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Level: Intermediate
TCM Section(s): 9.2. Progress and Performance Measurement
Venue: 2020 AACE International Conference & Expo
Abstract: Owners, construction managers, and prime contractors to whom another contractor is providing craft labor on a reimbursable (RE) or time-and-materials (T&M) basis are faced with accepting risk associated with the performance of the contracted workforce. RE/T&M contractors would periodically be expected to issue reports indicating manhour and labor costs to-date, as well as, forecasts through, and at completion.
Whether being charged with actively managing the contractor or simply paying the bills, it is important to understand whether such reports from the contractor represent viable forecasts going forward. Developing an opinion of whether or not the data makes sense, and if the reports may be possibly overstating or understating forecasts are critical to success.
Early identification of issues maximizes the time available to initiate corrective decision-making, and hence enhances the probabilities of successful outcomes.
This paper is intended to familiarize readers with basic concepts that can be applied to the review of such contractor labor forecasts, enabling them to pro-actively deal with issues identified.
TCM Section(s): 9.2. Progress and Performance Measurement
Venue: 2020 AACE International Conference & Expo
Abstract: Owners, construction managers, and prime contractors to whom another contractor is providing craft labor on a reimbursable (RE) or time-and-materials (T&M) basis are faced with accepting risk associated with the performance of the contracted workforce. RE/T&M contractors would periodically be expected to issue reports indicating manhour and labor costs to-date, as well as, forecasts through, and at completion.
Whether being charged with actively managing the contractor or simply paying the bills, it is important to understand whether such reports from the contractor represent viable forecasts going forward. Developing an opinion of whether or not the data makes sense, and if the reports may be possibly overstating or understating forecasts are critical to success.
Early identification of issues maximizes the time available to initiate corrective decision-making, and hence enhances the probabilities of successful outcomes.
This paper is intended to familiarize readers with basic concepts that can be applied to the review of such contractor labor forecasts, enabling them to pro-actively deal with issues identified.