A normalised comparison of original project expectation versus the actual performance was adopted, as computed via Equations 1 and 2, symbols are as defined in Figure B.2.
Project Time Outcome(PTO) | TimeFA-TimeA | Equation(1) |
TimeF1-TimeA |
Where,
TimeFA is the Final Actual completion time
TimeF1 is the completion time forecast at the Original Approval Expressed as a percentage change, a PTO result of:
• Zero percent indicates that a project was delivered as originally expected,
• Greater than zero percent means that there has been some time delay from that originally envisaged,
• Less than zero percent indicates time-savings have been made.
Project Time Outcome(PCO) | Actual Final Cost | Equation(2) |
Original Cost Estimated |
Expressed as a percentage change, a PCO result of:
• Zero percent indicates that a project was delivered as originally expected,
• Greater than zero percent means that there has been some cost over-run from that originally envisaged,
• Less than zero percent indicates cost-savings have been made.
The indicators of overall project outcomes, PTO and PCO, provide an indication of the clarity surrounding the project at the time governments make key investment decisions. The closer the outcome to zero the better understood the project. Presumably the better understood the project, the better the public policy decisions surrounding priorities for investment.