Deep Dive Consulting
Project Cost Performance & Reporting
Situation- The project entails designing an underwater Skip Size Reduction facility. The project has a fully detailed Plan with clear Work Breakdown Structure (WBS). The core project team includes a Project Manager, a Sub-Project Manager, a Cost Engineer and a Planner. The design was outsourced to an external nuclear engineering design house.
Tasks- Our remit was to provide cost engineering services on this crucial project whilst supporting the Project Manager in the smooth delivery of this project.
Actions- First step was to get a very good understanding of the project, key milestones, assumptions, exclusions, boundaries, the detailed Primavera Plan (including sub-contractor's detailed schedule of works), Bill of Estimates. Reviewed the timebooking costs ensuring that only relevant people were timebooked into this project. Held weekly contract review meeting with the sub-contractor in view to understanding project delivery progress and any issues, Early Warnings and Compensation Events if any. Carried out an EAC forecast so that Project Manager would be able to monitor and manage the cost of the project. Prepared the Cost Performance Report with detailed explanations on Cost Variances and presented to Head of Projects alongside Project Manager.
Results- As a results of the actions taken above, the Project Manager was in a position to proactively control the project whilst the Head of Projects had excellent clarity on how the project was developing and whether cost was getting out of control or not.
New Contract Baseline Plan Build
Situation- The client's current Contract Baseline Plan was to be renewed soon and as such was in an urgent situation to build a New Contract Baseline Plan for FGMSP Programme to be presented for endorsement by the NDA. There were about 15 projects with an annual budget of over £200m on nuclear decommissioning projects. A framework on how to build the Contract Baseline Plan was in place and there were a number of projects to come out of hibernation and some in embryonic stage.
Tasks- Our remit was to co-ordinate the New Contract Baseline Plan built and took ownership for building the New Contract Baseline Plan for all projects still under hibernation and embryonic stage.
Actions-Produced and presented a brief to the FGMSP Project Controls Team on how to produce the New Contract Baseline and all the underpinnings required. Agreed a time-table for the completion of the task and created a Task Monitoring Sheet in a shared drive so that on schedule target completion time could be monitored. Identified all projects under hibernation and started updating them. Held meetings with the relevant technical stakeholders with respect to projects still under embryonic stage and built them.
Results- As a results of the actions taken above, the New Contract Baseline Plan was prepared on schedule; the projects under hibernation were updated and all the projects under embryonic stage were converted into palatable New Contract baseline Plans supported with all the required project controls underpinning governance documents.
Experts in Project Controls, Commercial Management and Financial Analysis
Anticipated Final Cost (AFC)
Situation- The client's had a Performance Plan together with a Contract Baseline Plan but did not have a process for Anticipated Final Cost. Hence there was a risk that the integrity of the Life Time Plan could have been compromised.
Tasks- Our remit was to develop and present to the FGMSP Project Controls Team a process for the Anticipated Final Cost for the FGMSP Programme.
Actions- First step was to identify all the cost drivers, components and elements. Analysed each of them and explored the issues that it could present to uphold the integrity of the Life Time Plan. For example change in contract strategy from a fixed contract to a cost reimbursable contract, Early Warnings & Compensation Events, material shift in tariff rates, change in project technical delivery strategy with added duration, delays in project, scope changes, material cost variances spanning over a number of years, etc. The Trend and Change Control processes together with risks in GRIR, Accruals, Purchase Orders, etc. Looked at the operational feasibility of the task being carried out by the existing Project Controls Team, the frequency of the AFC Reviews, the creation and composition of an AFC Review team.
Results- As a results of the actions taken above, a framework for the review of AFC was proposed together with the composition of the members to the FGMSP Project Controls Team.