Project controls terms, explained plainly
Short definitions of the terms used in earned value, scheduling, quality, risk and document control, with formulas and worked examples where they help.
Earned value and cost
Measuring progress and spend against the plan, and forecasting where the project will finish.
Budget at completion
BACThe total approved budget for the work being measured.
Planned value
PVThe budgeted value of the work that was scheduled to be done by a given date.
Earned value
EVThe budgeted value of the work actually completed by a given date.
Actual cost
ACThe cost actually incurred for the work performed up to a given date.
Schedule performance index
SPICompares the value of work completed with the value planned.
Cost performance index
CPIShows how much value of work is earned for each dollar spent.
Schedule variance
SVThe difference between the value of work completed and the value planned.
Cost variance
CVThe difference between the value of work completed and what it actually cost.
Estimate at completion
EACThe forecast total cost of the work when it's finished, based on performance so far and what's left to do.
Estimate to complete
ETCThe forecast cost of the remaining work, from the reporting date to the end.
Variance at completion
VACThe forecast difference between the budget and the final cost.
To-complete performance index
TCPIThe cost performance the remaining work needs to achieve to finish on budget.
S-curve
A graph of cumulative cost, hours or progress over time.
Contingency
Budget set aside for risks and uncertainty within the agreed scope.
Commitment
Money the project has agreed to spend, such as an awarded contract or purchase order, that hasn't yet been incurred as cost.
Variation
A formal change to a contract's scope, price or time.
Progress claim
A contractor's periodic claim for payment for the work completed in the period, usually monthly.
Retention
A percentage of each progress payment held back as security until the work is complete and defects are fixed.
Scheduling
How work is broken down and sequenced, how much slack it has, and what drives the finish date.
Critical path
The longest chain of dependent activities through a schedule.
Float
How long an activity can be delayed without delaying something else.
Baseline
An approved snapshot of the schedule, budget or scope, kept so actual performance can be compared against the plan.
Look-ahead schedule
A short-term, detailed view of the next few weeks of work, taken from the main schedule and used to plan and clear constraints.
Milestone
A significant point in a schedule, such as a key approval, handover or completion, shown as an event with no duration.
Work breakdown structure
WBSDivides the project scope into smaller, manageable pieces, arranged as a hierarchy from the whole project down to individual work packages.
Quality
Inspections, hold points and records that show the work meets the specification.
Inspection and test plan
ITPLists the inspections and tests for a piece of work, the acceptance criteria, who does each check and where hold and witness points sit.
Hold point
A step in an ITP where work must stop until a nominated person has inspected it and formally released it.
Witness point
A step in an ITP where a nominated person must be notified and may attend, but work can continue if they don't attend after notice.
Non-conformance report
NCRRecords work, materials or a process that doesn't meet its requirements, and tracks how it's resolved.
Risk
Identifying, rating and treating what could affect cost, time or safety.
Risk register
Lists a project's identified risks with their cause, likelihood, consequence, owner and the actions to treat them.
Risk matrix
Rates each risk by likelihood and consequence on a grid, commonly 5×5, to give it a rating such as low, medium, high or critical.
Residual risk
The level of risk that remains after controls and treatments are in place.
Documents and contracts
Controlled documents, questions and the contract changes that follow them.
Transmittal
A formal record that documents were sent to someone, listing each document, its revision and the reason it was sent.
Document revision
A numbered version of a controlled document.
Request for information
RFIA formal question raised during a project, usually by a contractor, to clarify design, scope or requirements.
Project types
The kinds of projects and delivery models these terms are used on.
Engineering, procurement and construction management
EPCMA delivery model where a firm provides engineering and procurement and manages construction on the owner's behalf, while the owner usually holds the construction contracts directly.
Shutdown or turnaround
A planned stop of an operating plant to carry out maintenance, inspection, repairs and upgrades that can't be done while it's running.
Put the terms to work
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Earned value calculator
Enter BAC, PV, EV and AC and get every index and forecast on this page, worked through.
OpenRisk assessment template
Set your own risk matrix, rate current and residual risk, then download it.
OpenITP template
Build an inspection and test plan with hold and witness points for each party.
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