An Intranet-based cost control system

An Intranet-based cost control system

O. Abudayyeha,*, B. Temelb, H. Al-Tabtabaic, B. Hurleyd

aDepartment of Construction Engineering and Management, College of Engineering and Applied Sciences, Western Michigan University,

Kalamazoo, MI 49008 5064, USAbTrusswood, Inc., Raleigh, NC, USA

cDepartment of Civil Engineering, Kuwait University, KuwaitdCollege of Engineering and Applied Sciences, Western Michigan University, Kalamazoo, MI, USA

Received 22 November 1999; revised 6 July 2000; accepted 9 August 2000

Abstract

Information plays a key role in construction project management. In order for a construction project to be well managed, data from past

projects, stored in a historical database, as well as data from the project at hand, must be readily available. It is an essential and valuable

resource for project planning, control, reporting, and decision-making tasks. In each of these tasks, effective management of information is an

integral part of a successful project management system, whose primary objective is completing the project on time and within budget

limitations while meeting established quality requirements and other speci®cations. This paper describes the design and implementation of an

Intranet-based cost control system. The Internet is utilized as a mechanism for communicating project control data and information. q 2001

Elsevier Science Ltd. All rights reserved.

Keywords: Construction management; Project control; Construction cost control; Intranet; World Wide Web; Construction reports; Construction data collec-

tion; Construction information management

1. Introduction

Effective management of construction projects depends

on good access to and control of information [1]. To effec-

tively support construction project process management, a

project control system is needed to facilitate the collection

of quality data in a timely fashion and to provide quality

historical databases for future planning of new projects.

However, many projects suffer from ineffective control

due to inef®cient ¯ow of information. This inef®ciency in

control is a fundamental problem in construction manage-

ment. Speci®cally, the quality and timeliness of information

¯owing in the control system are the essence of the problem

[2]. Problems are observed both in projects themselves at

the time of their construction, as well as in the corporate

historical database. Architects, engineers, contractors and

owners alike are always looking for ways of communicating

information between related parties more quickly and

ef®ciently. This multi-party nature creates a challenging

environment for successful project implementation where

success relies heavily on timely transfer of information [3].

2. Goals

The goal of the research project, described in this paper,

is to design and implement an Intranet-based cost control

system. The Internet is utilized as a mechanism for commu-

nicating project control data and information. In this

approach a cost control system is designed for the Web,

where data and information are centrally stored and

processed by a database management system. Remote data

entry into the database is performed on-line using appropri-

ately designed Web forms developed for the project control

system. Reports can then be automatically generated and

presented on-line using Web technologies. Data entry and

report generation is controlled by providing security access

codes to authorized individuals (project managers, area

managers, superintendents, etc.). Different people would

have different access authorizations.

3. Work by others

Researchers are beginning to investigate the potentials

of the Internet in the construction industry. Below is a

summary of articles that discusses various Internet applica-

tions and bene®ts.

Advances in Engineering Software 32 (2001) 87±94

0965-9978/01/$ - see front matter q 2001 Elsevier Science Ltd. All rights reserved.

PII: S0965-9978(00)00094-6

www.elsevier.com/locate/advengsoft

* Corresponding author. Tel.: 11-616-387-6551; fax: 11-616-387-6517.

E-mail address: [email protected] (O. Abudayyeh).

Mead discusses the rise of Intranets and describes how

this technology can be applied to speci®c projects [4]. The

paper outlines three systems: (i) basic; (ii) expanded; and

(iii) comprehensive Intranet system. The purpose of the

basic Intranet is to provide Internet access to key members

of the project team and to provide descriptive and marketing

information about the project. The heart of the basic

Intranet is an e-mail distribution system that can be used

to transfer communications and ®les between team players.

The basic Intranet also uses a project homepage to

provide access to a project roaster, a project descriptions,

project links and progress photos of the project. This

system uses project information that does not change

rapidly. While minimal in scope, this system helps train

Internet novices by providing access to simple Internet

tools like e-mail and the World Wide Web. Expanded

project Intranet includes a library of integrated management

information that can enhance the performance of the project

team. That information includes updated project schedule,

meeting minutes, pending change orders, request for

information, submittal status log and a list of action items.

In this system, information is provided only to select

members of the project team with proper security to access

the project management library. Project information system

change rapidly and hence ®les have to be translated into

Hyper Text Markup Language format and then updated

regularly. Comprehensive project Intranet illustrates a

complete re-engineering of the construction information

process. In this model, construction information is separated

into four main libraries: project, management, design and

®nancial information.

Tam studied the potential of Information Technologies in

improving coordination between construction project parti-

cipants for facilitating information transfer in construction

projects in Hong Kong [5]. A system called ªTotal Information

Transfer Systemº (TITS) was developed which comprises

six major functions including: data exchange and remote

login, internet chat enhanced with on-screens drawings,

live video-cam, search engine and e-mail system. The

author keeps developing an integrated communications

system, which connects with the global network of Internet

services. The proposed system uses the simple existing

features of Internet for routine construction information

exchange. Construction project staff can communicate

with overseas colleagues using ªInternet Chatº. Live trans-

mission of video captured at site can be transmitted to the

head quarters using live video-cams setup at site. Auxiliary

services like recruiting, getting feedback etc., can be done

through the company web page. The author also suggests

the usage of search engines to search for information that

will help the users in decision making. Finally the paper

proposes the use of electronic mail (e-mail) for further

information exchange. The author concludes that it is

better to use internet for data exchange between remote

project and overseas locations rather than ®xing a wide

area network as dial-up lines between overseas of®ce is

expensive and when the construction is competed, the

facilities need to be removed.

Han, Kunz, and Law discuss an integrated client/server

framework for an automated code-checking system [6]. On-

line checking of building designs via WWW can be

organized in a client server environment. The code-checking

program resides on the server side of the system. Both the

client and server are written in Java, giving both sides of

the system platform independence. In this work, the user

develops a plan using Industry Foundation Classes and a

compliant Computer Aided Design package. At any point

in the design of a process, the user can send this design to a

code-checking program that resides on a remote server. The

code-checking program examines the IFC design data and

summarizes the results in a generated web page. The web

page contains a graphical representation of the building

model along with information with hyperlinks to speci®c

comments; when applicable, these comments have hyper-

links to the actual building code document provisions.

Rojas and Songer discuss the primary characteristics of a

web-centric paradigm, provides a model for developing

web-centric systems and demonstrates the model through

a prototype called the Field Inspection Reporting Systems

(FIRS) [3]. Web-centric system as de®ned by the authors is

an integrated network of computer devises and information

appliances that manages, stores, and distributes dynamic

information following WWW speci®cations. FIRS captures

inspection information on site with pen-based computers

and sends them via modem to the Web server. The server

stores the data and makes it accessible to the owner, contrac-

tors, sub-contractors, construction managers, architects/

engineers, and suppliers through the WWW and PC clients.

FIRS supports the creation of more than 150 different up-to-

the-minute reports. FIRS is created using client-server

architecture. The server processes requests from clients by

manipulating the database in order to produce reports. A

case study performed by the University of Colorado at

Boulder found a 20% savings when comparing (FIRS)

versus the traditional approach of a Paper Based Inspection

System (PBIS). Administrative overhead was three times as

much for the PBIS system and mistakes were reduced by 1/3

for the FIRS system. The main savings came from the

fact that FIRS produces reports automatically since all

data resided in a centralized database while PBIS required

clerical intervention to produce a report.

Bentley discusses the six steps to integrate a Web-based

network into an organization without disrupting normal

work¯ow [7]. The steps can be done in any order but a

basically sequential. They are: the ªproject webº, the engi-

neering back of®ce, introducing Java, project data manage-

ment, component modeling, and the life-cycle integration. It

also discusses several options about who should design the

system, and whether to outsource or not. If done properly

the ®nished product would be a single server with a series of

pages containing relevant information, which in turn

becomes a home base for all information on the project.

O. Abudayyeh et al. / Advances in Engineering Software 32 (2001) 87±9488

Seesing introduces the need for project control through

the Internet [8]. It talks about the need for security and

how it is still not completely safe. Although the bene®ts

far outweigh the risks, the author stresses the fact that if

a company can justify the risks involved, then project

control through the World Wide Web is well worth the

trouble.

Wills talks about how everyone is trying to use the Internet

as the ultimate solution to make project management easier

[9]. He states that although the Internet is very attractive

it may not be the answer. The system must be able to

communicate information effectively instead of just

sending huge amounts of information that no one can use.

The author feels that the ability to communicate is not a

solution in itself, but what is communicated is the key to

project success. He also warns us to beware of the hype

surrounding technology. That in order for such a system

to be effective it must increase the control that one will

have over a project.

4. The Intranet-based cost control system architecture

Fig. 1 is a visual representation of how information is

transferred within the system. A password is needed to

access the data entry and retrieval section of the web

site. Once in the web site one can submit data, which

is then stored in the database tables. Queries are then

used to develop reports. These reports are displayed on

demand.

To design the system, data and reports were analyzed

using standard forms such as Means Forms [10]. The analysis

is detailed in the subsections below.

4.1. Means forms

Means Company developed a large set of construction

forms that ®t the needs of a variety of construction jobs

and companies [10]. These forms are grouped into four

major categories. The ®rst category of forms deals with

preliminary design issues and provides such forms as the

preliminary estimate summary, preliminary project schedule,

and preliminary design speci®cations aids. The second

category of forms deals with estimating and bidding issues

and provides such forms as the job site analysis, quantity

take-off sheet, estimate summary, project overhead

summary, bidder call list, bid spreadsheet, and bid result

report. The third category of forms deals with administration

and scheduling issues and provides such forms as the daily

construction report, daily time sheet, weekly time sheet, job

progress report, labor cost record, material cost record,

project schedule, extra work order, contract change order,

waiver of lean, and letter of transmittal. The fourth category

of forms deals with miscellaneous issues and includes such

forms as appraisal, weekly expense report, and meeting and

trip report.

The forms were analyzed and four of them (from the third

category) were found to be directly related to cost control.

These are:

1. Daily Time Sheet Ð the purpose of this form is to

keep a daily record of the activities performed by all

workers at a construction job site. It records the

daily regular and overtime hours worked and units

produced by each worker on the different tasks. The

form can be used for payroll as well as for control

purposes.

2. Weekly Time Sheet Ð the purpose of this form is to keep

a weekly record of one worker's activities at a construc-

tion job site. It can be used to record the weekly hours of

a worker working on different jobs. The form is a

summary of the corresponding Daily Time Sheets and

is used for payroll purposes.

3. Labor Cost Record Ð the purpose of this form is to keep

a daily and weekly record of total labor costs by trade in

each cost account for a construction job site. The data

recorded on this form is obtained by summarizing the

O. Abudayyeh et al. / Advances in Engineering Software 32 (2001) 87±94 89

Fig. 1. System architecture.

Daily Time Sheet, the Weekly Time Sheet, and the Daily

Construction Report forms.

4. Material Cost Record Ð the purpose of this form is to

keep a daily and weekly record of material purchases at a

construction job site. The form is used in material

management.

4.2. Web based data collection

Two web forms were developed for the prototype

Intranet-based cost control system.

² Actual Worker Hours Web Form Ð this form has the

following ®elds:

± Date

± CA Code (cost account code)

± Employee ID

± Regular hours

± Overtime hours

These ®elds represent the details of man-hours expended on

the various cost accounts. The foreman or superintendent

typically ®lls out this form.

² Materials Cost Web-Form The Materials Cost web-form

has the following ®elds:

± Purchase Order Number

± Cost code

± Material code

± Quantity

± Unit Price

These ®elds represent the details of the purchase orders

submitted via the Material Cost web form. This form is

®lled out by the foreman, superintendent, or the ®eld of®ce

personnel.

4.3. Database schema

The database schema developed for the Intranet-based

cost control system is presented in this section. First, the

selected Means forms were analyzed for their data item

contents. Duplicate data were eliminated. Also, data items

that can be derived from other data items were also

eliminated. The remaining basic set of data items were

then used to design the database schema shown below.

The tables in the database schema become the depository

for the data acquired using the web-based forms. Then,

queries are developed to generate the needed reports.

Queries are developed using the Structured Query Language

(SQL). The conceptual database schema developed for the

cost control system is shown below using the following

format:

TABLENAME �Field1; Field2;¼;Fieldn�

² EMPLOYEES (Employee Name, Employee ID #,

Regular Rate, Overtime Rate, Labor Trade) Ð this is

the table relating the employee names to their unique

identi®cation numbers and pay rates.

² FOREMAN (Cost Code, Foreman Name) Ð this is the

table relating the cost codes to foreman names.

² TASKS (Work Description, Cost Code) Ð this is the

table relating the cost code of each work activity to its

description.

² LABOR-HOURS (Date, Employee ID #, Cost Code,

Labor Trade, Regular Hours, Regular Units, Overtime

Hours, Overtime Units) Ð this is the actual labor

hours table.

² MATERIAL-CHARACTERISTICS (Material Codes,

Description, Measurement Units) Ð this is the table

relating unique materials codes to their text descriptions

and measurement units.

² VENDOR-RECORD (Date, Purchase Order #, Vendor)

Ð this is the actual vendor record table. It relates the

dates to purchase order numbers and the vendors.

² MATERIALS-RECORD (Purchase Order #, Materials

Code, Quantity, Unit Price, Cost Code) Ð this is the

actual costs table for materials. It has the details of all

purchase orders.

4.4. Reporting

The following is a list of reports that the prototype system

is capable of generating:

² Labor Cost Report Ð this report is a comprehensive list

of labor costs and where they are used on the project.

² Payroll Report Ð this report is the actual amounts paid to

employees.

² Material Cost Report Ð this report has the actual costs of

all materials used.

5. System implementation

This section addresses the issues and requirements for

implementing the Intranet-based cost control system.

5.1. Hardware and software requirements

The hardware and software needs for the Intranet-Based

Cost Control system are:

² A server computer with a Windows environment such as

Windows 95/98 or Windows NT.

² Client terminals at the construction ®eld of®ce(s) with

Internet access and web browsers.

² Appropriate Internet connections at the main of®ce and at

the construction ®eld of®ce(s).

These requirements as well as the hard drive requirements


for the server computer depend on the number and size of

projects.

5.2. System costs

Several of the larger management ®rms have undertaken

the task of designing and implementing a system on their

own with very costly results. According to the International

Data Corporation, a World Wide Web application can be

fully developed and deployed for $10,000 or less [4]. The

solution proposed in this paper is much less expensive. The

hardware required is Server Software that can host and

process the dynamic web pages. The corporate of®ce and

all ®eld of®ces will require a modem connection to an Inter-

net Server that the application will run on. A modem

connection typically costs $20±30 per month. Web space

on a virtual Internet server varies in price depending on the

size and options needed. Service can be purchased for as

little as $50 a month and as much as $150 a month. This

does not include the one-time set-up fee of $100±200.

Therefore, with monthly fees as little as $70 for the main

of®ce and $20 for each satellite of®ce, a company could set

up an Internet-based cost control system. Allowing distant

projects to stay current with the main of®ce.

5.3. An example

This section gives an example on how the prototype

system was used. Sample data collection forms tables and

reports are resented and explained.

5.3.1. Data collection forms

Fig. 2 is the web-based daily time sheet form (called

Actual Worker Hours). It contains various ®elds that are

entered on a daily basis using the web at the job site. As

illustrated in the ®gure, the form collects on a daily basis the

regular and overtime hours for each worker and allocates the

time to the appropriate cost control account shown as CA

Code. Entering data into this form is the responsibility of the

foreman. This form is a critical cost control data collection

instrument. It provides basic man-hour data that are needed

by the cost control system. This data is used in the analysis

of project performance as well as in determining labor cost

expenditures. Furthermore, the data acquired by this form

can be directly linked to the payroll system.

5.3.2. Database tables

Two tables are shown below, namely the EMPLOYEES

and the LABOR-HOURS.


Fig. 2. Actual worker hours form.

The EMPLOYEE table holds information regarding

labor rates and trades along with employee names and

identi®cation numbers. The table can be extended with

information about the employee such as his address,

telephone, social-security number, etc. The LABOR-

HOURS table holds information regarding the regular and

overtime hours spent by the workers on the various costs

accounts.

5.3.3. Reports

Two example reports are presented: materials cost and

pay roll. Fig. 3 is the web-based materials cost report that

is produced on demand using the web-based cost control

system. In this report, two cost control accounts (13131

and 14141) were active during the week of 12/7/98±12/

11/98. The quantity of materials and their costs are shown

on the dates of payments. For example, in cost control


Employees

Employee_name Employee_ID Regular_rate ($) Overtime_rate ($) Labor_trade

Harry Jones 123456789 22.50 31.00 Iron worker

Barry Smith 231564897 20.00 28.00 Carpenter

John Wales 132564978 15.80 24.00 Laborer

Labor-hours

Date: 1998 Employee ID Cost code Labor trade Regular units Regular units Overtime hours Overtime units

15-Dec 125 13131 Iron Worker 6 16 0 0

15-Dec 123 14141 Laborer 8 8 2 2

17-Dec 137 13131 Iron Worker 8 13 0 0

14-Dec 126 22143 Carpenter 4 13 0 0

Fig. 3. Material costs report.

141411, 24 cubic yards (cuyd) of concrete were delivered

and paid on 12/8/98. The amount paid for the 24 cuyd is

$1220.40. The total expenditure for the week in cost code

14141 is $2122.47. Fig. 4 illustrates another web-based

report, namely payroll, that the Intranet-based cost control

system can produce.

6. Concluding remarks

The quality and timeliness of information ¯owing

through construction project control systems have long

been recognized as critical to the success of project manage-

ment. This paper suggested the use of an Intranet-based

project management system, focusing on cost control, as a

mechanism for improving the quality and timeliness of

information. Numerous bene®ts can be realized from the

implementation of an Intranet-based project management

system. First, instant, automated, on-line reports can be

produced on demand instead of having to wait for them to

be manually prepared, hence achieving signi®cant time

savings. This is particularly advantageous when there is a

problem that needs immediate analysis and attention. A

project manager can request up to the minute information

regarding the problem area, hence causing the analysis and

decision-making processes to be more effective and timely.

Secondly, information is instantly available to all levels of

management from ®eld of®ce to corporate managers. This

reduces the amount of paperwork that needs to ¯ow between

the ®eld and central of®ces, hence saving time and effort.

Thirdly, with proper access permissions, on-line informa-

tion can be shared with all project participants if desired.

Acknowledgements

One of the authors, Brad Hurley, was funded by National

Science Foundation (NSF) through a Research Experiences

for Undergraduates (REU) summer program (grant

#9820310) at Western Michigan University. The continuing

support of NSF is greatly appreciated.

References

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Fig. 4. Payroll report.

American Society of Civil Engineers, San Francisco, CA, March

1989.

[3] Rojas EM, Songer AD. Web-centric systems: a new paradigm for

collaborative engineering. Journal of Management in Engineering

1999;January/February:39±45.

[4] Mead SP. Project-speci®c Intranets for construction teams. Project

Management Journal 1997;28(3).

[5] Tam CM. Use of the internet to enhance construction communication:

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Management 1999;17(2).

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building code checking. Journal of Computing in Civil Engineering

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[10] Means Forms, R. S. Means Company, 1986.


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An Intranet-based cost control system