By having a ‘rules’ and a ‘credit’ component, the rules of credit allow us to start doing weighted calculations on our total percentage complete. The purpose of the rules of credit is to take away ambiguity as to what the percentage complete is. It is something that all involved stakeholders agree on, and therefore, often used in contractual and payment term arrangements.
Let’s take a look at our structural steel example again and apply weighting to each of the rules by setting a percentage complete. This percentage complete is an indication of the total percentage complete of the installation of a steel part after that task has been finalised.
- Prepare the installation area – 5%
- Pre-assemble steel part – 35%
- Installation/erection of steelwork – 75%
- Alignment, bolting and torquing – 85%
- Walkdown, inspection and works to go – 95%
- Final signoff – 100%
The total of all the steps must always add up to 100%, indicating that this steel part has been completely installed. In the example above, we can now see that if we’ve finished step 3, we’ve actually finished 75% of the total installation.