Symmetrical Group

Policies and Procedures

CORE BUSINESS OPERATIONS\PROJECT MANAGEMENT


SG-PR-21-02 Phase 1 - Scope and Budget/Estimate


1. Understanding the Scope

It is important at this point that the estimate supplied by Symmetrical Group includes all aspects of the project that will ensure it is a conforming tender.  To achieve this it is important that the Scope or the Functional Specification is sufficiently understood and quantified in the tender to enable effective development of the estimate.


If in the opinion of the project manager significant improvements could be made to the tendered scope two tenders shall be submitted, one conforming bid and one that proposes solutions to the identified problems of the Clients scope.

2. The Cost of Safety

When estimating fixed price works an understanding of the Clients safety and permit to work system must be established to ensure that “the cost of safety” over and above Symmetrical Group's own safety policies and procedures is included in the tendered price.

3. Commercial Risks

All tendering or procurement processes have specific Commercial Risks that need to be allocated to Symmetrical Group, the Client or the supplier. These risks must be identified, evaluated and addressed prior to any tender being returned. Some examples of commercial risk are as follows:

Cash Flow – A solution to this might be to place terms on the client that will ensure that the funds will be reimbursed at intervals that will be acceptable to Symmetrical Group or perhaps payment of materials once landed on site.

Liquidated Damages – Symmetrical Group will never agree to contracts with liquidated damages with the directors approval and even then will request that damages be applicable to the outstanding aspects of the contract only.

Progress Payments - All Projects that will extend across more than a month the client must agree to progress payments being posted at the end of each month.

4. Suppliers or Sub Contractors

Many tenders have aspects that require suppliers or sub contractors.  Once these specialist materials and services are scoped potential suppliers/contractors are identified.  The scope and the list of tenderer’s (minimum of 3) must be approved by the Project Manager and Client (where applicable).  All procurement/sub contract aspects of a tender must be back to back with the lead contracts requirements to ensure that Symmetrical Group does not carry the risk of the suppliers/subcontractors.


Once the sub contract package is complete and approved by the Project Manager it can be dispatched to the tenderers.  This should always be transmitalled to ensure traceable delivery.

The preferred status contractor / tenderer list is based on:


All tenders and competitive quotes must be directed to the Project Manager for evaluation which should focus on the following:


At the conclusion of the evaluation process, all those that contributed can come to a consensus as to the most suitable.  The Project Manager has the final say on the selection of the preferred price to use in the tender. 

5. Checklist for Detailed Project Cost Estimates

In preparing a detailed cost estimate - have you allowed for

Costing

Cost ($)

Contingency costs


Travel / Accommodation / Meals / Taxi’s


Staff Salaries


Insurances


Capital spares


Design costs


Contract documentation costs



Risk

Cost ($)

Risk studies


Hazard studies


Job Hazard Analysis


Work alert



Support

Cost ($)

Training (including preparation / operating, maintainer training package and on-site courses for initial training)


Procurement


Any specialists required


Hire of outside consultants


Hire of special equipment


Hire of vehicles


Commissioning Engineers


Contract Supervisors


Off-site inspections / meetings etc (include customers travel, accommodation and transport)


Environment issues (impact on closure plans)


‘As Built’ Drawings (include underground services if applicable) & EDI input



Other

Cost ($)

FMEA (Failure Modes and Effects Analysis)


Tender preparation


Excavations


Cyclones - effects and allowances


Bad weather


Rock estimation


Drilling and Blasting


Poor ground conditions


Access problems


Quality control inspection on manufacturers (QC)


Night shift allowances



Direct costs including:

Cost ($)

       Demolition


       Electrical, Mechanical, Civil, Architectural


       Safety


       Fire systems


       Control equipment


       Computers - hardware & software


       Air conditioners


       Ablutions


       Site huts and facilities


       Mobilisation / de-mobilisation


       Inductions (gate passes) etc


       Engineering calculations


       Engineering specification - specific to project


       Transport for disposal / salvage


       Project Manager / Eng Superintendent / Safety representative


       Barricade, signs, safety cones etc


       Painting, protective coatings


       Preliminary Construction Program, also provision for detailed        program and it’s maintenance


       General cranage and transport


       Lifting studies


       Preliminary Design Engineering fees (including site visits)


       Detail Design Engineering fees (including site visits)


       Freight and any associated cranage


       Engineering reimbursable


       Procurement items


       Project or Process Audit


       Re-routing of existing services


       Financial Analysis


       General cranage and transport


       Escalation due to CPI or due to Foreign Exchange (may be excluded)



6. Forms Relevant to this Procedure

F-G-01 Memorandium

F-G-02 Facsimile Transmission

F-G-03 Document Transmittal

F-G-06 Monthly Management Meeting

F-P-03 Request for Quotation

F-P-04 Quotation Evaluation

F-P-05 Project Roles and Responsibilities Matrix

F-P-06- Flight Request

F-M-03 Project Kickoff Meeting Minutes

F-M-04 Meeting Attendance Form

F-M-05 Minutes of Meeting

F-Q-03 Corrective Action Request

F-Q-04 Non Conformance Report

F-Q-07 Technical Query Form

F-S-05 Task Planning / Risk Assessment

F-S-06 Monthly Safety Meeting Minutes




Date published: 25/07/2013


Document ID:

393

Last reviewed:

15/10/2009

Revision No:

17

Approved by:

..


* -25/07/2013 12:27:06 PM