Major construction projects withstand a level of complexity like no other. More than ever, organizations are searching for ways to increase efficiencies, reduce costs, increase productivity, collaboration and automation on their construction projects. To achieve this, the project team needs to apply a significant level of rigor in the planning and management of projects and deliver key metrics and projections to all project stakeholders throughout its execution. Calculating a reliable month-over-month forecast requires that the project team has not only done sufficient upfront project planning, but they’re also performing ongoing monitoring, measurement and management of the project in order to produce an accurate report for the project’s financial stakeholders.
Why Forecasting is Important on Major Projects
Knowing where a project is at on any given day is a critical project controls function for major construction projects. However, knowing where it’s going is arguably even more important. Any project stakeholder with a financial interest in the project will live and breathe by cash flow projections and spend forecasts; and whether the project will end up on time and on budget. Project controls professionals need to feed that hunger for predictive information. Nobody likes surprises, so continuous and active management of expectations is a fundamental requirement to keep in good standing with all stakeholders. Forecasts are also instrumental for early identification of trends and issues. This gives the project team decision-making power to continuously tweak and reset the course of the project to maximize its potential for success.