REVIEW AND ANALYSIS:

1 – Does the customer pay on time?
2 – Was a breakeven (B/E) analysis performed?
3 – Any Corruption? fraud?
4 – Were the number (#) of customers/ potential customers determined before the project was initiated?
5 – Does the firm have a history of cost overruns? Is an overrun likely?
6 – Is the project’s budget realistic?
7 – Were bid documents thoroughly reviewed?
8 – Was the budget size ok (for a large, medium or small) for an organization of this sort?
9 – What is the present cost of the product or service to the customer?
10 – Where did the money ($) go?
11 – Does the customer understand financial management?
12 – Is much re-work required?
13 – Are/ were unauthorized extras included?
14 – Is the feedback (information in the reports) accurate?
15 – Can the estimate at completion (EAC) be determined?
16 – (For U.S. firms): Does project’s activities violate the U.S. Foreign Corrupt Practices Act (forbids U.S. firms from making payments to foreign officials to win contracts or influence business decisions)?
17 – What will be the future cost of the product or service to the customer?
18 – Any ability to fund this project off-the-books – avoiding the usual paperwork and oversight?
19 – Does project include a breakdown of all costs/ expenses (by WBS activity) necessary to complete the whole process?
20 – Is the WBS broken down to its essential activities?
21 – Does project included any new unbudgeted expenses? (Yes = bad)
22 – Is anyone assigned to ensure that the resources went to the right places? (No = bad)
23 – Does PM have the ability to view the raw data/ numbers used (for what the money is spent on and how it’s allocated) to prepare the various cost estimates? (No = blue)
24 – Does PM know the options to cover the cost of overruns? (E.g., defer payments/ maintenance to a future period; obtain funds from contingency (reserve) fund). (Yes = good)
25 – Does PM go line-by-line through the budget for accuracy and ensure that services paid for were actually delivered? (Yes = good)
26 – Does PM observe internal controls in action? (Yes = good)
27 – Does PM meet with company accountants to get a better understanding of the budget’s planning process and ongoing potential risks? (No = bad)
28 – Does PM regularly track project’s cost overruns? (No = bad)
29 – Are any items in the project plan disallowed in the budget? (Yes = bad)
30 – Can PM cover the major expenses that may loom in the near future? (No = bad)
31 – Does PM know which of the project’s funds are considered “capital” and which are “operating”? (Yes = good)
32 – Does the work breakdown structure (WBS) match up with the firm’s chart of accounts? (No = blue)
33 – Has the each segment of entire overtime process been reviewed to include:
Regular review of the overtime process by PM/ SM?
*Review of arcane/ legacy work rules/ practices (e.g., meal allowances/ cross-training) – especially union contracts?
*Holiday/ Off-hour/ Sunday work overtime payments
*Review of work performed during emergency conditions?
     *Approval before working?
     *Day-to-day work planning (job/ worksheets) and routinely monitored?
     *Approval & submission occurring as soon as possible, once the work was performed?
     *Verifying time and attendance (sheets/ timecards/ security systems)
     *Appropriate scheduling?
     *Verification that claimed hours were actually worked? Were overtime hours field verified? (No = bad)
     *Does/ should PM/ SM restrict the number of continuous hours that certain employees can work?
     *Overtime reports are prepared and sent to activity managers, indicating?
     *Names/ titles of people who worked the overtime?
     *Activity areas where the most OT spending is occurring?
     *The potential for excessive OT to possibly (adversely) impact individuals’ physical fatigue (and by default – safety)
     *The ratio of employee ‘straight time’ versus ‘overtime’? (Ideally shouldn’t exceed 112%)
     *Are unexplained no-shows tracked and investigated? (Yes = good)
34 – Is spending expected to exceed the project’s budget as the project progresses? (Yes = bad)
35 – Are any costs rising at an alarming/ very high rate? (Yes = bad)

———————————————-

PLANNING/SCHEDULING/TRACKING/CONTROL

1 – Firm has a good way to track costs?
2 – Costs are adequately controlled?
3 – Any irregular spending, sloppy bookkeeping?
4 – Regularly receive status reports from vendor?
5 – Are funds maintained in multiple accounts?
6 – Are all accounts known to senior management?
7 – Has the time and money to make sense of data it receives?
8 – Firm receives many paper documents which must be sorted by hand?
9 – Effective anti-theft measures exist to reduce theft?
10 – Firm only receives status reports when they ask for them?
11 – Is the funding for this project appropriate? Any cash flow problems?
12 – What are the planned vs. actual expenditures?

13 – Were/ Are cost controls in use on this project?
     *Can project still spend more money than it has? (Yes = bad).
     *Does SM/ PM employ effective cost controls? (Yes = good)
     *Must most of the budget money be spent within an established timeline? (Yes = blue)
     *Did any significant incidents account for the runaway overtime costs? (Yes = blue)
14 – Were any calculation errors found?
15 – Are the project’s constraints known?
16 – Have all of the project’s costs been identified?
17 – Are regular project reviews held to monitor costs?
18 – How do costs compare with the projection?
19 – Does a work breakdown structure (WBS) exist?
20 – Is anyone accountable for how the monies are being spent?
21 – Are budget adjustments easy to make?
22 – Do long delays occur in getting the proper funding? Has this resulted in not having cash when needed?
23 – Knows the timing of when funding will be available?
24 – Knows the amount to be spent in each future time period?
25 – Can any activity be stretched out and performed over a longer period of time?
26 – Does PM ensure that payment obligations are met? (Yes = good)
27 – Is there any money dedicated solely to the project, which cannot be used for any other purpose? (Yes = blue)
28 – Knows exactly when each major function on the WBS will be available? (Yes = good)
29 – As costs grow, does SM/PM explore which possible activities/ costs can be cut? (Yes = good)
30 – Does PM know which activities are identified as discretionary spending? (Yes = good)
31 – Does PM know the cost of day-to-day operations? (Yes = good)
32 – Is money being taken from other parts of the project to address cost overruns? (Yes = blue)
33 – Are required “on-call workers” who must be on standby on weekends, days off, off-peak/ night/ off-hours doing so without compensation (Yes = bad)
34 – Do responsible audits get performed on the “on-call worker” program? (No = bad)
35 – Has PM/ SM established a cost baseline against which the management of future spending can be measured? (No = blue)
36 – Are project’s books closed within a set number of days (3 – 5 working days) after the end of the previous month? (Yes = good)
37 – Are schedules changed multiple times after they are posted? (Yes = blue)
38 – Is tracking period long enough? (Yes = good)
39 – Knows if there is any