Cost Types
- Lump Sum Costs
- General Prelim – Salaries, Facilities, Support Services
- Weighing, Load-Out and Seafastening
- Reimbursable at Man-Hour Unit Rates
- Expended Man-Hours for Engineering, Procurement
- Reimbursable at Cost
- Business Travel Expenses
- Reimbursable at Cost Plus
- Third Party Services / 3rd Party Engineering Services
- Tagged Materials / Equipment Packages
- Reimbursable at Measurement Qty Unit Rates
- Bulk Materials and Construction Labour
Project Cost Management
PROJECT COST MANAGEMENT
COMPLIANCE & RISK MANAGEMENT
TAXES
Project Planning & Control System
Work Descriptions
- SOW
- Requirements,
- Specifications
- WBS
CPM Analysis EPC
Schedule
- Master
- Detailed Plans
- Look ahead plans
Base line S curves
- Man hour
- Budget
Execution begins
- Performance Tracking
- Work Progress
- Cost Committed & Expended
- Performance review
- Performance variances - time, cost
- Trends/ forecast
- Management Decisions
- GO/NOGO
Goals & Objectives
- Project
- Corporate
Intermediate Deck
Stacking
Installation of Equipment, Multi-discipline Activities
Cost Projection
- Approximation of the resources needed to complete project activities.
- Cost estimates for all resources that will be charged to the project.
- Supporting detail must include:
Reference to WBS.
How it was developed?
Assumptions made.
Range of possible results.
Cost Optimisation
- Knowing Budget
- Cost conscious to all employees
- Historical Database
- High volume work front
Expectations- Engineering
- Derived schedule have to be followed
- Support Procurement by raising timely MTO’s
- Long lead items to be raised at earlier stage of project to ensure material availability
- Communication gap to be bridged among multidiscipline
- Deliverables should support Construction sequence
- Prime focus on Yard practices to be given
- Any changes in design should be immediately flagged up to construction during execution phase later comes the paper work
Expectations- Procurement
- Continuous follow up to be made with Engineering for expediting MTO’s
- Challenge Vendors in technical aspects for any delay claim
- Vendor assistance and support at yard to be coordinated in better way
- Alternate supply to be sourced at critical time/ reduce the lead time
- Delivery improvement to be negotiated before PO placement
- Frame agreement to be made in such a way that the terms matches with our process for bulk materials
- Derived scheduled to be maintained at all possible means
- Prioritizing the purchase based on construction sequence
Expectations- Construction
- Standardization of Construction norms for detailed works – System in place to refine the norms
- High speed automation machines – Reduce manpower and skill level requirements
- Improving Erection methods
- Respecting the process duration of E & P and their resource efficiency
- Elite resources – Field of expertise knowledge to be applied in our process to improve competency
- Improvement in Sub Contractor management
- Potential sources to be developed to tackle the crisis scenarios with reasonable expenditure
Monitoring HSE Performances
Rigorous inspection regime
- Daily HSE Inspection and Supervision
- Daily Pre-work Inspection
- Daily Area Manager Inspection
- Daily Joint-Trades Inspection
- Weekly Management Walk
- Weekly PPE Inspection
- Monthly Focus Inspection
Health, Safety and Environment
- Change in approach, from enforcement to advisory
- Good collaboration between HSE and Construction has led to a matured HSE culture within the team
- Implementation of HSE Culture Programs such as Cardinal Rules, PSI and Target Zero Observer has generated more interest within the ground staff
Planning Roles –Procurement
Procurement
- Develop and Maintain Schedule
- Develop Procurement Status Report / Expediting Status Report
- Progress Update
Planning Roles – Mechanical Completion and Commissioning
Mechanical Completion & Commissioning
- Develop Sub-system Schedule based on Commissioning priorities
- Progress Monitoring based on Sub-system activities
- Highlight area of concern and slippages
Conclusion
From PMT
- Project team to have a better control on resource expenditures
- To provide plan/forecast for timely support
To PMT
- To provide one stop solution to PMT so they can concentrate on construction activities
- Minimize external equipment usage
- Capture unbudgeted item and highlight to proposal team