Project Cost Controeditedl

8/7/2019 Project Cost Controeditedl

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Project Cost ControlProject Cost ControlProject Cost ControlProject Cost ControlProf. A.L. AgarwalProf. A.L. Agarwal


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Related TermsRelated TermsRelated TermsRelated Terms

-- Cost PlanningCost Planning

-- Cost ControlCost Control-- Cost ReductionCost Reduction-- ValuationValuation-- EstimationEstimation-- Value Analysis / Value EngineeringValue Analysis / Value Engineering


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OBJ ECTIVES OF CO ST C ON T RO LEnsuring Estimated ProfitOv erall F inancial Control by Matching Costs &Value of Work Done

Locate Areas of Inefficient/ efficientF unctioningProv ide data for Cost ReductionSer v e As Database for Estimating

Identify Scope for Rev ision in Sub-contractRatesIdentify Areas for Recov ery from O wners


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PRO CESS OF CO ST C ON T RO LEstimate/ Budget

ControlAccumulateReporting

Correcti v e Action


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ESTIMATI ON / BU DGETIN GPre-tender Planning Site Survey Resources Availability,

Rates Time Limit Schedule Method of Execution Cash FlowPost-tender Planning

Execution Methodology Organisation Mobilisation Sub -contracting Schedules Cash -flow


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CON

T RO

L Execution Methodology Delegation Vendor/ Sub -contractor Selection Negotiations Quantity Survey Quality Security Internal Audit


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ACCU

MU

LATE Accounting Methods Cost Codes Integration with Other Departments


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REPOR TI N G Physical Progress Performance Against Budget Variance Analysis Productivity Reporting


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Progress Report SamplesProgress Report SamplesProgress Report SamplesProgress Report Samples


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HOTELDAILY PROGRESS REPORT

Sl.No Description Target Date Total Qty. Previous day Qty

A Basement (Grid F-C) / 20-28

1 Excavation 05-04-05 5200 5200

2 Excavation for footings 05-04-05 600 600

3 PCC 08-04-05 17 17

4 RCC for Footings/Padestals

18-04-05 142 125

5 RCC for total columns 22-04-05 75 32

Client: pqr Pvt. Ltd. Start Date 10/03/05Consultants: X&Y End Date 15/02/06Contractor : ABC Division Date 28/05/05


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Progressas on date

CumulativeQty

%Achieved Remarks

5200 100% Qty increased due to hard rock near 26 th grid (reqd 1v1 581.00

600 100% Completed

17 100% Started on 12/04/05, complete on 11/05/05

125 88% Started on 13/04/05 Footings completed on 19/05/05

32 43% Started on 16/04/05


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ABC LimitedECC DivisionPhysical Weekly Progress Report Supply (Major Items)Zone: South & East (Domestic)Region: HYRO / B&F AAName of the Project: Hotel At ABCJob No.:HBBH3537Report NO:6 dated: 28/05/05Period From: 2/05/2005 To: 28/05/05

Original Contract Value : 100.5 LRevised Contract Value: 100.5 LContract Start Date : 10/3/2005Contractual Completion Date:15/2/2006Expected Completion : 15/2/2006

Sl.No. Description UnitQty in Stock Required at Site by

1 Cement Bags 106287 31-12-05

2 ReinforcementSteel MT 975 31-08-05

3 Structural Steel MT 18.42 31-09-05


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Qty Balance QtyRemar ks

TotalQty (asper Contract)

ActualTotalQtyReqd.for theProject

Order Placed(Qty)

Order PlacedOn

Exptdreceiptat site by

Actualreceiptat site

Balanceto besupplied

Committed Datefor supply of balanceitems

Actiontaken

106287 106287 5664 02-04-05

27-05-05 4900 764 Order placingonmonthly

975.00 975 1030 26-05-05

30-05-05 800.00 230.00 Order placing

onmonthly

18.42 18.42 0 NA NA NA 18.42 16-06-05


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ECC DIVISIONPHYSICAL WEEKLY PROGRESS REPORT SITE EXECUTION

Zone: South & East (Domestic)

Region: HYRO / B&F (I&CB) Sector / BUName of the project: Hotel at Cyerbabad Convention CentreJob No.: HBBH3537Report No.6 dated 28/05/05Period From: 22/05/05 To: 28-05-05

Original Contract value: 100.5 LRevised Contract value 100.5 LContract Start date: 10/03/2005Contractual Completion date: 15/02/2005Expected completion: 15/02/2005

Total Qty Upto last Month (cumm)

S.No Activity Unit

Exptdqty asper

drgs /site

cond

Execution

period(Mths)

Askingrate/mo

nth

Planned

Achieved

% ageachieve

d

Planned FTM

Askingrate/we

ek

1 Basement(Grid D-F)

a Excavation Cum 5700 0.83 6840 5700 5700 100% 0.0 0.0

b PCC Cum 17 0.7 24 17 14.1 83% 0.0 0.0

cRCC for

Footings/pedestals

Cum 142 0.93 152 120 33.21 28% 22.0 5.5


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For the month of

Week # 4(from 22/05 to

28/05

Cumulative FTM tilldate

Cumulative tilldate Cumm-

Excess/Shortfall

Asking rate

for balance/Mt

h

Planfor

nextMont

h

ActionPlan

torecov

er Shortf

all

Actiontaken

&Statu

s

Remarks

planned

achvd

planned

achieved

%achvd

planned

Achieved

0.0 0.0 0.0 0.0 0% 5700.05700.

0 0.0 0.0 0.0 - -Completed

0.0 0.0 0.0 2.9 0% 17.0 17.0 0.0 0.0 0.0Completed

5.5 2.5 5.5 91.8 1669% 142.0 125.0 -17.0 17.0 17.0Nextweek

Delaycaused dueto latereceiving of drawings


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JOB COST REPORT(Figures in Rs.

Name of the job: Site Code Mont

h

Contractual date of commencement:Contractual date of completion:Original Contract value:

CostCode

Description

UOM

Job Status Date Estimate To

Complete

Revised Estimate ACE Varia

nce

L=J-H

Quantity(A)

Totalcost(B)

Unitcost=(B/A)

Quantity(D)

Totalcost(E)

UnitcostF =(E/D)

QuantityG=(A+D)

TotalcostH=(B+E)

Unitcost I=(H+G)

J


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ABC PROJECTDAILY PROGRESS REPORT

Date

Itemdescription

UnitBlock A Block B

TQ P A CA TQ P A CA

Main

Building

Internal

Earth workexcavation NOS 46 46 53 53

PCC NOS 46 46 53 53

RCC for foothings

M 25NOS 46 46 53 53


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19.04.05 Format No.14

Block C Mechanical cub Electrical cub Total

TQ P A CA TQ P A CA TQ P A CA TQ P A CA

46 46 24 24 20 20 189 0 0 189

46 46 24 24 20 20 189 0 0 189

46 46 24 24 20 20 189 0 0 189


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ABC PROJECTWEEKLY PROGRESS REPORT FOR THE WEEK ENDING ON 19 TH APR 2005

ItemDescription

Unit TotalQty

Current WeekProgress

(12/04/05-19/04/05

Cumulative up toweek ending on

19.4.05

Plannedthis

week

Plannedfor the

next twoweeksfrom

Remarks

Planned Achieved PlannedAchieve

d19.4.05-26.4.05

19.4.05-03.5.05

BLOCK-SHELL& CORE

R R MASONRY RMT 148 148 148

PLINTH BEAM bays 84 84 84

BACK FILLING Nos 46 46 46

SOLING LVL-01

SQM

2500 2500 2500

GRADE SLAB(LVL-01)

SQM 2700 2700 2700

BLOCK WORK

LVL-01

BAY

S32 30 30


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Progress Reporting Units of Work Completed Incremental Milestones

Spool in Place: 20% of Work i.e. 20%

cumulative Ends welded: 4 0% of work i.e. 6 0% cumulative

Hangars and Trim complete: 3 0% of Work

i.e.9

0% cum Hydro tested & complete: 10% of Work i.e.100% .

Cost Ratio


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Estimate Total Cost to Complete Suppose that we wish to estimate the total cost

to complete piping construction activities on aproject. The piping construction involves 1,000 linear feet of piping which has been divided into5

0 sections for management convenience. Atthis time, 4 00 linear feet of piping has beeninstalled at a cost of $ 4 0 ,000 and 5 00 man-hours of labor. The original budget estimatewas $9 0 ,000 with a productivity of one footper man-hour, a unit cost of $ 6 0 per man hourand a total material cost of $ 3 0 ,000 . Firmcommitments of material delivery for the$3 0 ,000 estimated cost have been received.


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units of work completed :The first task

is to estimate the proportion of workcompleted. Two estimates are readilyavailable. First, 4 00 linear feet of pipe isin place out of a total of 1000 linear feet,so the proportion of work completed is4 00 / 1000 = 0 .4 or 4 0%.the cost ratio method : estimate thework complete as the cost -to -datedivided by the cost estimate or$ 4 0 ,000 /$ 9 0 ,000 = 0 .44 or 44 %.


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incremental milestones method For example, suppose the following quantities of pipingfell into four categories of completeness: complete ( 100%)

38 0 fthangars and trim complete ( 9 0%)20

ends welded ( 6 0%)5 ft spool in place ( 20%) 0 ft Then using the incremental milestones shown above, theestimate of completed work would be 3 8 0 + (20) (0 .9 ) +(5 )(0 .6 ) +0 = 4 01 ft and the proportion complete wouldbe 4 01 ft/ 1,000 ft = 0 .4 01 or 4 0% after rounding.


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Estimated Cost First, a simple linear extrapolation of costresults in an estimate of $ 4 0 ,000 / 0 .4 =

$100 ,000 . for the piping construction using the4 0% estimate of work completed. This estimateprojects a cost overrun of 100 ,000 - 9 0 ,000 =$10,000 .

Second, a linear extrapolation of productivityresults in an estimate of ( 1000 ft. )(5 00 hrs/ 4 00 ft. )($6 0 /hr ) + 30 ,000 = $105 ,000 . forcompletion of the piping construction. Thisestimate suggests a variance of 105 ,000 -9 0 ,000 = $15 ,000 above the activity estimate


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PROJ ECT CO ST C ON T RO L

CON T RO L ESTIMATES PE RFOR MAN CEProject Progress ( %) =BCWP x100

BC of Total ProjectCO ST VA RIA N CE

Budgeted Cost of Work Performed (BCWP ) Actual cost of Work Performed (ACWP )

SCHEDU LED VARIA N CE =Budgeted Cost of Work Performed (BCWP ) -Budgeted Cost of Work Scheduled (BCWS ).CO ST T REN DS/ FOR ECASTS


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COST PERFORMANCE INDEX = BCWP/ACWP

SCHEDULE PERFORMANCE INDEX =BCWP/BCWS

" 1.0 IS FAVOURABLE.

1.0 IS UNFAVOURABLE


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Table Status of Road Work Items

Sl.No. Major Item ofWork Unit Total Qty(H+R) Done upto31-8 -99 BalQtyRemaining

period(months)

Requiredrate

1 Survey /Settingout KmNot billing

item87 39 .6 20 2 .0

2 Clearing / grubbing Ha 210 120 .5 89 .5 20 4 .5

3 Earth works m 3 279 0000 11 34 02 4 16559

7620 8 2798

4 Cross Drainage M 254 0 1322 121 8 20 6 1

5 Major Structuresteel Ton 1

5 10 5 24 986 20 49

6 Concrete m3 175 00 84 32 9 068 20 45 3

7 G SB m3 6 11300 2 755 17 33548

320 16774

8 WMM m3 575 300 22 9 05 3 34594

7 20 17 297

9 PCC m3 6 0000 1 5 328 4467 2 20 222 3

10 DBM m3 275 000 1212 32 15 376

8 20 7688

11 AC m3 100000 1 65 23 8 3477 20 4 178


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Table EAC Calculation

Work ItemPhysical Progress BOQValue Physical

Progress%

Value ToDate

(Rs. InLakhs)

(ACWP)Unit Total Done Rs. (Lakh) BAC

Site Clearance Ha 210 10 5 .5 149 .48 5 0 .24 54

Earth work m3279 0 .00

01089 .12

4 25 18 .28 39 .09 1166

Cross Drainage m3 254 0 1274 2579 .7 2 5 0 .16 199 0

Base & Sub-Base m3 11

86 000 47 098 2 64 11.84 39 .11 2744

BituminousWork m3

4 35 000 1 39 106 104 00 .45 31.98 36 29

220 59 .77 958 3


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Table EAC Calculation

Work ItemPhysical Progress BOQValue Physical

Progress%

Value ToDate

(Rs. InLakhs) (ACWP)

BCWPRs. InLakhs

EAC(Rs. InLakhs)Unit Total Done Rs. (Lakh) BAC

Site Clearance Ha 210 10 5 .5 149 .48 5 0 .24 54 75 .10 128 .38

Earth work m3279 0 .00

01089 .12

4 25 18 .28 39 .09 1166 98 3.14 2699 .88

Cross Drainage m3 254 0 1274 2579 .7 2 5 0 .16 199 0 129 3.99 3275 .7 3

Base & Sub-Base m3 11

86 000 47 098 2 64 11.84 39 .11 2744 2546 .14 6648 .17

BituminousWork m34 35 000 1 39 106 104 00 .45 31.98 36 29 3326 .06 107 03.39

220 59 .77 958 38 22 4 .3

7 23455 .55

Project Cost Controeditedl

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