% 2.25 2.26 1.75 1.76 -0.47 -124 M2
Internal Walls-LWC Block
282 8 5% 7.00% 1.45 1.47 1.1 1.12 -0.38 -107 M2
Internal Walls-Plastering-13mm thick
708 1.71 5% 6.50% 0.45 0.45 0.23 0.23 -0.03 -24 M2
Internal Finish-Ceiling finish-set
504 0.47 5% 6.50% 0.25 0.25 0.13 0.13 0.47x (-0.02) 4 M2
Wall Tiling-152x152
75 14.5 5% 6.50% 1 1 0.6 0.6 1.71x (-0.02) 22 M2
COST OVERRUN MEASUREMENT
Formula one
PR (Loss/Gain) =MD [A-X] + HC(EC- AC)+ HL(EL- AL)
Formula two
AC = a EC (1+Σ xi) and similarly AL = a EL (1+Σ xi)
xi = % of influential factors such as weather, crew size, absenteeism, machinery,
accidents on site, etc.
COST OVERRUN MEASUREMENT
1. Consider formula one and two2. Consider activity 13-16 (fig-1 Vining St)3. Project manager asks for a change to the activity
(13-16)4. As a result KPI’s for this activity will alter5. To calculate Time, cost, Material waste, etc6. Formulas one and two are used.7. Table one shows changes8. Time overrun, cost overrun etc. Is as a result of
changes made to activity 13-16 (Code-C/FB13-16)9. Therefore, total project time, cost etc will change.
COST OVERRUN MEASUREMENT
CASE NO.1 POOR
Total MD =Cost of material
Waste Waste Craft Optve
Craft Optve
Labour Labour Productivity Loss or
Gain £
Total loss/Gain =PR x TQ
Unit
3x3 Bed House-2 Story level
Quantity (TQ)
Delivered to site
(Estimate)
(Actual) Hrs Hrs
Hrs Hrs- PR=MD[A-X]+HC(EC-AC) +HL(EL-AL)
LOSS £
Description-Activities
(Act-) % % (EC) (AC) (EL) ()
SUPERSTRUCTURE
Facing Brick P.C £350 PER 1000 /Common Block
156 31.14 5% 6.50% 2.55 2.58 1.95 1.97 -0.9 -140 M2
Common Brick/Block
264 18.88 5% 6.50% 2.25 2.26 1.75 1.76 -0.47 -124 M2
Influential factors (related to early stage of project) Economical Technological Customers Stakeholders Environmental Legislative Procurement route Organizational factors Financial factors Sustainability Etc
Process model of Change Management
Pre-construction Activities Client brief Project objectives Specification Design/build-ability Constructability Contractual arrangement Planning Scheduling Estimating
Labour Characteristics Subcontracting Labour Direct labour
Management System Planning Communication Controlling Co-ordinating
Resource Management & Weather Labour selection Labour control Material selection Material handling Plant Waste on site Delay and Disruption on site
Motivating Factors Hygiene Factors
Construction Productivity
Project Performance Time Cost Quality Safety Customer
satisfaction
Rewards
Effort
Ability and skill of management and workers
Site/Project Manager Characteristics Experience/capability Leadership style Authority/influence Goal commitment Involvement
Job Satisfaction
Product Improvement Tools (PIT) Earned Value Management (Evma) Lean Construction (Lcon) Benchmark (Ben) Front End Management (Fema) Just In Time (Jiti) Benchmarking (Bing) Quality Control (Qcon) Supply Chain Management (Scma) Buildability (Buil) Quality Assurance (Qass) Value Engineering (Veng) Buildability/Deconstruction (Buil/Deco) Quality Management System (Qmsy) Value Management (Vman) Otherp Product Improvement Tools
To have realistic cost overrun of a change or several changes- add % of variables in Product Improvement Kit tool into Formula one.
Some highly productive construction firms consider one or more variables in (PIK tools) within their management improvement policies.
Therefore, items relevant in the (PIT’s) is added to formula one.
COST OVERRUN MEASUREMENT
PR (Loss/Gain) =MD [A-X] + HC(EC- AC)+ HL(EL-AL) AC = a EC (1+Σ xi) and similarly AL = a EL (1+Σ xi)xi = % of influential factors such as weather, crew size,absenteeism, machinery, accidents on site, etc.
Let us assume that in fig-1 Project – Project management have
adopted Earned Value Management (E vma) ,Buildability/Deconstruction (Buil/Deco) , Value Engineering (V
eng).Therefore new formula is:
COST OVERRUN MEASUREMENT
Inside PIK box we have: Benchmark (Ben) Benchmarking (Bing) Buildability (Buil) Buildability/Deconstruction (Buil/Deco ) Earned Value Management (Evma) Font End Loading Quality Control (Qcon) Front End Management (Fema) Quality Assurance (Qass)
COST OVERRUN MEASUREMENT
Quality Management System (Qmsy) Lean Construction (Lcon) Just In Time (J) Supply Chain Management (Scma) Value Engineering (Veng) Value Management (Vman) Other Product Improvement Tools (Ben)+ (Bing)+ (Buil) +.........= Σ(PIK’s)
COST OVERRUN MEASUREMENT
How to calculate PIKs ( (E vma) + (Buil/Deco) + (Veng)+...)) Planning Engineer's total salary = TS (per year) or PH (Per
Hour) Let us assume that the Average Time spent for Vining St
project for carrying out VE, TQM, QA, FEL, JIT, Lean Construction etc. = AT
% of (At) used for activity (13-16) is obtainable from Planning Engineer=let us assume that 2.2% of total cost was used for all the relevant PITs.
COST OVERRUN MEASUREMENT
2.2% of Total Cost(TS)=2.2% X TS=CS Let us assume that 4 major changes has been
recorded. Planning Engineer’s calculation suggest that 12.5% of
cost overrun for change during activity (13-16) is (12.5/100) x CS =Total Cost Overrun for activity=TCO
Therefore, PR (Loss/Gain) as a result of changes for Activity 13-16 =
MD [A-X] + HC(EC- AC)+ HL(EL-AL) –( 12.5/100 X 2.2 X TS )
When AC = a EC (1+Σ xi) and similarly AL = a EL (1+Σ xi)
COST OVERRUN MEASUREMENT
Also considering:1. The Arithmetic Mean2. Geometric Mean The Arithmetic Mean can be applied for
individual projects. Geometric Mean can be considered for
more than one project cost overrun of more than 1 project can
cause financial loses
COST OVERRUN MEASUREMENT
COST OVERRUN MEASUREMENT
The geometric mean between two numbers is:
The arithmetic mean between two numbers is:
Matrix Multiplication
COST OVERRUN MEASUREMENT
Matrix cost overrun after a change
bdb
A ;11
m × n matrix and s is a scalar
310221
A
930663
331303232313
3A
Square matrix
A
a11 ,, a1n
a21 ,, a2n
am1 ,, amn
Aij
Square matrix with ones on the diagonal and zeros elsewhere.
Square matrixExample:
Solution:
COST OVERRUN MEASUREMENT
Definition Let A = [aij ] be an m ´ n matrix and B = [bij ] an n ´ p matrix.
Then v the product of matrices A and B, denoted AB, is the m ´ p matrix C = [cij ] where
Matrix cost overrun after a change
FIG-1
Fig-1 illustrates a matrix product AB, where A is m ´ n and B is n ´ p.
Inner Products
Vector Inner Product(Dot Product)
<a|b> =
ponml
***** zyxwv ***** pzoynxmwlv
By Definition acbcba
An Outer Product is a Ket multiplied by a Bra
Matrix cost overrun after a change
|a><b| =
ponml
=
*****
*****
*****
*****
*****
pzpypxpwpvozoyoxowovnznynxnwnvmzmymxmwmvlzlylxlwlv
***** zyxwv
Matrix cost overrun after a change
1 2
12
14 17 19
13
15
16
18
3
5
4 9
6
11
7
10
21 22
20
S
8
DU=2
DU=4
DU=2
DU=6DU=8 DU=10
DU=3
DU=5
DU=1
DU=7DU=8DU=6
DU=9DU=7
DU=1
DU=5
DU=
DU=4
DU=6
DU=14
DU=12DU=10
A
B
D
F
G
K
C P Q
DU=6
DU=8
DU=3
DU=7
DU=5
UT
V
W
Y
H
L
CC
HH
EE
AA
FFX
GG
0 0
2 2
8 8
6 21
8 2914 35
DU=4E
19 42
19 43
16 16 26 26
26 48
38 38
DD
BB
22 43
32 5319 52
12 38J
20 46
32 53
R M
65 65
58 5826 49
52 52
Net Rate
Gross Total Total Total Total Total Time
Total Time
Total Cost
Total Cost
Total Time
Total Time
Total Cost
Total Cost
Unit
(£) Rate Quant-
Quant-
Cost Cost Est- Est- Est- Est- Act.- Act.- Act- Act-
(Est-) (Act-) (Est-) (Act-) Craft Labour
Craft Labour Craft Labour Craft Labour
(£) (£) (£) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) 64.5
5 72.94 160 - 1167
0 - 464 688 3257.3 3969.7
5 - - - - M2
57.29
64.73 130 - 8414.9
- 63.75 315.9 447.15 1822.75
- - - - M2
40.81
46.12 225 - 10377
- 506.25
393.75
3553.9 2271.95
- - - - M2
35.24
39.82 410 16326
- 922.5 451 6475.95
2602.25
- - - - M2
13.91
15.98 440 - 7031.2
- 638 484 4478.75
2792.7 - - - - M2
5.04 5.69 1125 - 6401.3
506.25
258.75
3553.9 1492.95
- - - - M2
3.99 4.5 785 - 3532.5
196.25
102 1377.7 588.55 - - - - M2
26.88
30.37 90 - 2733.3
- 90 54 631.8 311.6 - - - - M2
Net Rate
Gross Total Total Total Total Total Time
Total Time
Total Cost
Total Cost
Total Time
Total Time
Total Cost
Total Cost
Unit
(£) Rate Quantity
Quantity
Cost Cost (Est-) (Est-) (Est-) (Est-) (Act.-)
(Act.-) (Act-) (Act-)
(Est-) (Act-) (Est-) (Act-) Craft Labour
Craft Labour Craft Labour Craft Labour
(£) (£) (£) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs) (Hrs)
64.5 72.94 114 - 8315. - 330.6 490.2 2320.8 2828.4 - - - - M2
Productivity measurement table-related to case no.1
CRAFT/LABOUR
PRODUCTIVITY
CASE NO.1 POOR
Total MD =Cost of material
Waste Waste Craft Optve
Craft Optve
Labour Labour
Productivity Loss or Gain £
Total loss/Gain =PR x TQ
Unit
3x3 Bed House-2 Story level
Quantity (TQ)
Delivered to site
(Estimate)
(Actual)
Hrs Hrs Hrs Hrs- PR=MD[A-X]+HC(EC-AC) +HL(EL-AL)
LOSS £
Description-Activities
(Act-) % % (EC) (AC) (EL) (AL)
SUPERSTRUCTURE
Facing Brick P.C £350 PER 1000 /Common Block
156 31.14 5% 6.50% 2.55 2.58 1.95 1.97 -0.9 -140 M2
Common Brick/Block
264 18.88 5% 6.50% 2.25 2.26 1.75 1.76 -0.47 -124 M2
Internal Walls-LWC Block
282 8 5% 7.00% 1.45 1.47 1.1 1.12 -0.38 -107 M2
Internal Walls-Plastering-13mm thick
708 1.71 5% 6.50% 0.45 0.45 0.23 0.23 -0.03 -24 M2
Internal Finish-Ceiling finish-set
504 0.47 5% 6.50% 0.25 0.25 0.13 0.13 0.47x (-0.02) 4 M2
Wall Tiling-152x152
75 14.5 5% 6.50% 1 1 0.6 0.6 1.71x (-0.02) 22 M2
CostcontrolInput
DataProcessing
Output
ContractDocuments
Stored DataPrice book
etc
DataBase
DisplayCost
Overrun
LabourActivities
1-2,2-3,...
15-16
Materials
Machinery
FormulasAC = a EC (1+? xi) and similarly AL = a EL
(1+? xi)
FormulaPR (Loss/Gain)=MD [A-X] + {(EC . HC)+ (EL
. HL)}-{(AC . HC)+ (AL . HL)}
Labour Productivity (Pi) for time periodi=WHi / Qi
Total MD =Cost of material
Waste Waste
Quantity (TQ)
Delivered to site
(Estimate)
(Actual)
(Act-) % %
156 31.14 5% 6.50%
264 18.88 5% 6.50%
282 8 5% 7.00%
708 1.71 5% 6.50%
Costoverrun?
c
Yes
No
Highproductivity
COST OVERRUN MEASUREMENT
Labour(Actual)
with cost overrunactivities
4-6
1-12
3-4
Labour(Estimates)
4-6
1-12
3-4
5-7
Materials(Actual)
with wasteincrease
4-6
1-12
4-6
Machinery(Actual)
Lossof
efficiency(%)
1-2
2-3
Materials(Estimate)
4-6
1-12
4-6
Machinery(Estimate)
1-2
2-3
3-5 Database
5-7
PR (Loss/Gain)=MD [A-X] +HC(EC- AC)+HL(EL- AL)
AC = a EC (1+? xi) and similarlyAL = a EL (1+? xi)
xi = % of influential factorssuch as weather, crew size,
absenteeism, machinery,accidents on site, etc.
c
Cost overrun documentLabour
MaterialsMachinery
send tomanagement team
COST OVERRUN MEASUREMENT