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5 Reasons Why Your Project Managers Should Be Tracking Percent Complete
March 30, 2023
One of the critical aspects of project management is tracking progress, which is where the concept of percent complete comes into play. Percent complete is a measure of how much of a project has been completed at any given point in time, expressed as a percentage. Let's explore why percent complete is important to track on lump sum/fixed fee and hourly not to exceed architecture projects.
1) Evaluating Project Performance
Percent complete is a useful metric for evaluating project performance. By tracking the percent complete, project managers can determine whether the project is on track or behind schedule. It also allows them to identify any areas where the project may be lagging and take corrective action to get it back on track. This information is valuable for decision-making and communicating the project status to stakeholders.
2) Forecasting Project Completion
Tracking percent complete also helps project managers forecast project completion. By comparing the actual progress to the planned progress, managers can predict the time required to complete the project. This information is essential for managing client expectations, as it allows project managers to provide accurate completion dates.
3) Budget Management
Percent complete is also important for budget management. By tracking the progress of the project, managers can determine how much of the budget has been expended and how much remains. This information helps managers allocate resources more effectively and prevent overruns.
"By keeping track of progress, project managers can ensure that the project is completed on time, within budget, and to the desired quality standards."
4) Invoicing and Cash Flow
When project managers routinely track percentage complete as part of a standardized project management process, it can make it easier to generate accurate invoices. If this information is available to the person that performs billing, they can easily invoice the appropriate amounts when it is time to invoice a phase of the project. This allows the invoices to be sent out earlier, reduces back and forth between billing and the project managers and ultimately reduces the time it takes to receive payment for work that is performed.
Finally, percent complete is important for communication. By tracking progress and communicating it to stakeholders, managers can keep everyone on the same page. This helps to avoid misunderstandings and keep the project moving forward smoothly.
In summary, tracking percent complete is critical for project management on lump sum/fixed fee and hourly not to exceed architecture projects. It enables project managers to evaluate project performance, forecast project completion, manage the budget, ensure quality control, and communicate effectively with stakeholders. By keeping track of progress, project managers can ensure that the project is completed on time, within budget, and to the desired quality standards. While it is possible to manually track this across all projects and invoice accordingly, a software system that helps streamline this effort can provide significant efficiency, lower margin of error, and greater visibility into overall profitability.
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