Construction Management Final
Transcript of Construction Management Final
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Construction Management
Dr. G.INDU SIVA RANJANI. Ph.D (IITM)
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Definition
Management : Process by which a cooperative
group directs action towards common goals
Construction Management : is the art andscience of mobilising & managing materials,
equipment & money to complete the assigned
project on time within budgeted costs and
specified technical performance standards.
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Importance of management
In unpredictable fast changing
environment, to complete the projectwithin time, cost and quality
Basic ingredients in project management
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Functions of management
• Decision making
• Organizing
• Staffing• Planning
• Controlling
• Communicating• Directing
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Functions of management
Decision-making – action chosen from alternatives
Organizing – establish structural relationship among
functions
divide work into component activities
Define target and responsibilities
Allocate resources
Staffing – process by which managers select,
train, promote and retire subordinates
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Functions of management
Planning- involves deciding in advance, what,how and in what order is to be done to achievethe objectives
Planning time
What is to be done?
What are the activities involved?
How it is to be done?When it is to be done?
Where it is to be done?
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Functions of management
Planning time
All projects are time bound
It is time factor which determines the project cost
Project work breakdown
Modelling and analyzing networks
Scheduling work programme
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Functions of management
WBS
A Complex project is made manageable by breakingdown into individual components in a hierarchical order
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Functions of management
WBS
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Functions of management
Planning time
Modelling and analyzing networks
Traditional bar charts is inadequate - little information on inter-
relationship of the tasks
Network techniques are CPM, PERT and PNA
Common features
Develop network model for depicting time plan
Apply critical path concept- determine project duration
Employ network analysis for controlling project time
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Functions of management
Planning time
Selection of network technique
CPM is suited for package with activities with deterministic
time duration
PERT for projects with uncertainties
Five useful questions to ask when preparing an activity network are:
Is this a Start Activity?
Is this a Finish Activity?
What Activity Precedes this?
What Activity Follows this?
What Activity is Concurrent with this?
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Drawing the CPM/PERT Network
Each activity in a PERT/CPM Network is represented
by an arrow symbol.Each activity is preceded and succeeded by an event,
represented as a circle and numbered.
Functions of management
Planning time
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Planning time - Network analysis
TOTAL FLOAT is the amount of time by which it can be
delayed without delaying the project completion date.Total Float = Latest Start - Earliest Start
INTERFERING FLOAT Utilization of float of activity affects
the float of other activities in network. That part of total floatwhich causes reduction in float of successor activities is called
as interfering float
Interfering float = LFT of that activity ~ EST of succeeding
activity or zero
FREE FLOAT is the part of float which can be used without
affecting the float of succeeding activities
Free float = EST of following activity – EFT of that activity
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Planning time - Network analysis
INDEPENDENT FLOAT is the amount of float time
which can be used without affecting either the head or
tail events
Independent float = EST of following activity – LFT of
preceding activity-duration of present activity
The longest path in network is the critical path
Critical activities : Float is zero A delay in them will affect the all other activities following
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Planning time - Network analysis
PERT
Three time estimates for an activity
Optimistic time : shortest time (a)
Most likely time : modal time. If the activity repeated
several times under same conditions (m)pessimistic time : longest time (b)
Completion of a activity follows beta distribution
t exp = (a + 4m + b) / 6
Standard deviation which is a good measure of variabilitySD = (b-a) / 6
Variance = SD2
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Planning resources
• Resource plan shows when and in what quantity theresources are to be inducted at project site
– Manpower planning
– Materials planning
– Equipment planning
– cost planning
– Budget planning
Planning implementation
Technique to monitor the performance
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Functions of management
Controlling- monitor the performance and applycorrective measures in case of deviation fromthe plan
Communicating – ideas are transmitted to others
Directing (leadership)- actual performance of subordinates are directed towards commongoals
Provide effective leadership
Motivate participants behaviour
Communicating instructions and orders
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• Types of construction project
• Members of construction team
• Stages of construction project• Relevance to government
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Principles of management
• Guiding rules of laws for managerial action
• To improve organizational performance
– Division of work
– Authority and responsibility –hand in hand
– Discipline
– Unity of command
– Unity of direction – one common plan
– Subordination of individual interest to general interest
– Remuneration
– Centralization of authority
– Scalar chain
– Order – a place for everything and everything in its place
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Principles of management
• Equity
• Stability
• Initiative• Spirit of loyalty and devotion
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Organizational structure
Depends on the nature of project
Each project may be staffed by existing personnel in the functional divisions of
the organization. This arrangement is referred to as the matrix organization as
each project manager must negotiate all resources for the project from the
existing organizational framework.
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Organizational structure
Organization may consist of a small central functional staff for
the exclusive purpose of supporting various projects, each of which has its functional divisions as shown. This
decentralized set-up is referred to as the project oriented
organization as each project manager has autonomy in
managing the project.
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Problem on CPM
Information on activities required for a project is as follows.
Draw the network and calculate the earliest start (ES),
earliest finish (EF), latest start (LS) and latest finish (LF)
times of each of the activities
Activities A B C D E F G H I J K
Node 1-2 1-3 1-4 2-5 3-5 3-6 3-7 4-6 5-7 6-8 7-8
Duration (days) 2 7 8 3 6 10 4 6 2 5 6
P bl PERT1
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Problem on PERT1 Activity predecessor Most
optimistic
time
Most likely
time
Most
pessimisti
c
A - 4 6 8
B A 5 7 15
C A 4 8 12
D B 15 20 25
E B 10 18 26
F C 8 9 16
G E 4 8 12
H D,F 1 2 3
I G,H 6 7 8
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• Construct arrow diagram
• Determine critical path and expected project completion
time
• Determine probability of completing project in 55 days
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PERT 2
Job a m b
1-2 3 6 15
1-6 2 5 14
2-3 6 12 302-4 2 5 8
3-5 5 11 17
4-5 3 6 15
6-7 3 9 27
5-8 1 4 7
7-8 4 19 28
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• Draw project network
• Calculate length & variance of critical path
• Approx probability that jobs on critical path willbe completed by due date of 42 days
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PERT3
Activity Preceding
activity
a m b
A None 2 4 12
B None 10 12 26
C A 8 9 10
D A 10 15 20
E A 7 7.5 11
F B,C 9 9 9G D 3 3.5 7
H E,F,G 5 5 5
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• Draw project network
• PREPARE ACTIVITY SCHEDULE
• Calculate length & variance of critical path
• Approx probability that jobs on critical path
will be completed by DEAD LINE OF 30
WEEKS
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Cost control
Cost accounting different from financial accounting
Cost accounting concerned with the quantity of materials, labour
productivity in addition to money value
Classification of construction costs
Direct costs: cost that can be correlated to a specific activity
Cost of materials, labour and other expenses
Direct material cost covers all cost which becomes a permanent part of the
project
Direct labour cost covers net expenses namely basic wages, overtime andallowances for all category of workers at work site
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Cost control
Indirect costs : all costs attributable to a
given project but cannot be identified with
the performance of a specific activityProduction overheads – indirect manpower
(supervisors), indirect materials (consumables)
External support service costs
Administration overheads
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Cost control
Indirect cost Can be variable or fixed
Variable cost tend to vary with volume of production
Ex: telephone running expenses, office stationary
Fixed cost do not change appreciably with volume of
production
One time cost like camp construction cost or periodic
costs like supervisor salary
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Cost control
Control estimates
During feasibility study – idea on approximate cost of project –preliminary estimate
For cost control- master control estimate required –
prepared during planning stage Cost breakdown similar to work break down
Made up of direct costs, indirect, funds earmarked for contingencies and escalation
During execution stage master control estimate isrevised Production information for 3MS for future estimates
To take corrective measures to minimise cost at any step
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Cost control
Budgeting costs
Budget relates the cost with time progress
Budget – expected cost of performance under prevailing
conditionsStandards stands for cost achievable under efficient
operating conditions
Value of work performed implies monetary value of work
completed
Earned value analyses to measure project performance
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Cost control
BCWS- time phased schedule of a budget
BCWP- approved cost of work performed on data date
ACWP- Cost incurred on accomplishing work on data date
Cost variance = BCWP – ACWPSchedule variance = BCWP – BCWS
Cost performance index = BCWP/ ACWP
Schedule performance index = BCWP / BCWS
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Cost control
Project progress (%) = BCWP/ Budgeted cost
BCWP is sum of approved cost of all completed works
Cost overrun = BCWP- ACWP / BCWP
Time overrun = BCWP – BCWS / BCWP
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Cost control by network analysis
The following table shows for each activity needed to
complete the project the notrmal time, the shortest time
in which the activity can be completed of a building
contract and the cost per day for reducing time for eachactivity. The contract includes a penalty clause of Rs 100
per day over 17 days. The overhead cost per day is Rs
160. The cost of completing 8 activities in norma time is
Rs 6500.
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Activity Normal time in
days
Shortest time
in days
Cost of
reduction per
day (Rs)
1-2 6 4 80
1-3 8 4 90
1-4 5 3 30
2-4 3 3 -
2-5 5 3 40
3-6 12 8 200
4-6 8 5 50
5-6 6 6 -
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• Calculate normal duration, its cost and
critical path
• Ca;lculate plot on graph cost/time function
for project & state
– Lowest cost & associated time
– Shortest time & associated cost
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Arbitration
Arbitration is the means by which concerned parties to a
dispute get the same settled through the intervention of a
third person „Arbitrator‟ but without having recourse to a
court of law
To cut down expenses and time involved in a prolonged
trial in a court of law
Arbitrator is chosen by parties to decide between them
Arbitrator hears through the pleadings of both parties
and give decision which is called as “ award” which shall
be binding to both parties
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Arbitration
• Regular appointment of arbitrator either through a letter
from competent authority of arbitration agreement or
through a courts order
• Arbitrators live span covers from the date, arbitrator
enters on the reference for the first time and date of
signing and publishing his award
• Award should be published within time frame of 4
months laid down in schedule of arbitration act where nospecified time limit is specified
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Arbitration
Subject matter
Matters civil in nature are referred to arbitration
Disputes and questions related to
Ambiguity in specifications
Designs
Drawing & instructions
Quality of workmanship
Quality of materials used
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Arbitration
• Fixing dates of hearing
• Arbitrator should give atleast 15 days clear notice for fixing dates of hearing
• Fix the dates after mutual consultation with both parties before him
• Conduct of proceedings by arbitrator
• Arbitrator has legal right to call upon any person connected withdisputes to give evidence before him
• Reasoned award - as per arbitration act, it is not mandatory to give
reasoned award (if total claim is above Rs 75000 and above)
• Court remit award to arbitrators for reconsideration when it isobserved to be indefinite
• Each of the contesting sides may appoint one arbitrator of his choice
• Twin arbitrators appoint an umpire within 1 month as per law
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Arbitration
Powers and duties of arbitrator Administer oath to parties and witnesses
Take opinion of court, question witness and parties to
extent to ascertain facts
Make conditional award Award interest upto the date of award
Grant installments and time of payment
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UNIT 4
Cash flow control
It is the management of system so that an optimum amount of
cash remains in the project fund so as to continue the project
at planned speed
Inflows to project fundOwners investment
Bank as loan
billings
payables – aggregate summary of cost forecast of
individual items
Fund flow
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Fund flow
• Movement of fund in an organisation
• To estimate cash level in short term and plan accordingly
Cash inflows
Sale of goods
Owners equity
Balance cash requirement covered by debt financing
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Cost control
Costing
Method of estimation of production cost
Production cost = direct cost + indirect cost
Labour cost = labour effort in man-hours x std labour hourly
rate
Labour hourly std cost =
annual estimated labour cost / annual productive hours
Materials cost = materials consumption quantity x standard
materials unit price
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Cost control
Materials std price
Is the estimated all in price of unit quantity of an item
delivered at project site
It is fixed and does not change with market fluctuations
Simplifies estimation, planning, budgeting and control of
material costs
Difference between standard price and actual price isanalyzed at time of accounting costs
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Cost control
Equipment utilization cost = equipment utilization hour x std
equipment hourly rate
Equipment hourly std rate =
Owning cost per hour + operating cost per hr
Where owning cost = depreciation
And operating cost = fuel cost + maintenance + major
repair + operator cost + tyre replacement cost
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Productivity
Productivity
Labour productivity
Defined as output per labour hour.
measure of overall effectiveness of a construction work
system in utilizing labour, equipment and capital to
convert labour efforts into useful output and is not a
measure of capabilities of labour alone.
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Productivity
Site productivity
Work size
Work site accessibility
Labour availability Local climate
Work culture
Contractual agreements
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Material management
• Ensures that the quantity and quality required are on job as
per requirement
• Project manager concerned about material handling problems
• Lead times for material delivery are normally included in
project network
• Delay in material procurement creates material shortage
causing idle labour and time loss
• Indent, arrival and inventory of raw materials• Materials classified as bulk, std items and fabricated items
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Inventory control
• Inventories consist of raw materials, work-in-progress, spare
parts and finished goods
Types of inventory
Movement inventory –transit inventory
Buffer inventory – safety stock Anticipation – specialized items like crackers, umbrella
Decoupling inventory – disengage different parts of production
system- even if a machine break down, the work on others
would not stopCycle inventory – purchases are made in lots than for exact
amount at a point of time
Inventory control
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Inventory control
Inventory decisions
How much to order
When to place order How much safety stock to be kept
Inventory costs
Purchase cost – purchase price for items bought from outside
sources or production cost Ordering / setup cost /procurement cost- cost associated with
processing and chasing of purchase order, transportation,inspection.
Carrying cost – holding/ storage cost – cost associated with
storing an item in inventory Stockout cost- cost associated with not serving customers –
shortages – internal –production loss- external – loss of customer goodwill.
Inventory control
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Inventory control
Inventory management systems
Fixed order quantity system – reorder level is determined – when stock reaches this level, a fresh order is made –
size of order is fixed and not the time
Periodic review system – time after which supplies of
orders are made are fixedFixed order quantity system
Classical EOQ Model
Assumptions
Demand for item is certain, constant over a period of time
Lead time is known & fixed
Per unit ordering and holding cost are constant
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Inventory control
• Purchase price is constant. No discount available
• Inventory is replenished immediately as stock level reaches exactlyequal to zero.
Inventory cycle : interval between two successive points when orders
are placed
T(Q) = O(Q) + H(Q)
O(Q) = N X A
O(Q) = Total annual ordering cost
N- No of times order is placed per year
A- cost per order
H(Q) – Total annual holding cost
H(Q) = Q/2 * h
h- unit holding cost
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Inventory control
Suppose if demand and lead time variable there is need
to provide for safety stock
Demand rate during lead time is in excess of forecasted
Delivery of goods delayed
Reorder level = expected demand during lead time + safety
stock
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Financial management
• Knowledge of financial mgt is essential to takeappropriate decisions in construction trade
• Financial aspects• Return & risk of investment
• Choice & limitation of financing• Basic concept of investment is time value of
money
• Investor prefers investment that gives retunsearlier
• Concerns of investor are• Timing
• Quantum of return
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Financial management
Discounted cash flow techniques
– NPV
– IRR
NPV
Positive NPV means profit
IRR
Rate that equates present value of a stream of future cash
flows to cost of initial investment
R is solved by trial and error method
IRR greater than cost of capital, project is acceptable
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Financial management
Diff between NPV & IRR
NPV method discounts all proceeds at firms Cost of
capital
Implicitly assumes that proceeds can be reinvested at
this rate
IRR assumes that cash flows can be reinvested at IRR
Cost of capital is constant over a time period
NPV assumption is better one
IRR is easier to use
Fi i l t
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Financial management
Risk : variability of possible return is known as risk
Depends on competition, market condition, cost of rawmaterials
Cost of capital is the cost of raising capital which isrequired to deploy in the proposed project
How to raise capital?
Borrowing
Cost of debt : interest payment associated with it
Cost of equity capital :all stockholders receive dividendfrom their investment
Defined as the rate of discount that equates presentvalue of all expected future dividends with the marketprice of stock
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Financial management
Cost of retained earning
Cumulative profit that has accrued over time and has not
been distributed to the shareholders by the firm
Working capital management refers to all aspects of
mangement of current assets and liabilities
Management of working capital involves the following
Conversion of fund to inventory
Inventory to accounts receivables
Account receivables to funds
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Financial management
Management of cash
Transaction motive – cash required for daily affairs,
purchase, payment
Precautionary motive – predictability of cash inflow and
outflow. A reserve of cash required for normal flow (eg)delay in bill payment
Speculative motive- firm keeps a fund aside for new
profit making opportunity that may arise
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Financial management
Stochastic model
Assume demand for cash is stochastic i.e randomly
distributed one can set control limits after analysis of
previous demands from accounting records
Miller and orb model
Upper limit of cash –h, lower limit z
When cash touches upper limit h-z amount is transferred
to short term securities to earn interest
When cash balance touches zero, securities amounting
to z encashed to raise cash level to z
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Financial management
Financing working capital
Trade credits – credits advanced by seller to purchaser
Short term bank credits
Bank studies following before advancing loan
Whether nature of project eligible
Whether proposal has acceptable rate of return
Whether securities are available to bank
Whether proposal can be technically carried out
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Financial management
• Loan arrangement
• Overdraft - drawee is authorized to draw cheques to astipulated limit over and above his own credit balance.
• Cash credit arrangement –similar to overdraft. Borrower
draws up to a stipulated amount. In case amount is set
against hypothecation of goods, borrower may not
exceed the value of hypothecation
• Bill purchase arrangement –
• to supply credits to cater to the need for production.
• Borrower submit certified bill to bank andauthorizes bank to collect bill on behalf of borrower
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Financial management
Modes of securing risk Hypothecation – Banks provide credit against security of
movable property. Legal rights to sell the goods remain
with the bank.
Pledge – properties against which credit is secured are
tranferred to bank custody (share certificates, gold etc)
Mortgage – bank advance loan against mortgaging an
immovable property.
Financial management
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Financial management
Intermediate term financing
large sum of investments that might take several yearsto invest like building a plant.
Investment produces benefits for several years
Debt scheduled for repayment in more than one year butin less than 7 to 10 years.
Term loans and lease financing are common methods to
mobilise capital
Term loans
Banks, state financial corporation, Industrial
development banks
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Financial management
• Bank may evaluate repayment schedule
• Firm evaluates whether PV of net cash flow justifies the
loan
To minimize risk of default , bank impose following
restrictions
o Financial information – to supervise present status and
future plans of company- present and projected balance
sheets
o Additional debt – prohibitions against incurring additional
debts
o Management – any major change in management
requires prior approval from bank
o Financial status - firm may be obligated to maintain the
current ratio during the currency of debt.
Financial management
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Financial management
Lease financing
A lease is a contract in which the lessee is to make a
series of payments to the lessor for the economic use of
an asset owned by the lessor.
The ownership rights lie with the lessor Financing non profit and public sector project
Financial analysis of Public projects can‟t be compared
with NPV or IRR. Political factors, resources availability
need to be also considered. In private sector, primary purpose to do business –
measured by money. So techniques like NPV can select
desirability of project.
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Financial management
Benefit - cost analysis
Whether policy contributes to well being of society
Cost & time schedule of project is first determined
Returns are quantified – difficult to estimate (eg) benefits
of water supply system construction- reduction of
mortality
Inflows and outflows occur at different time periods,
principle of time value of money is considered
Benefit and cost is only an estimate
Various infrastructure projects can be ranked with benefit
cost analysis
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Estimates
Consultant gives owner clear ideas of
• Approx volume of materials required
• Probable cost of complete project
• He need to work out estimates so that owner may get
prepared
Rough cost estimate
Preliminary estimate based on schematic drawings of
project using
Unit rate estimate – product of unit rate and number of
units
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Estimates
Plinth area estimate –total space built up against totalcost of project
Rate based on volume of building – includes half thedepth of foundation but parapet is excluded
Detailed estimate Based on actual work drawings
No variation with actual values
Required for technical sanction and approval of project
First find out all rates per unit including profits Cost of each item = unit rate X calculated quantity of
item
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Estimates
Revised estimate
This is made when there is a change amounting to more
than 5% of original value due to price hiking or change in
specification
Supplementary estimate
Required when some of items are overlooked during
preparation of original estimateTotal estimate
Complete estimate which furnishes total cost of project
Labour legislation
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g
Why labour legislation is necessary?
To fix terms of employment Proper working conditions
Social security
Cordial relation between employers and employees
Labour and industrial laws
Concerning payment to labour Payment of wages act, 1936
Minimum wages act, 1948
Employee state insurance act, 1948
Payment of bonus act, 1965
Employee provident fund, 1952 Payment gratuity act, 1972
Relating to working conditions
Social security and civil rights of labour
Labour legislation
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g
Contract labour is the employee of main contractor
Main employer is not responsible for provisions of workers employed
by subcontractor
Worker is entitled to day of rest in each week with full payment
Beyond normal working hours – overtime allowance
Employer should maintain registers and record
Govt should employ inspectors for enforcement of act
Employees can claim when violations against provision occur (within6 months)
Minimum wages act
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Minimum wages act
• Prevents exploitation of labour by employers
• Wages includes all remuneration including all allowances,bonus but does not include house rent, water, electricity
charges, medical allowance, pension and gratuity
• Provision for fixation of minimum rate of wages
• Wage is paid as time rate or piece rate basis
• Different minimum rates are fixed as per
– Class of work
– Type of personnel employed
– Location of work
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Minimum wages act
• Rates are revised after every 5 year interval• Provision for weekly holiday with pay
• Overtime payment at double the minimum rate
• Employee should maintain register
Payment of wages act
Wages to be paid promptly
If person is terminated his wages to be settled within 2days of termination
Applicable for salary less than Rs 1600 per month
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Payment of gratuity
• Gratuity shall be payable to employee on termination of his
employment after his continuous service for not less than 5
years
– On his retirement, resignation or
– On his death or disablement due to accident
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Factories act
• Health, safety, welfare, working hours, annual leave,
accidents and penalties are taken care of
• Health – arrangements for proper cleanliness, disposal
of waste, ventilation, comfortable working temperature
• Safety –proper precautions against fire, explosives , first
aid equipment, ambulances
• 8 hrs / day work not more than 48 hrs per week
• Worker engaged on holidays –compensation leave
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Workmen‟s compensation act
• To provide social security to workers
• Compensation to be paid to workers in case of accidents
sustained during course of employment
• Amount is decided upon its seriousness
• Financial relief is given for following cases
– In case of death
– Occupational diseases
– permanent / partial disablement• Financial relief not given when
– Disability does not last more than 7 days
– Injury not resulting in death caused due to negligence of
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Relation between management and labour
• Critical and important human relation area
• Day to day operations & ultimate success of the project
• Manager has to understand basic labour relations &
labour laws
• High productivity & reduce work stoppages
I d i l h l
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Industrial psychology
Objective
Improve production
Keep up the motivation
Application Remove fatigue –limit working hours
Realize the role of project in national development
Relations between employer & employee should becordial- during sickness & death visits essential
Factors influencing selection of equipment and
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g q p
machinery
Task considerationsnature of task and specifications
rate of work required
Daily or hourly forecast of planned production
Quantity of work & time allowed for completion
Site constraints
Accessibility to location
Working space restrictions
Altitude and weather conditions
Working season & work hours
Availability of eqpt hiring, repair & maintenance
Availability of fuel, oil & lubricants
Factors influencing selection of equipment
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Factors influencing selection of equipment
and machinery
Equipment suitability
Type of eqpt considered suitable for task
Production capability, serviceability condition &
delivery time of each equipment availableOperating reliability
Manufacturers reputation
Use of std components
Warranties & guarantees
Safety features
Factors influencing selection of equipment
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acto s ue c g se ect o o equ p e t
and machinery
Maintainability
Ease of repair & maintenance
Availability of spare parts
Economic considerations
Owning costs
Operating costs
Replacement cost of existing eqpt
Commercial considerations
Buy second hand or new eqpt
Rent eqpt
Purchase on lease
H d f t ti d th i ti
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Hazards of construction and their prevention
Causes of accidents
Falls-70-80% of all fatalities & 40% of all injuries
Stepping on or striking against objects-10%
Lifting and carrying – over-exertion-25% workers lose abilityto work
Machinery
Electricity
Transport
Fires & explosions
Hazards of construction and their prevention
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p
Excavations
Main causes for accidentsCollapse of sides – mechanical failure of soil-vibration of
vehicles- collapse occurs very quickly – rescuing is difficult
Falling of materials & men into trench
Ways to prevent collapse
Timbering – supporting sides- diaphragm wall – deep
bored piles- fence at top
Battering sides to a safe angle –not greater than 45 and
not less than 30
Effective communication between people working in and
out
Check on Dangerous atmospheres
H d f t ti d th i ti
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Hazards of construction and their prevention
Erection of structural framework
Accidents due to
Erectors falling from heights
People at lower levels struck by objects
Collapse of framework
Prevention
Designer with good knowledge of safe erection procedures –
temporary bracing
Communication between designer & contractor – to put extra
loading
Safe ladders, safety belt, assemble at ground, safety nets
Safe use of cranes
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• Hazards
– Structural failure of one of its elements
– Dropping of suspended load
– Trapping of people between moving superstructure of
mobile crane and nearby object
– Incorrect erection procedure
– Electrocution –if jib touches live overhead powerline
• Precautions
– Identify the weight & centre of gravity of load to obtain the
correct position of lifting
– Safe working load to be determined to avoid overloading
– Max lift height for load
– Do not pass under suspended load
Tunnelling
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Tunnelling
• HAZARDS & PRECAUTION
– Burial from ground collapse –conventional timbering
– Inundation
• Even trickle of water should be sealed
• Emergency lighting
• Uncluttered walkways –escape route
– Fall from working platform
– Atmospheric pollution –CO fumes from vehicles
– Effective communication
– Safety audits
Unit 5
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Procedures adopted in PWDs and CPWD
Organization structure of PWD
Minister (public works)
Secretary (IAS Cadre)
Chief Engineer
SE
EE
AEE
JE
Accounting procedures
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Accounting procedures
• Accounts of PWD maintained with certain procedures• To ensure smooth & efficient functioning at all levels
• EE is responsible & he maintains detailed account of allpayments & receipts in his division
• Accounts audited by Accountant General Administrative sanction
Formal acceptance of proposal of work by administrative
dept
Approval is obtained by explaining proposal along with
its preliminary estimate
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Technical sanction
Order passed by competant authority by sanctioning
detailed estimate of money for work to be carried out by
PWD
After this sanction only invitation of tenders for execution of work can be done
Types of bills
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yp
First and final bill
when only a single payment to be made for a contract on itscompletion
Used for small or petty works
Value of bill does not exceed Rs 500
Running account bill
Also called as Form C in technical terms
For works executed both on piece work system as well as for
supplies received. For medium size works in which part bills in white form and
final bill in yellow forms.
Types of bills
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Final bills
payment made on running account to a contractor on
termination of his contract.
Passed by Executive engineer incharge
Based on detailed measurements only.
Maintenance of imprest account
Imprest denotes standing advance of a fixed sum of money
given to a person in order to enable him to make specific
classes of payment which may be entrusted to him.
Amount of imprest should not exceed Rs1000
In order to enable subordinate staff to make petty cash
payments, amount of imprest is sanctioned.
Guidelines regarding maintenance of
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imprest cash account
Payments should be entered daily
Should be attached with vouchers and serially
numbered.
One copy of imprest form should be sent to executiveengineer and counter foil should be retained by imprest
holder
Account should be balanced from time to time for convenience of imprest holder
Temporary advance account
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Advance money given by executive engineer to his
subordinate officer temporarily to enable him to make
payments on vouchers which have already been passed for
payment
Temporary advances are not recoupable and account should
be closed as soon as possible.
Cash book
Has 2 sides – receipt side and payment side
On receipt side there is a money column –deals with cash
On payment side one more column to deal with cheques
Deals with receipts & payments made through bills and
vouchers
Cash book
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All transactions to be recorded at actual occurrence time
Pages are machine numbered and no page or line leftblank
Corrections & overwriting to be avoided
Work register
Contains permanent and cumulative record of
expenditure - month by month during a year – on each
item of work
so that actual expenditure can be compared with
estimates
Kept by EE
Accounting for consumable materials
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Accounting for consumable materials
• Materials required for works available from differentsources
– Suppliers
– Other works through Tranfer Entry order (TEO)
– Stock
• All the above constitute receipt column in Materials at
site (MAS)account
• In MAS account, cost of materials used and cost of
balance materials to be accounted at any time
Record for tools and plant
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Record for tools and plant
• Whenever tools and plants are received from suppliers,
entries made in registers.
• When tools supplied to contractors, dated
acknowledgement is required• Entries made in T and P register shows the consolidated
account of transactions for one year
MBOOK
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MBOOK
• Measurement book is original record – actualmeasurement of work done is legibly written
• Count of all supplies received so that payments can be
made to contractors for work done.
• Solid evidence in court of law
M-book should have following features:
Pages to be machine numbered
Register of all measurement books to be maintained –
date of issue &return
MBOOK
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MBOOK
Written legibly – no one to record measurements other
than person authorized
No blanks to be left
Name of contractor, full name of work, date of commencement of work should be given before
measurements are recorded.
Corrections should be attested
Index column
SE can take disciplinary action if book is lost
Nominal muster roll
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Attendance record of daily labour employed
Work completed by them and amount payable
Maintained by Junior Engineer
Daily labour report
Submitted by junior engineer to assistant engineer daily
Contains:
Name of work on which they are employed
Number of labourers
Class of labour
Approx value of work done