Lance Hodgson, Author at Sitemate

Variance at completion VAC

Variance at completion (VAC) What is variance at completion? Variance at completion or VAC is a project management and analysis tool used for projecting the different between your initial budget and the most recent budget estimate. The number which falls out of your variance at completion calculation gives you a strong idea about whether you…

Experience modification rate

Experience modification rate (EMR) What is experience modification rate? Experience modification rate is a commonly used business and safety metric which insurers use to calculate a specific company’s insurance premium. Experience modification rate is often shortened to EMR, and can also be referred to as EMOD, MOD or even XMOD. Your experience modification rate is…

Types of construction estimates

Types of construction estimates The different components to the different types of construction estimates Before we dive into the types of construction estimates, it’s helpful to zoom out a little bit and summarise the types of general project management estimates. Understanding these gives us a better understanding of how and when to deploy our different…

Budgeted cost of work scheduled BCWS

Budgeted cost of work scheduled (BCWS) What is budgeted cost of work scheduled? Budgeted cost of work scheduled, also commonly shortened to BCWS, is a key project management measure and KPI which is used to understand the planned costs of the project at any point in time. Budgeted cost of work scheduled is also known…

Budgeted cost of work performed

Budgeted cost of work performed (BCWP) What is budgeted cost of work performed? Budgeted cost of work performed (BCWP) is a very commonly used project management tool, which is more often known as and talked about as earned value. Budgeted cost of work performed is the budgeted cost of the work which has been performed…

Cost reporting in construction

Construction cost reporting: What you need to know Why is cost reporting in construction important? Construction project success is measured on a number of dimensions, including whether it’s finished on time, the safety outcomes for workers, the environmental outcomes, stakeholder relations – and of course whether the project is finished on budget. Cost reporting in…

Cost performance index

Cost performance index: What you need to know about CPI What is cost performance index (CPI)? Cost performance index is one of the key measures associated with earned value management, which is a strategy and process for calculating and understanding project performance. The definition of cost performance index is that it represents the amount of…

Cost performance index formula

Cost Performance Index Formula: Here’s the right CPI formula What is the cost performance index formula used for? Cost performance index (CPI) is one of the most important earned value management metrics, being a crucial input to many earned value calculations and integral to one of the two core earned value pillars: cost. Project success…

TCPI formula – To complete performance index

TCPI Formula: To Complete Performance Index What is the ‘to complete performance index’ or TCPI? TCPI or the to complete performance index is one of the more recent additions to the project management and earned value management arsenal. While new and sometimes confusing to project managers new and old, the concept of TCPI is well…

Budget at completion formula

Estimate at completion formula What do we use the estimate at completion formula for? Projects can be very complicated, with hundreds or thousands of moving pieces and interacting forces and parties. Not only this, but many of these forces are acting outside of a company or organisation’s control. Companies in project-based industries like construction, oil…