Project Management Department ( PMD)

A company department responsible for run Projects of the Company profitably by Contract & Subcontract Management, Cost Control,
Planning & Scheduling, Project Auditing & constant Monitoring over all project aspects.

CONTRACTS
Agreement
Mutually agreed terms between two parties about proposals & acceptance on paper duly signed by both parties.

Contract
Mutually agreed terms between two parties about proposals & acceptance on paper duly signed by both parties bound by enforcement
Law.

Type of Contract
Contracts fall into following categories
1) Fixed Price (Lump Sum)
2) Unit Rate

Fixed Price Contracts

A performing Contractor has to complete the agreed qty’ of work for an agreed fixed Contract Value. Risks of all Cost escalation rest on
performing Contractor.

 Lump Sum Turn Key (LSTK)

Contractor is legally bound to perform the following for a fixed Contract Value against approved Rules & Credit
a. Design,
b. Engineering,
c. Procurement,
d. Construction,
e. Commissioning,
f. Hand over

 Lump Sum Progress Basis ( Procure & Built ) (LSPB)

Contractor is legally bound to perform the following for a Provisional Contract Value against Agreed Rules & Credit
a. Full or Partial Procurement,
b. Construction,
c. Commissioning,
d. Hand over

Unit Rate Contracts

The buyer shall pay the contractor in accordance with the completed Qty of works against agreed unit prices & Rules & Credit

 Engineering, Procurement & Construction ( EPC)

Contractor is legally bound to perform the following against agreed unit prices & Rules & Credit
a. Engineering,
b. Procurement,
c. Construction,
d. Commissioning,
e. Hand over

Advance Payment
The Part of Payment made to Contractor by Client Initially (5% to 20 % of CV) against mobilization of Resources & Start Temporary
Facilities .it shall be recovered against Each Progress Invoice submitted by Contractor by the same %

Retention Payment
The part of payment with held by Client against each progress payment (5% to 10 %) in order to ensure satisfactory performance
completion of contract terms. Client shall release the retention upon successful completion of the works agreed

Work
Total amount of resources & time required to complete an activity
Bill of Quantity (B.O.Q)
Total Qty of the Work specified in Main Contract
Material Take OFF (M.T.O)
Total Qty of the Work obtained from IFC drawings against B.O.Q

General Procedure to do M.T.O

MTO should be inline with the following
1) IFC Drawings
2) Method of measurement specified in Contract
3) Contract Terms & Conditions

Change Order Work

Works not included or beyond the Original Scope of Work / B.O.Q to be performed

+ve Change Order Work

Increase in Qty from Original Scope of Work / B.O.Q

-ve Change Order Work

Decrease in Qty and/or De-scope of work from Original Scope of Work / B.O.Q

MRP (Manpower Resource Planning) / (Manpower Requirement Program)

Manpower resources planned against the schedule activities to complete the project

ERP (Equipment Resource Planning) / (Equipment Requirement Program)

Equipment resources planned against the schedule activities to complete the project

LD (Liquidate Damage)
Debt imposed by the owner on the Performing Contractor against delayed work completion which Affect total project completion and/or
a part of the project completion by performance wise & cost wise.

Owner can impose LD to the maximum limit of 10 % of the Contract Value.

COSTING

Budget
The planned cost for an activity or project.

Revenue
Income against work performed as per agreed contract terms & conditions

Cost
Incurred expenditure against performed work

Profit
Saved cost against performed work (Revenue - Cost)

Gross Profit (GP)

Difference between the Gross Value of Work Invoiced & Actual Cost Incurred to perform that Work

Gross Profit Margin (%)

Ratio between GP & ACWP (GP / ACWP %)

Net Profit (NP)

Profit excluding the Overhead Cost
(GP – OH)

Committed Cost
Cost incurred to be paid against work performed

GVWS (Gross Value of Work Scheduled.)

The sum of the Revenue for all planned work scheduled to be accomplished within a given time period
GVWP (Gross Value of Work Performed)
Total Revenue to be incurred for the performed Qty of Work as of date

GVWB (Gross Value of Work Budgeted)

Total Revenue to be incurred for the performed Qty of Work as of date
BCWP (Budget Cost of Work Performed.)
Total Cost of work performed against planned (budgeted) unit rate.
GVWI (Gross Value of Work Invoiced )
Total Revenue incurred for the performed Qty of Work Invoiced

ACWP (Actual Cost of Work Performed )

Total Cost incurred for the Completed Qty of Work

BCWP (Budget Cost of Work Performed.) / ( Earned Value)

Total Cost of work performed against planned (budgeted) unit rate.

BCWS (Budget Cost of Work Scheduled.)

The sum of the budgets for all planned work scheduled to be accomplished within a given time period

WIP (Work in Progress)

Total Revenue to be incurred for the Un-approved Qty of the Work Performed

(GVWP – GVWI) Gross Value of Work Performed (GVWP) minus Gross Value of Work Invoiced (GVWI)

Earned Man-hour
The time in standard hours credited as a result of the completion of a given task or a group of tasks
(Unit Man-hour x Completed Work Qty)

Actual Man-hour
Time consumed in standard hours to the completion of a given task or a group of tasks

Productivity
Ratio between Earned Man-hours & Actual Man-hour

General Responsibilities of the Quantity Surveyors

Trade /
Sl General Responsibilities
Designation

1) Site Tracking
2) Progress Updating,
1 Jr.Qs
3) PC Preparation
4) Assists to Site QS for preparation of MTO .

1) MTO
2) Preparation of Monthly Progress Valuation
3) Preparation of C.O Request,
2 Site QS 4) Costing Reports to H.O
5) Preparation of Star Rate for a Non-BOQ Items / Works
6) Verify & Certify the S/C Invoices & Process the Payments

1) Preparation & incorporate any Changes in MRP & ERP

2) Prepare Activity % Breakup for each BOQ Items & Obtain approval from client prior to prepare
the progress valuation / Measurement sheet
3) Review Progress Valuation & Get approval from Client for Submission of Final Invoices
3 Project QS
4) Claim Negotiation with Client for Star Rate ,Additional Works,
5) Mgmt’ Reports to H.O,
6) Review & Approval of MR’s / P.O against Approved Available Budget
7) Ensuring the Cost Booking according to Cost Distribution in JDE System

4 Sr.QS
1) Control the Cost with in the Budget
2) Revise the Operating Budget for approved Changes in Contract Value
3) Review of MRP & ERP prior to get approval from top management
4) Claim Negotiation with Client for Star Rate ,Additional Works
5) Ensuring all Executive Mgmt’ reports prior to Sr.PM Approval
6) Maintaining & Control Over the All contract Documents
7) Co-ordinate with Execution team & H.O regarding Cost issues & Reports
8) Carry-Out the Commercial Close-out & arrange all necessary backup documents for the release
of retention money from client