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Sep 21 2015

Improve cost & efficiency at any stage of an asset’s life

Controlling CostSince the early 2000s, when web-based document management and all of the ancillary processes were in their infancy, CONJECT has been a major provider of project collaboration solutions.  Since then, every project and process management application seems to have some form of file/ document management solution incorporated within it – providing the ability to save, search for and share files, and to maintain appropriate revision levels in documents.

Poor governance over documents and files is likely to lead to teams struggling to deliver their projects on time and to budget.  But is good governance over documents and files sufficient to set a business or project apart in today’s competitive world?

 

From document management to business management

The real differentiator is better risk management, which comes through having a better understanding of the project commercials namely, money spent and work done compared to budget and work forecast.

No matter whether implementing a single project or managing an entire portfolio: A project developer, owner or construction manager is facing the same commercial challenges again and again. Is the budget sufficient to complete the contracts? Are present or imminent supplemental claims covered as well? Are the accounts progressing within the contractually defined framework? What final project costs can be expected on the basis of all the available information? How is the outflow of funds forecast from today until the end of the project?

CONJECT realised that with all project information held in a structure manner within the collaboration platform the addition of reporting and analytics tools would enable this information to be extracted.  The status of processes and workflows can be compared with real time costs to undertake Earned Value Management (EVM), giving and overview of project and programme progress.

For example, if an architect needs to set-up another floor in a building, for which the contractor needs to guarantee a price, and for a tender to be agreed, CONJECT can manage all communications and approvals between stakeholders.  As the discussions progress the impact of provisional and final agreed changes can be assessed across time, cost and quality, all in one place.

 

Cross platform integration

It would be ideal for Construction Commercial Managers and Corporate Financial Managers to achieve their objectives within a single platform.  CONJECT hasn’t taken over time and cost analysis – this is more than adequately handled by solutions like Primavera. Instead the Commercial Management solution is designed to integrate with industry specialist solutions for time and cost management, and payment processing, taking data from these systems and combining it with actual cost and quality data. This provides an up to date rate picture of current project status allowing risk and change to be identified and managed as they happen rather than after the event.  This approach also allows frequent benchmarking compared to initial forecasts and if necessary reforecasting and scenario planning.  It is access to this real-time data that improves the decision-making ability of project based commercial teams.

 

Commercial management within a single platform

conjectFC is a cloud-based application that enables both construction project-based commercial teams and corporate financial managers achieve their objectives within a single platform:

  • The application is designed to help managers supervise and actively manage the financial outcomes of capital projects in real-time
  • Hives an overview on budgets, costs, change and forecasts, across projects and programmes.
  • Designed so that budgets are connected to all aspects of a project’s cost or value.
  • A configurable Financial Summary provides an overview on status, as it happens – including commitments, costs, change, value and forecasts.

For more information about how to improve commercial management of your projects, click here.

About the author

Michelle Mason

Michelle Mason leads the UK and MEAP Marketing team, with far too many years in B2B marketing to mention. A CONJECT newbie, Michelle is eagerly climbing a steep learning curve.

View my LinkedIn profile:
http://uk.linkedin.com/in/michellemason04

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