4S08 PROJECT CONTROLS PROCEDURES Date File “File Reference” PROJECT TITLE: DESCRIPTION: SITE NUMBER: PROCEDURE NUMBER:
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Date: Time: Place Issued:
1. Int Introd roducti uction on This procedure describes the project controls necessary for the successful execution of a project. 2. Resp Respon onsi sibi bili liti ties es 2.1
Client Project Manager The Client Project Manager’s responsibilities include the following: Control of the Field Execution and requires the involvement of the entire field staff. Schedule and cost control and additional activities include: •
•
•
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Preparation of Project Controls Execution Plan. Developing Developing cost, schedule schedule and progress progress reporting and control control procedures, procedures, and the Work Breakdown Structure (WBS). Implemen Implementing ting a reporting reporting system for the above that enables enables effective management management of the project at all levels of responsibility. Continuous tracking and monitoring deviations from the Budget, Schedule, Project Scope, Commitments, Expenditures and Cash Flows
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Controlling and reporting on all project activities, progress, and costs.
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Developing Schedules.
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Establishing the systems, procedures and reports to enable the Construction Manager and staff staff to effectiv effectively ely manage manage their their work work includ including ing progre progress ss report reports, s, staffing staffing plans, plans, schedules and cost reports. Ensuring that a field filing system is in place.
4S08 Project Controls Procedures v4-0
3. Procedure 3.1. Project Control Procedures The project controls program for each project site must include: 1. Field Budget Development 2. Development of a change management system 3. Site Cost Control 4. Site Planning and Scheduling 5. Site Schedule Control
6. Reporting 7. Close-out procedures
3.2 Procedures Outlined 3.2.1
Site Budget A Control Budget must be input into a cost system to establish the cost baseline and will only be changed to reflect approved changes in scope. The primary purpose of a budget estimate is to establish a baseline for cost control of the project. All future cost deviations will be reported against the “original budget”. Some examples of this type of reporting are outlined below:
3.2.2
Change Management System This provides the means to control the project costs and schedule by early identification of changes to the original scope and definition in the control base, which includes control capital costs, engineering costs, and schedule variations from the approved Budget, Control Budget, and Forecast Cost so that timely review and decisive approval / disapproval action may be taken.
3.2.3
Change Reporting The Project Manager will be responsible for ensuring that monthly deviation status is reported on as part of the monthly project report. This status will include a copy of the change requests and the assessment of deviation impact to the Forecast. The Change requests and records will be updated and presented. Disapproved and cancelled deviations remain on the permanent Change register with no cost impact.
3.2.4
Approval of Documentation Change registers, with comments will be used to document agreements and to formally distribute the results of changes to the project management team. Appropriate signatures on the original changes will be required to authorise changes. The Project Manager will also be responsible for maintaining the record file for each change and for transmitting this file to the project members as required.
4 4.1
Cost Control: The project will be budgeted and controlled in accordance with a Project Code of Accounts
and Project Work Breakdown Structure. The project budget will establish the control budget for all project analysis and reporting functions. Cost control consists of the following major elements: Establishing the control structure and philosophy •
4.2
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Establishing a control budget
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Preparing forecasts
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Preparing cash flow and commitment plans
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Producing cost reports
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Project Controls will produce and update the Forecast Cost every month.
Cost Control Procedure The Current Budget and Forecast Cost for the site scope of work will be maintained by the Project Manager. This will be done by comparing and monitoring expenditures, progress and performance to the scope, schedule and budget included in the control budget and utilizing change management to identify and control approved variations to the current budget. Expenditures will be obtained via electronic download from the Finance System. Contractor progress and associated payment will be determined each month and reported in the Monthly Progress Report. The Site Progress System must be used to determine the status of contractor progress and payment. The Control Budget for contracted work is used as the basis of progress calculations. The Control Budget will reflect all approved deviations for change orders/Contract Modifications, budget shifts, design development deviations in an excess of the design allowance and changes in Issued for Construction (IFC) quantities. The calculation of progress will not be based on forecast man-hours, which could include deviations for direct labour productivity. The forecast manhours will however be used for manpower forecasting.
4.3
Cash Flow Forecasts Cash flow forecasts are required to be issued periodically with payment certificates and as requested by the Project Manager. These forecasts shall be based on procurement and contract payment terms and in accordance with the latest schedule. The plan and schedule must reflect the approved scope of the project as known. Project scope must be defined before a good project level schedule can be completed. 5 Planning 5.1 Preparing the project plan consists of developing the Work Breakdown Structure (WBS); understanding all of the project objectives, requirements and restraints which have a bearing on the timing and sequencing of the work; and developing this information into the project logic plan. Once the project logic plan is completed, the planner/scheduler begins the process of scheduling. Four base levels of schedule are used: •
Master Schedule Level (Level I)
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Management Level (Level II)
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Project Level (Level III)
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Control Level (Level IV) These schedules must be configured in a "roll-up / roll-down" format. Schedule development begins at the Master Schedule Level (highest) and is rolled down through the Project Level to the Control Level (lowest). Reporting begins with the Control Level
(lowest) and is rolled up into the Project Level and then into the Management Level schedule and then into the Master Schedule Level (highest). Updating a schedule consists of the following three (3) basic steps: •
•
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Status the actual progress and forecast to complete Incorporation of new information, which may require adjusting the schedule logic and durations Analyses of variation(s) to the target schedule
The Contractor’s schedule will be produced within 14 days of contract award and will conform to an agreed upon milestone schedule contained in the signed contract. These activities shall be of sufficient detail to ensure an appropriate basis for monitoring and evaluating the sequence of the Work and shall include major constraints and interface points. Narrative schedule analysis reports will be completed from each contractor and presented in each monthly progress report. The Contractor will provide look-ahead schedules every 2 weeks in accordance with the Contract Project Level Schedule. Project schedules are to be monitored weekly and updated bi-weekly to determine that critical milestones are being met and those activities are progressing as required. The Critical will be determined by those activities with the least amount of total float. Critical path activities control the overall duration of the project. An activity with less than 10 days total float is critical and will require thorough monitoring on a regular basis to ensure timeous completion of the project.. Schedule Alerts will be issued to advise project management of factors that might cause a change in the established schedule for the project. Early detection of these factors is the key to taking remedial action to mitigate the impact to the completion of the project and it will be the responsibility of the Project Manager to ensure that the factors that may delay the project are resolved. 5.2 Reporting Monthly Progress Reports will serve as the base document from which the Project Management Team will utilize for overall reporting of the project to the client. The site Monthly Progress Report will be incorporated into the Project Management Team report and will provide a comprehensive picture of where the project has been, current status, or forecast relative to Control Budget and schedules. The report will empower management to take corrective actions that favourably impact the project if required. 6
Closeout It is important that each project provides actual cost data to the Client’s Project Controls system. Copies of each of the capital cost estimates prepared for this project must be archived at the conclusion of each project. A project completion report must be the accumulation of data from each of the major disciplines involved in the execution of the project. This document is a critique of how effective the project management effort was applied. Key focus areas should be: •
Financial Analysis Summary
•
Schedule Analysis Summary
This document should contain the in-depth analysis of the various elements of cost on the job. The primary purpose of the analysis is to provide historical data to be used in making better estimates for the future planning of projects.
Final Cost Reports must be retained in the client databases and the Project Controls library. The data contained in these reports should be the primary source of information to be used in analyzing future estimates.
Organisation……………………..Name……………………No of Copies……………………….. Acknowledgement of receipt of this document by the project team must be returned to the PM for records.
ANNEXURES AND ATTACHMENTS
1. Attachments The following attachments and flow processes provide the mechanism to implement Quality Control and assurance programme:
Baseline Change Proposal Register Baseline Change Proposal Project Change Log Change Control Procedure Flow Chart 2.
Key Definitions
PM
=
Project Manager
AO
=
Assignment Owner
Application of the pro-formas is thereafter intuitive and “self explanatory”.
Date : Project No
BASELINE CHANGE PROPOSAL REGISTER
Description Of BCP Request
Date Issued
Approved
BC P No
Not Approved
Sheet No Contract No
Comments
4S08 Project Controls Procedures v4-0
BASELINE CHANGE PROPOSAL
1) BCP No:
2) BCP Title:
3) Line Item No:
4) Project Title: Subproject Title 5) Date Received by the secretariat: Level 2 ……………. Level1……………. Level0……………. 6) Change Designation: Routine Priority Emergency
[ [ [
10) BCP Originator:
] ] ]
7) BCP Level: Level 0 [ Level 1 [ Level 2 [ 11) Phone:
8) Directed Change: ] ] ]
Yes No
12)Fax:
[ [
9) AO
] ]
13) e-mail
14) Change Description to Scope, Schedule, Cost, Quality, Risk, HR, Comm., Procurement (ref Change Request form from appropriate Plan attached)
15) Change Justification and Impact (If directed change, specify authority and attach change control request
BASELINE CHANGE PROPOSAL
1) BCP No:
2) BCP Title:
3) Line Item No:
4) Project Title: Subproject Title 5) Date Received by the secretariat: Level 2 ……………. Level1……………. Level0……………. 6) Change Designation: Routine Priority Emergency
[ [ [
] ] ]
7) BCP Level: Level 0 [ Level 1 [ Level 2 [
10) BCP Originator:
8) Directed Change: ] ] ]
Yes No
11) Phone:
[ [
9) AO
] ]
12)Fax:
13) e-mail
14) Change Description to Scope, Schedule, Cost, Quality, Risk, HR, Comm., Procurement (ref Change Request form from appropriate Plan attached)
15) Change Justification and Impact (If directed change, specify authority and attach change control request
BASELINE CHANGE PROPOSAL
BCP No: Impact on Cost Baseline Total Estimated Cost (TEC) Total Projected Cost (TPC) 18) Current
Approved Baseline
Change
Proposed
R
R
R
R
R
R
Project Budget
Change
Proposed
Contingenc R R y 19) Impact on funding (TEC+OPC=TPC): Project year Approved Budget Capita Operatin l g Previous Years Current Year Year 2 Year 3 Year 4 Year 5 Beyond 5 Years
Proposed Change Capita Operatin l g
R
Annual changes Capita Operatin l g
Proposed Profile Capita Operating l
Sub Total Total Budget *Include only the sum of those changes approved since the last budget update to show the total impact (shown in the last 2 columns) on the current budget 20) Funding source for TEC increases:
21) Impact on Schedule Baseline: Milestone Baseline (Month / Year)
Proposed (Month / Year)
Change
BASELINE CHANGE PROPOSAL BCP No: Impact on Scope Baseline: Item
Baseline
24) Other Impacts (Health, Safety, Environment, etc.):
25) Interim Corrective Actions:
Revised
PROJECT TITLE:
SUB PROJECT TITLE:
BASELEINE DOCUMENT
DATE
LINE ITEM NO:
SUBPROJECT NO:
TPC
TEC
LOG DATE:
BCP No
2.0.1
description of change
Disposition Date/Result Level Level 2 1
Baseline Changes Level 0
TP C
TE C
SCH
Con SCP
Reference: CPDS or ADS TP TE CO FY C C N
CURRENT APPROVED BASELINE
DISPOSITION CODES
AP – APPROVED CA – CONDITIONALLY APPROVED
DF– DEFERRED
EN - ENDORSED
RJ – REJECTED
AK – ACKNOWLEDGED
NOTES :
PROJECT CHANGE LOG
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T U P N I
Change Request forms and registers from Management Plans, ie Scope, Schedule, Cost, Quality, HR, Risk, Communications & Procurement
E R U D E C O R P
PM receives all Change Request Forms and Registers from Management Plans and meets with the AO concerned to assess the validity of the request.
Once convinced that it is a confide change request, the PM assesses the threshold level of the change, ensures that all necessary supporting detail is in place & refers the request to the appropriate Change Control Committee through the Project Controls system for decision by prepar ing a Baseline Change Proposal
Revisit analysis and continually review
FN
13
T U P N I
Change Request forms and registers from Management Plans, ie Scope, Schedule, Cost, Quality, HR, Risk, Communications & Procurement
E R U D E C O R P
PM receives all Change Request Forms and Registers from Management Plans and meets with the AO concerned to assess the validity of the request.
Revisit analysis and continually review
Once convinced that it is a confide change request, the PM assesses the threshold level of the change, ensures that all necessary supporting detail is in place & refers the request to the appropriate Change Control Committee through the Project Controls system for decision by prepar ing a Baseline Change Proposal
Leve
Leve
Lev
l1
l2
el3 Answer - No
Decision Recorded by Secretariat of the Committee
1.Conditional approval 2.Deferrment 3.Rejection
Yes 1.Change Approved 2.Change Acknowledged to implement in system
T U P T U O
Signed off Change Request sent to the AO for implementation, recorded in the project log and sent to all management plan holders f or adjustment of scope, schedule, cost and quality plans and reported at the next site meeting.
CHANGE CONTROL PROCEDURE
Endorsed
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