Manual for Development Projects - Planning Commission

Chapter-7
projects have stalled or fallen behind schedule. Project monitoring is invariably done with the active
participation of the project management and is, therefore, quite distinct from inspection which is
generally undertaken at a higher level but not very regularly. In fact, project monitoring is a tool to serve
the interests of both the project management and the planners, as they share a common concern for the
timely completion of projects within the approved cost, scope and time schedule. For an effective
monitoring system, the project document must have the following essential data/information:
i) A clear-cut statement of project objectives and benefits;
ii) Detailed project cost estimates-component/activity-wise;
iii) Source of funding;
iv) Annual financial phasing conceived on the basis of implementation plan;
v) Physical scope in quantitative terms with components detail; and
vi) Phasing of the physical scope as per its implementation schedule, duly based on PERT/CPM
or Bar Charts.
Kinds of Monitoring-Internal vs. External
7.26 Conceptually, monitoring is distinguishable into two categories viz (i) Internal, and (ii) External.
These terms are defined as under:
(i) Internal Monitoring
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Internal monitoring serves the objectives of internal project management and is always the responsibility
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9/23/2010