Review Budget and Forecast Changes
Use Case
Upon approving the contract adjustment for additional steel work, the project manager reviews the current budget and forecast to see the affect of the change order on the project’s cost. He also reviews the change’s affect on revenue.
In InEight Control, you can view budget changes by comparing Original and Current Budget columns in the CBS. You can review revenue changes on the Pay Items tab. For forecast changes, you can use the forecast-related columns in the CBS.
Review Budget and Price Changes
When a contract adjustment becomes approved, the costs and pricing from the adjustment update the values in the Current Budget and Price. Let’s use the Additional Steel Work approved change order as an example to see how this looks in InEight Control.
Looking at the summary of the Additional Steel Work contract adjustment, it consisted of:
-
Adjusted costs and man-hours on an existing cost item (4.1 Erect Steel – Heavy).
-
Adjusted pricing on an existing pay item (003 Steel – Labor & Material).
-
New cost items (6 Merrill Iron & Steel – Steel materials, 4.4 Crane Rental)
-
A new pay item (CCO-001 Additional Steel Work)
Review Budget Changes
Once approved, the new and existing cost items update in the CBS:
-
New cost items become locked.
-
The Current Budget values of the effected cost items update with the approved values.
Review Price Changes
On the Pay Items tab, the new and existing pay items update:
-
The new CCO-001 pay item is added and locked.
-
The Current Price of the effected pay items update with the approved values.
Review Forecast Changes
Review Forecasted Cost Changes
Before PCO/CCOs are approved, the potential costs of the related cost items could be forecasted using the Current Estimate forecast method in InEight Control.
Once CCOs are approved as contract adjustments in InEight Control, and the related costs become part of the Current Budget, you can change the forecast method on these items to Current Budget to base the forecast on just the approved costs.
Review Forecasted Revenue Changes
You can review forecasted revenue on the Pay Items tab, using a revenue-based view to show the Forecast total revenue:
