One of the major challenges with any project or facility assignment is to keep the relationship between the project scope and the budget.
A reasonable return on investment can be eroded quickly when the scope is allowed to creep. During the planning process, by taking time at regular intervals to do a budget check, we are able to give the Owner early warning if the scope is starting to creep.
Keeping the return on investment and cashflow requirements in mind during the planning process will help you to plan for the cash needs related to the project. At regular intervals that you suggest we will prepare for you a budget that gradually gets more detailed, a cash flow projection related to the planned schedule and, if desired, calculate your return on investment.
Each IFS Project Manager is prepared to write budgets and track costs. Early in the project an “Anticipated Cost Report” will be prepared. This document lays out in some detail the budget. Then on an on-going basis it is updated on each line item not only to show what has been paid but also to track any anticipated costs. This allows you at any time to see where the project team thinks that the expenditures and anticipated expenditures are in comparison to the budget.
Part of leading and coaching the project team on your behalf is to identify and bring to your attention cost saving opportunities. As these opportunities present themselves, IFS will prepare for you a document that outlines the change, the cost implications and ramifications related to the project’s scope, longevity, and operational costs. You can then make an informed decision.
The cost savings approach is part of the LEAN process that IFS applies to all projects. We coach the team to look for savings opportunities and this must begin during the planning and design process. The 80-20 rule applies to this setting. The impact on savings and cost avoidance is by far greater earlier in the project’s life. Items can be caught in the field when construction is started but it is less expensive and more efficient to address changes early.