Following on comments made by MHKs (Striking a balance to protect business, Examiner, December 2) it is essential that companies on the Isle of Man and in the UK receive a ‘request for tender’ and are offered the opportunity to submit ‘tenders for contracts’ which will be beneficial in achieving ‘better value for money’ thereby supporting the local economy and tax payers and preclude any discrimination.
A way forward would be to firmly embed a simplified Project Management System (PMS) necessary to support the Earned Value Management System (EVMS) in the ‘request for tender’ (RFT) documentation so that from the onset all Companies wishing to ‘Tender for Contracts’ and those successful in receiving ‘contract awards’ know that if we want to get paid then companies must manage their contracts to time and cost and in accordance with the disciplines stipulated in the PMS.
It is essential that the PMS comprising eight component parts will support EVMS in order to provide senior management and customer with an ‘early warning system’ when project performance in terms of ‘value for money’ (earned value) threatens the profit margin-PBIT for each of the work packages/KPIs so that timely remedial action can be taken to prevent programme slippage and cost overruns during the project life cycle.
EVMS provides an accurate and easy to understand method for extrapolating ‘cost to completion’ when only a small percentage of work has been completed for each work package or KPI.
Untoward trends will be quickly highlighted in terms of understating request for fundings to enable work to proceed prior to contract award, the understating and overstating of work, putting a ‘spin on achievement’ and ignoring ‘actual costs’, making false cost bookings and paralysis by analysis (PBA) where data had been rolled up too high a level so that senior management and customer are not able to comprehend project performance because reports are too complicated, sometimes done by intent or due to lack of experience.