(1) Explain your problem, don't simply post "This isn't working". What were you doing when you faced the problem? What have you tried to resolve - did you look for a solution using "Search" ? Has it happened just once or several times?
(2) It's also good to get feedback when a solution is found, return to the original post to explain how it was resolved so that more people can also use the results.
I just published a new blog post “Estimating the Cost of Time When Ain’t Nobody Told Ya!” at the Total Project Control website.
This new blog shows how, given only budget and “deadline” instructions, a project manager can do some back-of-the-envelope calculations to generate conservative estimates about the cost of time.
These estimates can then be disseminated to key individuals, such as sponsors/customers, to stimulate more precise estimates from the investors’ points of view, and to increase appreciation of the project manager as someone who is not merely overhead, but who is seeking to add value through her schedule management skills.
Fraternally in project management,
Steve the Bajan
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Hi, Mike. I replied to your comment on my blog, but I'm not sure others here will see it, so I'll re-post it here:
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Hi, Mike. Good question — thanks!
Liquidated and ascertained damages (usually called “LDs” in the US) are certainly a large part of the cost to the contractor of being later than the contractual date. But LDs are rarely the only cost — there are often additional legal and administrative fees (schedule forensic experts?), loss of future business with that customer or others, etc.
Also, LDs often only allow the customer to recoup a part of the damage — the actual cost of late completion is often greater, at least in the US. And LDs (or lack thereof) don’t indicate the potential value to the customer of earlier completion of the contractual date. (Even contractual bonuses for earlier completion often don’t fully reflect that value to the contractor, as the good reputation gained thereby also can have great value.)
And, of course, there are almost never LDs at issue on the implementation of a software system for a corporation.
Fraternally in project management,
Steve the Bajan
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Again, sincere thanks for your comments.
Fraternally in project management,
Steve the Bajan
Hi Stephen
Interesting article but I though the LAD's set the value of construction time.
I also have a concept of putting a value on a days float so whoever uses it pays for it.
Best regards
Mike Testro
Email: PPadmin@planningplanet.com
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