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Cost Implication of Fast tracking a Project

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Shimonkepha Onwuneme Senior Planner| NKT AB Awka, Anambra, Nigeria
The norm about fast tracking a project is that there is usually no increase in cost when using it to compress a schedule, recover a project going behind schedule or speed up the project possibly due to emerging constraints or risks (threats or opportunities).

Fast-tracking is about performing activities on the critical path in parallel rather than planned sequential. The principal effect of fast-tracking is an increase in project risk.

Even though it is widely believed that fast-tracking does not actually lead to an increase in cost and such many cost-related risk-averse stakeholders do usually go for it, yet there are some underlying costs implications involving the process.

The cost implication of fast tracking a project stems from the main effect of actually fast-tracking: cost of increased risk.

The cost of risk includes the cost of risk planning/analysis as the emergent risks require planning, identification, and analysis. Also, the cost of implementing the risk responses (mitigating, avoiding, or transferring threats and exploiting, sharing or enhancing opportunities) arising from the planning and analysis. Risk monitoring and control may require the use of existing organizational process assets and risk owners and will shelve off this cost.

Calculating this cost implication when implementing the fast-tracking process will expose the underlying cost related to the process and will require a benefit/cost analysis to see if it is cost worthy. Most times the new cost may not have a huge impact on the overall project yet they should not be ignored too!

What is your own opinion on this? Are there any other cost implications?
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Kiron Bondale Retired | Mentor| Retired Welland, Ontario, Canada
Beyond the risk-related costs (e.g. rework, reduced quality) there can be hard costs if there is a difference in cost for moving certain work earlier. For example, it may be cheaper to use a certain contractor a week from now as he's got nothing else booked but if we use him now, he'll charge a premium as he has greater demand for this week.

Kiron
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1 reply by Shimonkepha Onwuneme
Aug 13, 2021 1:22 PM
Shimonkepha Onwuneme
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That is true!
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Shimonkepha Onwuneme Senior Planner| NKT AB Awka, Anambra, Nigeria
Aug 13, 2021 12:52 PM
Replying to Kiron Bondale
...
Beyond the risk-related costs (e.g. rework, reduced quality) there can be hard costs if there is a difference in cost for moving certain work earlier. For example, it may be cheaper to use a certain contractor a week from now as he's got nothing else booked but if we use him now, he'll charge a premium as he has greater demand for this week.

Kiron
That is true!
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Thomas Walenta Global Project Economy Expert Hackenheim, Germany
Crashing increases cost and fast tracking increases risk are only simplified statements showing the direct consequences.

But any (schedule) changes may have implications on cost, risk, quality, stakeholder satisfaction and more.
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Sergio Luis Conte Helping to create solutions for everyone| Worldwide based Organizations Buenos Aires, Argentina
Fully aligned with @Thomas comments. In fact, it is possible to perform crashing without increases costs and fast tracking without increases risks (while risks is always present). If you are interested in things related to schedule my recommendation is searching inside the CMU SEI literature about software and system engineering. In this organizations topics about scheduling have been studied from 1956 up to date. No matter I was part of the PMI´s Schedule Standard authors group and reviewers I think it will not help too much on the matter.

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