9 Key Benefits of Using Project Controls Software

Managing a project and keeping it under “control” can be an extremely challenging process. That’s where project controls software comes in as an essential tool to empower project controllers in handling budgets, analyzing data, and addressing critical questions during the project lifecycle.

Questions like, “Is the project overspending? Is the project on schedule? Why has the forecast changed?” can be answered more efficiently and accurately with the use of this technology.

Over the last few years, advancements in automation and software development have made it easier for project controllers to meet these demands. In this article, we ‘ll explore how project controls software can support these challenges and contribute to better project outcomes.

Here’s a list of 9 key benefits of using project controls software:

1) Standardizing project controls processes to improve visibility and efficiency

To be able to find answers quickly and easily, you must know where to look. Even large organizations that have to deliver multiple projects of any size, still rely heavily on Excel spreadsheets.

Locating the right data within numerous spreadsheets can be time-consuming and prone to errors because of manual processes. This can lead to disconnected workflows for project budgeting, forecasting, and performance measurement.

Project controls software tools can help standardize work processes, organize large amounts of data, centralize document storage, and much more. Using a centralized location simplifies the creation of templates with company-specific data, such as breakdown structures. You can then easily reuse these templates for any new project. Moreover, it can also make it easy for any team member to access and collaborate by sharing documents, timelines, and status updates.

2) Integrating systems leads to efficient data management

Purchase orders, actual invoices, scheduling, and progress data, might come from multiple systems such as finance, project management or ERP systems. Therefore, aligning data coming from different resources can be tricky. Modern project controls software solutions allow for the integration of the output of those systems within one tool. This can save valuable time and coordinating data.

3) Measuring progress helps keep projects on track

The basis of proper cost control is knowing what has been done in relation to what remains to be done. That progress relates to both costs and schedule, so knowing where you are right now gives an indication of total costs at completion, as well as when the project is expected to be completed. One of the key advantages of project controls software is that it provides the means to gather all the relevant information you need to determine the progress of a project, as well as ability to process that information to make reliable predictions about its expected development.

4) Tracking project performance with real-time metrics

Continuous monitoring is vital to give the project team and stakeholders insight into the project’s performance and underline areas that require special attention and may need changes. Using software simplifies this process by utilizing input data to produce cash flow plots, time-phase costs, create snapshots to monitor changes over time, and provide project metrics (e.g., SPI and CPI).

With this proactive approach, you can understand what you have done, what you need to do, and whether you need to take corrective actions. Therefore, you can easily avoid budget overruns and delays. Making use of graphic representation of plots and metrics, you can also effortlessly reproduce reports and present key performance indexes to management boards.

5) Structured change management improves responsiveness

Changes occur in every project due to internal or external factors, and they can be of different statuses (anticipated, pending, approved, rejected, etc.). Whenever someone issues a change, they should categorize and register it. Perform an impact analysis and, finally, implement and reflect on the change in the project’s budget. Recording changes in a dedicated project controls software tool eases change management and increases project controls’ effectiveness.

6) Connecting cost estimation and cost control improves baseline accuracy

To effectively control a project, you need to establish a solid baseline that you can use to measure progress. Estimating forms this baseline. Furthermore, connecting cost estimation and cost control in a software tool will minimize data handling and increase your working processes’ efficiency.

Establishing a solid baseline is essential for effective project control, and this starts with accurate estimation. By integrating cost estimation and cost control within a software tool, you minimize data handling and streamline your workflow. Thus, this interconnected approach creates a feedback loop where estimated costs can be adjusted for project controls, and actual costs can provide feedback to improve estimating accuracy.

7) Improved visibility into actual costs

To keep track of the money spent on a project so far, it’s important to store it in a well-structured way, allowing for analysis and benchmarking. Assigning your actuals to cost items, breakdown structures, and schedule helps to gain insight into your expenditures compared to the original budget. Project controls software also allows you to distinguish between actual costs and commitments to further specify the status of a project.

8) Supports better earned value management capabilities

Earned value management, or EVM, is a project management technique that provides insight in the work performed so far and the value it represents. Dedicated cost control tools typically offer ve far more capabilities to perform EVM and the related analysis than any existing spreadsheet tool.

9) Effortlessly generating insightful reports and project dashboards

It’s not an easy task to capture the status of a large and complex project in a way that is understandable for management yet to-the-point enough to not waste valuable time on details or irrelevant information. With the use of software, you can create real-time dashboards and reports that present the project’s costs, metrics, KPI’s and much more.

As said before, not every project requires extensive software for cost control. Yet it is important to consider it before you start project execution, rather than stubbornly sticking with Excel and regretting that decision halfway through the project.