Project Management

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If there is inherent unnoticed mistake in estimation due to which both project duration and cost escalates, what leverage does PM have

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Raashid Ahmad Shunthoo General Manager | Origin Solutions Srinagar, J&K, India
While working on one gulf project, towards later execution stage, it was noticed that as per issued for construction drawings the distance between two splicing manholes for 600 Pair copper wire was to be around 475 m while as the purchase was already made for one brand which has shipping length of only 300mts as maximum. As this was blunder which was made during estimation stage and also overseen by technical side, now it was left to PMO, to get relevant approval from proponent for additional work due to shortage of length. It involved both the cost variation plus additional manhours after we got approval from proponent. The dilemma was that the problem was put in basket of PM and he was supposed to get it rectified with minimum extra cost.
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Sergio Luis Conte Helping to create solutions for everyone| Worldwide based Organizations Buenos Aires, Argentina
One of the most missing things talking about estimation is to understand what a estimation really is. First, Estimation is the best guess based on the existing information and time. So, it fully depends on that items. Lot of people use Barry Bohem´s Cone of Uncertainty to take into account the inherent error depending on the initiative phase you are making the estimation. It was created for software but you can use it no matter the type of product to create. Second, risks has to be taking into account because risks add extra percentage. Third, the project manager is not responsible (the doer) for estimations, she/he is the accountable.
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AKSHAY JAIN Planning Group Leader| YOKOGAWA, Bahrain Gwalior, Mp, India
You are disclosing too many details, questions must be asked in general manner.
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Rami Kaibni
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Senior Projects Manager | Field & Marten Associates New Westminster, British Columbia, Canada
I fully agree with Sergio - He highlighted key issues.

I've worked in the gulf managing projects for many years and such things can always happen especially with long lead items. During the initial stages, your estimate is high level as you have limited information. As the project moves forward, you will have more information and you will do re-estimation and evaluate the Schedule, Cost & Risk. This is an ongoing process.

If this re-estimation was not done early enough to expose this gap in the specs for the order placed then the PM is accountable as Sergio mentioned as well as the rest of the team because the PM is not the only one responsible for the estimates.

On the other hand, yes the PM should resolve this matter and put a mitigation plan along with the rest of the team. This is one of the responsibilities of the project manager "Problem Solving".
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Mayte Mata Sivera PMO Leader | Speaker | Author Ut, United States
Are those real dates? I'm with @Akshay be carefully with the confidentiality of the project.
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Sungjoon Park Coral Springs, Fl, United States
In my opinion, it becomes a source of risk when you procure the item without specific working drawings. Additional cost and time to meet the working drawing might be responsibility of the performing organization, the contractor. It's likely that the project manager failed to update the relevant project plans and process deliverables in a timely manner. In even a big construction project, project management team needs to revisit the estimates made in planning, and should update as needed during project life cycle and/ or re-estimate from cover to cover when project progress goes toward 20% or 30%. Without updating plans and relevant deliverables, or re-estimates, project risks become higher even though progress seems to go smoothly.

Don't forget that the progressive elaboration together with interactions and iteration of relevant processes are ones of key concepts of project management. In my opinion, proper application of these concepts can reduce the probability and impact of the project risks from the uncertainty especially in a big construction project.

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