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Project Controls Overview - R2

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Kapugantikapuganti Gupta

The document provides information on cost management for a construction project, including a budget summary report and discussion of key cost management techniques. It summarizes the project's budget, actual costs to date, forecast costs to complete, and anticipated final cost. It also discusses tools for cost estimating, cost budgeting, cost control, earned value management, and challenges around controlling labor costs and meeting preliminaries budgets.

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Radha Soami
Project Controls Overview - R2
Project Controls Overview - R2
• Project Management • Construction Management • Project Planning • Resource & Productivity Management • QS / Commercial • QA/QC • Procurement & Inventory • Finance • Plant, Transport & Equipment • Infrastructure • HR • IT
• Investigative procedures to detect variance of actual costs from budgeted costs. • Diagnostic procedures to ascertain the cause(s) of variance. • Corrective procedures to effect realignment between actual and budgeted costs. • Tracking costs with Earned Value Management (EVM). • Assisting management in decision-making.
Note: This won’t give clear picture without EV report PROJECT BUDGET - SUMMARY REPORT Project: Sample Project Start 05.09.2011 Project No.: A Finish 28/03/2013 Programme: 20 DLP: 12 ITEM DESCRIPTION A. BUDGET B. COST TO DATE C. FORECAST COST TO COMPLETE D. ANTICIPATED COST AT COMPLETION (C+B) E. ANTICIPATED PROFIT (1a+1b-9D) 1 a. Contract Value 87,219,371.75 b. Project Variation Orders - c. Unagreed Claims/Variations 2,863,710.43 Total Revised Project Value 90,083,082.18 2 Budgeted Cost of Works 3 Materials 62,488,695 6,828,953 46,171,047 53,000,000 4 Labour 11,697,994 2,402,311 9,295,683 11,697,994 5 Preliminaries - Staff 5,213,791 5,963,149 2,000,000 7,963,149 6 Preliminaries - Site Overheads 1,327,511 2,281,430 1,000,000 3,281,430 7 Contingency/DLP Maintance 370,933 0 370,933 370,933 8 Head Office Overheads 3,488,775 7,313,465 1,000,000 8,313,465 9 Total Cost of Works 84,587,700 24,789,308 59,837,663 84,626,971 2,592,400.73 3% * Note: 1. Further buying gain on the Materials Cost has been assumed to ensure Project Profit 2. The exceeding of the staff allowance on site is due to design delays. An EOT has been submitted to recover the costs.
A cost management plan is a document that describes how the organization will manage cost variances on the project. A percentage of total project costs are often Preliminaries, labor, material costs, so project managers must develop and track estimates for Prelims, labor & material. Chances of exceeding preliminaries budget are very high as most of the projects won’t complete in estimated time. Always Labour budget & obtaining budgeted productivity will be a major challenge for any project. Material possible buying gains & risks involved like any specification errors, etc.
Basic tools and techniques for cost estimates: Analogous or top-down estimates: Use the actual cost of a previous, similar project as the basis for estimating the cost of the current project. Bottom-up estimates: Involve estimating individual work items or activities and summing them to get a project total. Parametric modeling: Uses project characteristics (parameters) in a mathematical model to estimate project costs. Computerized tools: Tools, such as spreadsheets and project management software, that can make working with different cost estimates and cost estimation tools easier.
Cost budgeting involves allocating the project cost estimate to individual work items over time. The WBS is a required input for the cost budgeting process because it defines the work items. Important goal is to produce a cost baseline: A time-phased budget that project managers use to measure and monitor cost performance.
• Project cost control includes: • Monitoring cost performance. • Ensuring that only appropriate project changes are included in a revised cost baseline. • Informing project stakeholders of authorized changes to the project that will affect costs. Note: Many organizations around the globe have problems with cost control.
• EVM is a project performance measurement technique that integrates scope, time, and cost data. • Given a baseline (original plan plus approved changes), you can determine how well the project is meeting its goals. • You must enter actual information periodically to use EVM. • More and more organizations around the world are using EVM to help control project costs.
• The planned value (PV), formerly called the budgeted cost of work scheduled (BCWS), also called the budget, is that portion of the approved total cost estimate planned to be spent on an activity during a given period. • Actual cost (AC), formerly called actual cost of work performed (ACWP), is the total of direct and indirect costs incurred in accomplishing work on an activity during a given period. • The earned value (EV), formerly called the budgeted cost of work performed (BCWP), is an estimate of the value of the physical work actually completed. • EV is based on the original planned costs for the project or activity and the rate at which the team is completing work on the project or activity to date.
• Material is core of profits. • Receive budgets from estimation. • Re measure all quantities after award & monitor there on. • Order should be placed based on re measured quantity and monitored to avoid excess ordering of material which in turn result in cost saving • Buying gains / alternatives / value engineering. • Possible maximum with local market experienced people.
Many organizations collect and control an entire suite of projects or investments as one set of interrelated activities in a portfolio. Project portfolio management has five levels: • Put all your projects in one database. • Prioritize the projects in your database. • Divide your projects into two or three budgets based on type of investment. • Automate the repository. • Apply modern portfolio theory, including risk-return tools that map project risk on a curve.
20,150,516 17,118,369 9,026,078 10,316,393 10,428,326 18,843,364 30,099,980 43,578,220 53,682,619 63,630,049 48,516,825 34,701,703 16,296,892 14,715,216 10,725,395 6,083,907 11,276,148 3,061,035 0 10000000 20000000 30000000 40000000 50000000 60000000 70000000 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Project-10 Project-9 Project-8 Project-7 Project-6 Project-5 Project-4 Project-3 Project-2 Project-1 Total
3,215,4707,847,339 24,548,308 33,444,475 43,907,509 57,042,322 78,581,339 114,198,433 162,651,551 222,088,529 279,073,551 322,611,865 353,393,075 3,499,6647,852,82414,868,336 24,652,768 36,899,960 53,827,103 74,649,099 107,287,207 152,556,831 206,526,718 262,567,354 308,579,178 342,492,423 - 50,000,000 100,000,000 150,000,000 200,000,000 250,000,000 300,000,000 350,000,000 400,000,000 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Cumulative Cash In Cumulative Cash Out
120 144 200 250 295 285 285 275 260 250 180 160 127 80 55 120 100 95 40 40 40 20110 125 151 220 310 410 410 410 410 410 410 360 280 240 230 160 100 50 152 152 141 131 68 399 371 320 226 116 54 40 47 40 20 20 50 60 80 100 200 200 200 200 120 90 80 60 40 2 2 2 2 2 2 277 277 257 257 257 250 220 200 180 130 130 130 135 140 140 140 140 140 140 19 24 24 52 67 105 108 119 167 202 206 217 238 238 215 162 88 43 11 13 28 66 108 234 289 402 540 704 799 20 30 90 120 190 220 300 350 380 400 400 440 340 260 140 40 1342 1342 1342 1342 1342 1342 1342 1382 1412 1412 1412 1412 1407 1392 1352 1297 1222 1222 1222 0 200 400 600 800 1000 1200 1400 1600 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 New Project-1 New Project-2 Project-3 Project-7 Drivers, Misc. Project-8 Vacation Project-6 Project-5 Project-2 Project-1 Including Expected Current Projects Man/day Mobalization & Demobalization plan between old & new projects
Project Controls Overview - R2
Sl.No STAFF No of months wrt baseline Wt. Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 1 Project Manager 22 3.15 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 Construction Manager 18 1.94 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 HVAC Project Engineer 14 1.00 1 1 1 1 1 1 1 1 1 1 1 1 1 1 4 Plumbing Project Engineer 14 0.90 1 1 1 1 1 1 1 1 1 1 1 1 1 1 5 Electrical Project Engineer 14 0.90 1 1 1 1 1 1 1 1 1 1 1 1 1 1 6 Site Engineer HVAC 18 0.77 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 7 Site Engineer Plumbing 18 0.77 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 8 Site Engineer electrical 18 0.77 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 9 CAD Draftsmen 66 2.37 4 4 4 6 6 6 6 4 4 4 4 2 2 2 2 2 2 2 10 Planning Engineer / Asst. 34 1.83 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 11 QS/Asst QS 34 1.71 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 12 QA/QC 34 1.22 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 13 Safety Officer 28 0.80 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 1 1 1 14 Foreman 106 2.28 1 1 2 2 4 4 4 8 8 8 8 8 8 8 8 6 6 4 4 4 15 Secretaries 46 0.66 1 1 1 1 1 2 2 2 2 2 2 4 4 4 4 4 2 2 2 1 1 1 16 Store keepers/Asst. 44 0.47 1 1 1 2 2 2 3 3 3 3 3 3 3 3 3 2 2 2 1 1 17 Office clerk 19 0.14 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 18 Doc. Controller 30 0.54 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 1 1 1 1 1 1 20 Mechanical Supervisor 29 0.83 1 1 1 1 1 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 21 Electrical supervisor 29 0.83 1 1 1 1 1 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 22 Duct Supervisor 29 0.83 1 1 1 1 1 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 23 Drivers 29 0.83 1 1 1 1 1 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 24 Office Boys 22 0.63 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 TOTA L 715 26.19 13 13 20 25 31 33 35 37 40 45 45 45 45 45 42 40 33 30 28 24 23 23 0 0 0 0 0 0 0 0 0 0 0
Sl.No STAFF No of months wrt current status Wt. Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 1 Project Manager 33 4.73 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 Construction Manager 29 3.12 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 HVAC Project Engineer 29 2.08 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 4 Plumbing Project Engineer 29 1.87 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 5 Electrical Project Engineer 29 1.87 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 6 Site Engineer HVAC 29 1.25 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 7 Site Engineer Plumbing 29 1.25 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 8 Site Engineer electrical 29 1.25 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 9 CAD Draftsmen 164 5.88 4 4 4 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 4 4 4 4 2 2 2 2 2 10 Planning Engineer / Asst. 51 2.74 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 11 QS/Asst QS 58 2.91 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 12 QA/QC 54 1.94 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 13 Safety Officer 67 1.92 1 1 1 1 1 2 2 2 2 4 4 4 4 4 4 3 3 2 2 2 2 2 2 2 2 2 2 2 2 14 Foreman 194 4.17 1 1 2 2 4 4 4 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 6 6 4 4 4 15 Secretaries 58 0.83 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 16 Store keepers/Asst. 90 0.97 1 1 1 2 2 2 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 4 4 4 3 3 3 2 2 1 1 17 Office clerk 38 0.27 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 18 Doc. Controller 54 0.97 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 20 Mechanical Supervisor 53 1.52 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 21 Electrical supervisor 53 1.52 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 22 Duct Supervisor 53 1.52 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 23 Drivers 53 1.52 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 24 Office Boys 22 0.63 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 TOTA L 1298 46.72 13 13 20 25 31 33 35 39 42 47 47 47 47 50 51 51 51 51 51 50 50 47 46 46 44 44 43 43 38 29 26 24 24 % Increase 78.42% e.g Project is delayed 11 months in effect 78% of Prelims budget overrun
• Develop Prelims management plan & monitor regularly • Allow budget for project delays. • External delays can not be avoided. • Mobilize upon work load not as per baseline. • Try to keep mix with Juniors & Seniors. • Possible drafting outsource, or • Establish centralize drafting • Keep minimum draftsmen at site. • Manage lean time with minimum resource. • Strong Engineering team for effective completion • EOT claim may not be a successful in many cases which acts as a negotiation tool to avoid any LDs.
Effect on Cash Flow With and Without Preliminaries in BOQ - 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 CF without Preliminaries CF with Preliminaries Note: This will support for a positive cash flow
Project Controls Overview - R2
Decide: Internal Resource or External Resource, or subcontract Packages 1032 0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 AVGMen 26 Months - Planned Monthly Average Men 30 Months- Planned Average Monthly Men Actual Monthly Average Men 26 Months-Cumulative Planned Monthly Average Men 32 Months-Cumulative Planned Average Men Cumulative Actual Monthly Average Men
2.06 2.45 3.75 5.17 3.3 2.61 2.59 2.73 1.63 1.39 2.26 3.79 4.74 4.23 3.91 3.35 0 1 2 3 4 5 6 1-May-12 1-Jun-12 1-Jul-12 1-Aug-12 1-Sep-12 1-Oct-12 1-Nov-12 1-Dec-12 Monthly productivity Overall Productivity Budget Causes: Poor management of Labour supply workers, dedication to the organization, Access Delays, Poor workman ship, resource under utilization, etc.
400 600 800 1200 1600 2200 2200 2200 2000 1600 1400 1200 1000 800 600 400 100 300 358 458 544 612 400 1000 1800 3000 4600 6800 9000 11200 13200 14800 16200 17400 18400 19200 19800 20200 100 400 758 1216 1760 2372 0 500 1000 1500 2000 2500 0 5000 10000 15000 20000 25000 16-Apr 23-Apr 30-Apr 7-May 14-May 21-May 28-May 4-Jun 11-Jun 18-Jun 25-Jun 2-Jul 9-Jul 16-Jul 23-Jul 30-Jul QtyperWeekinmetre CumulativeQtyinmetre Time - Weeks KEY INDICATOR - FIRE FIGHTING PACKAGE – SUB CON Planned Actual Cum Planned Cum Actual KPI to be developed for all kinds of works, which gives immediate alarm for necessarycorrections
40% work done 60% Remaining work PMI Total Projected Manhours for 160 villas+Var+PMI = (570,720+73,430) = 644,150 Manhours consumed till date (40% Workdone) = 701,400 Required Manhours to complete 60% work + Var+PMI = 359,554 Projected Manhours for 40% WD +Var+PMI = 284,596 Loss of Manhours till date = 416,804 Manhours loss at completion (Expected 75% efficiency for remaining works) = (416,804 + 89,888) = 506,692 PMI Un productive 25% =89,888 Required Manhours to complete 60% works (WP) incl. unproductive hrs= (359,554 + 89,888) = 449,442 Same way to forecast ETC, EAC Preliminaries & Material cost
Item Description Ductman & Plumber Pipe Fitter Electrician Helper Remarks Case-1 Item Company Operatives Monthly Monthly Monthly Monthly Total 1 Approx Requirement 250 100 250 200 800 2 Monthly Salary (10 hrs working) 2,668.8 3,089.1 2,858.9 2,158.5 2 Cost / month SSL own manpower 667,208 308,908 714,729 431,700 2,122,546 3 Approx for one year 8,006,500 3,706,900 8,576,750 5,180,400 25,470,550 Case-2 Item Labour Supply Operatives Monthly Monthly Monthly Monthly Total 1 Approx Requirement 250 100 250 200 800 2 Monthly Salary (10 hrs working) 3,542.5 4,205.0 3,633.8 3,080.0 3 Mobilization Charges (1000/head) 1- time 250,000 100,000 250,000 200,000 800,000 4 Cost / month (includ short term mob. Fee) 1,135,625 520,500 1,158,438 816,000 3,630,563 5 Approx for one year 10,877,500 5,146,000 11,151,250 7,592,000 34,766,750 A Varience / month (1,508,017) B Varience / Year (for couple of projects) (9,296,200) Note : Company need minimum own resource to address new projects. Supervision must be company own to maintain the Quality. Own manpower is looking lucrative. But getting required productivity is a challenging for the team. Over time increases Variance will increase. Break even point: 221 company Operatives can be Idle for one year to match with Supply 800 operatives.
Tower Earned Value Actual Spent Variance Supply Labour Supply Labour AED. S-1 80,972.02 507,304.00 (426,331.98) S-2 69,956.48 438,288.00 (368,331.52) 150,928.51 945,592.00 (794,663.49) EV up to Dec end AC Up to Dec End Better to award subcontractor packages to avoid cost overruns
XXX Project Earned Value summary Date: 15-Jan-13 Activity Responsibility Material Availability Workdone (approx) Budget Hours Earned Value Actual Hrs Spent Installed Qty. till date Unit Productivity Remarks HVAC Basements, Podiums,Riser,Corridore (%) Ducting SSL yes 30% 43,351 12,883 39,601 3,194 M2 3.0739 Chilled Water pipe work SSL yes 40% 31,309 10,744 30,847 2,480 M 2.8711 FCU installation SSL yes 30% 15,781 3,613 2,831 40 Nos 0.7836 Appartments AGTC Ducting AGTC no 5% 80,510 4,040 8,044 2,129 M2 2.2337 Chilled Water pipe work AGTC yes 20% 58,146 3,211 800 M - FCU installation AGTC yes 25% 29,306 1,773 46 Nos - PLUMBING Sleeves fixing SSL yes 70% 15,819 11,887 32,100 2.7004 Drainage piping SSL yes 35% 22,667 17,675 30,070 7,500 m 1.7013 water supply piping SSL yes 35% 17,903 11,226 23,388 3,500 m 2.0834 water heater installation SSL yes 60% 1,929 333 3,341 11 Nos 10.0335 Drainage piping AGTC yes 20% 42,095 3,500 8,044 1,492 m 1.7191 water supply piping AGTC yes 20% 33,248 2,252 1,324 m - water heater installation AGTC yes 5% 5,000 265 25 Nos - FIRE FIGHTING NAFFCO yes 24% 117,330 24,921 29,928 1.2009 ELECTRICAL Slab Conduit SSL yes 70% 20,611 13,630 40,665 206,898 m 2.9835 Slab Conduit Silverstar 2,642 49,775 m 18.8399 Tray/Trunking SSL yes 22% 20,239 15,787 21,708 5,709 m 1.3750 Power / Lighting Wiring SSL yes 20% 27,350 5,382 18,876 120,300 m 3.5073 Fire alarm / Emergency cabling SSL yes 100% 1,829 1,829 1,829 1.0000 G.I back box fixing SSL yes 20% 41,743 2,935 6,157 6,988 Nos 2.0979 G.I back box fixing Silverstar 6,399 8,000 Nos 1.2502 KELTECH Fire alarm / Emergency cabling Keltech yes 20% 27,568 7,316 4,064 20,000 m 0.5555 ELV ELV cables Honeywell Not available 0 12,947 1 1 1.0000 Miscelleneous Driver,Office boy SSL - 17,026 TOTAL= 666,681 164,244 376,296 2.2911
Project Controls Overview - R2
Budget - AED AED 36,850,059.00 Total Ordered Value 34,407,086.00 Budget Awarded To Date - AED AED 34,407,086.00 Total Gain/Loss 159,233 .00 Balance of Budget - AED AED 2,442,973.00 Percentage Gain/(Loss) 0.46% Sub No. Work Description Sub Contractor /Supplier Net Budget Sublet Cost Transferred to Risk Management Gain/(Loss) Comments 1 Orders Placed To Dated DSC 001 CHILLERS X 5,090,004.00 5,155,379.00 0.00 (65,375.00) DSC 002 AHU / FAHU Y 4,252,599.00 4,130,000.00 0.00 122,599 .00 DSC 003 FCU / FANS Z 2,161,799.00 2,089,880.00 0.00 71,919 .00 DSC 004 CHW PUMPS A 1,713,522.00 2,075,941.00 0.00 (362,419.00) DSC 006 DOMESTIC PUMPS B 623,685.00 628,870.00 0.00 (5,185.00) DSC 007 DUCTING & ACCESSORIES CHT 414,315.00 0.00 0.00 414,315 .00 DSC 009 CHW PIPES & ACCESSORIES K 322,348.00 333,232.00 0.00 (10,884.00) DSC 014 CLADDING - GRC L 111,186.00 110,000.00 0.00 1,186 .00 DSC 016 GRP LINING M 73,150.00 62,000.00 0.00 11,150 .00 DSC 023 CABLES N 15,987.00 5,385.00 0.00 10,602 .00 DSC 026 TRAY & TRUNKING I 1,010,520.00 1,005,200.00 0.00 5,320 .00 DSC 027 ELV S 1,008,750.00 1,000,000.00 0.00 8,750 .00 DSC 028 SIGNAGE & STICKKERING G 5,640.00 27,900.00 0.00 (22,260.00) DSC 029 GENERATOR, ats H 2,004,998.00 2,025,483.00 0.00 (20,485.00) DSC 032 BUSBAR R 12,165,066.00 12,165,066.00 0.00 0 .00 DSC 033 MDBS, DBS L 3,592,750.00 3,592,750.00 0.00 0 .00 TOTAL ( A ) 34,566,319.00 34,407,086.00 0 .00 159,233 .00 2 Orders to be Placed DSC 005 FIRE FIGHTING 952,566.00 DSC 008 DAMPERS 382,664.00 DSC 010 VALVES 197,685.00 DSC 011 SWITCH, SOCKETS 196,820.00 DSC 012 DIFFUSERS 132,167.00 DSC 013 DRAINAGE ACCESSORIES 121,790.00 DSC 015 FLOORING - FLOOR COATING 77,835.00 DSC 017 CORIAN TOPS 56,972.00 DSC 018 DOORS - METAL 35,344.00 DSC 019 FABRICATION AND ERECTION - STEEL 32,127.00 DSC 020 MIRRORS 25,650.00 DSC 021 SOFT LANDSCAPING - ALLOWANCE 22,683.00 TOTAL ( B ) 2,283,740.00 0.00 0.00 0.00 3 Variations Placed : TOTAL ( C ) 0.00 0.00 0.00 0.00 4 Variations to be Placed : TOTAL ( D ) 0.00 0.00 0 .00 0 .00 5 Budget Transfers TOTAL ( E ) 0.00 0.00 - GRAND TOTAL ( A+B+C+D+E ) 36,850,059.00 34,407,086.00 0.00 159,233.00
Project Controls Overview - R2
• All overheads to be absorbed by the projects. • Monitor costs regularly with revenues . • Break even analysis will give direct focus on issue. • Distribution based on the following:- • Based on project value.Based on project value.Based on project value.Based on project value. • Based on billing value.Based on billing value.Based on billing value.Based on billing value. • Based on duration of the project.Based on duration of the project.Based on duration of the project.Based on duration of the project. • Based on combination ofBased on combination ofBased on combination ofBased on combination of two or more.two or more.two or more.two or more.
Any projections without Earned Value is not realistic.
- 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 90,000,000 100,000,000 - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 Feb-14 Cash In Monthly Baseline Cash In Monthly Actual Cash In Monthly Forecast Cash In Cumulative Baseline Cash In Cumulative Actual Cash In Cumulative Forecast Cash Out Cumulative EV PV-2PV-1 AC
• Performance / Projections • Cash flow with projections • EV report • Engineering status • Procurement Management with ERP • Manage Inventory / Store • Resource management between internal projects • Manage Transport • Manage Camps • Cost variances & any other concerns.
• Authority • Infrastructure • Coordination between all the departments • ERP software • Organization Interest • Providing Awareness & Training to Staff
Project Controls Overview - R2
• Trainees/Juniors are most cost effective. • Distribute with different projects. • Majority of departments to be filled for cost effective. • They are hard workers to build their career. • Struggle for growing fast, which will be an added value to us. • Improves productivity with less cost. • Majority of the works are routine which can be easily get it done with trainees/juniors. • This is a proven technique with major organizations.
• MEP Engineering is a major challenging. • Centralized engineering department is preferable. • Value Engineering shall be applied. • Engineering submissions /approvals shall be obtained at the earliest in the project cycle which is basis for all projections. • Effective activity sequencing shall be planned. • All material submittals shall be centralized to optimize resource, as they are experts in the field knows the pulse of the consultant, etc. • Budgets shall be known to key personnel managing the Project.
• Centralized procurement with ERP software to manage the system • Managing store / Inventory with cost. • Inventory shall be linked across all projects with centralized control. • Support to Accounts for payments and forecasts.
• Spreadsheets are a common tool for, cost estimating, cost budgeting, cost control and resource planning. • ERP Software. • Primavera Project management software has many cost-related features, especially enterprise PM software.
• Project cost management is traditionally a weak area in MEP projects, and project managers must work to improve their ability to deliver projects within approved budgets. • Main processes include: • Cost estimating • Cost budgeting & Monitoring • Cost control Techniques (Value Engineering; Material sourcing, Schedule & Resource Planning)
Kapuganti Jagannadha Gupta BE, MBA, PMP, CCE kjgupta@yahoo.com +971-50-2920734 +974-31184357

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Project Controls Overview - R2

  • 4. • Project Management • Construction Management • Project Planning • Resource & Productivity Management • QS / Commercial • QA/QC • Procurement & Inventory • Finance • Plant, Transport & Equipment • Infrastructure • HR • IT
  • 5. • Investigative procedures to detect variance of actual costs from budgeted costs. • Diagnostic procedures to ascertain the cause(s) of variance. • Corrective procedures to effect realignment between actual and budgeted costs. • Tracking costs with Earned Value Management (EVM). • Assisting management in decision-making.
  • 6. Note: This won’t give clear picture without EV report PROJECT BUDGET - SUMMARY REPORT Project: Sample Project Start 05.09.2011 Project No.: A Finish 28/03/2013 Programme: 20 DLP: 12 ITEM DESCRIPTION A. BUDGET B. COST TO DATE C. FORECAST COST TO COMPLETE D. ANTICIPATED COST AT COMPLETION (C+B) E. ANTICIPATED PROFIT (1a+1b-9D) 1 a. Contract Value 87,219,371.75 b. Project Variation Orders - c. Unagreed Claims/Variations 2,863,710.43 Total Revised Project Value 90,083,082.18 2 Budgeted Cost of Works 3 Materials 62,488,695 6,828,953 46,171,047 53,000,000 4 Labour 11,697,994 2,402,311 9,295,683 11,697,994 5 Preliminaries - Staff 5,213,791 5,963,149 2,000,000 7,963,149 6 Preliminaries - Site Overheads 1,327,511 2,281,430 1,000,000 3,281,430 7 Contingency/DLP Maintance 370,933 0 370,933 370,933 8 Head Office Overheads 3,488,775 7,313,465 1,000,000 8,313,465 9 Total Cost of Works 84,587,700 24,789,308 59,837,663 84,626,971 2,592,400.73 3% * Note: 1. Further buying gain on the Materials Cost has been assumed to ensure Project Profit 2. The exceeding of the staff allowance on site is due to design delays. An EOT has been submitted to recover the costs.
  • 7. A cost management plan is a document that describes how the organization will manage cost variances on the project. A percentage of total project costs are often Preliminaries, labor, material costs, so project managers must develop and track estimates for Prelims, labor & material. Chances of exceeding preliminaries budget are very high as most of the projects won’t complete in estimated time. Always Labour budget & obtaining budgeted productivity will be a major challenge for any project. Material possible buying gains & risks involved like any specification errors, etc.
  • 8. Basic tools and techniques for cost estimates: Analogous or top-down estimates: Use the actual cost of a previous, similar project as the basis for estimating the cost of the current project. Bottom-up estimates: Involve estimating individual work items or activities and summing them to get a project total. Parametric modeling: Uses project characteristics (parameters) in a mathematical model to estimate project costs. Computerized tools: Tools, such as spreadsheets and project management software, that can make working with different cost estimates and cost estimation tools easier.
  • 9. Cost budgeting involves allocating the project cost estimate to individual work items over time. The WBS is a required input for the cost budgeting process because it defines the work items. Important goal is to produce a cost baseline: A time-phased budget that project managers use to measure and monitor cost performance.
  • 10. • Project cost control includes: • Monitoring cost performance. • Ensuring that only appropriate project changes are included in a revised cost baseline. • Informing project stakeholders of authorized changes to the project that will affect costs. Note: Many organizations around the globe have problems with cost control.
  • 11. • EVM is a project performance measurement technique that integrates scope, time, and cost data. • Given a baseline (original plan plus approved changes), you can determine how well the project is meeting its goals. • You must enter actual information periodically to use EVM. • More and more organizations around the world are using EVM to help control project costs.
  • 12. • The planned value (PV), formerly called the budgeted cost of work scheduled (BCWS), also called the budget, is that portion of the approved total cost estimate planned to be spent on an activity during a given period. • Actual cost (AC), formerly called actual cost of work performed (ACWP), is the total of direct and indirect costs incurred in accomplishing work on an activity during a given period. • The earned value (EV), formerly called the budgeted cost of work performed (BCWP), is an estimate of the value of the physical work actually completed. • EV is based on the original planned costs for the project or activity and the rate at which the team is completing work on the project or activity to date.
  • 13. • Material is core of profits. • Receive budgets from estimation. • Re measure all quantities after award & monitor there on. • Order should be placed based on re measured quantity and monitored to avoid excess ordering of material which in turn result in cost saving • Buying gains / alternatives / value engineering. • Possible maximum with local market experienced people.
  • 14. Many organizations collect and control an entire suite of projects or investments as one set of interrelated activities in a portfolio. Project portfolio management has five levels: • Put all your projects in one database. • Prioritize the projects in your database. • Divide your projects into two or three budgets based on type of investment. • Automate the repository. • Apply modern portfolio theory, including risk-return tools that map project risk on a curve.
  • 15. 20,150,516 17,118,369 9,026,078 10,316,393 10,428,326 18,843,364 30,099,980 43,578,220 53,682,619 63,630,049 48,516,825 34,701,703 16,296,892 14,715,216 10,725,395 6,083,907 11,276,148 3,061,035 0 10000000 20000000 30000000 40000000 50000000 60000000 70000000 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Project-10 Project-9 Project-8 Project-7 Project-6 Project-5 Project-4 Project-3 Project-2 Project-1 Total
  • 17. 120 144 200 250 295 285 285 275 260 250 180 160 127 80 55 120 100 95 40 40 40 20110 125 151 220 310 410 410 410 410 410 410 360 280 240 230 160 100 50 152 152 141 131 68 399 371 320 226 116 54 40 47 40 20 20 50 60 80 100 200 200 200 200 120 90 80 60 40 2 2 2 2 2 2 277 277 257 257 257 250 220 200 180 130 130 130 135 140 140 140 140 140 140 19 24 24 52 67 105 108 119 167 202 206 217 238 238 215 162 88 43 11 13 28 66 108 234 289 402 540 704 799 20 30 90 120 190 220 300 350 380 400 400 440 340 260 140 40 1342 1342 1342 1342 1342 1342 1342 1382 1412 1412 1412 1412 1407 1392 1352 1297 1222 1222 1222 0 200 400 600 800 1000 1200 1400 1600 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 New Project-1 New Project-2 Project-3 Project-7 Drivers, Misc. Project-8 Vacation Project-6 Project-5 Project-2 Project-1 Including Expected Current Projects Man/day Mobalization & Demobalization plan between old & new projects
  • 19. Sl.No STAFF No of months wrt baseline Wt. Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 1 Project Manager 22 3.15 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 Construction Manager 18 1.94 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 HVAC Project Engineer 14 1.00 1 1 1 1 1 1 1 1 1 1 1 1 1 1 4 Plumbing Project Engineer 14 0.90 1 1 1 1 1 1 1 1 1 1 1 1 1 1 5 Electrical Project Engineer 14 0.90 1 1 1 1 1 1 1 1 1 1 1 1 1 1 6 Site Engineer HVAC 18 0.77 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 7 Site Engineer Plumbing 18 0.77 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 8 Site Engineer electrical 18 0.77 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 9 CAD Draftsmen 66 2.37 4 4 4 6 6 6 6 4 4 4 4 2 2 2 2 2 2 2 10 Planning Engineer / Asst. 34 1.83 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 11 QS/Asst QS 34 1.71 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 12 QA/QC 34 1.22 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 13 Safety Officer 28 0.80 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 1 1 1 14 Foreman 106 2.28 1 1 2 2 4 4 4 8 8 8 8 8 8 8 8 6 6 4 4 4 15 Secretaries 46 0.66 1 1 1 1 1 2 2 2 2 2 2 4 4 4 4 4 2 2 2 1 1 1 16 Store keepers/Asst. 44 0.47 1 1 1 2 2 2 3 3 3 3 3 3 3 3 3 2 2 2 1 1 17 Office clerk 19 0.14 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 18 Doc. Controller 30 0.54 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 1 1 1 1 1 1 20 Mechanical Supervisor 29 0.83 1 1 1 1 1 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 21 Electrical supervisor 29 0.83 1 1 1 1 1 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 22 Duct Supervisor 29 0.83 1 1 1 1 1 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 23 Drivers 29 0.83 1 1 1 1 1 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 24 Office Boys 22 0.63 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 TOTA L 715 26.19 13 13 20 25 31 33 35 37 40 45 45 45 45 45 42 40 33 30 28 24 23 23 0 0 0 0 0 0 0 0 0 0 0
  • 20. Sl.No STAFF No of months wrt current status Wt. Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 1 Project Manager 33 4.73 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 Construction Manager 29 3.12 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 HVAC Project Engineer 29 2.08 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 4 Plumbing Project Engineer 29 1.87 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 5 Electrical Project Engineer 29 1.87 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 6 Site Engineer HVAC 29 1.25 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 7 Site Engineer Plumbing 29 1.25 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 8 Site Engineer electrical 29 1.25 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 9 CAD Draftsmen 164 5.88 4 4 4 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 4 4 4 4 2 2 2 2 2 10 Planning Engineer / Asst. 51 2.74 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 11 QS/Asst QS 58 2.91 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 12 QA/QC 54 1.94 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 13 Safety Officer 67 1.92 1 1 1 1 1 2 2 2 2 4 4 4 4 4 4 3 3 2 2 2 2 2 2 2 2 2 2 2 2 14 Foreman 194 4.17 1 1 2 2 4 4 4 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 6 6 4 4 4 15 Secretaries 58 0.83 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 16 Store keepers/Asst. 90 0.97 1 1 1 2 2 2 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 4 4 4 3 3 3 2 2 1 1 17 Office clerk 38 0.27 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 18 Doc. Controller 54 0.97 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 20 Mechanical Supervisor 53 1.52 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 21 Electrical supervisor 53 1.52 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 22 Duct Supervisor 53 1.52 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 23 Drivers 53 1.52 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 24 Office Boys 22 0.63 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 TOTA L 1298 46.72 13 13 20 25 31 33 35 39 42 47 47 47 47 50 51 51 51 51 51 50 50 47 46 46 44 44 43 43 38 29 26 24 24 % Increase 78.42% e.g Project is delayed 11 months in effect 78% of Prelims budget overrun
  • 21. • Develop Prelims management plan & monitor regularly • Allow budget for project delays. • External delays can not be avoided. • Mobilize upon work load not as per baseline. • Try to keep mix with Juniors & Seniors. • Possible drafting outsource, or • Establish centralize drafting • Keep minimum draftsmen at site. • Manage lean time with minimum resource. • Strong Engineering team for effective completion • EOT claim may not be a successful in many cases which acts as a negotiation tool to avoid any LDs.
  • 22. Effect on Cash Flow With and Without Preliminaries in BOQ - 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 CF without Preliminaries CF with Preliminaries Note: This will support for a positive cash flow
  • 24. Decide: Internal Resource or External Resource, or subcontract Packages 1032 0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 AVGMen 26 Months - Planned Monthly Average Men 30 Months- Planned Average Monthly Men Actual Monthly Average Men 26 Months-Cumulative Planned Monthly Average Men 32 Months-Cumulative Planned Average Men Cumulative Actual Monthly Average Men
  • 25. 2.06 2.45 3.75 5.17 3.3 2.61 2.59 2.73 1.63 1.39 2.26 3.79 4.74 4.23 3.91 3.35 0 1 2 3 4 5 6 1-May-12 1-Jun-12 1-Jul-12 1-Aug-12 1-Sep-12 1-Oct-12 1-Nov-12 1-Dec-12 Monthly productivity Overall Productivity Budget Causes: Poor management of Labour supply workers, dedication to the organization, Access Delays, Poor workman ship, resource under utilization, etc.
  • 26. 400 600 800 1200 1600 2200 2200 2200 2000 1600 1400 1200 1000 800 600 400 100 300 358 458 544 612 400 1000 1800 3000 4600 6800 9000 11200 13200 14800 16200 17400 18400 19200 19800 20200 100 400 758 1216 1760 2372 0 500 1000 1500 2000 2500 0 5000 10000 15000 20000 25000 16-Apr 23-Apr 30-Apr 7-May 14-May 21-May 28-May 4-Jun 11-Jun 18-Jun 25-Jun 2-Jul 9-Jul 16-Jul 23-Jul 30-Jul QtyperWeekinmetre CumulativeQtyinmetre Time - Weeks KEY INDICATOR - FIRE FIGHTING PACKAGE – SUB CON Planned Actual Cum Planned Cum Actual KPI to be developed for all kinds of works, which gives immediate alarm for necessarycorrections
  • 27. 40% work done 60% Remaining work PMI Total Projected Manhours for 160 villas+Var+PMI = (570,720+73,430) = 644,150 Manhours consumed till date (40% Workdone) = 701,400 Required Manhours to complete 60% work + Var+PMI = 359,554 Projected Manhours for 40% WD +Var+PMI = 284,596 Loss of Manhours till date = 416,804 Manhours loss at completion (Expected 75% efficiency for remaining works) = (416,804 + 89,888) = 506,692 PMI Un productive 25% =89,888 Required Manhours to complete 60% works (WP) incl. unproductive hrs= (359,554 + 89,888) = 449,442 Same way to forecast ETC, EAC Preliminaries & Material cost
  • 28. Item Description Ductman & Plumber Pipe Fitter Electrician Helper Remarks Case-1 Item Company Operatives Monthly Monthly Monthly Monthly Total 1 Approx Requirement 250 100 250 200 800 2 Monthly Salary (10 hrs working) 2,668.8 3,089.1 2,858.9 2,158.5 2 Cost / month SSL own manpower 667,208 308,908 714,729 431,700 2,122,546 3 Approx for one year 8,006,500 3,706,900 8,576,750 5,180,400 25,470,550 Case-2 Item Labour Supply Operatives Monthly Monthly Monthly Monthly Total 1 Approx Requirement 250 100 250 200 800 2 Monthly Salary (10 hrs working) 3,542.5 4,205.0 3,633.8 3,080.0 3 Mobilization Charges (1000/head) 1- time 250,000 100,000 250,000 200,000 800,000 4 Cost / month (includ short term mob. Fee) 1,135,625 520,500 1,158,438 816,000 3,630,563 5 Approx for one year 10,877,500 5,146,000 11,151,250 7,592,000 34,766,750 A Varience / month (1,508,017) B Varience / Year (for couple of projects) (9,296,200) Note : Company need minimum own resource to address new projects. Supervision must be company own to maintain the Quality. Own manpower is looking lucrative. But getting required productivity is a challenging for the team. Over time increases Variance will increase. Break even point: 221 company Operatives can be Idle for one year to match with Supply 800 operatives.
  • 29. Tower Earned Value Actual Spent Variance Supply Labour Supply Labour AED. S-1 80,972.02 507,304.00 (426,331.98) S-2 69,956.48 438,288.00 (368,331.52) 150,928.51 945,592.00 (794,663.49) EV up to Dec end AC Up to Dec End Better to award subcontractor packages to avoid cost overruns
  • 30. XXX Project Earned Value summary Date: 15-Jan-13 Activity Responsibility Material Availability Workdone (approx) Budget Hours Earned Value Actual Hrs Spent Installed Qty. till date Unit Productivity Remarks HVAC Basements, Podiums,Riser,Corridore (%) Ducting SSL yes 30% 43,351 12,883 39,601 3,194 M2 3.0739 Chilled Water pipe work SSL yes 40% 31,309 10,744 30,847 2,480 M 2.8711 FCU installation SSL yes 30% 15,781 3,613 2,831 40 Nos 0.7836 Appartments AGTC Ducting AGTC no 5% 80,510 4,040 8,044 2,129 M2 2.2337 Chilled Water pipe work AGTC yes 20% 58,146 3,211 800 M - FCU installation AGTC yes 25% 29,306 1,773 46 Nos - PLUMBING Sleeves fixing SSL yes 70% 15,819 11,887 32,100 2.7004 Drainage piping SSL yes 35% 22,667 17,675 30,070 7,500 m 1.7013 water supply piping SSL yes 35% 17,903 11,226 23,388 3,500 m 2.0834 water heater installation SSL yes 60% 1,929 333 3,341 11 Nos 10.0335 Drainage piping AGTC yes 20% 42,095 3,500 8,044 1,492 m 1.7191 water supply piping AGTC yes 20% 33,248 2,252 1,324 m - water heater installation AGTC yes 5% 5,000 265 25 Nos - FIRE FIGHTING NAFFCO yes 24% 117,330 24,921 29,928 1.2009 ELECTRICAL Slab Conduit SSL yes 70% 20,611 13,630 40,665 206,898 m 2.9835 Slab Conduit Silverstar 2,642 49,775 m 18.8399 Tray/Trunking SSL yes 22% 20,239 15,787 21,708 5,709 m 1.3750 Power / Lighting Wiring SSL yes 20% 27,350 5,382 18,876 120,300 m 3.5073 Fire alarm / Emergency cabling SSL yes 100% 1,829 1,829 1,829 1.0000 G.I back box fixing SSL yes 20% 41,743 2,935 6,157 6,988 Nos 2.0979 G.I back box fixing Silverstar 6,399 8,000 Nos 1.2502 KELTECH Fire alarm / Emergency cabling Keltech yes 20% 27,568 7,316 4,064 20,000 m 0.5555 ELV ELV cables Honeywell Not available 0 12,947 1 1 1.0000 Miscelleneous Driver,Office boy SSL - 17,026 TOTAL= 666,681 164,244 376,296 2.2911
  • 32. Budget - AED AED 36,850,059.00 Total Ordered Value 34,407,086.00 Budget Awarded To Date - AED AED 34,407,086.00 Total Gain/Loss 159,233 .00 Balance of Budget - AED AED 2,442,973.00 Percentage Gain/(Loss) 0.46% Sub No. Work Description Sub Contractor /Supplier Net Budget Sublet Cost Transferred to Risk Management Gain/(Loss) Comments 1 Orders Placed To Dated DSC 001 CHILLERS X 5,090,004.00 5,155,379.00 0.00 (65,375.00) DSC 002 AHU / FAHU Y 4,252,599.00 4,130,000.00 0.00 122,599 .00 DSC 003 FCU / FANS Z 2,161,799.00 2,089,880.00 0.00 71,919 .00 DSC 004 CHW PUMPS A 1,713,522.00 2,075,941.00 0.00 (362,419.00) DSC 006 DOMESTIC PUMPS B 623,685.00 628,870.00 0.00 (5,185.00) DSC 007 DUCTING & ACCESSORIES CHT 414,315.00 0.00 0.00 414,315 .00 DSC 009 CHW PIPES & ACCESSORIES K 322,348.00 333,232.00 0.00 (10,884.00) DSC 014 CLADDING - GRC L 111,186.00 110,000.00 0.00 1,186 .00 DSC 016 GRP LINING M 73,150.00 62,000.00 0.00 11,150 .00 DSC 023 CABLES N 15,987.00 5,385.00 0.00 10,602 .00 DSC 026 TRAY & TRUNKING I 1,010,520.00 1,005,200.00 0.00 5,320 .00 DSC 027 ELV S 1,008,750.00 1,000,000.00 0.00 8,750 .00 DSC 028 SIGNAGE & STICKKERING G 5,640.00 27,900.00 0.00 (22,260.00) DSC 029 GENERATOR, ats H 2,004,998.00 2,025,483.00 0.00 (20,485.00) DSC 032 BUSBAR R 12,165,066.00 12,165,066.00 0.00 0 .00 DSC 033 MDBS, DBS L 3,592,750.00 3,592,750.00 0.00 0 .00 TOTAL ( A ) 34,566,319.00 34,407,086.00 0 .00 159,233 .00 2 Orders to be Placed DSC 005 FIRE FIGHTING 952,566.00 DSC 008 DAMPERS 382,664.00 DSC 010 VALVES 197,685.00 DSC 011 SWITCH, SOCKETS 196,820.00 DSC 012 DIFFUSERS 132,167.00 DSC 013 DRAINAGE ACCESSORIES 121,790.00 DSC 015 FLOORING - FLOOR COATING 77,835.00 DSC 017 CORIAN TOPS 56,972.00 DSC 018 DOORS - METAL 35,344.00 DSC 019 FABRICATION AND ERECTION - STEEL 32,127.00 DSC 020 MIRRORS 25,650.00 DSC 021 SOFT LANDSCAPING - ALLOWANCE 22,683.00 TOTAL ( B ) 2,283,740.00 0.00 0.00 0.00 3 Variations Placed : TOTAL ( C ) 0.00 0.00 0.00 0.00 4 Variations to be Placed : TOTAL ( D ) 0.00 0.00 0 .00 0 .00 5 Budget Transfers TOTAL ( E ) 0.00 0.00 - GRAND TOTAL ( A+B+C+D+E ) 36,850,059.00 34,407,086.00 0.00 159,233.00
  • 34. • All overheads to be absorbed by the projects. • Monitor costs regularly with revenues . • Break even analysis will give direct focus on issue. • Distribution based on the following:- • Based on project value.Based on project value.Based on project value.Based on project value. • Based on billing value.Based on billing value.Based on billing value.Based on billing value. • Based on duration of the project.Based on duration of the project.Based on duration of the project.Based on duration of the project. • Based on combination ofBased on combination ofBased on combination ofBased on combination of two or more.two or more.two or more.two or more.
  • 35. Any projections without Earned Value is not realistic.
  • 37. • Performance / Projections • Cash flow with projections • EV report • Engineering status • Procurement Management with ERP • Manage Inventory / Store • Resource management between internal projects • Manage Transport • Manage Camps • Cost variances & any other concerns.
  • 38. • Authority • Infrastructure • Coordination between all the departments • ERP software • Organization Interest • Providing Awareness & Training to Staff
  • 40. • Trainees/Juniors are most cost effective. • Distribute with different projects. • Majority of departments to be filled for cost effective. • They are hard workers to build their career. • Struggle for growing fast, which will be an added value to us. • Improves productivity with less cost. • Majority of the works are routine which can be easily get it done with trainees/juniors. • This is a proven technique with major organizations.
  • 41. • MEP Engineering is a major challenging. • Centralized engineering department is preferable. • Value Engineering shall be applied. • Engineering submissions /approvals shall be obtained at the earliest in the project cycle which is basis for all projections. • Effective activity sequencing shall be planned. • All material submittals shall be centralized to optimize resource, as they are experts in the field knows the pulse of the consultant, etc. • Budgets shall be known to key personnel managing the Project.
  • 42. • Centralized procurement with ERP software to manage the system • Managing store / Inventory with cost. • Inventory shall be linked across all projects with centralized control. • Support to Accounts for payments and forecasts.
  • 43. • Spreadsheets are a common tool for, cost estimating, cost budgeting, cost control and resource planning. • ERP Software. • Primavera Project management software has many cost-related features, especially enterprise PM software.
  • 44. • Project cost management is traditionally a weak area in MEP projects, and project managers must work to improve their ability to deliver projects within approved budgets. • Main processes include: • Cost estimating • Cost budgeting & Monitoring • Cost control Techniques (Value Engineering; Material sourcing, Schedule & Resource Planning)
  • 45. Kapuganti Jagannadha Gupta BE, MBA, PMP, CCE kjgupta@yahoo.com +971-50-2920734 +974-31184357