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Project Cost Control &
Reporting
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R B Plant have
considerable experience in monitoring and controlling
project costs. We have developed over the years a
successful in house system which identifies initial budget costings together with committed and anticipated
expenditure which in turn identifies in good time
final completion costs. This allows time for the
Project Team to focus in on the problem areas and the
overall costs of the project. Our cost monitoring and
control software package has been adopted with success on
a number of multi-million pound projects and is extremely
flexible allowing the client to present the information
provided in a number of formats.
The costings are reviewed
during the regular internal contract review meetings and
on a frequency agreed with the client at the initial
stages of a contract.
Similar accounting
systems are used for both Design & Manage and Design &
Construction (Reimbursable) projects.
We have over the years
successfully undertaken design works against an agreed
Schedule of Rates for Engineering Services. Where possible
we agreed a ceiling figure with the client and control our
costs accordingly. Weekly timesheets are normally
submitted to the client for approval together with a
status report on costs expended to date and balance
remaining thus providing the client with up to date costs.
Certain clients require
their own discipline engineers to approve the per
discipline costs on a weekly basis.
Where additional design
works are to be undertaken these will be formally
identified and agreed with the client before commencement
of any such works. Normally these additional works will be
presented as an option to the client together with any
time/cost implication.
Typical Design And
Project Management Contract
We have within our
Quality Manual set procedures which set down the way in
which we control and monitor our projects. Whilst we have
high quality standards, it is important to have the degree
of flexibility to ensure each project is reviewed on its
own merit and the most appropriate strategy adopted.
However, assuming that we are in receipt of a reasonably
well defined project for which we had submitted a
quotation and had subsequently been awarded a contract for
undertaking the Design and Project Management works we
would generally carry out the works.
RBPC put a great deal of
emphasis on adopting the correct approach for each project
and ensuring the basis is sound prior to proceeding. Our
experience has consistently demonstrated that time spent
at the start of the project will ensure an agreed
specification and greatly assist the on-going phases.
Most importantly we are
in a position at a very early stage to advise on whether
the client has realistic expectations in terms of time,
cost and specification.
A Receipt of Order review
meeting would be held chaired by the Managing Director or
General Manager to determine the following:
(a) Appointment of a
Project Manager/Engineer
(b) Allocation of resources
(c) Programme
(d) Conditions of Contract – Technical and Commercial
(e) Policy on Suppliers and if necessary sub-contractors
(f) Policy on external Consultants or external Specialists
if required
(g) Methods by which Costs and Programme are monitored and
controlled
(h) Qualification of acceptance
If all of the above
criteria are fully satisfied the contract is accepted and
a formal acceptance letter is issued to the client. All
relevant staff who will become members of the Project Team
are simultaneously notified of their involvement by means
of an internal Notice of Project Organisation.
Execution of the Works
Having fully reviewed the
overall requirements of the project a suitably experienced
Project manager would be appointed to manage the project
on R B Plant’s behalf. The Project Manager
would normally be provided with a comprehensive
multi-disciplined Project Team, which would have the
necessary expertise and experience to successfully execute
the works.
The Project Team under
the guidance of the Project Manager would provide the full
range of Design and Project Management services to
complete the specified works.
A Quality Plan would be
prepared which would summarise the quality assurance
requirements for the project and would identify those be
elements, which would be measured throughout and on
completion of the project.
The deliverables for the
project would be fully identified and would be validated
and verified throughout the course of the project.
Design Phase
On award of the contract
we would arrange a launch meeting with the client whereby
all Project Team members would be introduced to the team
members within the client’s organisation. We would also
establish lines of communication between the client’s
staff and R B Plant’s personnel, circulation
of drawings, drawings/documents for approval, minutes of
meetings, etc.
We would normally expect
to prepare and circulate to all interested parties minutes
taken at all R B Plant attended meetings.
In addition, R B Plant
engineering staff from the relevant
disciplines will, if necessary, visit site in order to
obtain the site information and data necessary to complete
the design works.
Internal R B Plant
design review meetings would normally be
scheduled formally on a weekly basis with additional
discipline design meetings held as necessary.
Depending upon the
client’s requirements the detailed design would normally
be developed so as to provide the client with
comprehensive enquiry packages either on a single or
multi-discipline basis.
During the design phase
we would normally prepare purchase order requisitions
based upon analysis of quotations for long lead and main
items of equipment. Depending upon the client’s
requirements the placing of purchase orders and
procurement of such items are either undertaken by the
client or directly by R B Plant.
In either case we would
present the bid analysis and recommendations to the client
for endorsement prior to purchase.
R B Plant’s
Purchasing and Procurement Department is able to provide a
professional and efficient service for the client by
having existing relationships with all the various types
of equipment and service providers that are necessary for
most projects.
The annual spend of this
Department varies depending on whether projects include
purchase or are design only. However, the typical annual
spend figures are between £4m to £9m and have been up to
£15m. |