Understand the full impact of project changes and ensure you are fairly compensated.
Change management is an important part of every successful project. Regardless of all the hard work the team had put into defining the scope, establishing a plan and executing flawlessly, changes happen. An effective change management process defines the steps needed to make alterations to the project scope and has ripple effects to many activities. At the moment a change takes place on a project, you are at your most vulnerable point to burning contingency or losing project profitability if you don’t consider the risks.
ARM helps quantify the risk of a project change. Whether the change affects project cost, schedule or technical performance, ARM will help you gain visibility to all the areas the change can impact. With improved visibility, you will more effectively manage how project reserves or contingency are allocated to avoid degrading profit margin. Most importantly, all the risks associated with a change order are properly documented and communicated so that there are no surprises. Top features of ARM for change management include:
- Management of change requests with the ability associate risks.
- Automated alerts of potential changes to improve the project management process.
- Probability analysis of the cost and schedule impact of a change to communicate and set customer expectations.
- Contingency or reserve management with drawdown analysis to protect your margin.
- Classification of project risks related to a project change order so you can document the root cause of the change.
Whether the change originates from the customer, is derived from an unforeseen condition or is resultant from rework, managing the risk associated with project changes is critical to protecting project margins. ARM helps project teams manage all facets of project change and helps execute effective mitigation strategies that keep your project on-time, on schedule and meet technical performance.