Cost and resource loaded CPM network schedules provide detailed planning informationto the owner’s project management team. Cost curve projections from the baseline schedulegraphically depict the planned rate of project expenditures. Resource loading provides evidence thatthe contractor has planned thoroughly, identifying all resources and equipment required to completethe project. There is no downside to a cost and resource loaded baseline schedule, which is why manyowners require them for projects above a certain size.But network schedules are designed to measure and manage time, not dollars. During the course ofconstruction, resource or cost drivers can make CPM schedule calculations invalid. Unpaid remnants ofactivities in progress (paid to 97% and holding) can distort the schedule by increasing “out-ofsequence”reporting. Schedule updates must provide valid projections of completion in order tosupport the management team.This paper will evaluate the problems inherent in using cost-loaded schedule updates as the basis forprogress payments. The author recommends steps toward a “divorce” of the cost tracking from theschedule tracking during the course of construction.
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