Owning operate fifteen months late on completion of a building project, a creating organization incurred extensive penalty fees, which ultimately led to its closure. Not getting any project gantt charts indirectly led to the firm’s failure.
In my report ‘Gantt Charts, Pert Charts – What Use are They?’ I reported that Gantt Charts are beneficial instruments to assistance you regulate greater, but they will never give you all the answers. What I did not say is that not getting a Gantt Chart can be disastrous: a organization not long ago went into receivership, partly due to the fact it did not have Gantt Charts displaying the important paths on a big building project.
The first contract for the building of a block of flats did not include a dated project program displaying the important route. When modifications to the specification had been made by the purchaser, no program revisions could be made to demonstrate how these modifications would have an effect on the project finish day. The flats had been last but not least all set for handover some fifteen months later than the first agreed finish day, primary to penalty fees.
In order to contest the penalty fees, the organization needed to demonstrate:
1- The handover day specified in the contract was probable inside the first specification.
2- That the finish day was bound to slip due to the fact of the more duties and extended durations prompted by the customer’s modifications.
All they experienced was a sequence of spreadsheets listing the duties carried out: a new spreadsheet was made when just about every adjust was made. The spreadsheets did not demonstrate the variances from the first program, nor what the affect of people modifications was on the project dates.
How Gantt Charts Would Have Helped
If they experienced made a Gantt Chart at the contract stage, they would have experienced a baseline program from which they could keep an eye on their progress.
When the purchaser requested amendments to the specification, the organization could have additional in the essential more duties and adjusted the durations of the present duties as essential: this would have plainly shown the handover day slippage. The purchaser could then have been named upon to indicator an amendment to contract, agreeing a revised finish day.
Without the need of these instruments, the organization was unable to show that the delay was not prompted by their individual inefficiencies (despite the fact that it could be argued that attempting to regulate a complicated building project with out using acceptable scheduling instruments is an indication of inefficiency in by itself).
If you are named upon to regulate a project for a purchaser the place time is of the essence, you need to use acceptable instruments, these as gantt charts, to keep an eye on the program and perform out the affect of adjusted situation, and converse the modifications to all worried.