Dear All,
I am working on a project where we have a lump-sum contract. for the payment sake, the milestones are defined which are called Payment Milestones (PMS) each with its fixed values.
Each of the milestone contains several activities ranging from 3 and up to 25 activities and there are above 500 such Payment Milestones(PMS). Payment shall be made for a milestone once all the activities in that milestone are completed. We dont know and can't know the cost of the activities in the milestone. There are golden chances that the activities under a milestone may go out of sequence.
It shall be great if I coul get the good strong and defendable approach to sort this issue.
Best Regards,
Emran
I think that with each update you need to manage your out of sequence logic and make any necessary logic changes based on starting work out of sequence.
You can make a LOE as suggested by Johannes but you will still have to change the successor on the LOE if you have out of sequence progress. You will have to change make the successor to whatever the last activity in that chain of events is now since the last activity of that original chain is now completed.
It would be best to assign the cost to the LOE activity this way you are not moving monies around if the work is out of sequence and worst case you only change the successor on the LOE activity.
If you want that cost to spread over the LOE make sure to assign a curve on the resource for the LOE other wise it will distribute the cost on the start date now over the entire loe period.
Hi Emran
I see two options. These are;
< Use Level of effort activity type
< Use the WBS activity type
These are "Hammock type" activities, and you can load these activities with resources and cost. In your case load the 100K in this hammock-like activity. If the activities are out of sequence or not completed the hammock moves like a harmonica.
Trust this helps
Johannes
I am looking for a solution in primavera P6. Issue is; there are let's say 15 activities than needs to be completed to consider the progress which has value of $100K. If any is incomplete then progress is assumed to be zero. For me it is easy to load the total cost to the last activity and then by assigning a resource curve i can sort my issue. But this is sorted for the planning sake only. Whatif the activities go out of sequence during execution and the last activity is completed despite couple of activities are still in progress. System will show $100K as progressed but in actual it should not be progressed because two activities are still balanced.
I am looking for a suitable approach so that if the activities go out of sequence, the system should support the correct valuation. May be I am going in the wrong direction.
If you can help then advise.
regards,
how could you establish payment milestones and NOT know the cost of the activities in the milestone ?
break it down to where the activities that encompass the milestone add up to the payment milestone. I am not sure that it even matters if you coat load the activities that lead up to the milestone or not because you do not get paid until the milestones is completed not for each individual activity.
I don't think that if activities go out of sequence matter you still wont get paid until ALL of the activities that encompass that milestones are compiled.
So what good strong defendable approach are you looking for ?