Systematic Automated Management Exception Reporting

Exception reporting, hardly a new concept, is too often still largely that—a concept. Modern project‐control information systems should generate an assortment of useful exception reports. As decision support systems, they must provide all levels of management with current information about various aspects of project performance in a timely and meaningful manner. Exception reports can enhance management's productivity by focusing on the most critical subset of performance information. This paper presents a systematic approach to exception reporting for construction labor cost and related performance aspects. Several exception reports are used, individually and in combination, to provide structured and guided exception‐reporting and variance‐analysis capabilities. These reports, and their underlying concepts, are demonstrated using a computerized prototype. The purpose of such exception‐reporting capability is to enable managers to identify critical control points, prioritize their limited time and improve their effectiveness. Flexibility, versatility, user‐defined criteria, and multiple reporting perspectives are emphasized.