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
Sl

Trade /
Designation

Jr.Qs

Site QS

Project QS

Sr.QS

General Responsibilities

1) Site Tracking
2) Progress Updating,
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,
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
4) Claim Negotiation with Client for Star Rate ,Additional Works,
5) Mgmt Reports to H.O,
6) Review & Approval of MRs / P.O against Approved Available Budget
7) Ensuring the Cost Booking according to Cost Distribution in JDE System
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