CHAPTER FlVE

THE CONTROL MONITOR PHASE

Since CPM users have no crystal balls, circumstances will frequently force
changes to the plan of accomplishment for projects. Strikes, adverse weather,
shipping delays, change orders, and numerous other conditions can disrupt
the original plan and schedule. Activities are sometimes discovered to be
necessary despite the fact that they are not on the arrow diagram - and not in
the schedule - and certain activities in the project are found to be
unnecessary. The schedule can go out-of-date quickly for these and other
reasons.
When this happens, The Control Monitor Phase of CPM is effectively and
valuably used. This phase enables the project manager to quickly and
efficiently revise and refine the input information, including the arrow diagram
and the duration estimates, so that CPM can indicate the status of the project
as well as produce new "up-to-date" schedules for the activities yet to occur.
The Control Monitor Phase consists of collecting actual job data and
submitting it to CPM for "Monitoring" purposes.
Monitoring can be done as frequently oras infrequently as the user desires
or finds necessary. It uses information suppiied about new activities, changes
to durations, completed activities and rearrangements of the arrow diagram to
indicate what effect al1 these have on the original schedule produced. In
addition, a new schedule is produced for activities remaining to occur based
on this job data.
On most projects, Monitoring is done monthly.
INPUTS
Actual job data, as used in the Control Monitor Phase, include the following
items:
1. Addirions ro rhe arrow diagram - New activities caused by change
orders or by new approaches to the project.
2. Delerions from rhe arrow diagram - For the same reason as 1.
3. Changes - One might decide to change an activity's code, cost or
resource requirement for any reason.
4. Acriviry Acrual Stan Dates - Used for historical record keeping.
5. Acriviry Acrual Finish Dares - For notification of an activity's
completion; used for historical r e l r d keeping.
6. Acrivity Percenr Complere - An indication of what portion of the cost is
payable to the contractor because of completed work upon the activity.
(Percent complete has nothing to do with the time aspects of the activity; it
relates only to cost. Time progress on a started but not completed activity is
established by reducing the activity's duration to the amount of time remaining
for accomplishment as of the monitor date.)
Actual job data is provided CPM via forms or - more frequently - by

marking on previously produced schedules or reports. Figure 5-1, on the

following page, illustrates a schedule marked up to show progress as of the
date indicated in the upper left corner. All the markings are self-explanatory.
The collection of job progress data by marking-up actual schedules ensures
careful and frequent reanalysis of the schedule by field personnel and
additionally produces a valuable job diary.
OUTPUTS
The Control Monitor Phase is capable of producing the following items:
O Time Status Reports
O Revised CPM Reports
O Cost Status Reports
Requisition Backup Reports
O Payment Documents
From the CPM Schedule's point of view, the objective of monitoring
progress is two-fold. One, it is desirable to determine where the project is in
relation to what was originally scheduled; and two, it is necessary to produce
revised scheduled resource analyses, etc., on the basis of what the job
situation is at the time of monitoring.
As a result of CPM progress monitoring, Cost Status Reports, Requisition
Backup Reports, Payment Documents and current, as-of-now, Cashflow
Projections are produceable as by-products.
TIME STATUS REPORTS
There are two types of Time Status Reports; one for specific (Key) activities
within a single project and one for each project in a multiproject program of
effort.
A Key Activity Status Report is illustrated in Figure 5-2, on the following
page. The activities contained in the report illustrated were identified as "Key"
activities by the project manager so that a synoptic status report such as this
could be produced. Note that for each Key Activity shown is:
1. The ~'ccurrenceDate - The CPM EARLY START value.
2. The 'Target Date - An externally supplied date by which time the activity
was to have been started.
3. A Status Value - indicating how far ahead (if positive) or behind (if
negative) of the Target Date is the schedule for the activity.
4. A Trend Value - indicating whether or not the schedule for the activity is
better than the last time the Status Report was produced (Trend = Up), worse
than last time (Trend = Down) or exactly the same as the last produced report
(Trend = Steady).
Use of such a report provides the project manager - or anyone else - with
a quick evaluation of where the project is time-wise.

C ! 2 & ?
V
w

c : ;
C

9
C
Z

n
C
W

tn

O
-

Q
C
W

O C
N 2

o
o

Q
0

..
n z

m
m
-

o
o

O
-

*
4

FIGURE 5-1

56

C
4

C P H 1 1 AUTOMATED
CONTROL SYSTEM
LAMOl
FRO H?NC.ER R E N N A T I O N
K E ACTI
~
VITY S T A T U S R E P O R T
S E W E Y C E = TIWGET
~ORK-WEEK= 5
DUMMIES NO
FINISHED
NO
AS OF 1 5 D E C 7 5
P R E D I C T E D COMPLETION

P G F

.........

'1561
01381
01590
q1577
02000

TRACE

'73C".
KE t
0 3 0 0 0 KEY
0 3 0 0 0 KFV
KEY
)3"?
03000 KEY

AC EA

DESCR I P T I ON

S k I T C H GEAR I N S T A L L E D
HAWGER ROOFED
H A G E R F IRCPRnOFEO
1ST F L Q OFFICE D9YE
PR'3JECT COPPLE TF

OCCURANCE
DATE

TARGET
DATE STATUS

PREVICUS
T R E N 0 OCCURANCE

CPM 1 1 AUTOMPTED C C h T R C L SYSTEM

PS D F 1 5 C E C 7 5
A L L PROJECT STATLS REPORT

................

FRCJECT

ANAHB W A R E H O C S E

PREOICTEO
COMPLETICh
DATE

TARGET
DATE

STATUS
1N
CPL-OAYS

PNARBO STORAGE C C

3DMAR76

1l O C T 7 5

-171

AWCAN A M E R l C d N P H O l C C A l C F F I C E B L D G

25PPt76

25SEP76

122

UP

-141

STEADY

ID

.......

NAME

CHASH D F F I C E / S T C F A G E
CUWIL

COLLINSMFG

C l - E S A P E P K E A S W R E IM:

~ILSCRBLDG

DAABT D A V I S PBBATOIR
Ui

PACE
1
SEO = P R C J E C T

ObWAR O A V I S CO'4PAN,
CRlNK C A V I S

MPREkfOLSE

ICE R l F K

MGFiK6 MhiKEY H O U S E

REGIONAL ZCC

U S M N WANAGEMENT T P A l N I N G CENTER

USARTWT

lOJAN70

Z2AUG75

2 2 JUL76

2OJUL76

19MAR77

15MlR77

IOJUh76

-2

TREN0
OWN

DOWN

15M4Y76

-1 4
-2 6

OOih

31SEP77

31SEP77

STEAOY

250CT76

30CCT76

-5

STEAOY

lbFEe77

lSFEB77

-1

STEPDY

USPAV F O B # P A V I L I C N

18DEC77

I O F Ee78

53

VAMAC V A H O S P I T A L A C D I T I O N C A C A L I S L A N O

15FEB76

2 5 FE876

10

ZYTRO Z Y T R C h I N C 3 F F I C E 4 P R C C E S S I N G C E N T E R

IOJUN70

24JAN76

-137

UP

UP
STEAOY
DOlh

PERIODS
1N
TREN)

PREVIOLS
COMP
DATE

DATE O F
LAST
UPOATE

AS O F l S D E C 7 5
TROURL ED PROX.U.-SJA.TUf-

CPM 11 AUTCCATED C C N T R a S I S T E M

fEPUlr. .

PR EC I C T E D
COMPLETION
DATE

W m - A N A f l R C STilf!AE

I;IL

30 PAR76

TARGET
DATE
11MT35

O B T A I N ROOF STEEL

---

. . .. ....-

STATUS
IN
CAL-DAYS
.-

TREN0

.?m-.
D

- - . --.P W 10M
1N
TREM

PACE

--

qF0 r

PR EV I O U S
COMP
DATE

PPnlFCT

DATE ff
LAS1
UPDAU

DAYAR D A V I S COMPANI b A R E M U S E
10JUN76 15MAY76
E X 1 M S O N R Y VES1 H A L L L I P T 1
W D E R S L A B PLBG SOUTH H U F
ZYTRO ZYTRON I N C O F F I C E # P R U E S C I N G C W T E R
LATH 8 PLASTER

- 4TH

10JUh76
FLR

2UAN76

-26

DWN

2WAY76

30NOV75

-137

OOYN

28MAY76

15DECTS

Figure 5-3 illustrates an All-Project Status Report. Note that it is similar to

the Key Activity Status Report described earlier. The major difference is of
course that, for each project, only the termination date (Project Completion
Date) is considered. This - in a multi-project environment - is al1 that is
required to provide the user with an easily evaluated report on the status of
each project in the program.
The optimum situation is one in which the All-Project Status Report is
s u ~ p o r t e dby Key Activity Reports for al1 projects.
Figure 5-4 is a special kind of multi-project status report. It is an extraction
from al1 the projects of those that are "in-trouble." In the case of those
illustrated, "in-trouble" is defined as any that are behind schedule (Status less
than zero) and getting worse (Trend = Down). It is possible to identify
"trouble" in any way desired.
REVISED REPORTS
Because time has elapsed when monitoring takes place and because
changes will have been made to the original inputs, the Control Monitor Phase
produces new, revised versions of al1 the reports described as available in the
Scheduling Phase. It must be kept in mind, however, that when such revisions
occur the "as of date," or date set equal to time-zero, will change to the date
monitor information was collected instead of remaining at the project start
date. This means that from the point of view of schedule calculation, each
schedule produced ignores what had been previously scheduled and considers
only what exists when calculations are done. Earlier in this chapter it was
stated that time progress on a started but not completed activity is established
by reducing the activity's duration to the amount of time remaining for
accomplishment as of the monitor date. This is so that the calculation of a
revised schedule will be done properly from the new time-zero date.
Because of the above, the CPM user collecting actual job progress data
must take care to review al1 activities that had been scheduled to start during
the time that had elapsed since the schedule being monitored had been
produced. Long lead time activities, such as delivery activities or shop
drawing preparation, if not duration (.e., reduced to reflect time elapsed since
their duration estimates were last established), will be assumed to need as
much time as was previously indicated despite the fact that the previous
duration estimate was relative to an earlier time-zero date.
If it is desired to measure a revised schedule against what was originally
scheduled, a "Relative" report can be produced.
Figure 5-5 is a page from a CPM schedule report in which LATE START and
LATE FlNlSH have been replaced by dates that have been calculated not in
the normal backward-pass way (see Chapter 6 for an extensive discussion of
the calculation of Late Dates via the backward pass method), but by
establishing as the starting point for the backward pass the original project
completion date.
If project progress has been less than what was originally scheduled or
if change data entered into CPM during the Control Monitor Phase has
lengthened the revised schedule, EARLY START and EARLY FINISH will wind

CPH I I PUTOCATED CONTROL SYSTEM

L A H O l - FBO HLUGfR RENUVATlOh
PAGE
L
RE LATIVE F L U A T REPCPT
SEQUEVCk = T F L
~ORK-W
=E
~E
- - u ~ C ~ ( ~ ~ N C - F I NNO
ISHED
AS DF 15CEC75
PREOICTEO COMPLETION........
.2OFEB7-6
CURRENT COhTRACT COMPLETION..15JAN76
VARIANCE I h WORKING OA-YS.-.
-24-

-. F l N l S H
DATE

%
Y'
Vi

0 1 3 8 0 CL391
C 1 3 9 1 C1414
01414 01422
01422- 0 1 4 3 5
1,1437 2 1 4 4 1
'21441 0 1 4 4 6
0 1 4 4 8 '21454
'1454 C145F
01450 01464
01464 01467
C 1 5 i l C1507
01511 01515
0 1 5 2 0 C1522
0 1 5 2 5 01 5 3 5
01535 01565
01569 01572
0157201577
CI5770157B
0157601<19S
0 1 5 5 5 C2000
8..2(Ci. 0 3 0 0 C
01%7 0141 7
01431 01449
C14b5 C1457
0 1 4 9 8 C1508
01435 01442
' 145L 2145E
01467 01471
01502 0 1 5 9 0
L1512 L1517
0152E e 1 5 3 1
01532 01540
01544 C1548
.--0 1.5 2 .4-0 1..5.-3 .5.

L A T t OCF
MTL STUOS 1ST FLR YEST
L b 1 H CFF
HTL STUOS 1ST F L P EdST
LATH CFF
MTL STUDS ZYD FLR YEST
LATH
CFF
HTL '!LOS
ZYD- FLR EAST
FLECT CFF
CT3hDUl T 1ST FLR YEST
ELECT CFF
C C K I U I T 1ST FLR EAST
ELECT CFF
COhDUIT ZND F L P WFST
L E C 1 CFF
CONDUIT 2YD FLP EAST
IYSUL CFF
IPJSULATICN I S T FLR WEST
2 I h S-U L CFF
I"1SULATION 1ST FLR EAST
1 FLBG
CFF
PLCC F I K T U R E S 1ST FLk EAST
5 TPART CCF
T C I L E T P b R T I T l O N 5 1 S T FLR EAST
5 l P A R T CFF
TOILET PARTI TIONS 2NC FLG hEST
5 l P d R T CFF
T31LET PARTI T l O h S 2 h C FLR EbST
2 I A C C ' CFF
TOILET ACCESSOIES 2PD F L P EPST
1 G<--_
CFF
CLEANUP I S T FLR YEST2 CC
CFF
CLEANUP 1 5 1 FLR EAST
3CC
CFF
CLEANUPZNOFLRhEST
4CC
CFF
CLEANJF2NI)FLREAST
5 CC
PUhCH L I ST WHOLE BLCG
O KEY
PRTJECT COCPLETE
1 5lOE..PER
E X T ~ R ~ ! O ~ ~ I D l ~ G
. ..
-.
5 SFPNK
TE S 1 SPR INKL ERS
1 PLBG
CFF
PLBG F I X T U P E S I S T FLR wEST
1 l P A R T I P A R T T O I L E T P A d T I TIONS 1ST FLR YEST
1 PECH CFF
h P l / C H I L L O UATER L I h E S
1 PECH CFF
EXkALSTS
2 I h S U L CFF
I N S U L A T I C N 2NO-FLk YEST
_ -5 CC
CFF
COLNTERS
1 FLBG
CFF
PLBG F I X T U P E S ZNC FLP h E S 1
1 ELECT T F F
C E l L l N G L I G H T S 1 S T FLR WtST
1 CECH CFF
G R l L L E S l C l F F U S E R S I S T FLP hEST
2 FLP
CFF
FLCORING I S T FLR UEST
2
1ACCZ
CFF
TOILET
ACCESSORIES
2LO
- .- . .-.--- ---- -- ..-F L R YEST
1
1
2
1
1
1
1
1
2

EARLY
START

EARLY
FINISk

RE L
START

PE L
FINISH

RFL K

.
..

i90EC75
BOEC.7'
310EC75
OZJAN76
&JAN76
07JAN76
14JAY7t
21 JA h 7 6
2AJAN76
30JAN76
%?FE876

30~~~7521bKI
31UEC75 2 4 h O V 7 5
0 2 J A h 7 6 25hOV75
0 6 J A N 7 t 27hOV75
.07JAN76 OlCEC75
!4JAN76 02DEC75
2 1 J A N 7 6 09CEC75
2 B J A N 7 6 16DEC75
3 0 J a N 7 t 230Ec<
O2FEB76 i 5 D E C 7 5
5 4 F E B 7 6 26OEC75

.~

24NOV75
I75
-26
25NOV75 - 2 0
27NOV75 - 2 6
01DEC75 - 2 6
020EC75 -26
090EC-r5 .._y=
160EC75 - 2 6
23CEC
7 5 - 2 6250EC75 -26
260EC75 - 2 6
3OOEC75 - 2 6

26CEC75
06JAN76
08JAN76
08JAN7C
15JAN76
ibJAN7t
15JAY76
21JAN76

29OEC75
OBJAk76
15JAN76
09JAN76
lbJAN76
19JAti7-6
21JAh76
23JAN76

2 4 h O V 7 5 25NOV75 - 2 4
OCCEC75 OBOEC75 - 2 3
OBCEC75 1 5 0 E C 7 5 - 2 3
OBCEC75 090CC75.-.-&315CEC75 1 6 0 E C 7 5 - 2 3
lbOEC75-~17CEC75 - 2 3
17DEC75 19CEC75 - 2 3
190EC75 230EC75 -23

up later in time than their "Relative" counterparts. It is for this reason that a
Relative Report does not refer to LATE START or LATE FINISH.
Note in Figure 5-5 that the float field is headed RFL which stands for
RELATIVE FLOAT. RFL is calculated by subtracting EARLY START from
RELATIVE START, and when the revised project schedule has been
lengthened in any way, it will be a negative number. For this reason, some
CPM users when referring to float calculated in this manner will erroneously
cal1 it "Negative Float." This practice should be avoided since if the revised
project schedule is less in time than the original, the RFL value will be positive.
It doesn't make much cense to cal1 it negative when it can be either.
The Control Monitor Phase can, of course, produce revised versions of the
Resource Reports and the Cash Flow Analyses described in the chapter on the
Scheduling Phase. The,only difference in these revised versions is that they
project resource and cash positions for the work remaining as of the monitor
date.
COST STATUS REPORTS
The CPM user naturally wants to know the time status of his project, but in
addition, he wants to know its Cost Status. The Control Monitor Phase
produces a report that indicates just how the project looks from a "cost"
standpoint.'
This report which is called the Cost Status Report is prepared in the
following fashion:
As described in Chapter 4, the contractor must first prepare cost estimates
for each of the activities in the project. Then, for activities that have been
completed, as shown in the MONITOR Report, appropriate costs can be
calculated. This gives the contractor an ESTIMATED COST TO DATE. This
estimated cost is then a yardstick against which the contractor can compare
the ACTUAL COST TO DATE for that articular phase of work. The actual
costs are relatively easily collected. Anyone who keeps books can determine
his actual costs. CPM, however, gives him at any time during the progress of
the project an estimate of the cost for the work reported as complete so that
effective comparisons can be made. With this report the contractor does not
have to wait until the end of the project to discover the "status" of his costs.

'Cost Status Reporring is described ar great length in Chapter 7 of this book.

This secrion will discuss it as a function of The Control Monitor Phase.
62

The process of Cost Status Report creation can best be explained with a
sample project. Consider that the arrow diagram below represents a project for
which periodic Cost Status Reports were desired.

The first step necessary to be taken would be the definition of the costs
involved per activity. Assume that the table in Figure 5-6 describes the costs
estimated for the completion of each activity. This could be prepared any time
prior to the production of a Cost Status Report, and it could have been revised
at any time.
The entries in this table merely indicate how much money should have been
spent for various categories (types) of expense when each activity had been
finished. For example, when ~ c t i v i t yA is finished, the contractor will owe
somebody $488.10 for bulldozer expenses, $135.00 for general labor, and
$100.00 for engineering expenses. When B is finished, $1,085.30 will be owed
for concrete, $309.10 for concrete labor and $80.00 for general labor. The costs
for al1 activities in the project are similarly described.
The second input is information a.bout which activities have been finished.
Notice in Figure 5-1 that the Marked-up Schedule indicates clearly what
activities are completed. This is, thus, a good source of this second input.
Suppose that at the time a Cost Status Report was desired for the project
described above, activities A, B, C, D, C and I had been finished. With this
information, the ESTIMATED COST TO DATE for the various categories
types) of expense can be calculated.

Activity

3
4
4

4
8
9

D
F
G

56-

6
4

E
P

6 -

78-

10

12

Category

Expense

48 - Bulldozer
46 - Gen. Labor
73 - Engineering
15 - Concrete

$ 488.10

16 - Concrete Labor
46 - General Labor
51 - Excavation
73 - Engineering
10 - Architect

309.10
80.00
1,955.10
190.30
100.00
(No Expense)
478.35
1,009.90
195.00
1,800.00
75.00
50.00
1,800.00
205.60

22 - Carpenter
18 - Lurnber
46 - General Labor
38 - Masonry Contract
10 - Architect
73 - Engineering
38 - Masonry Contract
46 - General Labor

135.00
100.00
1,085.30.

(No Expense)
15 - Concrete

975.00

16 - Concrete Labor

255.00

46 - General Labor

185.00
90.00

9-

11

46 - General Labor

10-

13

22 - Carpenter

195.00

18 - Lurnber

555.30

11-

10

15 - Concrete
16 - Concrete Labor

11-

12

46 - General Labor

12-

13

L
O

1,907.00
655.00
195.00
(No Expense)

FIGURE 5-6
64

If Activity A is finished, the project should have cost $488.10 for catetory 48
- Bulldozer, $135.00 for General Labor, category 46, and $100.00 for

Engineering. If Activity B also is complete, the costs indicated for it will be

added to those incurred for A. This will add costs in two categories Concrete and Concrete Labor - and increase the cost of one already
calculated. General Labor will go from the existing $135.00 to $215.00 because
of Activity A ($135.00 for A and $80 for B). The completion of Activity C will
create a cost value for category 51 - Excavation, and increase the cost for
Engineering by $190.35. All other "finished" activities will contribute an
amount of expense to the project.
When al1 activities reported as finished have been noted, the amount of
money that should have been spent based on work reported as complete has
been calculated. In the case of the project described above, the ESTIMATED
COST TO DATE (Table A ) would have been calculated for each category and
for the project in total.

TABLE A
Category

Estimated Cost t o Date

10 ARCHITECT
15 CONCRETE
16 CONCRETE LABOR
38 MSNRY CONTRACT
46 GENERAL LABOR
48 BULLDOZER
51 EXCAVATION
73 ENGlNEERlNG
TOTAL FOR THE PROJECT

A second kind of information can be calculated if the contractor has

estimated his per activity expenses. He can use the table in which al1 costs are
indicated to determine what was the total budget (estimate) for each category
of expense. Concrete, for example, contributes to the cost of activity B
($1,085.30), H ($975.00) and M ($1,907.00). The total budget for concrete in
the project described above is $3,967.30. This means that when the project has
been completed, the contractor will expect to have spent $3,967.30 for
concrete. The total estimate for each category of expense can be found in the
same way, and if it were done for the project above, The Cost Status Report
would begin to grow as shown in Table B.

TABLE B
Category

Estimated Total Cost

Estimated Cost to Date

10 ARCHITECT
15 CONCRETE
16 CONCRETE LABOR
38 MSNRY CONTRACT
46 GENERAL LABOR
48 BULLDOZER
51 EXCAVATION
73 ENGlNEERlNG
TOTAL FOR THE PROJECT

$8,248.50

With this information it is possible to determine what percentage of the total

money to be spent has been spent based on the activities reported as
complete. The contractor can see that he has completed activities involving
27% ($1,085.30/$3,967.30) of what he will s ~ e n d for concrete, 25%
$309.10/$1,219.10) of his concrete labor budget, 100% of the masonry
contract money and so on through each type of expense. The Cost Status
Report, including this item of information, would appear as in Table C.
TABLE C
Category

Per Cent
Spent

Est. Total
Cost

Est. Cost
l o Date

10 ARCHITECT
15 CONCRETE
16 CONCRETE LABOR
38 MSNRY CONTRACT
46 GENERAL LABOR
48 BULLDOZER
51 EXCAVATION
73 ENGlNEERlNG
This information is valuable in and by itself because it indicates how much
activity has been accomplished cost-wise. However, if the contractor supplies
information about how much was actually spent for concrete, for general labor
and for al1 other items of expense, he can find out whether or not he is "on
schedule" in terms of cost.
As a project proceeds, the contractor collects bills, invoices and so forth as
part of his normal bookkeeping procedures. These at any particular point in
time are ACTUAL COSTS TO DATE. If these actual costs are known, two
additional items of information can be calculated and placed in the Cost Status
Report. The DOLLAR DIFFERENCE is the result when the ESTIMATED COST
TO DATE for a category is subtracted from that category's ACTUAL COST
TO DATE. The DEVlATlON for a category is the ratio of actual costs to

estimated costs (ACTUAL COST TO DATE - ESTIMATED COST TO DATE).

The DEVlATlON for a category indicates what percentage of the estimated
cost is actually incurred; the DOLLAR DIFFERENCE is the amount and
direqtion by which the ESTIMATED COST TO DATE was missed.

CategOv

10 Architect
15 Gancrete
16 Concrete
Labor
38 Masonry
Contract
46 Gen. Labor
48 Bulldozer
51 Excavation
73 Engineering

Per Cent Est. Total

Spent

~ost

57
27

$ 175.00

25

1,219.10

100
39
100
100
85

3,600.00
1,085.60
488.10
1,955.10
340.30

Est. Cost
l o Date

h t u a l Cost
l o Date

Deviation

3,967.30

In the project that has been used as a sample for the Cost Status Report, the
ACTUAL COST TO DATE entries must be assumed. Assuming the actual
costs indicated, the completed Cost Status Report based upon activities
reported as finished and on actual costs collected would look like Table D.
This report tells the contractor what is the cost status for al1 categories of
expense defined by him. The final Cost Status Report contains the information
described above as well as summary type data for the entire project. The
completed Cost Status Report for the project described above is shown in
Figure 5-7 on the following page.
The Cost Status Report, because it indicates how much money is being
spent in relation to what was expected, is a very valuable report. The project
manager can tell from this report which areas of expense need investigation,
which estimates perhaps need revision, and how he is doing in general as far
as his costs are concerned.
There are variations on the report shown here as a sample. One can include,
as part of the Cost Status Report, information about the cost of change orders
or other revisions or separate the labor costs from the material costs just to
mention only two.
One question that always arises about the procedure described above
concerns itself with activities that have started but have not yet been
completed. At the time the Cost Status Report is desired, activities in this sort
of circumstances are assumed to be "on schedule," and their costs are
"pro-rated" according to how many days they have been in progress relative
to their schedule duration. To illustrate: if Activity E were a six-day activity that
had been reported as STARTED three days before the "effective date" of the
Cost Status Report, the Cost Status Report would have included only half
(316) of the costs involved for that activity.

COST STATUS REPORT

Total Estimated
Revised Estimate
Cost To Complete
Categoiy
Number
Name

15.069.05
14.975.15
6.810.55
Budget
Amount

Est. Cost To Date

Act. Cost To Date
Dollar Difference
Pement
Complete

Est. Cost
To Date

Act. Cost
To Date

Ddlar
Difer.

8.248.50
8.164.60
83.90
Deviation

Architect
Concrete
Concrete
Labor
Masonry
Contract
Gen. Labor
Bulldozer
Excavation
Engineering

400.60
527.35
1955.00
260.00

FIGURE 5-7

20.00
39.25
O
30.30

Over .95

1 .O8
.99
Over .89

REOUlSlTlON BACKUP REPORTS

Since part of the Control Monitor input data is information about what has
been completed (Activity Percent Complete) and since one of the initial inputs
is a cost value per activity, al1 the elements are available to produce reports
that support contractor requisitioning.
Figure 5-8 presents one page of such a report. It contains al1 the activities for
the sprinkler subcontractor whose code is sprnk. The cost value per activity
was assigned by the contractor and agreed to by the owner. The PERCENT
COMPLETE figure represents the portion of al1 the work to be done on the
activity that the contractor and the owner agree should be paid for. The report
calculates for each activity how much should be paid to the contractor,
therefore. The report also sums the amount earned for al1 activities to produce
a total for the subcontractor.
All subcontractors have their own groupings of activities, and each is
treated in the manner described above. When al1 trades have been presented,
a summary report representing the totals for each is presented. Figure 5-9 is
such a summary.
An interesting feature of The Requisition Backup Report is illustrated in
Figure 5-8. Notice that one of the activity descriptions refers to
Material-On-Site and, in fact, that the cost is offset to the right of the costs
presented for other activities in a column also noted as Material-On-Site.
This feature facilitates payment for materials delivered to the site, the cost of
which is included in the cost value assigned to perhaps several activities for
which no work has yet been accomplished. To indicate that such activities
were partially complete (in order to get the Requisition Backup Report to
generate an amount earned value equal to that which the contractor is due for
the material on site) distorts the project progress position of the activity and in
many cases is not allowed by the owner. The report must therefore have some
way to generate payment for materials and the Material-On-Site (MOS: type
of activity is the way.
When such an approach is used, a special artificial activity (coded to
represent only material and to be ignored by the CPM Schedule Reports) is
added to the CPM data set. The special coding generates the result illustrated
in Figure 5-8. In addition (see following paragraphs) CPM-based Payment
Documents will accumulate Material-On-Site amounts for entry on the final
payment authorizations.
Use of MOS activities must be carefully disciplined. It must be borne in mind
that a cost has been entered into the system twice (once in the cost assigned
to the artificial MOS activity and again in the cost assigned to the activities in
which the material will be used). For this reason the user must adjust the MOS
value to reflect subsequent payment via completion of work activities.
Requisition Backup Reports can be used by the contractor to justify what he
seeks in payment from the owner, and it can be used to establish what the
contractor should pay his subcontractors.
The cost values assigned each activity for requisition to the owner can be
factored by CPM by any percentage to produce higher or lower values. If in the
case of the subcontrac?or illustrated in Figure 5-8 the agreement between the

PAGE

P? E V

OUCGET
01374
01408
' 141
U1417
01417
' 1431

0 1 4 1 7 SPFUK
Cl5l'; SPF'JK Y c Q
( 1 5 1 '
SPrVK "6
U 1 4 3 1 SPFYK
0 2 4 9 9 Sf0hC br5
L l i t 9 SPEUC

PCT

THlS
PCT

SPfiIhKL'QS w i T k i H I f q
I ' J S T A L L F::AP T.L.dK5
I:iCT/TFST
FY-lP P . C T Z L f 5
S F 2 I N K L C Q S F O C V d3l- 1 %
5 P F l h K L C g S C C A V cGl- 1N
T E S T SCKT 4KL E!;S

THI

5 d P P L I C A T I J a FARNEU

A CCUST

EAHLED

27

,-

d
4

L
"

U J C

.<

i i

L.

!VI

3
'
,

--

-4

-0-

22,-

~ K d L ~ r 7 L d u V 8 P l d i d d l

> d , a , ~
. n + f i o t - ~ - > ~ <
7 n~d .h J . s . a
< 3 ~ 2 a , ~ - i . . ~ a 1 ,>dc r; 9 - ~ - i ; - a c . < a
. x V d O U & A 3 1 - 2 7
x ' x l i l a U . 1 m r l > . ~ . . ' I + , -

Y G

FIGURE 5-9

contractor and the sub was for $117,471.20 when al1 his work was completed.
the ratio of that amount to what had been agreed to between the contractor
and the owner ($133,490.00) is 88 %. This ratio would be the factor applicable
to the amounts earned for that sub, and the result of such factoring would
justify and support payment to the sub. Figure 5-10 is the backup for payment
to the subcontractor represented t5y the page illustrated.

P A Y M E N DOCUMENTS
~
Many owners use CPM as the initial input to an automated contractor
payment operation. One such organization is the Veterans Administration
whose payment document is illustrated in Figure 5-11. Use of such an
approach has significantly reduced the amount of time necessary for
processing of payments, the result of which is faster payment to the
contractor.
Note in the Payment Document illustrated in Figure 5-11 that a separate
entry is made to accommodate Material-On-Site values. These values are
those that were discussed earlier in this chapter.

C P M II AUTOMATEO

~ n ~ O FBD
l
WNGER R E N [ N * I O N
COST EARNEO REPORT BY TRAOE
AS OF 1 5 0 E C 7 5
TRAOE

ci
v
w

C
AI

= SPRNK

- ..

.-,

CONTROL

sYsTEn

PAGE

.-

TR~DE-.

01374 01417
01408 01519
01410 01519
01417 O1431
01417-02499
61431 01449

ED~EISC

SPRNU

SPRNK M R
SPRNK MER
SPRNK
SPRNKMOS
SPRNK

__

R 1OO
I N.-

PREV

_ _- . _ - -. BUDGET - - PCT

THIS
PCT

AllOLHT
E ~ N E D

un

SPRINKLERS
R G H IN
I N S T A L L FOAM TANKS
I N S T / T E S T F O M NOZZLES
SPRI NKLERS F C A M RGH I N
SPRINKLERS FCAM RtH I N
TEST SPR INKLERS

TOTAL

H)R TRAOE

117,471.20

YA'

AMOUNT EARNED 10 DATE

PREVIOUS A M W W E A R M D
T H I S APPL I C A T ION EARNED

59

36 8. 0 0

WL TE R I AL
CM S I T E

C.@.
CWAhGF 3 R C PPEV R F P T D S Y U .
C.O.
P R O C F F D 0 9 C P P F V ? E P T O NO.
FIELD CHANGE ne3 P R E V Q C P T Q S Y M .
F I E L 0 P R O C E F 9 ' O C FREV Q E P T 9 SVM.
T I M E E X T E N S I O N S FREV R F P T f l NO.
I S S U E D T H I S P F R 1 0 0 s C O 2 3 CAC FPrl H
I S S U t U TH1 S D E R I ' 7 0 FPn-H 1 CANC)
I S S U E D T U 1 5 PEQICIC FCO-34
I S S U E O T H I S PEQ1!P
FCO-35
I S S U E U T H l Z PF Q l C O F C q - 3 6 C A C FPC R
l S S U E 0 T H I S PERICO PFrl-BICAPIC)
ISSUEO TWIS P F P I C D CC?-q71FPT-K)
I S S U t U T H I S DEQICC FCO-38
ISSUED TU1 S P E R l C r FPq-KICANC i
ISSUEO T H l S P E R I C P F C C - 1 9
ISSUE~T n r s OE~ICO r v M

A 1.3

O TC
110
A 73
1 TO

C R l G l N A L C O Y T R d C 7 AuOUhT
YET CHANGE
CURRENT COb'9ACT
AMGUNT
V A L U E OF WqPK I N P L A C F
TO
12-"1-75
V A L U E CF WCQK I F ( S T b L L E C
CURQFVT PERIOO
V A L U E O F MOQK I N P L A C E
TC
12-37-75
VALUE CF M A T E R 1 4 L O h S I T E
V A L U E OF hOoK N O 1 C O U P L E T E O

E A R Y E O TC C A T E
(12-30-75)
AMOUNT R E T A l N E C (1.7
'30 F l X E D A M C t J N T )
TOTAL PQEV 13US P I V M E Q T 5
PAYHENT T H I S PFR 1 3 0
TOTAL

PAVPE'JT

T C DAT'

FIGURE 5-11