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Artery/Tunnel project
Causation, linear regression technique
for determining, 73
Ceiling price, 145
Centre for Research on the
Management of Projects (CRMP),
193
CER, see Cost estimating relationship
Certification, 247–248
Change(s):
anticipating potential sources of,
196–197
causes of, 186–190
defined, 185
influence of, 190–191
positive/negative aspects of, 185
of scope, 30, 32, 238–239
to scope definition document, 29
in specifications, 47–48, 239
Change control, 196–200
potential sources of change, 196–197
procedure for, 197–200
responsibility for, 200
for scope changes, 32
Change order processing time, 147
Channel Tunnel (Chunnel), England
and France, 46, 128, 142, 152
Chinnagiri, Mahesh, 251
Chunnel, see Channel Tunnel,
England and France
Claims, cost, 142–143
Clarity of purpose, 272
CM, see Configuration management
Coding, WBS, 38, 39
Coefficient of determination (R2), 73,
74
Commercial risks, 159
Communication:
in value and risk management
integration, 273
in value management, 9
Comparative cost estimates, 52–55
Completion deadlines, 273
Completion values, 124
Computerized project planning
systems, 56–57
Conceptual design phase (LCC), 271
Conceptual development, 22–23
Concession agreements, 155
Concorde, 53–54
Concurrent engineering, 262
Configuration control system, 194, 197
Configuration management (CM),
191–195
defined, 192
example of, 202–206
process for, 193–195
standards for, 192
Constant rate assumption, 61
Constraints, identifying, 22
Contingencies, in cost estimation,
59–61, 95
Contingency budget, 95–98
Contract change notes, 143
Contractual risks, 159
Conversion, in project supply chain
process, 224–225
Corporate culture, 245, 272–273
Corporate strategy, 17
Correlation coefficient (r), 74
Index 281
Cost(s):
impact of needs on, 20
predicting, see Forecasting methods
as project performance metric, 228,
229
relationship of time and, 45
relationship of value and, 3–5
sources and categories of, 49–50
as value driver, 218
Cost control, 105–125
earned value management, 111–125
and project evaluation and control,
105–107
time-cost analysis, 107–111
time-phased budgets for, 93–94
Cost drivers (ABC), 91
Cost estimating relationship (CER),
268–269
Cost estimation, 43–64
allowances for contingencies in,
59–61
with computerized systems, 56–57
contingency budget to offset errors
in, 95
detailed estimates, 56–60
external factors affecting, 48
importance of, 44–45
keys for effectiveness in, 6–7
‘‘laws’’ of, 51
learning curves in, 61–64
low initial estimates, 46
manual system for, 57–59
methods for, 51–55
process of, 56
and quality of scope definition, 47
for repetitive activities, 61–64
sources/categories of project costs,
49–50
and specification changes, 47–48
and unanticipated technical
difficulties, 46–47
WBS as basis for, 27
Cost management, 2. See also specific
areas of management, e.g.: Project
budgeting
effectiveness in, 6–8
forecasting methods for, see
Forecasting methods
issues in, 3
Cost of capital, 154
Cost of debt, 154
Cost of equity, 153
Cost overruns, 45–49, 97–98
Cost performance index (CPI), 115, 121
Cost-plus-fee contracts, 138
Cost-plus reimbursement, 129, 138
Cost-reimbursable arrangements,
138–140
Cost variance (CV), 115, 118, 121
Cost variation, due to inflation and
exchange rate fluctuation,
144–145
Counter trade, 153
CPI, see Cost performance index
Crash costs, 50
Crashing, see Project acceleration
Credit control system, 130
Crisis management, 201–202
Critical success factors (CSFs), 172
CRMP (Centre for Research on the
Management of Projects), 193
Cross-functional framework (VM), 172
CSFs (critical success factors), 172
Customers:
as critical SCM area, 213
value chains unique to, 258
as value drivers, 217–218
Customer satisfaction, Kano model of,
263–265
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