Would you know if your projects took 9 months longer, cost $6.5 million more or required nearly 30 more team members than in the past?
A Business Council of Australia member undertook an analysis of the cost escalation from 2006 to 2012 of delivering one kilometre of a major carriageway. They found that it costs 143 per cent more per carriageway kilometre to deliver in 2012 than it did in 2006*.
This escalation means that a road:
- that took 27 months to complete in 2006 would take 36 months in 2012
- that a cost of $4.6 million per carriageway km in 2006 would cost $11.1 million in 2012
- that an average requirement of 57 staff per month 2006 would be 86 staff.
These figures may already be two years old but they demonstrate the large increases that have happened; are happening and will continue to happen. What will your current projects costs you in the future? Have you already started to adjust budget to reflect this?
If your projects are escalating in a similar manner in regard to timescale, costs and staffing, do you have the right information to be able to realistically plan and budget for your future projects? Is the information available in one place or is it siloed in different spreadsheets? How do you forecast what resources you will need for future projects?
Find out 5 Ways to Make Planning Projects Less Painful with the third webinar with the author Brian LaMee, Project-Based ERP for Dummies. In this webinar Brian shares tips and suggestions to plan and schedule your projects and resources to ensure fewer headaches and learn how using an ERP system purpose-built for project-based businesses can help you. Find out more.
*Securing Investment in Australia’s Future: Report of the Project Costs Task Force, August 2013