Percentage-of-Completion (POC) accounting amplifies any change in the project forecast at completion when it comes to the short term financial results recognition (refer to our previous White Paper 2014-10). In this new White Paper 2014-11 we give Project Managers strategies to manage the time-phasing of their project costs in a way that will avoid as […]
Following the publication of our latest book (our Practical Project Cost Control Handbook), I will be speaking about Project Cost Control on the following occasions in the coming months: in Singapore with the Singapore Project Management Institute (SPMI) on Tuesday 2 Dec evening (7 to 9pm – NTUC Center – 1 Marina Boulevard) – click
Discover Project Cost Control: Singapore and Oman Public Speaking Read More »
While Project Managers are rightfully focused on the end result of their projects (forecast at completion), they need to be aware that changes in their forecast will be amplified by the accounting methods when it comes to the short term profit recognition for large projects spanning over multiple years. Accounting principles sometimes lead to counter-intuitive
Setting up a contingency element as part of the project cost is nowadays a common practice in project management. It can be derived by various methods including advanced statistical (Monte Carlo) methods. However, because it is so intrinsically linked to profit recognition, the contingency element is not always properly managed throughout project execution, leading to
How to Manage Properly Your Project Contingency Throughout Project Execution Read More »