Project Management: How to Use Gantt Charts to Maintain Control

If a construction firm overruns its calendar or budget, it can get hit with contractual penalty charges - which can wipe them out financially. Why did this happen? Because they didn't use project Gantt charts to have an instant visual method of tracking what was happening and where they were falling behind. It is essential that project managers use the Gantt Chart to not only track progress of a project but to identify critical path tasks that could or will delay completion.

In this case, the client didn't. How It Happened Gantt charts help you keep track of what is going on, but it doesn't answer every question you may have for your project. The article did not state what could happen if you did not have a Gantt chart. In a single word, the result is: disaster. The company in the example above went into receivership. This happened because they didn't have the easy method of visualizing their progress or lack thereof, which is something Gantt Charts provide. This is partially due to the fact that they didn't have the ability to see the critical path - and delays and holdups - of the construction project they fell behind in. The Penalty for Not Using the Right Tools The construction project was for building an apartment building. The project contract didn't specify tracking the critical path. When the customer changed the contract specifications, there wasn't an update to a Gantt Chart that would have showed how this would impact the project. The changes were made, but the changes these changes had on all other project paths were unknown until it was too late. The apartment building was completed. Unfortunately, that was 15 months after planned. The original contract contained a penalty for finishing so far behind schedule. How Could The Company Have Protested The Penalties?

To prove they should not have been assessed a penalty charge, the company would have to prove: 1. The handover date required in the original contract was achievable per original specifications. 2. The end date of the project could only become late due to the additional tasks and required added time to complete them due to the later specifications. What did the company have for its defense? They had spreadsheets listing the work that was done. They had a new spreadsheet that spelled out the new changes were made. However, these spreadsheets never showed the variances from the original construction plan or the schedule impact on the project caused by the changes. The Results with The Right Tools If the company had created a Gantt Chart upon receiving the contract, there would have been a baseline for the project at its outset. This would have given them a plan to base project progress on, as well as any changes. When the customer added specifications for the building design, the construction firm would have been able to add the newly required additional work to their baseline. They could have also added in the duration changes mandated by this new work.

The updated Gantt Chart would have shown that the project completion date, the handover date, would have slipped by the specification change. If this had been known by the construction firm, they would have known to get an amendment to the contract for a revised end date. A revised end date would have prevented the assessment of penalties. Thus, they would have known that they could not meet the new specifications on the old contract and known to amend the due date. Without that knowledge, they kept the old time under impossible terms. But with the old contract in place, the old deadline - and penalties for not meeting the old deadline - was still in effect. Without a Gantt Chart to show the impact of the schedule, the construction firm could not prove that the delay was due to the additional specifications. It was then possible for the other side to argue that the delays were due to the inefficiency of the builder. The argument could also be made that a company managing a complex construction project that did not use Gantt Charts was inefficient. Conclusion of This Experience If your project has time constraints, it is essential to use the necessary tools, such as Gantt Charts, to successfully manage the project. These tools are necessary to both properly plan and execute the project, whether the objectives change or not.

What Gantt Chart Software can you use? Microsoft Project is the most commonly used software. However, SmartDraw and GanttProject are also used by many suppliers. Whatever software you chose, ensure compatibility with the project files used by suppliers to eliminate redundant data entry and to ensure you are literally on the same page.