Technology
The powerful & beautiful tool called CTC
Published
6 years agoon
By
admin
What do you think of, when you hear "CTC"? CTC can mean the good old Calcutta Tram Company, or to the tea-lover, it can mean CTC Tea, while to the student of chemistry, it could be carbon tetra-chloride! To most of us who have worked as employees in one organisation or the other, CTC means the all important "cost to company". But forget all this, here in the context of project management, CTC is "cost to complete!
The two most important measures of success in a project are time and cost management. Most project failures occur in these two parameters, and likewise, a project is successful if it has been completed in time and within cost. Last time, when we talked about the third element of "checking" in PDCA loop, we were primarily dealing with the challenge of tracking a project and taking corrective actions in terms of time management. It is of equal, if not greater, importance to finish the project within budgeted costs. How does one achieve this? The answer for me, is cost to complete. It will always be my recommendation to budding project managers, to understand the concept of CTC and to use it fully, with all honesty. Yes, effectiveness of this tool is zero, if people approach this with lack of honesty, and it will soon be clear why.
Whenever I worry about a project, the recurring theme that comes up in mind, is that there should be no surprises to me, and I must know about the possibility of time or cost over-runs as soon as the occur. In that sense, project management is all about "surprise management". These risks always exist, but when any of these two risks materialise, we must know soonest. Today, as we talk about cost control, we must have a system in place to know about a potential cost increase as soon as possible, so that corrective actions can be taken at the highest level of the project management team. How can this be achieved? Once again, this is no rocket science, cost to complete is simple, disciplined application of knowledge and transparency. The team has to calculate, capture and report, with a given frequency (weekly/ monthly/ quarterly) the actual total cost already incurred plus the estimated total remaining cost to be incurred before completing the project, and this sum is called "cost to complete". Evidently, the first number, actual cost incurred, can be churned out by accountants, but the second number is a joint estimate by engineers and purchasers, and this is where the importance of knowledge and honesty comes in.
Take for example, the case of a fictitous steel plant, which was estimated to cost Rs 10,000 crore, and take five years to complete, and this formed the basis of viability calculations, and therefore, project approvals. One year down the line, let us say that the cost of acquiring land already went up by Rs 100 crore, and the rates of steel and cement went up inordinately, say by 20 per cent for each. On top of this, if there were some changes in scope of the project, and the cost of equipment to be ordered has gone up in the mean time by an estimated Rs 200 crore. If the cost to complete report was to be faithfully worked out at this point in time, it will perhaps show that the project cost has gone up to Rs 10,700 crore, assuming there were no savings in the work executed so far, to counterbalance these additional costs. If, on the other hand, the cost to complete report is not deployed, or even if deployed, it is not honestly compiled with all information available, then the project manager or his higher management will not know at this stage that the project cost is going up, and cost reduction has to be initiated. One can fool the world (and a gullible boss can also unknowingly fool himself) if we look at the usual data on cash outflow (projected vs actual), or value of commitments made so far, all of which will remain below the total approved cost till it is already too late. Sounds unbelievable, but it keeps on happening in our world everyday.
I had the misfortune of dealing with a small Project in its terminal phase, when everyone suddenly woke up to the shocking fact that the project which was approved for Rs 200 crore, has already spent Rs 150 crore, committed a total of Rs 190 crore, and will need to commit Rs 40 crore more for completion, which meant that the total cost to complete was actually Rs 230 crore, and at such a late stage of the project there was no possibility of any corrective action to be taken, and it was a huge embarrassment to seek fresh approval for this cost overrun. More than the embarrassment, the cost increase, which was by now a fait-accompli, adversely affected the financial viability of the project. If the project manager used the concept of CTC, and looked beyond the traditional reports of cash outflows and project commitments, the potential cost overrun would be known much earlier, and perhaps some cost optimisation opportunities could have been explored, and at the same time, top management would be kept informed of the possibilities early on.
Let us say that simplistically a project organisation has three hierarchical levels. The first one is where the action is, and where the news of cost increase first hits. The second is the project management, who are accountable for overall performance of the project, and these guys need to know about the cost push quickly. The third and last tier is, let’s say, the top management of the organisation, who has oversight responsibility for the project, and also have the job to guide the project manager when needed. For a"cost to complete" reporting system to work effectively, the first two levels of people must be transparent and honest in disclosing all that they know in a scrupulous manner about potential costs, without which, the top level will have no clue whatsoever. This is why I say again and again, that honesty and transparency is a very important attribute here (and everywhere, of course!). To promote this kind of positive behaviour in the project team members, we have to first create an environment where speaking out is encouraged, and messengers with bad news are not seen to be shot down. The other suggestion is to partially automate the generation of CTC reporting through IT system/ERP, which will perforce bring in some amount of discipline and rigour into the frequency and accuracy of the reports, although, let it be understood clearly, that CTC report will always have the need for human inputs from engineers, purchasers and accountants who have their ears on the ground to pick up the early tremors.
"Cost to complete" has been my favourite when I managed projects, and I can assure you that even in this digital age, and in this fast-changing world, it remains a "bread and butter" concept, which has lost no relevance.
– SUMIT BANERJEE
Economy & Market
SEW-EURODRIVE India Opens Drive Technology Centre in Chennai
Published
2 weeks agoon
March 25, 2026By
admin
The new facility strengthens SEW-EURODRIVE India’s manufacturing, assembly and service capabilities
SEW-EURODRIVE India has inaugurated a new Drive Technology Centre (DTC) in Chennai, marking a significant expansion of its manufacturing and service infrastructure in South India. The facility is positioned to enhance the company’s responsiveness and long-term support capabilities for customers across southern and eastern regions of the country.
Built across 12.27 acres, the facility includes a 21,350-square-metre assembly and service setup designed to support future industrial growth, evolving application requirements and capacity expansion. The centre reflects the company’s long-term strategy in India, combining global engineering practices with local manufacturing and service capabilities.
The new facility has been developed in line with green building standards and incorporates sustainable features such as natural daylight utilisation, solar power generation and rainwater harvesting systems. The company has also implemented energy-efficient construction and advanced climate control systems that help reduce shopfloor temperatures by up to 3°C, improving production stability, product quality and working conditions.
A key highlight of the centre is the 15,000-square-metre assembly shop, which features digitisation-ready assembly cells based on a single-piece flow manufacturing concept. The facility also houses SEW-EURODRIVE India’s first semi-automated painting booth, aimed at ensuring uniform surface finish and improving production throughput.
With the commissioning of the Chennai Drive Technology Centre, SEW-EURODRIVE India continues to strengthen its manufacturing footprint and reinforces its long-term commitment to supporting industrial growth and automation development in India.
Economy & Market
RAHSTA Roundtable Sets Agenda for Smarter, Safer Highways
Published
4 weeks agoon
March 16, 2026By
admin
Roundtable discussions focus on innovation for safer highways.
Held on 12 March 2026 at Courtyard by Marriott, Mumbai, alongside the Infrastructure Today Airport Conclave, the RAHSTA Roundtable brought together stakeholders from across the highways and infrastructure ecosystem to shape the agenda for the 16th RAHSTA 2026, scheduled for 8–9 July 2026 at the Jio Convention Centre, Mumbai. The session focused on key industry themes including road construction, technology, safety and long-term sustainability.
Opening the discussion, Pratap Padode, Founder, FIRST Construction Council, said the roundtable marked the beginning of a broader consultative process leading up to the July event. The aim, he noted, is to bring together industry stakeholders to refine the agenda for discussions on the future of roads, bridges, tunnels and allied infrastructure.
Padode noted that while central road project awards have slowed in recent years, states are increasingly driving the next phase of infrastructure growth. Maharashtra, with its long-term road development plans and agencies such as MSRDC and MSIDC, is expected to play a significant role in this expansion.
RAHSTA Expo 2026 as a specialised platform dedicated to road infrastructure, covering highways, tunnels, bridges and flyovers along with construction technologies, safety systems and maintenance solutions. He also highlighted the growing importance of rural connectivity and said the organisers are engaging with government bodies to highlight rural road development initiatives.
Tanveer Padode, CIO, ASAPP Info Group, presented insights from IMPACCT, the group’s infrastructure intelligence platform. He pointed to a strong project pipeline despite slower highway awards earlier in the year, noting that states such as Maharashtra, Odisha and Arunachal Pradesh are emerging as key drivers of new projects. The data also revealed that only a small group of contractors participates in large-value infrastructure bids.
Lt Gen Rajeev Chaudhary, former Director General, Border Roads Organisation and Chairman of the RAHSTA Expo Committee, emphasised the need for stronger collaboration across the ecosystem, including policymakers, contractors, technology providers and financiers. He also called for addressing systemic issues within the sector and encouraged greater participation of women in infrastructure leadership.
The discussion also explored the evolving economics of road development. Phani Prasad Mandalaparthy, Associate Director, CRISIL Intelligence, noted that the slowdown in project awards reflects a shift towards higher-value logistics corridors rather than simple road widening projects. However, private participation through BOT and TOT models remains limited.
From the contractors’ perspective, Sudhir Hoshing, Whole-Time Director, Ceigall, said companies are becoming more selective in bidding, favouring projects with clearer payment mechanisms and efficient processes. While NHAI continues to offer greater operational clarity, states such as Uttar Pradesh and Bihar were cited as relatively supportive environments for project execution.
Durability and sustainability also emerged as key themes. Himanshu Agarwal, COO – Road & Infrastructure, Zydex Group India, highlighted the need to prioritise lifecycle performance and resilient pavements, while participants discussed the potential of alternative materials such as plastic waste, steel slag and industrial by-products in road construction.
Dr LR Manjunatha, Vice President, JSW Cement, emphasised that India has abundant fly ash, slag and other industrial materials that can improve durability and sustainability if integrated into specifications and policy frameworks.
Technology and equipment challenges were also discussed. Dr Lakshmana Rao Mantri, Dy General Manager, Afcons Infrastructure, highlighted the shortage of tunnel boring machines (TBMs), which is delaying several underground infrastructure projects. Participants agreed that developing domestic TBM manufacturing capabilities will be critical for future infrastructure expansion.
The future of concrete pavements was another area of discussion. Dr V Ramachandra, President, Indian Concrete Institute, stressed that the debate should focus on lifecycle performance rather than material choice alone, noting that evolving design standards are improving the feasibility of concrete roads.
Prof Dharamveer Singh of IIT Bombay added that while India has made significant progress in infrastructure development, stronger capacity building and better execution practices are essential to ensure consistent road quality.
The discussion also touched upon technology adoption in the sector. Rushabh Mamania, Partner & CBO, Roadvision, highlighted the growing role of AI in road infrastructure, noting that AI-driven monitoring systems are already being deployed across large stretches of national highways.
Overall, the roundtable underscored that the future of highway infrastructure will depend not only on the pace of construction but also on durability, safety, technology integration and sustainable materials. The discussions offered valuable insights that will help shape the agenda for RAHSTA 2026 and guide future collaboration within the industry.
Economy & Market
CTS Roundtable Charts Tech-Led Roadmap for Construction
Published
4 weeks agoon
March 16, 2026By
admin
CTS Roundtable Maps Technology Roadmap for Construction
Ahead of the Construction Technology Show (Con Tech Show) 2026, industry leaders, technology innovators and academia came together in Mumbai to deliberate on how digitalisation, automation and industrialised construction can reshape the sector. The discussion made one thing clear: construction can no longer afford to treat technology as optional.
Held on 12 March 2026 at Courtyard by Marriott, Mumbai, alongside the Infrastructure Today Airport Conclave, the CTS Roundtable served as a precursor to the Construction Technology Show 2026, scheduled for 19–20 August 2026 at NESCO, Mumbai.
A platform to move from discussion to deployment
Opening the session, Pratap Padode, Founder and Editor-in-Chief, ASAPP Info Global Group, said construction technology has long remained close to his heart, especially given the sector’s traditionally slow pace of technology adoption. He noted that over the years, the Construction Technology Summit had steadily built interest, and the next step was now to expand it into a larger, more meaningful platform that could bring together technology providers, users, startups and innovators under one roof.
Padode said the vision for CTS is not limited to software alone. The platform aims to embrace all forms of technology that can improve construction efficiency, quality and execution—from digital tools and project management systems to lean construction, off-site fabrication and startup-led innovation. He also highlighted plans to deepen startup participation and create space for young companies to showcase emerging construction solutions.
Industry at a turning point
Moderating the roundtable, Naushad Panjwani, Chairman, Mandarus Partners, set the context by pointing out that the global construction industry, despite being a multi-trillion-dollar sector, continues to lag in productivity. He noted that while manufacturing has consistently improved efficiency, construction has remained slow to modernise.
Referring to both global and Indian trends, Panjwani underlined that the industry is now at a decisive moment. India, he said, is entering a major build cycle, and delivering the next phase of infrastructure and real estate growth through traditional methods alone is no longer viable. The goal of the roundtable, therefore, was not to debate technology in isolation, but to identify the most critical conversations that would bridge the gap between innovation and implementation.
His central message was clear: CTS 2026 must be shaped around themes that make CEOs, CIOs and CTOs feel they cannot afford to miss the event.
From BIM to AI, data to governance
A major theme that emerged through the discussion was the need for better data, better visibility and better decision-making. Dr Venkata Santosh Kumar of IIT Bombay echoed this, saying that the underlying data infrastructure itself needs attention. Construction projects, particularly remote ones, often face issues around connectivity, data collection and data use. Without this foundation, more advanced technologies cannot deliver their full value.
Chandra Vasireddy, CEO & Co-founder, Inncircles, expanded the discussion to governance, arguing that technology must help connect the many moving parts of a construction business. For him, the real value of digital transformation lies in creating better governance, clearer visibility and stronger business outcomes.
Tejas Vara of Inncircles stressed the importance of timely site data for leadership teams, especially in large and remote projects where decisions on materials, machinery and manpower often get delayed because information does not reach headquarters in time.
The role of AI also featured prominently. Rushabh Mamania, Partner and CBO, Roadvision said that while AI and machine learning are now common terms, vision intelligence and language intelligence have still not deeply penetrated the construction sector. He emphasised that startups in India are building relevant AI-led solutions and are already attracting international interest, showing that innovation need not be imported—it can be built locally and scaled globally.
Industrialised construction gains ground
The roundtable also placed strong emphasis on industrialised construction methods. Kalyan Vaidyanathan, CTO – Construction & R&D, Tvasta, called for greater focus on off-site fabrication and the broader industrialisation of construction. Bhargav Jog, General Manager, Dextra, highlighted precast technology and alternative sustainable materials as areas with immediate relevance.
Several participants agreed that modular, precast and pre-engineered approaches are no longer niche ideas. They are increasingly becoming practical responses to the sector’s challenges around labour shortage, timelines, quality control and predictability.
Anup Mathew, Sr VP & Business Head, Godrej, argued that the industry needs a fully integrated approach—from design and procurement to execution and asset management. Unless these are connected, technology adoption will remain fragmented and sub-optimal. He pointed to pre-engineered and modular systems as examples of how industrial thinking can compress timelines, improve quality and reduce dependence on difficult on-site conditions.
Adoption remains the biggest hurdle
While there was broad agreement on the promise of technology, the discussion repeatedly returned to one fundamental challenge: adoption.
Abhishek Kumar, COO, LivSYT, observed that the market is crowded with solutions, but many buyers still struggle to evaluate which technology suits which use case. According to him, the industry needs clearer frameworks to help users select, compare and adopt solutions, rather than expecting a single platform to solve every problem.
Dr Tenepalli JaiSai, Associate Professor, School of Construction(SoC), NICMAR University, noted that isolated technologies will not solve the productivity problem by themselves. What is required is an integrated Construction 4.0 approach, where digital, physical and cyber-physical systems work together rather than in silos.
That concern around silos was reinforced by Subodh Dixit, former Director, Shapoorji Pallonji, who said the issue is not just that technologies are disconnected, but that stakeholders are as well. Clients, consultants, contractors and partners often operate with different priorities. Unless these silos are broken, technology will struggle to percolate across the full project value chain.
Harleen Oberoi, Project Management, Tata Realty shared a practical perspective from the client side, saying that successful BIM implementation requires investment across the ecosystem, not just within one organisation. Trade partners, vendors and other stakeholders must also be trained and aligned if the technology is to deliver its intended results.
Beyond buzzwords
A notable takeaway from the session was that the industry is moving past the phase of treating technology as a buzzword. Participants repeatedly stressed that the real question is not whether technology should be used, but where it creates measurable value and how that value can be scaled.
The conversation also expanded beyond mainstream themes to include repairs and rehabilitation, construction and demolition waste, sustainability, circular economy, green sourcing, carbon measurement, design interoperability, generative design, robotics, and the role of horticulture and greener built environments.
Setting the agenda for CTS 2026
By the close of the session, the roundtable had surfaced a strong set of themes for the upcoming show: BIM and digital twins, AI and data platforms, industrialised construction, startup innovation, governance-led technology adoption, robotics, sustainable materials, and integrated project delivery.
More importantly, the session established CTS 2026 as more than an exhibition. It is shaping up to be a serious industry platform where users, technology providers, researchers and policymakers can collectively define the future of construction.
As Padode noted in his closing remarks, the conversation will continue through further consultations and possibly webinars in the run-up to the show. If the roundtable is any indication, CTS 2026 will aim not merely to showcase technology, but to push the industry towards meaningful adoption at scale.
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