DECEMBER 20, 2022

REPORT FOR REDUCED SCOPE

CONSTRUCTION OF MULTI-STORIED COMPLEX FOR ADVANCE
TECHNOLOGICAL INSTITUTE (ATI-MANNAR)

CENTRAL ENGINEERING CONSULTANCY BUREAU

Construction of Multi-storied Complex for Advance Technological Institute
(ATI-Mannar)

Project Information
 Client : Sri Lanka Institute of Advance Technological
Education (SLIATE)
 Contractor : Darinton Construction (Pvt)Ltd
 Consultant : Central Engineering Consultancy Bureau
 Total Cost Estimate : Rs. 529 million (With Taxes-Allocation
confirmed by Client)
 Contract Amount : Rs. 412,420,706.50
 Date of Award : 26-11-2020
 Date of Commencement : 08-02-2021
 Original Contract Period : 540 Days
 Scheduled Date of Completion : 02-08-2022
 Extended Date of Completion(EOT) : 01-01-2023

Background

It has been noted that significant price escalation is recorded due to substantial price hike of
construction materials from April -2022.Beacause of this, a large portion of allocated money
will be spent on the price adjustments. In this circumstance, Employer requested a reduced
scope of work to be prepared in order to function the Institute at minimum requirements.

Original Scope (Only an Outline)

Building No. 01
 Administration unit
 Two Air-Conditioned Computer Labs (Capacity-100x2)

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  Two Hardware Labs (Capacity -50x2)
 02 no of IT Labs (Capacity -100x2)
 Auditorium (Capacity -260)
 01 no of Lecture room (Capacity -80)
 Overhead Tank, Fire Protection, Lightning Protection

Building No. 02
 Tourism Hospitality Management (THM) Lecture room (Capacity -80)
 Library
 Cafeteria and Kitchen
 8 no of Lecture rooms (Capacity - 80x8)
 Overhead Tank, Fire Protection, Lightning Protection

Common
 Service building including security hut, generator room and transformer room.
 Waste Water Treatment plant
 Water Sump

Current Financial Status

As at 01-12-2022

 Total work done is Rs. 144,812,613.56

 Price escalation amount is Rs. 67,010,764.98
 Total amount (with material at site) certified is Rs. 259 million (With Taxes).
 The total required fund for project to be completed as planned at this present situation
is 818 million. So additional 289 million is required. (818m-529m)

Therefore, execution of original scope of the Work is not possible.

Furthermore 50% of the balance fund will be spent under the prevailing about 100%
inflation.

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 COST FORCAST-(in each case)
900
850
800
750
700 289
650 327

600
550
28
500
69 59
450 159
400 270
350 61
300
309

250
432 67 432
200
20
150 309

100
172
50
0
Initial Expectation As at 01-12-2022 to complete whole with reduced socpe
project

Work Done Tax Price Escalation Balance

Therefore, following reduce scope is initiated to complete the project within the balance
amount of fund.

Reduced Scope
Building No. 01
 Building structure with roof will be completed
 Masonry works will be completed only at Ground floor

Due to higher cost on AC and Lift, this building cannot be completed as planned.

As limited fund (529m), Building no 01 will not be functionable. But if the Client can
spend 551 million rupees, half of the ground floor can be functioned.

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Materials remain at site
With this scope reduction all Aluminum material which brought to site cannot be utilized.
Materials of about 9 million rupees will be remain. Additional 3 million ( rupees 590 million)
is required to utilize all remaining aluminum material (for brick work and plastering work in
first floor of Building no 01).

Building No. 02
 Library - space will be used for two Air-Conditioned computer labs (capacity – 80x2)
 THM room will be used as Library
 Cafeteria and Kitchen-will be completed
 Out of 8 Lecture rooms, 3 Lecture rooms will be used as an adequate administration
unit
 Two Wash room blocks (at Ground and first floor) facilities will be provided
 Sport room will be converted as server room.
 Floor finishes changed to Cement rendering from Tiling.
 Water tanks will be provided.
 Fire extinguishers will be fixed.

Common Works
Entrance Gate with security hut, Transformer and Generator room, Essential part of landscaping,
waste water treatment plant, water and power supply will be included

Omissions
 Installation of Generator
 Water Sump

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 Original Scope
Building 01

Ground Floor First Floor

Computer Computer IT Lab

Lab Lab
Administration Additional
Unit Auditorium Lecture Hall
Hardware Hardware IT Lab
Lab Lab

Building 02

Kitchen +
Ground Floor Cafeteria Library THM Room

First Floor Lecture Lecture Lecture Lecture Lecture Lecture Lecture Lecture
Room Room Room Room Room Room Room Room
01 02 03 04 05 06 07 08

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Reduced Scope

 Only Building No. 02 Will be functionable.

Building 02 (after Rearranging minimum requirement to make it

functionable)

Kitchen + Computer Computer

Ground Floor Cafeteria Lab Lab Library

Lecture Lecture Lecture Lecture Lecture

First Floor Administration
Room Room Room Room Room
Unit
01 02 03 04 05

Comparison of Original and Reduced Scope in terms of seating

capacity

Section Original Scope Reduced Scope

Lecture Rooms 720 400
Computer Labs 200 160
Hardware Labs 100 0
IT Labs 200 0
THM Room 80 0
Auditorium 260 0