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MS Project (Cost follow up)

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Abdulaziz Al-KhulaqiMember for 16 years 11 months
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Dear All,

I am new member in the Planning Planet and I started to use MS Project in order to control the construction progress but I face one problem related the cost follow up as agreement with the contractor the cost of construction is lump sum and on daily basis I have to give money to the contractor according to the job progress therefore I request any one to advice me how I can control the cost follow up through MS project.

Thanks in advance for help,

Regards,
Al-Khulaqi
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    Trevor Rabey ·
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    Identify the scope if the project by decomposing it into its component tasks.
    Then, simply agree in advance on the payment for each task, and when each task is finished, pay for it.
    In the US this is called a Schedule Of Values.
    You don’t have to have an amount > $0 on every task and the agreed payment amount does not have to be related to the cost of the task. You don’t even have to know the cost of the task. That is the contractor’s problem, and his business, not yours.
    You have to make a decision whether you are paying by time or by progress. It is better (for you) if you pay only for tasks when they are finished and do not pay anything for partial completion of tasks. This provides an incentive for the contractor to get things finished and to stick to the schedule. If you pay for partial completion you will have the added complexity and difficulty of having to measure and agree on the progress of each task and it will just get messy for no benefit for either party.
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