Reports Generated through the Critical Path Method in Real Estate Cost Control and Estimation

In this article, we will identify the most important reports generated through the CPM and their content in cost control and estimation in real estate development.

1. Project Schedule: The project schedule shows all the activities and the potential durations of each activity. Additionally, the project schedule is used to estimate the activities' start and end dates, the resources needed to complete them, and the critical and non-critical paths to complete the projects.

2. Project Budget: The project budget report is generated based on the information provided in the project schedule. The project budget report outlines all of the resources and activities needed to complete the project and the estimated cost of each resource and activity. It covers the minimum and maximum cost of all areas of projects such as tax, professional services, logistics, technology and communication, materials, labor, permits, certifications, installation, waste and removal management, and energy.

3. Baseline Report: A baseline acts as a reference for planning, measuring, and monitoring project cost. A baseline report outlines an optimal estimation for the cost of each activity in the critical and non-critical paths. It also includes the baseline resources needed for each activity and the optimal estimated completion duration.

4. Earned Value Report: The earned value report is a report that compares the actual work completed with the planned work, allowing the project manager to determine if the project is on schedule and within budget. The earned value report is important because it helps the project manager identify if corrective action is needed to ensure that the project is on track. The report provides valuable information on the progress of the project, including the amount of work completed, the budgeted cost of work completed, and the actual cost of work completed.

5. Cost Variance Reports

Variance reports generated through CPM help in identifying the impact of deviations from the baseline start and end dates, duration, activities, and resources on cost. Cost managers use these reports to identify areas where the project has over or underspent and to take corrective measures accordingly.

5. Cash Flow Statement: The cash flow statement is a report that shows the inflows and outflows of cash in a project. The cash flow statement is essential in real estate development projects because it helps the project manager determine the cash requirements for each stage of the project. The cash flow statement provides information on when cash is needed, and when it is expected to be received, helping the project manager ensure that there is enough cash to complete each stage of the project.

6. Cost Risk Report

The risk report identifies potential risks that could impact the project's cost and timeline. This report summarizes the risks and provides recommendations on how to mitigate them. This report is useful in reducing the possibility of unforeseen events that could lead to cost overruns.

7. Change Management Report: The change management report tracks all the changes made to the project's scope, cost, and schedule. It includes the change request, approval process, impact analysis, and implementation plan. The cost manager uses this report to ensure that the changes are incorporated into the project's schedule, budget, baseline, and risk reports and to monitor the effect of changes on the project's cost and schedule.