There are significant cost benefits to speeding up reviews, approvals, information transmittals, payments, etc. When information flows quickly and seamlessly through a project there is significant reduction in the “Ripple Effect” of negative impacts down the line in a project. For example, when a Request for Information (RFI) goes unanswered for too long, a contractor may miss the deadline to procure materials which are needed to proceed with work on schedule. If the contractor misses that deadline, they are going to propose a change order request to get additional money to cover acceleration costs to stay on the original schedule. Those acceleration costs are expressed in paying overtime to staff and a premium on last minute procurement of materials after the RFI is finally answered. When construction tasks or procurement gets too compressed, the chances of errors and quality deficiencies begins to increase.
The risk and magnitude of negative cost and schedule impact to a project increases drastically by information and key processes taking too long. When using a PMIS, processes are consistently being executed across all projects and process duration and iterations are automatically tracked. Through historical data automatically reported from the PMIS, you can identify trends on why some projects or staff are performing better than others. Process cycle time and the number of iterations can be correlated with quantitative data such as the number or magnitude of change orders, overdue payments, disputes, claims, cost overruns, schedule delays, or quality deficiencies reported on certain projects.