R B Plant Group

   

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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.