For many construction managers, the lack of a clear view of the physical-financial schedule can lead to delays, budget overruns, and even project stoppage. 

Therefore, this solution emerges to prevent these problems. It helps to ensure that deadlines are met and that resources, both human and financial, are well allocated. 

In this article, we will explore in detail what the physical-financial schedule is and how to implement it effectively to avoid unpleasant surprises in your project.

What is a physical-financial schedule?

The physical-financial schedule is a management tool that combines the planning of the construction phases with the costs of each of them.

Basically, it works as a chart that shows the progress of the construction and the expenses as the phases are completed.

This tool is essential for construction site management and is provided for in standard 13531/2017 of ABNT.

In short, it answers two important questions: What will be done? And how much and when will it be spent?

4 things that the physical-financial schedule allows:

1. Budget control: 

Monitoring expenses in relation to the planned budget, identifying deviations and allowing corrective actions

2. Cash flow management: 

Predicting financial resource needs throughout the project, ensuring cash availability for payment of suppliers, labor, and other costs;

3. Monitoring construction progress: 

Evaluating project performance against the schedule, identifying delays, and enabling decision-making to optimize execution time.

4. Decision making: 

Providing accurate and up-to-date information for strategic decision-making, such as resource allocation, negotiation with suppliers, and rescheduling of activities.

Essential components of the physical-financial schedule

A complete physical-financial schedule must include the following components:

1.  WBS

The Work Breakdown Structures (WBS) are divided into two parts: one for the construction activities and another for the costs.

The Physical WBS organizes the project into phases, activities, and tasks, helping to understand what needs to be done and in what order. Create a list with all items.

The Budget WBS, in turn, is responsible for defining how much money will be needed for each phase and activity. It ensures that costs are distributed correctly during construction. Leave a space for 

In short, each task of the physical WBS has a defined value in the budget WBS, which shows how much will be spent in each phase.

2. Activity schedule: 

This is the time when you will determine the estimated average duration for each task of the project. It is also the moment when you should list the order in which each activity will happen. 

3. Detailed budget

Cost estimation for each activity, including direct costs (materials, labor, equipment) and indirect costs (overhead, administration, insurance).

4. Creation of the physical-financial schedule

If you don't have software yet to help you build this physical-financial schedule, you can make a table with the following information. Each item should be in a column: 

• Activities, organized in the order of execution;

• Duration of each activity in days;

• Estimated start and end of each task;

• Estimated value for each activity;

• Percentage of each activity in relation to the total cost of the construction.

Best practices for implementing the physical-financial schedule

To ensure the effectiveness of the physical-financial schedule, it is important to follow best practices:

1. Use Project Management software: 

Project management software can automate many of the tasks involved in preparing and monitoring the physical-financial schedule, such as creating the WBS, listing activities, allocating resources, estimating costs, and generating reports.

2. Involve the project team: 

Involve the project team in preparing the physical-financial schedule, ensuring that everyone is aware of the project's goals, activities, and deadlines.

3. Monitor progress regularly: 

To ensure that the construction is on track, it is important to regularly monitor progress, comparing actual performance with planned performance and identifying any deviations. 

An effective way to do this is to use Construct IN's construction management and reality capture software.

It allows you to follow the progress of the construction in real-time and offers a schedule module where you can import the planning made in MS Project or Excel. Thus, you can quickly check if there are delays.

4. Update the physical-financial schedule

Reflecting changes in scope, resources, costs, or project deadlines.

5. Communicate the results: 

To all stakeholders, allowing them to make informed decisions.

Visualize the schedule with 100% efficiency!

Do you want to improve your project's schedule visualization by 100% and have total control over the execution of the construction? 

With Construct IN's reality capture software, you can monitor each phase in real-time, quickly check if the planning is being followed, and identify potential delays before they become problems.

Request a free demo!