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The instructor will provide an energetic presentation and discussion\, which addresses the following topics and answers the following questions regarding job cost control.
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\n - Review a great job cost control analogy for understanding the project manager and foremans role and responsibilities for job cost control.
\n - What is job cost control and what is the most important function of a job cost control system?
\n - Great job cost control is required to have great project documentation.
\n - How is the mechanical schedule related to the labor cost control system?
\n - What the different types of profit?
\n - What are the four primary objectives of job cost control?
\n - What is target gross profit and how is different from originally estimated profit?
\n - What are 5 categories of direct job costs and how do they drive project managers focus of cost control?
\n - What are the responsibilities of a project manager and a foreman regarding accurate project profit and cost forecasting?
\n - What is sandbagging and fading and how do they occur?
\n - What are the basics of cost forecasting philosophy \;regarding showing gains and losses earlier or later? Why is this important to understand and practice?
\n - How does an accurate or inaccurate profit forecasting effect company management?
\n - Labor cost is the absolute key to accurate project cost forecasting. Why? How?
\n - How can labor cost be accurately forecasted?
\n - What is the relationship between the Project Outcome Influence Curve? and great job cost control?
\n - The most critical point in job cost control is 15-30% complete. Why?
\n - The labor cost management system is your early warning system and your scoreboard.
\n - Review basic labor cost control concepts.
\n - Review the general rules of thumb for setting up great labor cost control systems.
\n - Discuss how to determine fairly accurate % complete estimates.
\n - The importance of managing: your manpower curve and optimum crew size.
\n - The importance of tracking\, forecasting\, and managing hourly mixed crew rate.
\n - The importance of having a great PM/Foreman partnership in managing labor cost.
\n - What is labor trending and how do you do it well? What is earned value?
\n - Review labor cost trending methods.\n
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Afternoon: \; Project Billings and Maintaining \;Positive Cash Flow
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Maintaining positive cash flow is one of the mechanical contractor'\;s greatest challenges. The construction industry'\;s \;standard billing and payment model is a formula that has the potential to create poor cash flow on almost every project. \; \;This session focuses on how the project manager and project foreman\, with a great partnership of planning\, creativity\, excellent project execution\, and positive customer relationships can regularly create positive project cash flow on most projects. \;
\nIn this session\, we will review and discuss the following:
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\n - Cash is the lifeblood of the company. Why?
\n - What is positive cash flow?
\n - How does positive/negative cash flow affect the company?
\n - What are the primary causes of cash flow problems?
\n - Why are GC?s and CM?s less concerned with cash flow than mechanical contractors?
\n - How does a Project Manager and Project Foreman manage cash flow?
\n - What is the difference between over-billing and positive cash flow?
\n - Always bill for the full amount allowable
\n - Developing a schedule of values
\n - What is front-end loading and why is it necessary?
\n - Always manage your cash flow
\n - What are the keys to achieving and maintaining a positive cash flow position?
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