Level: Intermediate
TCM Section(s):
8.1. Project Control Plan Implementation
9.1. Project Cost Accounting
Venue: 2023 AACE International Conference & Expo
Abstract: A claims review with management is scheduled for tomorrow, and the project controls team is still extricating the true cost of a subcontractor backcharge (claim). A large portion of the cost was dropped in a non-billable network without appropriate coding, mixed in with other billable cost.Over the course of the project there have been actuals charged to the wrong charge codes, yet no one has corrected the coding. In addition, the team needs to report on project cost in the corporate required reporting format, so the team is manually copying and pasting from various buckets in the cost report to the correct categories in the corporate report. When charging cost to the WBS and creating cost reports in the system, no one thought of aligning with corporate reporting requirements. Throughout the project, the team has been challenged from a cost and schedule perspective in understanding the true cost of changes, backcharges, indirects and directs, and non-billables. Now at the last minute, the team is scrambling to untangle the cost and put together a solid claim.For some in project controls, and those supporting claims development and resolution, this scenario is all too familiar. This paper addresses the importance of strategizing from the outset of the project how to identify, collect, analyze, and report on segregated actual cost from a claims management perspective.
TCM Section(s):
8.1. Project Control Plan Implementation
9.1. Project Cost Accounting
Venue: 2023 AACE International Conference & Expo
Abstract: A claims review with management is scheduled for tomorrow, and the project controls team is still extricating the true cost of a subcontractor backcharge (claim). A large portion of the cost was dropped in a non-billable network without appropriate coding, mixed in with other billable cost.Over the course of the project there have been actuals charged to the wrong charge codes, yet no one has corrected the coding. In addition, the team needs to report on project cost in the corporate required reporting format, so the team is manually copying and pasting from various buckets in the cost report to the correct categories in the corporate report. When charging cost to the WBS and creating cost reports in the system, no one thought of aligning with corporate reporting requirements. Throughout the project, the team has been challenged from a cost and schedule perspective in understanding the true cost of changes, backcharges, indirects and directs, and non-billables. Now at the last minute, the team is scrambling to untangle the cost and put together a solid claim.For some in project controls, and those supporting claims development and resolution, this scenario is all too familiar. This paper addresses the importance of strategizing from the outset of the project how to identify, collect, analyze, and report on segregated actual cost from a claims management perspective.