Engineering Encyclopedia

Saudi Aramco DeskTop Standards

Controlling Project Costs

Note: The source of the technical material in this volume is the Professional
Engineering Development Program (PEDP) of Engineering Services.
Warning: The material contained in this document was developed for Saudi
Aramco and is intended for the exclusive use of Saudi Aramco’s employees.
Any material contained in this document which is not already in the public
domain may not be copied, reproduced, sold, given, or disclosed to third
parties, or otherwise used in whole, or in part, without the written permission
of the Vice President, Engineering Services, Saudi Aramco.

Chapter : Project Management For additional information on this subject, contact

File Reference: PMT30104 Rod Kuan on 873-9701
Engineering Encyclopedia Project Management
Controlling Project Costs

Content Page

VARIOUS ESTIMATES PREPARED DURING THE PROJECT LIFE CYCLE................. 1

Budget/Conceptual Estimates.................................................................................... 1
Expenditure Request (ER) Estimates......................................................................... 1
Steps in Development of ER Estimate ........................................................... 2
ER Estimate Minimum Criteria...................................................................... 2
ER Estimate Package..................................................................................... 3
ER Estimate Accuracy ................................................................................... 4
Company Estimates................................................................................................... 4
Types of Project Funds.............................................................................................. 5
Type Code 68 Funds...................................................................................... 5
Prior Approval Expenditure Request Funds ................................................... 5
Type Code 60 Funds...................................................................................... 6
Type Code 67 Funds...................................................................................... 6
Estimating Guidelines ............................................................................................... 6
CONTROL PROJECT COSTS USING THE ER ESTIMATE AND ER SUPPORT
DOCUMENTATION AS CONTROL TOOLS..................................................................... 7
Preparation of Expenditure Request Estimate ............................................................ 7
Role of Project Support and Controls Department ..................................................... 9
DIVIDE THE EXPENDITURE REQUEST INTO JOB ORDERS AND
AUTHORIZATION FOR EXPENDITURE TO FACILITATE CONTROL ........................10
Job Orders................................................................................................................10
Authorization For Expenditure (AFE) ......................................................................11
Cash Flow and Expenditures versus Commitments .......................................12
FORECAST AGAINST THE PROJECT COST BASELINE ..............................................13
Saudi Aramco Project Forecast ................................................................................13
Parts of the Project Forecast .....................................................................................13
Simplified Method of Calculating Forecasted Cost .......................................14
GLOSSARY........................................................................................................................15

ADDENDUM......................................................................................................................16

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VARIOUS ESTIMATES PREPARED DURING THE PROJECT LIFE CYCLE

Capital budgeting is an integral part of the overall Saudi Aramco Financial Planning process. All
projects must go through a financial justification and approval process before the required
funding is authorized. The purpose of the justification and approval process is to ensure that
Saudi Aramco's capital investments result in the most cost-efficient use of the Kingdom’s
resources.

To qualify for project funds, the cost of each project must be estimated. During the life cycle of
a project, various levels of estimates are developed based on available project information. The
accuracy of the estimate will vary depending upon the project definition at that time and the
quality of project information. This section discusses the various estimates that are developed
for a Saudi Aramco capital project during its project life cycle.

Budget/Conceptual Estimates

Budget/conceptual estimates, which are produced in the earliest stages of project development,
are normally based only on the facility type, capacity, and probable site location. Consequently,
their accuracy may be as low as +/-40% of the actual total project cost.

Budget/conceptual estimates are produced as a basis for preliminary feasibility, process

selection, site location, and layout studies. They may be prepared by the Project Support and
Controls Department (PS&CD) estimating functions or by contractors that operate under the
direction of a SAPMT.

The estimates are used to develop the budget briefs, summary statements of purpose, and the
financial considerations that are involved. Historical data from previously constructed similar
facilities in Saudi Arabia, updated to represent probable costs at the planned construction date,
are the ideal information source for these estimates.

Expenditure Request (ER) Estimates

An Expenditure Request (ER) estimate is a definitive estimate that is prepared in support of a

request for Budget Item (BI) funding and it is used as the basis of project cost control baseline.
The Project Manager has overall responsibility for the estimate. The SAPMT may utilize the
services of a contractor to develop parts of the estimate. In such cases, the contractor works
under the direction of the SAPMT with the assistance of the appropriate Project Support and
Control Department (PS&CD) Estimating Unit.

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Steps in Development of ER Estimate

PS&CD has primary responsibility to ensure that the ER estimate satisfies all standards of format
and quality. PS&CD/ESD presents the ER preparation requirements and other basic information
to the contractor at a "kick off" meeting early in the estimate preparation phase. At the kick off
meeting, an ER preparation guideline package is presented and discussed with the Saudi Aramco
Project Management Team (SAPMT) and the Project Proposal Contractor's cost control and
estimating personnel. At least one week prior to the kick off meeting, copies of the ER
Preparation Guideline Package are distributed to the participants of the kick off meeting.

ER estimate progress milestones are established during the kickoff meeting and progress is
monitored to judge PS&CD's participation, timing and special-support requirements. A team of
PS&CD estimators conducts at least one detailed analysis and progress review before the final
review and endorsement of the ER estimate.

After the kick off meeting, a supplement package is developed by the PS&CD for the SAPMT
and the Project Proposal Contractor. The supplement package documents customized
adjustments and project-specific information to accommodate any special strengths or
weaknesses in the relations between PS&CD, SAPMT, and the contractor. The intent is to
document and communicate all Saudi Aramco requirements to the Project Proposal Contractor
and to open a constructive dialogue early enough to take advantage of any contractor special
expertise, state-of-the-art methods and procedures, or adjust to a specific contractor weakness.

The Project Proposal Contractor may use an in-house proprietary computer application program
or any commercial software package to prepare the estimate. During the PS&CD review,
PS&CD can confidentially recalculate the estimate with Saudi Aramco labor and equipment
rates. It is also important that the Project Proposal Contractor develop the estimate in Saudi
Aramco format and generate all the details that are required to prepare Form 56D. The
preparation of Form 56D should be done by the SAPMT with the assistance of PS&CD
estimators. PS&CD's role under different Project Management strategies is explained in the
following table:

ER Estimate Minimum Criteria

Project Execution Plan - An approved Project Execution Plan (PEP) for projects in excess of
$25 million.

Project Proposal - The ER estimate is based on an approved Project Proposal.

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ER Estimate Package

The ER estimate package must contain the following components:

• Project proposal document and approved minutes of the project proposal

meeting and technical review meeting
• Expenditure Request Form 56D
• Basis of estimate
• Detailed estimates
• Contractor's supplement

Expenditure Request Form, Saudi Aramco Form 56D reflects the total project cost as
determined through development of the ER estimate. After completion of the estimate, Form
56D is prepared by the SAPMT. There is one Form 56D for each job order phase listing; and one
Form 56D for each BI. It should be noted that the method and structure of control is SAPMT’s
responsibility. SAPMT’s method and structure has a significant influence on the approach to
the detailed estimating; therefore, they should be established early in the Project Proposal Phase.

Basis of estimate is intended as a management review tool and defines the various assumptions
that are made during the development of the ER estimate. The basis of estimate is the
responsibility of the concerned Estimating Unit in PS&CD, which works with the SAPMT. The
basis of estimate includes but is not limited to:

• Allowances for assumptions due to incomplete design detail material quotes, or

uncertain construction conditions
• Cost trends (escalation)
• Labor productivity adjustment factors
• Currencies and exchange rate
• Exceptions to ER Preparation Guidelines, including justification
• Explanation of major variations from previous estimates

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Contractor's Supplement is prepared by the engineering contractor. Generally, it consists of

the costs that are associated with bulk material takeoffs, engineered equipment costs, labor
estimates by craft for construction, and contractor man-hours for detailed design.

Normally, PS&CD and PMT hold a kick off meeting with the contractor's office. At the kick off
meeting, the ER Preparation Guideline package is presented to the contractor's project control
and estimating personnel. Prior to the kick off meeting, copies of the ER Estimate Preparation
Guidelines should be distributed to key SAPMT and Contractor personnel so that they may
familiarize themselves with the contents prior to the meeting. PS&CD estimators normally
execute at least one separate progress check visit to the contractor's office.

ER Estimate Accuracy

If all the above points have been satisfied and the estimate has been prepared in accordance with
these guidelines, there is a good probability that the project can be completed within ±10% of the
ER total cost estimate.

Company Estimates

Company estimates are used by Saudi Aramco to test the reasonableness of bidders' proposals
for contracts, amendments and change orders, i.e., "contract actions". Company estimates reflect
the price for which a given contract action would be awarded under competitive conditions in the
current market environment.

All proposed contract actions that have a financial impact, whether competitively bid or
negotiated, require a company estimate unless they fall under one of the exceptions listed in
Procedure 9 of the Contracting Manual. All company estimates are confidential and the
information that is contained within them is provided only on a need-to-know basis to SAPMT's
Program Management Contractor's Personnel.

The contract proponent department (e.g., SAPMT for major projects) prepares the company
estimate if the price of such contract action is expected to be SR300,000 or less. The contract
proponent keeps the estimator adequately informed regarding the scope of work and maintains
confidentiality.

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For all contract actions where Engineering & Project Management (E&PM) is the contract
proponent and the price is expected to exceed SR300,000, E&PM may direct the Project
Management Contractor (PMC) to:

• Prepare the Company estimate for verification by the PS&CD Estimating

• Request that PS&CD Estimating prepare the Company estimate
The estimator uses the best available pricing information including the most up-to-date Saudi
Aramco cost data and information from any reliable source outside Saudi Aramco that is also
available to bidders. The bidding patterns and economic circumstances of all contractors are also
considered.

Types of Project Funds

As stated earlier, the project uses various estimates to accomplish different purposes at different
phases of the project life cycle. The project also uses various types of project fundings during
the project life cycle.

Type Code 68 Funds

Type Code 68 (T/C 68) funds are used by the project during the Preliminary Engineering Phase.
T/C 68 funds are used to fund those activities that occur during the Preliminary Engineering
phase. T/C 68 funds are requested as soon as the PMT receives the approved DBSP from FPD.
The funds may be used for work until the ER is approved. Typically, this work includes the
preliminary engineering contractor costs and the PMT costs. No materials are allowed to be
purchased for the project. At that time, the T/C 68 expenditures are incorporated into the ER
funds and the T/C 68 funding is closed.

Prior Approval Expenditure Request Funds

Prior Approval Expenditure Request (PAER) funds are sometimes requested when there are
long-lead materials that must be purchased prior to the ER funding. PAER funds are the same as
T/C 68 funds except that materials that affect the ERC may be purchased prior to ERA. PAER
funding may be approved for projects that have an accelerated schedule. The purpose of PAER
funding is to:

• Purchase critical long-lead material items

• Commence definitive engineering/design
• Begin construction

Such prior approval does not constitute a commitment to full funding approval. T/C 68 funds are
transferred to T/C 60 on prior or full funding approval.

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Type Code 60 Funds

Type code 60 (T/C 60) funds are used by the project during the Detailed Engineering ,
Procurement and Construction phases. In other words, these funds cover the project from ERA
to ERC.

Type Code 67 Funds

It may be advantageous to close an ER before the punch list items are completed. In order to
take this action, Saudi Aramco has established Type Code 67 (T/C 67) funds. These funds are
also called Special Project Account (SP) funds. Like other funds they cover a specific scope of
work. SP funds are requested by the project when the punch list items are considered to require
and extra ordinary long time to complete. SP funds help the Project Engineer limit the remaining
work to the current punch list items.

Expense items may also be completed by the SAPMT. Work that is not classified as capital will
be classified as expense. The details of work that is classified as expense can be obtained from
Fixed Assets and Work in Progress Accounting.

Estimating Guidelines

All requests for budget/conceptual estimates, including requests for re-estimates after schedule or
scope changes, are processed through the Project Support and Control Department (PS&CD).
Saudi Aramco Form 5759, Request for Estimating Services, is prepared and included with the
DBSP. In varying degrees, the development of the DBSP and budget/conceptual estimate
involves the proponent, the Facilities Planning Department (FPD), PS&CD, and SAPMT.

All estimates that precede the ER estimates are considered budgetary estimates. Budgetary
estimates are prepared by the PS&CD based on the DBSP. Their accuracy range is assumed to
be ± 20 to ± 40% of final cost but they are still considered acceptable for their purpose. The
degree of accuracy depends on the extent of project definition and other available information.
They are used to develop the budget briefs, summary statements of purpose of projects and the
financial considerations that are involved.

An ER estimate is a definitive estimate based on an approved Project Proposal. The accuracy of

an ER estimate is expected to be +/-10% of the final project cost.

NOTE: To support expenditure forecasting/estimating, Saudi Aramco maintains historical data

and develops cost models and graphical formats of spending patterns. This data can be obtained
by contacting the PS&CD Estimating Methods & Procedures Unit (EM&PU).

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CONTROL PROJECT COSTS USING THE ER ESTIMATE AND ER SUPPORT

DOCUMENTATION AS CONTROL TOOLS

Preparation of Expenditure Request Estimate

An Expenditure Request (ER) estimate, which is prepared on Saudi Aramco Form 56D, is a
definitive estimate that supports a request for the approval of funds for a specific Budget Item
(BI). The control budget for each Job Order (JO) in a BI is based on an ER estimate detail (see
Addendum 4). When an ER amount is approved by the Board of Directors, funds are officially
allocated for expenditure. Funds can be released only through an Authorization for Expenditure
(AFE). The AFE provides authorization for a Saudi Aramco Project Management Team
(SAPMT) to incur expenditures and to make commitments for the detailed engineering, material
procurement, and construction contracts. The ER development process is shown on the
flowchart in Addendum 1.

The ER estimate is normally prepared after the Project Proposal is approved but, if required by
the schedule, it may be prepared simultaneously. For a Prior Approval Expenditure Request
(PAER), the ER estimate is normally prepared concurrently with the Project Proposal. In all
cases, the minimum criteria must be met to support the required accuracy of ± 10%.

Along with Saudi Aramco Form 56D, SAPMT submits an ER expenditure forecast in BI
summary format to the Project Support and Control Department (PS&CD). Each ER estimate,
along with the expenditure forecast, is reviewed and agreed to by the Project Manager and the
General Supervisor of Estimating Services Division or the Manager of PS&CD. Afterwards, the
ER estimate is transmitted to the Budget Director and presented to the Board of Directors for
approval. The Project Manager that endorses the Form 56D has the overall responsibility for that
ER estimate.

The Project Engineer plays an important role in the development of an ER estimate. He is the
principal coordinator in the ER development and approval process. The Project Engineer
ensures that the ER estimate is developed according to the ER development guidelines and the
specific project requirements. The Project Engineer works closely with the PS&CD and/or the
contractor in the development of the ER estimate.

At the time the ER cost estimate is prepared, the Project Engineer should assure that the ER is
broken into parts that can be controlled all the way through the project, i.e., until commissioning
completion.

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In order to determine which definition of parts will be most controllable, the Project Engineer
must be able to visualize the project through each of its life cycle phases. In order to implement
and enforce the best control, the Project Engineer determines the best way to divide the ER into
parts based on the following factors:

• Geographical locations
• Plot limits
• Process distinctions
• Capital size of parts
• Technical distinctions
• Split of responsibilities between different Saudi Aramco departments

If the project is composed of work in various countries, it is important for the manager in each
location to be responsible for his respective part and to know his responsible costs. It may be
appropriate for different process units to be the responsibility of different managers or engineers;
therefore, the costs should be split accordingly. When the project crosses various technical skill
groups such as communications, process, and inspection, each group should be able to control
their respective parts.

In subsequent phases of the project life cycle, the elements of control become increasingly
complex. At the time that the project is in the Preliminary Engineering phase, the only concern
of the Project Engineer is preparation of the Project Proposal and ER estimate. The funding
restriction, although it is tightly controlled, is not under the same constraints as the ER approval.

After the ER is approved, the Project Engineer has other elements to control (i.e., detailed
engineering, procurement and construction). The materials procurement process is an important
part of the cost control process. Depending on the type of project, materials generally represent
from 35% to 65% of the total ER value. Thus, material cost control is absolutely essential to
keep the ER within the 10% limits that are required for ER approval. When the ER is approved,
the pricing for the major equipment items that must be engineered should have been verified by
quotes from the vendors. If this verification has occurred, the uncertainty within the materials
part of the ER estimate/budget can be reduced. The uncertainty in meeting the ER estimate is
also reduced as more materials are verified by actual prices from vendors or as bulk materials are
verified when definitive material take-offs are prepared from the detailed drawings. Of course,
this process continues until the uncertainty (and the contingency in the ER) is reduced to the
point where the Project Engineer is confident that he will complete within the ER estimate.

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When the design contractor prepares the construction part of the ER estimate, he can improve the
estimate by preparing defined quantities for the work that is required in construction. These
quantities, or units, can be priced by the contractor or Saudi Aramco to define the construction
costs. The cost of construction will not become more firm until the construction bids are
received and compared to the ER estimate. The more definition in detailed design at the time of
bidding the construction contract, the better the confidence of the Project Engineer that the ER
funds will cover the construction.

The Project Engineer may be responsible for a refinery project today and a chemical plant
project tomorrow. He may not be experienced in all areas that he may be asked to manage. The
design contractor, who is contracted to do the detailed design, must have specific knowledge of
the type of project. The contractor may have recently designed the same type of plant for
another client and this expertise should be utilized by the Project Engineer. If the Project
Engineer has implemented a good partnering relationship with the contractor, his ability to
maximize the contractor’s expertise should be easy.

Role of Project Support and Controls Department

The PS&CD can help the Project Engineer with areas of concern about the cost estimating and
control processes. The Project Engineer should consider the PS&CD as one of his resources of
expertise that is available to help complete the project.

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DIVIDE THE EXPENDITURE REQUEST INTO JOB ORDERS AND

AUTHORIZATION FOR EXPENDITURE TO FACILITATE CONTROL

As stated in the last section, the Expenditure Request (ER) is divided into distinct parts to
facilitate control. The ER cost is defined on the Form 56D. The Form 56D, or ER estimate, is
broken into parts called Job Orders (JOs). Each JO is further broken into Authorizations for
Expenditure (AFEs).

Job Orders

Form 56D (Addendum 2) is a part of the ER approval package that is assembled by the Budget
Director of the Facilities Planning Department (FPD). Each JO in a BI is estimated separately
and summarized on Form 56D with phase-level detail. Afterwards, a Summary Form 56D is
prepared to show all of the JO subtotals and the total ER estimate amount. The number of JOs is
dependent on the established project execution method and structure of cost control. The
number of JOs is decided by the SAPMT in consultation with PS&CD.

A typical ER estimate reflects the basic Saudi Aramco cost structure, with three major cost
elements:

• Engineering
• Material
• Construction

The contingency amounts are added to the cost-category subtotals. The amounts shown for cost
trends are not additive. As noted on the form, those amounts, if any, will have already been
included and are for information only.

Contingency, which is included in the ER estimate for unforeseeable costs, would normally be
10% or less. Contingency covers the following:

• Productivity variances
• Unknown conditions
• Change orders
• Changes to assumed rates for items such as air freight, catering, and
accommodation and prorates

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Contingency is not intended to cover the following:

• Scope changes
• Natural disasters
• Contractor non-performance
• Claims

The SAPMT completes a cash-flow expenditure forecast by quarters/years in terms of capital

and expense.

An approved ER is the authority to commit and expend the Company's resources for the
purchase or construction of assets that are necessary to meet the Company's stated goals and
project objectives. While an ER is used primarily for funding capital projects, it is also used as
the authority to fund non-capital projects that serve the Company's interest. Examples of non-
capital BIs are Saudi-Aramco-built government schools, home ownership, community
development and major roads. Project Management budgets and accounts for capital and non-
capital expenditures.

Authorization For Expenditure (AFE)

An Authorization For Expenditure (AFE), Addendum 3, authorizes the SAPMT to expend funds.
An approved ERA authorizes the SAPMT to commit funds, but an AFE is required to authorize
the SAPMT to spend funds. AFEs are required for most BIs including master appropriation BIs.
AFE revisions are required for ER supplements, redefinitions, and partial cancellations. The cost
engineer prepares an AFE. AFEs are organized by JO number. For each JO, the following cost
elements are identified:

• Engineering
• Material
• Construction
• Contingency

AFE preparation must follow specific guidelines as defined in the Cost Manual for:

• AFE Development
• AFE Revisions
• Master Appropriation AFE
• AFE Closing

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Cash Flow and Expenditures versus Commitments

The Project Engineer is not directly involved in the actual flow of cash from the company. The
Project Engineer may sign the contractor’s invoice as approved, but the actual process of writing
the check comes from the accounting process. The Project Engineer is, however, in complete
control of the commitment of project funds and this is the point of control that he needs to
understand. When the Project Engineer makes a commitment of project funds, it should be
communicated to the project’s Cost Engineer and debited from the project’s available funds.
The Project Engineer can control the expenditure of project funds by being aware and exercising
control over the payment terms that were agreed to by the vendor or contractor. The control of
expenditures is an extremely important process in most companies. At the time that the
expenditure occurs, the cash flows from the company. Note that there is never a cash flow (or
expenditure) without a commitment. Conversely, there is never a cash flow without a prior
commitment.

The time lag between the commitment and the expenditure varies for each commitment. It is
important for the Project Engineer to define this time lag. In the case of detailed engineering the
commitment may be one month’s notice plus appropriate demobilization. The commitment is
seldom the complete detailed engineering period, although it is often thought to be as a matter of
convenience. Most of the time, the commitment in materials is the full value because the
cancellation charges are generally not a very big discount of the total invoice price. This is
particularly true if the basic materials of fabrication have been procured. It is important for the
company departments that manage cash flow to have accurate cash flow forecasts from the
project management teams.

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FORECAST AGAINST THE PROJECT COST BASELINE

Saudi Aramco Project Forecast

After ER approval, commitments are made and the accumulation of actual “costs” begins. As
additional costs are committed, prediction of the total project costs becomes increasingly clear.
Obviously, management is not willing or able to wait until the last project cost has been
committed and/or expended to know what the final project costs will be. Management expects
the SAPMT to be able to predict what the final project costs will be at any time after ER
approval. This prediction is called a forecast. At ERA, the forecast will equal the ER value, and
at ERC, the forecast will equal the total installed cost. The predictions between the ERA and
ERC are sometimes hard to make.

Parts of the Project Forecast

It is important for the Cost Engineer and the Project Engineer to fully understand the details of
the ER baseline because this baseline will be used to define the actual commitments and to
forecast the remaining costs. At the time that the project is complete, the accountant can show:
every cost for the project in detail; each invoice; and the line item accounting that was charged
against the project. The Project Engineer has to break the JOs into pieces so that he can forecast
with similar detail. The Project Engineer will not have to define each predicted invoice, but the
larger invoices will be important to predict. The control process is divided into the three
categories of the ER:

• Engineering
• Materials

• Construction

In preparing the project forecast, the Project Engineer first takes the actual costs for the work that
is completed to date and then forecasts the costs for the work yet to be completed. The sum of
these two parts is the total project cost. When the project cost is totaled, it can be compared
against the ER value, or baseline, to evaluate the project. Individual differences can then be
identified and explained.

The Saudi Aramco report that helps to define the costs-to-date is the AFAG 60. This report
identifies all project charges up to the accounting cutoff date. The Project Engineer and the Cost
Engineer should assure themselves that the charges are accurate and that they belong to the
project.

The Project Engineer uses the project experience to-date, his own knowledge, and the knowledge
of the other SAPMT members and contractors to forecast the costs to complete the project

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Simplified Method of Calculating Forecasted Cost

The SAPMT places special emphasis on cost forecasting based on the performance to-date. Cost
forecasting is not only based on manpower loading, but on other factors such as productivity.
For example:

Project Plan:

Budgeted Man-hours = 200,000

Budgeted Hourly Rate = $20 per hour
Budgeted Cost = Budgeted Man-hours X Budgeted Hourly Rate
= 200,000 X $20
= $4,000,000

Project Status:

Actual % Complete = 40%

Actual Man-hours = 100,000

Earned Man-hours = Budgeted Man-hours X Actual % Complete

= 200,000 X 40 %
= 80,000 Man-hours

Actual Productivity To-date = Earned Man-hours/Actual Man-hours

= 80,000/100,000
= 80%

Total Forecast Man-hours = Budgeted Man-hours/Actual Productivity To-date

= 200,000/80%
= 250,000 Man-hours

Total Forecast Cost = Total Forecast Man-hours X Budgeted Hourly Rate

= 250,000 X $20
= $5,000,000

Conclusion: If the reasons for lower than expected productivity are not resolved, then the project
will experience a cost overrun of $1,000,000 from the budgeted cost of $4,000,000.

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GLOSSARY

AFE Authorization for Expenditure

BI Budget Item

DES Design Engineering Statistics Report

ER Estimate Definitive estimate based on an approved project proposal.

ERA Expenditure Request Approval

ERC Expenditure Request Completion Date

JO Job Order. A specific part of a budget item

LSTK Lump Sum Turn-Key Contract

MPU Monthly Progress Update

PCR Project Change Request

PES Proposal Engineering Statistics Report

PMC Program Management Contractor

PPU Project Proposal Update Report

PS&CD Project Support and Controls Department

SAPMT Saudi Aramco Project Management Team

TC-67 Special Project Account funds to capture project cost after ERC.

WBS Work Breakdown Structure

WER Work Element Release

WRT Work Element Review Team

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ADDENDUM

1. Expenditure Request Development Process Flowchart

2. Expenditure Request Form 56D

3. Summary of Job Orders

4. Authorization for Expenditure, Form 6035A

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ADDENDUM 1: ER Development Process Flowchart

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ADDENDUM 2: Expenditure Request Form 56D

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ADDENDUM 3: Summary of Job Orders

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ADDENDUM 4: Authorization for Expenditure, form 6035A

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