View

What is Performance Evaluation and Review Technique (PERT)?

Performance Evaluation and Review Technique (PERT) in Construction: Optimizing Project Planning and Execution

In the dynamic and time-sensitive world of construction, effective project planning and execution are paramount for success. The Performance Evaluation and Review Technique (PERT) is a powerful project management tool widely used in the construction industry to streamline project planning, scheduling, and monitoring. By using PERT, construction companies can optimize project timelines, allocate resources efficiently, and enhance project outcomes. In this blog post, we will explore what PERT entails, its significance in the construction industry, and how it enables construction companies to achieve project success.

Understanding Performance Evaluation and Review Technique (PERT)

PERT is a project management methodology that allows construction companies to evaluate and manage the complexities of large-scale projects. It was initially developed by the United States Navy in the 1950s to manage the Polaris submarine missile program. PERT breaks down a project into smaller tasks and uses network diagrams to analyze dependencies between these tasks. By estimating the duration and completion time for each task, construction companies can develop realistic project schedules and identify the critical path—the sequence of tasks that determine the project's overall duration.

The core of PERT lies in its ability to account for uncertainties and variations in task durations, enabling better project planning and risk management.

Significance in the Construction Industry

PERT holds significant importance in the construction industry due to the following reasons:

  • Efficient Project Planning: PERT allows construction companies to break down complex projects into manageable tasks and develop realistic project schedules, leading to efficient project planning and execution.
  • Identifying Critical Path: By identifying the critical path, construction companies can focus on tasks with the most significant impact on the project's overall duration and ensure timely project completion.
  • Resource Allocation: PERT enables construction companies to allocate resources effectively and avoid bottlenecks, ensuring smooth project progress.
  • Risk Management: PERT accounts for uncertainties in task durations, helping construction companies mitigate risks and plan for contingencies.
  • Collaboration and Communication: PERT fosters collaboration and communication among project stakeholders, leading to better decision-making and coordination.

Key Components of PERT

PERT consists of several key components that are essential for its successful implementation in construction projects:

  • Task Identification: Construction companies identify all the tasks required to complete the project and define their interdependencies.
  • Task Duration Estimation: Estimations are made for the time required to complete each task, considering best-case, most likely, and worst-case scenarios.
  • Network Diagram: A network diagram (often represented as a PERT chart) visually displays the interrelationships between tasks and their estimated durations.
  • Critical Path Analysis: The critical path is determined by identifying the longest sequence of dependent tasks that dictate the project's overall duration.
  • Float Calculation: Float (also known as slack) is the amount of time a task can be delayed without delaying the project's completion date. Tasks with float can be more flexible in scheduling, while tasks on the critical path have no float and must be completed as planned to avoid delays in the entire project.

The PERT Process in Construction

The implementation of PERT in construction projects typically involves the following steps:

  1. Task Identification: Identify all the tasks required to complete the project and establish their dependencies.
  2. Duration Estimation: Estimate the time required to complete each task based on historical data, expert judgment, or input from relevant stakeholders.
  3. PERT Chart Creation: Create a PERT chart or network diagram that illustrates the tasks, their dependencies, and estimated durations.
  4. Critical Path Analysis: Identify the critical path by finding the longest sequence of dependent tasks that determine the project's overall duration.
  5. Resource Allocation: Allocate resources efficiently to ensure the smooth execution of tasks and prevent bottlenecks.
  6. Monitoring and Control: Continuously monitor project progress and compare actual durations to estimated durations. Adjust the PERT chart as necessary based on actual data to keep the project on track.

Challenges and Considerations

While PERT offers numerous benefits, construction companies should consider the following challenges:

  • Data Accuracy: Accurate task duration estimations are essential for the success of PERT. Construction companies should ensure that estimations are based on reliable data and expertise.
  • Complex Projects: PERT may be more challenging to implement for highly complex projects with numerous interdependent tasks.
  • Resource Constraints: Resource constraints may impact the ability to adjust schedules flexibly, especially when critical path tasks are resource-intensive.
  • Collaboration: Effective communication and collaboration among project stakeholders are crucial for accurate task identification and duration estimation.

Conclusion

Performance Evaluation and Review Technique (PERT) is a valuable tool that empowers construction companies to plan, schedule, and execute projects efficiently. By breaking down complex projects, identifying the critical path, and accounting for uncertainties, PERT enables construction companies to make data-driven decisions, allocate resources effectively, and deliver successful projects on time and within budget. Embracing PERT as part of the project management process is an excellent step for construction companies looking to optimize project outcomes and achieve success in the competitive construction industry.

Suffering from credit card
receipt chaos?

Give your accounting team an easier way to collect accounts payable data from project managers and field teams.
expense management

Connect any credit card

Connect any credit card to our platform and collect receipts via our modern mobile app, sync with your ERP instantly and close your books faster.
ERP integrations

Industry ERP integrations

Integrates seamlessly with Viewpoint Spectrum, Viewpoint Vista, Foundation Software, Sage, Acumatica, Quickbooks, CMIC and many more.
Automation

Automate project coding

Create custom AI-Powered automation rules to put your project accounting on auto-pilot.  
controls

Eliminate coding errors

Create custom enterprise-grade controls to eliminate data entry errors from the field.
Approvals

Approvals by project

Setup robust approval workflows by project manager, team manager or value amounts.
ai-Powered

AI-Powered automations

Auto-match receipts directly to credit card transactions for complete automation.
Mobile receipt scanning for receipts
Case Studies

Customer Stories

All Case Studies
All Case Studies

"Month-end expense management time cut from 7–10 days to under 2 days."

Antony Martignetti

VP of Finance
Pacific Tech

"What was previously a full-time reconciliation role now takes about an hour per day."

Taylor Ricard

Controller
Moss Utilities

"Reduced time spent on Invoice entry by over 50%."

Roger Helwig

CFO & Owner
Victory Woodworks
CTA Succes Clicker
Get Started

Goodbye project accounting chaos

Book Demo
Book Demo