Strategic Key in running a Project ; QS Point of View

by: Angky D. Angkasa, B.QS (Hons), IQSI

 

AngkyThere are four major points to elaborate in a Project :

1. Pre Tender Stage
2.Tender Stage
3. Post Contract Stage
4. Post Completion Stage

 

 

1. Pre Tender Stage

  • Carefully select tender advertisement in media to match with company’s objective and goal
  • Evaluate company work load, to minimize risk.
  • Analyse type of project, location, value of the proposed project.
  • Analyse company resources.
  • Analyse the background of the Employer; Government or Private or Joint Committee.
  • If possible study and evaluate the competitor
  • Study the construction method requirement and or prepare alternative applicable and economic method of construction.
  • Be familiar with any of consultant involved. Knowing their design will be helpful during construction.
  • Understand owner/company fund resources (Bank loan, Self funding, etc)
  • Study material and equipment resources to minimize cost of transportation.
  • Select proper supplier to be invited.
  • Select proper Sub Contractor to be involved.
  • Propose own construction period
  • Evaluate market condition
  • Other factors.

2. Tender Stage.

2.1. Evaluate the Tender Documents

  • Evaluate Conditions of Contract
  • Contract Period
  • Defect Liability Period
  • Type of contract to be used (Lump Sum or other)
  • Term of payment
  • Insurance
  • Employers right
  • Contractors right
  • Penalty
  • Retention period and the percentage
  • Etc

2.2. Analyse clauses advantages for both parties.

  • Study Architects and Engineers drawings and specification to understand the scope of works and the requirement specifications.
  • Understand Bills of Quantities produced by the QS Consultant to understand the scope of works and other matter related.

(It is important to know the type of contract, any provisional sum, any provisional quantities, etc related to the documents)

2.3. Site survey on location and make a report

  • From the survey report, we could get some recommendation in term of cost of permits, cost of connection fees for PLN, Telkom, PAM etc.
  • Project location.
  • Access to location
  • Site condition
  • Temporary accommodation required
  • Nearest materials resources
  • Materials and labor rates near location
  • Water level data
  • Etc

2.4. Study all data given to estimate project cost.

2.4.1 Man Power

  • Estimator experience
  • Data project cost
  • Labor cost
  • Data journal
  • etc

2.4.2. Materials

  • Latest quotation from suppliers or sub contractors
  • List of materials prices from suppliers
  • List of prices from materials journal
  • From similar project data
  • List of prices from logistic department
  • etc

2.4.3. Equipment

  • Estimator experience
  • Manufacture Data
  • Journal data
  • Previous project data
  • Etc

2.5. Estimate labor cost, materials and equipment cost.

  • Survey report could be helpful to do estimation.
  • Usually most contractors have business relationship with various sub contractors and supplier also have good and up dated prices record for every project.
  • Based on those above, previous data record are useful especially for similar future project.

2.6 Estimate the overhead, especially items in preliminaries, i.e :

  • Permits
  • Sign board
  • Communication
  • Temporary buildings
  • Guard house
  • Temporary lighting
  • Equipments and tools
  • Water for the works
  • Progress report
  • Setting out
  • Insurance
  • Etc

Preliminaries items are:

Initial cost items (i.e : temporary building)
Periodical cost items (i.e : Water for the works, temporary lighting, etc)
At completion cost items (i.e : demob equipments etc)

Based on proposed method of works, Priced Bills of Quantities, Contractor could prepare S Curve and Cash flow projection.

When prepare S Curve and Cash Flow projection, we should consider c Clauses related to the payment of progress of works.

Based on Cash flow, the contractor should decide if any additional fund is required to support the project.

2.7 After all requirements in tender document are covered, the next step is to evaluate content of tender proposal.

  • Proposed Tender Cost
  • Method of works
  • Time schedule
  • Organization and CV
  • List of major material
  • List of equipments
  • List of Sub Contractor / Main Supplier
  • Bid Bond
  • etc

3. POST CONTRACT STAGE.

After clarification and negotiation tender, the employer would decide the winner

Letter of Acceptance would be provided by the Employer, at this stage we could consider this as beginning of the Post Contract stage.

The Contractor should consider :

  • Analysing more detail about Conditions of Contract and administration

Provide Performance Bond in form of a Bank Guarantee as requested in the contract.

Provide all insurance required i.e : CAR, Jamsostek etc

  • Manage all project Cost related

Usually at the beginning of the project, expenses should exceed the payment from the Employer, Payment from the employer should cover the project cost and even contribute a profit.

Prepare schedule of project cost requirement based on Schedule of Works and to evaluate Master Program.

  • Prepare progress of works and propose a claim for Payment certificate including all agreed variations.

4. POST COMPLETION STAGE.

  • Summarise all progress of works.
  • Evaluate all variations and prepare Final Account.
  • Make a list of defects, and to ensure all defect finish within Defect Liability period.
  • Prepare claim for retention money as stated in the contract.
  • Prepare Project Cost Data Bank for future project.
  • Prepare project feed back report to the Company.

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Reference

  • B.Cooke – Contract Planning and Contractual Procedures
  • B.Cooke & W.B. Jepson – Cost and Financial Control for Construction Firms
  • CIOB – Planning and programming in Construction
  • UTM & ITM – Lecturer Note