Why Invedes?

We’ve prepared this page to introduce you to the benefits of cooperation, especially in connection with the financial segments of the project.

Over many years of work, we have witnessed a number of projects that were poorly prepared or poorly managed, so their owners/stakeholders found themselves in bigger problems when, as is mostly the case, solving problems is much more demanding and significantly more expensive.

Below is an example of what it looks like when a project is developing on its own (without experience) or when it is being developed with a manager.

EXAMPLE OF POSSIBLE PROJECT OUTCOMES IN TWO WAYS OF MANAGEMENT

The data listed in the table are derived and do not relate to a specific project, but very closely simulate some projects that we had the opportunity to analyze.

ON YOUR OWN

General data Independent realization of projects
Item Jed. mj. Plan Realization
Total investment EUR € € %
Implementation deadline YEAR %
Exploitation deadline YEAR %
Total average annual income EUR € € %
Total average annual profit EUR € € %
Total average income during the period of exploitation EUR € € %
Total undiscounted profit EUR € € %
Average annual yield % % % %
Total yield % % % %
Planned profit:
Realized profit:

ON YOUR OWN

1,400,000.00 €
1,200,000.00 €
1,000,000.00 €
800,000.00 €
600,000.00 €
400,000.00 €
200,000.00 €
- €
INVESTMENT
TOTAL PROFIT
Plan Realization
On your own
1,000,000.00 € 1,200,000.00 €
500,000.00 € 410,000.00 €

PROFESSIONALLY

General data Professional realization of projects
Item Jed. mj. Plan Realized
Total investment EUR € € %
Implementation deadline YEAR %
Exploitation deadline YEAR %
Total average annual income EUR € € %
Total average annual profit EUR € € %
Total average income during the period of exploitation EUR € € %
Total undiscounted profit EUR € € %
Average annual yield % % % %
Total yield % % % %
Planned profit:
Realized profit:

PROFESSIONALLY

1,400,000.00 €
1,200,000.00 €
1,000,000.00 €
800,000.00 €
600,000.00 €
400,000.00 €
200,000.00 €
- €
INVESTMENT
TOTAL PROFIT
Plan Realization
Professional management
1,100,000.00 € 1,100,000.00 €
550,000.00 € 620,000.00 €

In the simulated example, it is easy to notice the differences between these two models of project development. This doesn’t need to be analyzed separately, except perhaps to point out that there are common opinions that professional management will significantly increase the cost of the project and thus reduce the investor's profit. As we can see in the right section of the example, the cost of investment also included management costs where in the end the project is cheaper for the Investor, much safer and the rates of return are generally higher than in the left part.

ON YOUR OWN

Market?
Financing?
Costs?
Risks?
Prices?
Taxes?
Banks and loans?
Permissions?
Insurance?
Legal status?
Contracts?
Disputes?
NPV?
ROA?
ROI?
ROE?
DSCF?
WACC?
CAPM?
COORDINATION?
Performers?
Suppliers?
Cost estimates?
Construction control?
Supervision?
Dynamics?
Material quality?
Quality?
Document management?
Maintenance?
Procurement management?
Stakeholder requests?
Unforeseen circumstances?

Self-management of the project often ends in the way illustrated on this page, which we have witnessed in a series of examples, when we were asked to get involved in the project and with our knowledge and experience eliminate shortcomings that brought the project and its participants into crisis.

Don't let your idea not come to life or overlook the risks that can make it very difficult for you to develop a project and your life.

PROFESSIONALLY

No unanswered questions.
No uncertainty.
Continuous investment coverage.
Transparent reporting.
Methodical controlling.
Experience.
Success.

Problem
solved!

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Proper Project Management Process

(Simplified)

Incorrect Project Management Process


(Simplified)

COST
Pravilni graf
Otisak pravilnog grafa
Nepravilni graf
MANAGEMENT
SUPERVISION AND
CONTROL
OF IMPLEMENTATION,
CLOSURE OF
PROJECTS
BREACH DEADLINE
BUDGET
BREAKTHROUGH
GENERAL PHASES
OF THE PROJECT:
CONCEPTING
Ne
Ne
DEFINING
Ne
Ne
PLANNING
(AND PERMITS)
Ne
Ne
PERFORMANCE
IMPLEMENTATION
Ne
Ne
USE
CLOSING
CONTROL & CORRECTION OF THE PLAN
Zelena strelica na desno
Zelena strelica na desno
TIME

CONCEPTING - Designing, structuring, elaborating and shaping a project idea; elaboration and rough analysis of sustainability and implementation of the idea, making a decision on defining the project.
DEFINITION - Defining the scope, results and resources - time, budget, work, sources and forms of funding. Making a rough financial projection and testing/simulating the profitability and sustainability of the project, selection and evaluation of the project team, detection and analysis of stakeholders, quality analysis of suppliers and contractors, procurement and analysis of offers, final project definition, decision to start planning.
PLANNING - Detailed time and financial planning of the project, development of WBS and OBS structure, development of investment program study, development of project simulations (effecting), development of comprehensive analyzes (SWOT, PEST, SMART), final assessment of project profitability and sustainability, risk and sensitivity analysis , cost analysis, preparation of obtaining permits, permits, preparation of the process adoption of the plan, adoption of the plan, decision on execution.
PERFORMANCE/IMPLEMENTATION - Coordination of resources for the purpose of plan implementation, construction and financial supervision and monitoring of project activities - plan implementation, contract control, control of dynamics and quality of performance, preparation of technical and other reviews, definition, monitoring and conclusion of test period, decision on start use (exploitation).
USE - Supervision and control of the beginning of the use of the investment in the initial part of the business. Supervision of operations of the period under full load, evaluation and preparation of project closure.
CLOSURE - The process of closing the project, analysis of the completed and handover of project documentation to the client with the record of handover. Final project evaluation and archiving.

CONCEPTING - Designing, structuring, elaborating and shaping a project idea; elaboration and rough analysis of sustainability and implementation of the idea, making a decision on defining the project.

DEFINITION - Defining the scope, results and resources - time, budget, work, sources and forms of funding. Making a rough financial projection and testing/simulating the profitability and sustainability of the project, selection and evaluation of the project team, detection and analysis of stakeholders, quality analysis of suppliers and contractors, procurement and analysis of offers, final project definition, decision to start planning.

PLANNING - Detailed time and financial planning of the project, development of WBS and OBS structure, development of investment program study, development of project simulations (effecting), development of comprehensive analyzes (SWOT, PEST, SMART), final assessment of project profitability and sustainability, risk and sensitivity analysis , cost analysis, preparation of obtaining permits, permits, preparation of the process adoption of the plan, adoption of the plan, decision on execution.

PERFORMANCE/IMPLEMENTATION - Coordination of resources for the purpose of plan implementation, construction and financial supervision and monitoring of project activities - plan implementation, contract control, control of dynamics and quality of performance, preparation of technical and other reviews, definition, monitoring and conclusion of test period, decision on start use (exploitation).

USE - Supervision and control of the beginning of the use of the investment in the initial part of the business. Supervision of operations of the period under full load, evaluation and preparation of project closure.

CLOSURE - The process of closing the project, analysis of the completed and handover of project documentation to the client with the record of handover. Final project evaluation and archiving.

The diagram shows frequent situations of improper project management from which many consequences arise, rarely short-term. In this way, the investor is exposed to very high project risks, and in addition to monetary risks, he's exposed to the risk of losing his reputation, classification in a speculative level of investment, etc. We've witnessed a number of projects whose owners saved resources where they shouldn't have, in particular, it refers to the time and resources required for quality project preparation and management. Consequently, they suffered poor results in the form of lost time, increased costs, exposure to legal proceedings in the form of lawsuits for poor performance and similar consequences.

FAILURE FORMULA

Neglected phases of project development + unprofessional and superficial investment planning + inadequate or partial control of performance = breach of the deadline, breach of budget and violation of the overall quality of the project

Potential Issues According to the General Phases of the Project

MANNER OF PROJECT IMPLEMENTATION ON YOUR OWN PROFESSIONALLY
1. CONCEPTING
Omitting the phase as unnecessary; using the "from the head" model. Elaboration of the concept of the idea based on experience, detection of sustainability and profitability of the idea and saving time in planning.
2. DEFINING
Unserious approach to defining the basic elements of the project, lack of reliable information, lack of experience in resource assessment, lump sum assessment of results. Defining all project segments, rough projection of results and profitability, detection and definition of resources, rough testing and decision-making on the beginning of planning.
3. PLANNING
Superficial/concise preparation of the investment program, wrong assessment of the duration of time activities, poor assessment of costs and consequent financing, unverified suppliers / contractors, uncritical assessment of the investment. Detailed project elaboration, analysis of locations and environments, supply and demand, detailed technical-technological analysis with real prices, realistic and applicable dynamics of performance and procurement, verification of new contractors and recommendations to renowned contractors, analysis of equipment and material quality, multiple risk and sensitivity analysis plan, preparation and implementation of obtaining permits, etc.
Result Due to poor investment planning, the investor is exposed to very high risk during the construction phase in terms of significant cost and deadlines, resulting in poor relationships with contractors and suppliers, increased stress and ultimately jeopardizing the entire project and in the worst-case high exposure to litigation, non quality in all or certain segments of the project. Investment and investor protection in all preparatory phases.
4. PERFORMANCE
Omitted thorough control of performance, superficial or insufficiently controlled costs and dynamics of financing, omitted control of contracts, occurrence of a number of unplanned activities that directly affect time and costs, recognition of the consequences of poorly planned investment, payment of penalties, etc. Performance control according to plan, coordination of all participants in construction / construction / implementation, professional construction supervision, continuous cost control, contract control, financing control, sales coordination and control, preparation and execution of legal actions of the project, test phase before use, etc.
Result Breakthrough of costs and execution time due to poor preparation and control of performance, exposure to litigation in relations with contractors, suppliers, users and other stakeholders, jeopardizing further project financing, lack of planned (imagined) product quality, etc. Investment and investor protection during the execution / construction / implementation phase.
5. USE
Problems with the start of use within the planned time, the project is not ready for operation / exploitation, problems with the consumption of the project, with contracted sales, capacity, products, increased costs and missing due to breach of deadline, complaints, etc. The project was carried out to the maximum within the deadlines and within the budget, the start of use is running smoothly, unforeseen shortcomings are being eliminated and a supervised handover is taking place.
6. CLOSING
The lack of archived information on past projects is omitted as unnecessary in the case of the production of similar projects. Preparation of final reports and project evaluation, archiving and listing in the project database, handover of documentation and closing the project without unanswered questions.

Investment in knowledge pays the best interest.
- B. Franklin

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