Overview
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Jean-Pierre PAYRE: Senior project manager – Project management consultant, Grenoble, France
INTRODUCTION
This sheet analyzes the various causes that can lead to financial variances on a project, and provides action plans proposed by members of the project team to reduce the variance or improve the forecast.
Discrepancies are not only due to a lack of knowledge or optimization (smoothing or levelling, parallel tasks, contract renegotiation...), but to deep-seated management, organizational or technical problems over which the quotation manager and management controller have little control.
The first step, however, is to identify the root causes of the discrepancies, and the second is to implement action plans to reduce them or prevent the situation from worsening.
The aim of this sheet is to analyze the integration of technical uncertainties and hazards into planning, risk analysis and budgeting.
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Identify the different causes of cost variances
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