Key Takeaways
- Five metrics provide comprehensive performance visibility.
- Weekly reports with photos are the primary monitoring document.
- Simplified EVM detects variances weeks before they become crises.
- Quality score below 90% indicates workmanship problems.
Effective monitoring provides early visibility into project health.
Key Performance Metrics
Five metrics: SPI (schedule), CPI (cost), Quality Score (inspection pass rate, target 90%+), CO Rate, and Communication Responsiveness (same business day).
Weekly Progress Reports
Standard format: work completed, work planned, issues, schedule status, budget status, 10+ photos. Contractor provides by Friday; investor reviews before Monday planning.
Simplified Earned Value
PV = budgeted cost of scheduled work. EV = budgeted cost of completed work. AC = actual spending. SPI = EV/PV. CPI = EV/AC. EAC = Budget/CPI.
Key Takeaways
- ✓Five metrics provide comprehensive performance visibility.
- ✓Weekly reports with photos are the primary monitoring document.
- ✓Simplified EVM detects variances weeks before they become crises.
- ✓Quality score below 90% indicates workmanship problems.
Sources
- PMI Earned Value Management Practice Standard(2025-01-15)
- NAHB Builder Technology Survey(2025-01-15)
Common Mistakes to Avoid
Accepting contractor percentage-complete claims without verification
Consequence: Contractor reports 80% complete when only 60% of work is done, leading to overpayment and reduced leverage
Correction: Verify percentage complete against specific deliverables and milestones during site visits before approving draw requests
Not documenting site visit observations in writing
Consequence: Verbal observations are forgotten or disputed; no record for change order negotiations or dispute resolution
Correction: Maintain a written site visit log with dated photos, observations, action items, and follow-up deadlines
Test Your Knowledge
1.What tool provides the most objective measure of project progress?
2.What Schedule Performance Index (SPI) value indicates a project is behind schedule?