4S08

PROJECT CONTROLS PROCEDURES

Date
File File Reference
PROJECT TITLE:
DESCRIPTION:
SITE NUMBER:
PROCEDURE NUMBER:

Date:
Time:
Place Issued:
1. Introduction
This procedure describes the project controls necessary for the successful execution of a
project.
2. Responsibilities
2.1 Client Project Manager
The Client Project Managers responsibilities include the following:
Control of the Field Execution and requires the involvement of the entire field staff.
Schedule and cost control and additional activities include:

Preparation of Project Controls Execution Plan.

Developing cost, schedule and progress reporting and control procedures, and the Work
Breakdown Structure (WBS).

Implementing a reporting system for the above that enables effective management of the
project at all levels of responsibility.

Continuous tracking and monitoring deviations from the Budget, Schedule, Project Scope,
Commitments, Expenditures and Cash Flows

Controlling and reporting on all project activities, progress, and costs.

Developing Schedules.

Establishing the systems, procedures and reports to enable the Construction Manager
and staff to effectively manage their work including progress reports, staffing plans,
schedules and cost reports.

Ensuring that a field filing system is in place.

4S08 Project Controls Procedures v4-0

3. Procedure
3.1. Project Control Procedures
The project controls program for each project site must include:
1. Field Budget Development
2. Development of a change management system
3. Site Cost Control
4. Site Planning and Scheduling
5. Site Schedule Control
6. Reporting
7. Close-out procedures
3.2 Procedures Outlined
3.2.1

Site Budget
A Control Budget must be input into a cost system to establish the cost baseline
and will only be changed to reflect approved changes in scope. The primary
purpose of a budget estimate is to establish a baseline for cost control of the
project. All future cost deviations will be reported against the original budget.
Some examples of this type of reporting are outlined below:

3.2.2

Change Management System

This provides the means to control the project costs and schedule by early
identification of changes to the original scope and definition in the control base,
which includes control capital costs, engineering costs, and schedule variations
from the approved Budget, Control Budget, and Forecast Cost so that timely review
and decisive approval / disapproval action may be taken.

3.2.3

Change Reporting
The Project Manager will be responsible for ensuring that monthly deviation status
is reported on as part of the monthly project report. This status will include a copy
of the change requests and the assessment of deviation impact to the Forecast.
The Change requests and records will be updated and presented. Disapproved
and cancelled deviations remain on the permanent Change register with no cost
impact.

3.2.4

Approval of Documentation
Change registers, with comments will be used to document agreements and to
formally distribute the results of changes to the project management team.
Appropriate signatures on the original changes will be required to authorise
changes.
The Project Manager will also be responsible for maintaining the record file for
each change and for transmitting this file to the project members as required.

4
Cost Control:
4.1 The project will be budgeted and controlled in accordance with a Project Code of Accounts

and Project Work Breakdown Structure. The project budget will establish the control budget
for all project analysis and reporting functions. Cost control consists of the following major
elements:
Establishing the control structure and philosophy
Establishing a control budget
Preparing forecasts
Preparing cash flow and commitment plans
Producing cost reports
Project Controls will produce and update the Forecast Cost every month.
4.2

Cost Control Procedure

The Current Budget and Forecast Cost for the site scope of work will be maintained by the
Project Manager. This will be done by comparing and monitoring expenditures, progress
and performance to the scope, schedule and budget included in the control budget and
utilizing change management to identify and control approved variations to the current
budget. Expenditures will be obtained via electronic download from the Finance System.
Contractor progress and associated payment will be determined each month and reported
in the Monthly Progress Report. The Site Progress System must be used to determine the
status of contractor progress and payment. The Control Budget for contracted work is
used as the basis of progress calculations. The Control Budget will reflect all approved
deviations for change orders/Contract Modifications, budget shifts, design development
deviations in an excess of the design allowance and changes in Issued for Construction
(IFC) quantities. The calculation of progress will not be based on forecast man-hours,
which could include deviations for direct labour productivity. The forecast manhours will
however be used for manpower forecasting.

4.3

Cash Flow Forecasts

Cash flow forecasts are required to be issued periodically with payment certificates and
as requested by the Project Manager. These forecasts shall be based on procurement and
contract payment terms and in accordance with the latest schedule.
The plan and schedule must reflect the approved scope of the project as known. Project
scope must be defined before a good project level schedule can be completed.

5
Planning
5.1
Preparing the project plan consists of developing the Work Breakdown Structure (WBS);
understanding all of the project objectives, requirements and restraints which have a
bearing on the timing and sequencing of the work; and developing this information into the
project logic plan. Once the project logic plan is completed, the planner/scheduler begins
the process of scheduling.
Four base levels of schedule are used:

Master Schedule Level (Level I)

Management Level (Level II)

Project Level (Level III)

Control Level (Level IV)

These schedules must be configured in a "roll-up / roll-down" format. Schedule

development begins at the Master Schedule Level (highest) and is rolled down through the
Project Level to the Control Level (lowest). Reporting begins with the Control Level
(lowest) and is rolled up into the Project Level and then into the Management Level
schedule and then into the Master Schedule Level (highest).
Updating a schedule consists of the following three (3) basic steps:

Status the actual progress and forecast to complete

Incorporation of new information, which may require adjusting the schedule logic
and durations

Analyses of variation(s) to the target schedule

The Contractors schedule will be produced within 14 days of contract award and will
conform to an agreed upon milestone schedule contained in the signed contract. These
activities shall be of sufficient detail to ensure an appropriate basis for monitoring and
evaluating the sequence of the Work and shall include major constraints and interface
points.
Narrative schedule analysis reports will be completed from each contractor and presented
in each monthly progress report.
The Contractor will provide look-ahead schedules every 2 weeks in accordance with the
Contract Project Level Schedule.
Project schedules are to be monitored weekly and updated bi-weekly to determine that
critical milestones are being met and those activities are progressing as required.
The Critical will be determined by those activities with the least amount of total float.
Critical path activities control the overall duration of the project. An activity with less than
10 days total float is critical and will require thorough monitoring on a regular basis to
ensure timeous completion of the project..
Schedule Alerts will be issued to advise project management of factors that might cause a
change in the established schedule for the project. Early detection of these factors is the
key to taking remedial action to mitigate the impact to the completion of the project and it
will be the responsibility of the Project Manager to ensure that the factors that may delay
the project are resolved.
5.2 Reporting
Monthly Progress Reports will serve as the base document from which the Project
Management Team will utilize for overall reporting of the project to the client. The site
Monthly Progress Report will be incorporated into the Project Management Team report
and will provide a comprehensive picture of where the project has been, current status, or
forecast relative to Control Budget and schedules. The report will empower management
to take corrective actions that favourably impact the project if required.
6

Closeout
It is important that each project provides actual cost data to the Clients Project Controls
system. Copies of each of the capital cost estimates prepared for this project must be
archived at the conclusion of each project.
A project completion report must be the accumulation of data from each of the major
disciplines involved in the execution of the project. This document is a critique of how
effective the project management effort was applied. Key focus areas should be:

Financial Analysis Summary

Schedule Analysis Summary

This document should contain the in-depth analysis of the various elements of cost on the
job. The primary purpose of the analysis is to provide historical data to be used in making
better estimates for the future planning of projects.

Final Cost Reports must be retained in the client databases and the Project
Controls library. The data contained in these reports should be the primary source
of information to be used in analyzing future estimates.
Organisation..NameNo of Copies..
Acknowledgement of receipt of this document by the project team must be returned to the
PM for records.

ANNEXURES AND ATTACHMENTS

1. Attachments
The following attachments and flow processes provide the mechanism to implement Quality
Control and assurance programme:

1.
2.
3.
4.
2.

Baseline Change Proposal Register

Baseline Change Proposal
Project Change Log
Change Control Procedure Flow Chart
Key Definitions

PM

Project Manager

AO

Assignment Owner

Application of the pro-formas is thereafter intuitive and self explanatory.

Date :
Project No

BASELINE CHANGE PROPOSAL REGISTER

Description Of BCP Request
BCP No

4S08 Project Controls Procedures v4-0

Date Issued

Approved

Not
Approved

Comments

Sheet No
Contract No

BASELINE CHANGE PROPOSAL

1) BCP No:

2) BCP Title:

3) Line Item No:

4) Project Title:
Subproject Title
5) Date Received by the secretariat: Level 2 . Level1. Level0.
6) Change Designation:
Routine
Priority
Emergency

[
[
[

]
]
]

7) BCP Level:
Level 0 [
Level 1 [
Level 2 [

10) BCP Originator:

8) Directed Change:
]
]
]

Yes
No

11) Phone:

[
[

9) AO

]
]

12)Fax:

13) e-mail

14) Change Description to Scope, Schedule, Cost, Quality, Risk, HR, Comm., Procurement
(ref Change Request form from appropriate Plan attached)

15) Change Justification and Impact (If directed change, specify authority and attach
change control request

BASELINE CHANGE PROPOSAL

BCP No:
Impact on
Cost
Baseline
Total
Estimated
Cost (TEC)
Total
Projected
Cost (TPC)

Approved Baseline

Change

Proposed

18) Current
Project Budget
Change
Contingenc
R
R
y
19) Impact on funding (TEC+OPC=TPC):
Project year
Approved Budget
Capita Operatin
l
g
Previous
Years
Current Year
Year 2
Year 3
Year 4
Year 5
Beyond 5
Years

Proposed Change
Capita Operatin
l
g

Proposed
R

Annual changes
Capita Operatin
l
g

Proposed Profile
Capita Operating
l

Sub Total
Total Budget
*Include only the sum of those changes approved since the last budget update to show the
total impact (shown in the last 2 columns) on the current budget
20) Funding source for TEC increases:

21) Impact on Schedule Baseline:

Milestone
Baseline (Month /
Year)

Proposed (Month / Year)

Change

BASELINE CHANGE PROPOSAL

BCP No:
Impact on Scope Baseline:
Item

Baseline

24) Other Impacts (Health, Safety, Environment, etc.):

25) Interim Corrective Actions:

Revised

PROJECT TITLE:

SUB PROJECT TITLE:

BASELEINE DOCUMENT

DATE

LINE ITEM NO:

SUBPROJECT NO:

TPC

TEC

LOG DATE:

BCP
No

description of change

2.1.1

Disposition
Date/Result
Level Level
2
1

Baseline Changes
Level
0

CURRENT APPROVED BASELINE

DISPOSITION CODES
AP APPROVED

CA CONDITIONALLY APPROVED

DF DEFERRED

EN - ENDORSED

RJ REJECTED

AK ACKNOWLEDGED

NOTES :

PROJECT CHANGE LOG

TP
C

TE
C

SCH

Con
SCP

Reference: CPDS or
ADS
TP
TE
CO
FY
C
C
N

FN

INPUT

14

PROCEDURE

Change Request forms and registers from

Management Plans, ie Scope, Schedule,
Cost, Quality, HR, Risk, Communications &
Procurement

PM receives all Change Request Forms and

Registers from Management Plans and meets with
the AO concerned to assess the validity of the
request.

Revisit analysis and

continually review

Once convinced that it is a confide change request, the

PM assesses the threshold level of the change, ensures
that all necessary supporting detail is in place & refers the
request to the appropriate Change Control Committee
through the Project Controls system for decision by preparing
a Baseline Change Proposal

Leve

Leve

Lev

l1

l2

el3

Decision Recorded by
Secretariat of the Committee

OUTPUT

Yes
1.Change Approved
2.Change Acknowledged to
implement in system

Signed off Change Request sent to the AO for

implementation, recorded in the project log and
sent to all management plan holders for adjustment
of scope, schedule, cost and quality plans and
reported at the next site meeting.

CHANGE CONTROL PROCEDURE

Answer - No
1.Conditional approval
2.Deferrment
3.Rejection

Endorsed

15