Critical path method (CPM) scheduling software has been available to the construction industry on mainframe computers since the late 1960s. Microcomputer software has been available since the mid-1980s. Construction specifications have been requiring CPM schedules occasionally since the 1980s as well, becoming much more frequent in recent years.
CPM software companies have been continuously improving their software over the years. Now, moderately priced scheduling software exists that more than pays for itself over and over again, even on small construction projects. Despite these facts, many general contractors and specifically subcontractors do not take advantage of the benefits that a CPM schedule can provide.
In CPM software, tasks required to construct a building (or any type of project) are broken down into segments that have durations between one day and 20 days. These tasks are then arranged in a logical sequence and a schedule is created.
The vast majority of CPM schedules do not have to be created from scratch for most projects. Once familiar with CPM software, project managers and their companies can quickly begin to make meaningful and positive improvements to their company’s reputation, project management of materials and people, along with their bottom line.
The benefits to a subcontractor or general contractor to make consistent use of CPM scheduling software to enhance their company’s abilities can be absolutely astounding. Someday in the future, contractors and subcontractors that ignore the benefits of CPM scheduling will simply fade away.
The Benefits
CPM software has been improving and becoming even more useful and sophisticated. At the same time, these products are still easy to use. The full capabilities of these software products are not required to be used to make a big difference to a company’s project management abilities. However, some of the enhanced capabilities of these software products are truly amazing.
Below are a few of the many examples of what a good CPM software product and project manager can provide to a subcontractor or general contractor:
1. Predict the Future
Predicting the future allow allows contractors to determine the expected length of the project, when contractors can expect to receive retainage and the best time for material deliveries, which is especially useful if the contractor is using a “just-in-time” method.
It also can help determine manpower requirements long before they are actually required. This is especially useful to help determine when subcontractors can expect to begin and finish work on a project, as well as the number of workers required by trade. It can also help minimize the number of workers on a project by planning the sequence of tasks for that project without increasing the total duration.
2. Change Order Management
Most projects have change orders that take place during construction. CPM scheduling allows contractors to determine how a change order will affect the schedule. It can help determine whether project completion will be delayed, which could add general condition expenses to the change order. CPM scheduling provides an excellent way to determine and justify those additional expenses in change orders.
CPM scheduling also can help address how the change order affect other tasks, subcontractors and manpower requirements, as well as what adjustments need to be made to the schedule and fellow contractors on the project. A CPM schedule may be the ultimate tool to communicate, negotiate and manage change orders.
3. Cash Flow Management
Several scheduling software products are sophisticated enough to predict the expected monthly costs to an owner and/or contractor. CPM software is a fantastic tool when negotiating with an owner, as it provides useful information for the owner to negotiate with lending institutions. By providing a good schedule, contractors have the ability to adjust that schedule to make it possible for an owner to build the project.
In addition, contractors can also have cash flow and financing issues. Some software allows the contractor to combine construction projects together to predict cash flow (and manpower) requirements by region and/or total company requirement.
This article only slightly touches on the incredible benefits of CPM scheduling. Even a relatively basic CPM schedule is a great communication device for managing a construction project. A good CPM schedule is pure gold and a real source of revenue.
