what do we mean with "expected" cost on the estimate to complete. case 1: if the project receive a claim from the contractor for 1000, but looking into the claim it looks that 800 are reasonably payable (by contractual terms) and 200 is a trial to get more, until the claim is signed and agree shall the project consider in the ETC: A 1000, B 800, C nothing until the signature?
case 2: there is a risk quite likely (say 70% probability) to have a delay between 10 and 40 days in the delivery of an item. shall the project: A- calculate this in the risk mgmt part or B: review if maybe 15 days are very likely to happen (but still not 100%) and add them to the ETC and update the risk impact (now 15 to 40) and probability (now perhaps 40%)? Saving Changes...
Senior Projects Manager | Field & Marten AssociatesNew Westminster, British Columbia, Canada
Ervin, for your first question, in such cases, we do stick to our original estimate of the claim and if we ended up paying more (i.e. if the contractor justified the extra 200), then we will take them out of contigency reserve.
For your second question, it's not that straight forward, if yhere is likelihood that the project will be delayed by 40 days then you need to plan for risks related to worse case scenario because it could happen so you should be ready to respond with a mitigation plan. Saving Changes...
RAED ALQARNIKhamis Mushait - king khalid Street, 14, Saudi Arabia
You work in project management. You received a very important project lasting 24 months, and 6 months after starting the project, the contractor informed you of a deficit of 6%. This amount must be increased in the project in any way, or this will cause a defect in the final project deliverables. The reason for this is due to poor performance. Appreciation from the previous project manager who worked on the unrealistic study and from whom I received the project but did not verify the study at the time? How do you work as a project manager? Saving Changes...
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