If you’re involved with a real estate project management team, you may have heard some of the terms below. Peruse this vocabulary below to catch up on your project management terminology.
CAPEX– an abbreviation for Capital Expenditure, CAPEX are funds used by a company to acquire or upgrade physical assets (like property or equipment) to add to the value of an existing fixed asset. The asset will usually have a useful life that extends beyond the taxable year. The expenditures can include everything from repairing a roof on a building, purchasing a piece of equipment or building a new factory.
Critical Path- The Critical Path Method (CPM) is a mathematically based modeling technique for scheduling a set of project activities. The critical path itself is the sequence of activities that must be completed on time for the entire project to be completed on time. It is the longest duration path through the work plan. If an activity on the critical path is delayed by one day, the entire project will be delayed by one day.
Earned Value– An approach where you monitor the project plan, actual work and work completed to see if a project is on track. Earned Value shows how much of the budget and time should have been spent for work done.
Related- Common Facilities Management Terms
Float- The time a task can be delayed without delaying the project. Tasks on the critical path have no float.
Scope Creep– The uncontrolled growth of the project scope resulting from constant changes to requirements without consideration to the impact on resources or schedule. Scope Creep can occur when the scope of a project is not property defined, documented or controlled.