Impact of Premature Information Transfer on Cost and Development Time of Projects

The pressure to accelerate the transfer of information between tasks in order to reduce the duration of projects may lead to rework due to the uncertainty of data assertiveness. This paper assesses the impact of rework with regard to both a project´s costs and its duration. We have introduced a model that estimates the project development time by taking into account the premises of the task overlapping, the moment of information transfer, the risks of rework, and the consequences of the premature transfer of information. The model was used in the planning of a project for the construction of a fuel distribution terminal in a large Brazilian oil company. In this case, it was possible to demonstrate that the uncertainty derived from the premature transfer of information may increase a project´s duration and should be analyzed in the light of cost variations due to rework. The model determines the best moment in which to transmit information and assesses the impact of premature information transfer. More importantly, it demonstrates that the alternative to the early transfer of information does not necessarily result in a shorter project duration or in larger costs.