5 Ways Resource Management will Eliminate Cost Escalations

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e-Builder.net 800.580.9322 info@e-builder.net 02/11/19 WHITE PAPER 2 5 Ways Resource Management Will Eliminate Cost Escalations & Project Delays 1 A Proactive Approach to Capital Program Resource Management One of the top reasons for budget overruns and schedule delays on large capital projects is self-performance resource costs—those professional expenses associated with project and construction managers. Yet few program management solutions are equipped to manage self-performance time and cost, which leaves capital program owners to predict professional labor needs with no real benchmark of true needs. e-Builder Enterprise is a fully-integrated, owner-centric, cloud-based construction software solution developed to meet the needs of facility owners and construction professionals by measuring and managing every step of the capital project delivery process (planning, design, procurement, construction, and operations) to improve performance and transparency while reducing risk, even on self-performance resource costs. One of the most essential modules built into e-Builder Enterprise is the effective and efficient capitalization of self-performance costs against projects—a task too often separated from program schedules and budgets. e-Builder's Resource Management solution creates connections to resource allocations across your project portfolio while providing more comprehensive cost management tools for project managers. The following is an overview of the benefits capital program owners can derive from an integrated resource management solution. Gain Insight Into Your Self-Managed Costs Considerable assessment and planning goes into every large capital program, as owners strive to accurately identify expenditures and timelines across multi-year efforts. Capital project owners, just like contractors, have developed means and methods to manage budgeted and actual costs, as well as schedules, across a portfolio with help from technology-enabled project management and scheduling tools. While determining processes, project scope, cost, and schedule have improved significantly, many capital project owners with high internal self-managed staffing needs struggle with the effective and efficient capitalization of self-performance resource costs (e.g. project managers, construction managers) at the project and task level. Over the course of 5–10 years, managing capital program management costs becomes difficult to measure with any accuracy—largely due to disconnects between actual and budgeted costs—which leads to cost overruns, schedule delays, and overburdened and/or understaffed management teams. e-Builder Enterprise's Resource Management solution links resource-loaded schedules to cost modules in real-time and provides visibility to resources across a portfolio, which allows program directors to predict program resource needs and plan for new projects with more intelligently developed budgets. With the ability to track and adjust resource allocations across a portfolio, capital project organizations can plan self-performance costs over time, based on project schedule tasks, and see each resource's combined allocation by week, month, or year to illuminate over- or under-allocation. One large water resources agency with a $100M capital budget is realizing a number of benefits of focused resource management solutions. For years, the organization relied on a homegrown cost accounting system to estimate hours on resources types. While the system was great at tracking costs, capital programs were consistently over budget on labor. With e-Builder Enterprise's Resource Management solution to manage projects, the agency's capital program manager has realized improved planning and performance. The team can track and manage milestones better, and gains realistic insight into schedules and costs as a project progresses. Just as importantly, the organization is now able to know resource availability well into the future. CASE STUDY

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