To properly operate PCM you need to understand from what perspective you are looking at the project. PCM can be used from all perspectives, but only one perspective can be used when setting up a group of projects. The perspective you choose depends on where your company resides in the project hierarchy. A simple hierarchy is listed in the following figure. The Owner has a relationship with a Contractor, an Engineer, and a Project Management firm. The Contractor has a relationship with a Subcontractor and Supplier. And the Subcontractor has a relationship with its Supplier.
Typically your organization looks at all your projects from the same perspective. For example, let's revisit our cavemen. The project hierarchy for the self-propelled chair is as follows:
Owner – Kristin
Builder – Joe
Supplier – David
Each of them can use PCM but they are looking at the project from different perspectives.
The Owner is managing a budget amount of money that he has set aside for the building...