Management policy

 

DELTA

Contractors

 Management

Policy And Procedure

 

Technical Coordination

The technical coordination in a functional and operable Management Team is of primary importance. The various different functions in a technical coordination are basically the following:

  1. 1.Cost control
  2. 2.Material Procurement
  3. 3.Material Expediting
  4. 4.Project Planning
  5. 5.Project Mobilization
  6. 6.Project Personnel Recruitment
  7. 7.Project Scheduling
  8. 8.Project Reporting
  9. 9.Project Completing

1. Cost Control:                                  

 There are various different reasons why project cost controlling is on top of this list however lets enter into the most important once first.

Our general procedure manual has a project cost report, which is to be filled in on a monthly basis, to report the actual costs a site is occurring.

This information is also very useful for the estimating department, a Project Coordinator has to assist with the latest day to day cost figures in order to keep track of cost increases or decreases to estimate unit prices, or change, adopt and plan new methods of operations in the construction field. Efficient operations are kept very flexible.

A good management team has to review, to revise, to modify, and to stop all types of inefficiencies periodically in particular on overseas projects.

Each project is different and has to be approached in the most logical way, considering the Management Policy and of course the local conditions, the clients or the owners.

 Cost control is a must and has to be done in details, without creating an unnecessary pile of paper work. A very simple, but tight cost control systems is essential for successful and profitable operations.

 2. Material Procurement:

 " Material Take – off " is self-explanatory. Even at the estimating stages, materials, if not already done with the so-called " Bill of Quantity " have to be taken off, the construction drawings.

Total material requirements except minor details should be known, with its actual costs at the estimating stages of a new project.

Once a contract is awarded and the advance payment is made, the actual material procurement can commence, in the following sequence:

a)To use materials surplus from other projects or left in stock.

b)To issue purchase order for local purchasing

c)To purchase materials if not available on local markets from overseas.

 For overseas purchases the head office has to be contacted.

 At least 3 prices comparisons are common practice prior to procure materials on the international market. The same method is applicable for the local purchases, however may not be possible due to constant material shortages, or monopolized local industries. Material requisitions are prepared ahead of time based on the construction schedule and / or the requirement dates in the field.

For materials purchased overseas a minimum of 3 months is required and upon receiving such materials, the receiving procedure has to function.

Receiving reports are very useful documents.

The condition material is received has to be reported. Damaged and short received materials are reported to the underwriter of the marine insurance to claim compensation, and the purchasing department has to order replacement. Management in the field is receiving regular material status reports updated.

 3. Material Expediting

 The so-called Material Status Report as mentioned above, is part of material expediting. On large projects material expediting is a separate function on its own in particular for overseas procurement.

On smaller project this function has to be carried by management coordination. Expediting has a few very specific mile stone marks.

Date of purchase

Date of delivery   F O B

Date of arrival     C I F

Date of receiving (warehouse or site)

Conditions the material is received

Date of re-order (in case damaged)

Date of shipping

Date of receiving

 Upon receiving all these information’s in form of a report (status), construction delays caused by late arriving materials should be minimized and construction planning, scheduling can be done so, as to achieve stipulated completion dates and / or set-forth targets.

4. Project Planning:

Upon every contract award Project Planning has to commence into details. With every project proposal an overall general construction schedule is after the signing of a construction contract worked out in more details. It is the policy of the company to have contract and project managers, project supervisors (site agents) involved in construction planning, the sequence of operation, the choice of materials, equipment (the right equipment for the right job) formwork, labor local and expatriate supervision. The setting-up the company’s reporting system, change orders or design changes, the scope of work, the reporting of extra work, payment certificates all these functions are part of project planning.

 

5. Project Mobilization:

 The project mobilization is a key function to get any type of projects of the ground. The selection of equipment and manpower has to be planned among the management coordination and the responsible key personnel in the field. Depending on the availability of suitable construction equipment locally, the contract starting date has to be determined already in the project proposal. If special equipment required from overseas, the head office will assist and in order to do so the schedule, the requirement dates and the capital requisition forms are to be forwarded in order to expect prompt attention to any type of requirements.

 

Carry our equipment cost in the estimate. Consult our project managers or project supervisors in order to make the right selection at the right time.

The choice of good and suitable equipment, plants site installations is money on the bank for an efficient construction contractor.

Early completion dates on projects are money savers. The benefit has a lot of participants. (Read our employment conditions. The management is evaluating construction results only)

Additional overheads and paperwork are a burden not a gain to a company.

  

6. Project Personnel Requirement:

The same is applicable as just mentioned above. The management has to be very selective in requiting project personnel.

Do not keep personnel on a job just to perform a function a very specific function is the aim of management.

The head office has a wide selection of experienced construction people all trades and will assist in all respects.

Issue Merit Ratings on performance and experience, considering site conditions, which are in general rough. Transfer efficient and hard working personnel to other construction sites, or management functions and release "dead wood". Come up with Merit Rating reports twice a year to provide management with a clear and logical picture.

Continuation of employment is purely considered on performance and results.

  

7. Project Scheduling:

 As already highlighted all construction sites do have a construction schedule right from the starting date of a contract.

The type of schedule depends on the size of a job with the work involved. The common known Bar Chart is in principal sufficient. For turnkey complex jobs involving various different trades, functions and work-phases the CPM program can be considered.

A construction schedule is not building our job it should indicate our performance and work carried out, and therefore has to be updated monthly.

 S-Curves are to be established for man-hours, man-days used.

Cash flow reports are shown on the same S-Curves. Payments received against money spent.

  

8. Project Reports:

 All requirements for the monthly project report to be mailed on the end of each month are self-explanatory.

This is a must : In addition to the said requirements all information in respect to updated schedules including the S-Curves are essential.

  

9. Project Completion:

 A proper project completion report is combined with a Punch List and a Completion Certificates.

The completion certificate has in general 2 phases:

-         The substantial completion

-         The final completion

In particular on turnkey jobs, a plant, an installation, a building, a hotel….etc can be taken over by a client at the stage of substantial completion. Based on international contracting any type of penalty for late completion will cease upon receiving the substantial completion certificate.

This is important:

The client, the owner or the engineer (owners representative) have the privilege to punch list certain items on a construction job, to be rectified, to be changed, to be replaced or to be modified without, affecting an overall operation, a moving-I, or a commissioning.

Punch list items are to be re-worked and upon completion approved by the client. There may be some items, which are not included in the contractual scope of work and therefore have to be paid by the client.

 Once a punch list is approved as completed the final completion certificate is due and management has to insist on this.

From legal stand point of view this certificate is releasing a contractor from the contractual obligations, responsibilities, except perhaps the maintenance or a guaranty if so stipulated in the contract.

The said documents are required to close a contract file and avoid unnecessary disputes at a later stage.

 

General:

 As outlined above, this is what management calls Technical Coordination to supply the field with all requirements on material, equipment and personnel as when required and assist the field construction personnel up to the maximum extend, so as to achieve the most successful results, everyone desires. In order to function in a position as requested, fulfilling the duty and responsibility of such a coordination, the management will provide in assigning such duties full authority and competence, to purchase, order, delegate, assign and instruct all functions as outlined in the procedure.

 

All competences granted with this procedure are always in consultation with management and in the event such powers are misused or not to the benefit of the company, the management reserves the right to reduce partly or cancel such powers as and when required.

 

Following – Up Reports

  1. qThe following-up reports should be sent to the head office monthly with all the other required documents.

 

  1. qIt is of importance to be aware of projects coming up in the area from the planning, financial and workload distribution stand – point of view.

 

  1. qDo not reports project if you are not sure to have a good chance to sign a contract.

 

  1. qIt is the company’s policy not to tender jobs, however in the event official tenders are worked out, and the head office should be notified in stipulating tender conditions in particular bonds and / or other liabilities.

 

  1. qAlways indicate the name of the engineer, the consultant or the client in your reports. This is very important to take into consideration for other areas the company intends to take on new work.

 

  1. qIn the event of contract award, the head office is to be notified with contractual details, the price, the liabilities entering into and the general terms and conditions, predated general terms and conditions are available, which can be adapted to the local conditions if necessary, however the company would prefer to obtain a certain standard for all projects.

 

  1. qIn case a project is awarded to the competition, indicate the reasons like price relation concept or design; it is the company’s policy to know it competitors, so as to improve our own efficiency in all respects whenever required.

 

  1. qThe following-up report in general is also a fairly good indication for the head – office of how to allocate the equipment from project to project and various different areas and this would help with the overall planning.

 

 

 

Final Project Cost Summary

 

Project:

Currency

%

 

 

 

 

 

 

 

 

 

 

 

  1. 1.Onsite General Project Cost Summary
  2. 2.
  3. 3.
  4. 4.

     (Equipment List)

  1. 5.
  2. 6.
  3. 7.
  4. 8.
  5. 9.


Total Estimated Cost

 

Project Contingency    

 

 


Final Selling Price

 

 

 


Exchange Rate:  

 

Payment:

 

Advance payment                 % =

Local Currency                     % =

Foreign Currency                 % =

 

Date:  

 

 

 

 

 

Cost Summary

for Onsite General Expenses

 

Project:                                          

Currency

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Legal Fees / Stamps

Stationary

Telephone + Telex

Public Relation

Labor Relation

Postage / Airfreight

Photocopy

Progress Photography

Vehicle Insurance

Fuel + Gasoline

Lubricant

Entertainment

Local Travel / Air charter

Temporary Sanitary

Misc. Expenses

 

Sub – Total

 

      

Date:

Contract Award

Contract                                  &

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