Budgeting & Cashflow

Successful Projects generates Budgeting and Cashflow forecasts from its fully resourced project schedule.

 

Budget and Cashflow Reports such as
Earned Value and Budget vs Actual Costs are essential:

FOR THE PRINCIPAL –  this information can be used to support funding, budget applications and the planning of finance drawdown.

FOR THE CONTRACTOR – an invaluable check for estimating, reviewing margins and for preparing progress claims.

Earned Value Analysis

Successful Projects reports on the Earned Value of the project to compare (a) the actual performance of the project versus the plan or (b) actual project progress against the planned performance.  We measure the amount of work actually completed; forecast the cost and completion date; and track the project’s budget in real time.

Cashflow Report

Successful Projects develop detailed project programmes that are fully linked, fully resourced and fully costed to give you an accurate Critical Path and accurate Cashflow. The Cashflow Report will assist the financial management of upcoming expenditure and the cashflow requirements. The expenditure forecast can be displayed on a daily, weekly or monthly basis and a cumulative graph is generated showing the cumulative cost over time.

Schedule Performance Index (SPI)

SPI measures all of the work completed on the project and calculate whether the project will meet, beat or miss its planned finish date. It evaluates the actual project performance against the planned. It is expressed as the ratio of the budgeted cost of work performed (BCWP) to the budgeted cost of work scheduled (BCWS).

Budget vs Actual Costs

Successful Projects generates the project costs from a fully resourced project schedule. A Cashflow forecast for the project can assist in budgeting for the project and check if sufficient funds are available before the project commences. As the project progresses, the performance is tracked and the Actual Costs of the project are recorded.

Cost Performance Index (CPI)

The CPI is considered by most project managers to be the most valuable EVM metric. This measures cost efficiency for the work completed.

CPI measures the relationship between the budgeted cost of work performed (BCWP) and the actual work performed (ACWP) as a ratio. If the CPI is greater than 1.0, it indicates that actual cost is less than budgeted cost or that the project is under budget.  A CPI less than 1.0 indicates that the project is over budget. 

Simply put, it can tell you if your project is under or over budget at any point during the process.

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