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-06 Monthly Management Meeting
F-P-05 Project Roles and Responsibilities Matrix
F-M-03 Project Kickoff Meeting Minutes
F-M-04 Meeting Attendance Form
F-Q-03 Corrective Action Request
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