It often happens that the investment project owner, especially the one implementing several projects at the same time, needs some objective information on the current situation from an independent source. Sometimes, it is difficult to comply with the balance between control and active management. If the investor has to divert his attention to management, he loses time, resources and, as a result, money. If he is interested in the project with some periodicity, he gains time but, at that, risks to lose money in the project, having not responded to the formed risks in due time.
In other words, in both cases this is about potential losses and the necessity for application of a system, which would allow for their avoidance.
The best solution will be the involvement of an independent expert who provides the system regular control and monitoring of the current investment project status, providing the interested parties with objective information. The work of an outside expert, who has a great experience in the project monitoring in various industries, will allow for a timely identification and prevention of the worse case scenario.
My focus on the long-term relations with customers means a highly qualified and effective project monitoring.
The essence of such work is in carrying out control over:
- Preparation of the project;
- Execution and implementation on key areas;
- The current project management;
- The successful project completion.
With the current provision of all interested parties with the reports in the agreed form and with the established periodicity.
The key project implementation areas subject to monitoring are the following:
- Targeted use of resources;
- Course of construction work;
- Course of obtaining, execution and adjustment of the design documentation, authorizations and approvals;
- Course of compliance and adjustment of the contractual relationship with counteragents;
- Purchase, delivery and insurance of property and the customs clearance charge;
- Company marketing strategy;
- Control of the equipment purchase, delivery and insurance and the customs clearance charge;
- Monitoring of obtaining of all authorizations and approvals;
- Online examination of the company marketing strategy;
- Control of the project management team select;
- Project financial performance monitoring;
- Adjustment of the financial and economic model of the project development by reference to the actual data and changes to the extent of the project.
The work on monitoring is built as follows:
- A benchmark (usually from the project business plan) system to which the actual project data must correspond;
- In the project definition phase the focus is usually made on the nonfinancial indicators: compliance with the periods of registration, construction, installation, testing, obtaining all necessary authorizations, approvals and patents, the recruitment of the specialists required;
- After the commercial launch of the project, the focus switches to the financial performance control: proceeds (sales), expenses, product costs, etc.;
- As the project develops, the control switches to the business performance: payback period, EBITDA, IRR, ROI, etc.;
- The format of the data inquiry by the controller and the provision of replies by the project managers is worked up;
- The format of the report (the adaptation for each project with highlighting the key specific indicators) is worked up;
- With the management and the customer of monitoring the project reporting provision regulations, where the data submission procedure and the parties’ actions in case of violation of the regulations, or the mismatch of the actual performance with the planned indicators, are well-defined;
- On a regular basis, in the current mode, the controller visits the place of the project implementation, makes an inquiry and receives all required information, prepares the photo and video reports in the course of the project implementation;
- All received data is processed, linked into a report and submitted to the customer along with the controller’s expert opinion on the course of the project implementation.
Additionally, the controller can solve a number of the issues useful for the owner, the creditor or the investor:
- Making an independent examination of the project costs and revenues;
- Monitoring of change in the outside situation: suppliers, competitors, customers;
- Making adjustments to the project development plan;
- Working up recommendations for the further project development;
Based on the current information – making the expert management decisions.