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Construction Law/cost reimbursement contract

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Question
Hi Akhtar,

we are working as a project manager of a cost reimbursement contract in Dubai. It consists construction of villa community, infrastructure and other amenity buildings.Interim valuations are approved as per the actual invoices of contractor for his staff, labour, plant, etc.The Employer wants to know the financial progress for each and every category. Eg: for a villa, for a particular road,etc. Even though we have physical progress at site, it is hard to distribute the certified payments in to sections in such a way. We can only distribute them as per percentage completion but realistic figures cannot be obtained on this method. Can you please explain me a suitable way of doing this.

Thanks & Regards,

Nimesha

Answer
Dear Nimesha,

We were working on the thermal power plant and there the contractor was reluctant to provide his data for the S-Curve for project progress monitoring.  To support the Employer, we developed the S-Curve as:
we   Prepared the construction schedule taking care of major cost elements provided in the BOQ.
  Major BOQ costs were distributed linearly on the time element.
  The above costs were adjusted for a bell-shape profile based on our construction experience and as the payment schedules.
  Then, vertically sum of all the costs were exercised and AS-Planned profile S-Curve was created.
  At the end of each month, the verified invoice for work done was considered for updating the S-Curve for Actual progress.
  We were clear that actual progress may be slightly more than the verified invoice for each month, therefore a lag factor may be accounted for more accuracy, otherwise without this correction factor, still it is quite reasonable/acceptable.
  This is even helping us in monitoring the progress / disbursement as well as extension of time claim analysis
We understand in your case, your may adopt following elements:
  Survey costs
  Excavation
  Foundations
  Block masonry
  Slab
  Plaster
  Electrical
  Plumbing
  Window/doors
  Painting
  Fixed furniture
  Roads
  Landscaping
  ECT
It is better to do it in Excel, otherwise it is possible to do it in Primavera but its updating/monitoring is not easy to update and to make it understand to the Employer, it is based on my experience; you may adopt it based on your requirements and recourses available.
Best Regards,
Akhtar Hussain Mayo
MS TQM, BE-Mechanical Engineer

Construction Law

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Akhtar Hussain Mayo

Expertise

I am interested to comment on Project planning/scheduling, schedule updating, extension of time delay analysis, concurrent delays, extension of time, extension of time delay compensation cost analysis, up to some extent on contractual matters, for the sake of my learning

Experience

worked on a Eot and cost compensation claim in 1992 for 34 million USD, 1987-1992 worked as RE technical at Tarbela third extension, Pakistan, 1992-1996 scheduling and construction claim processing at Lahore/Karachi on Thermal projects, 1197 to 2006 in Saudi Arabia project scheduling/coordination/monitoring and managing the multiple activities for completing four 300 beds hospitals in different parts of the world, since 2006 to date working for scheduling, delay analysis, cost compensation Eot claims and project monitoring. Also, Quality manuals review, monitoring and quality audit

Organizations
National Engineering Services of Pakistan, Lahore, since 1982 - to date.

Publications
published my method in "The Engineer" Delay cost analysis through as-planned verses as-built and as-adjusted time schedule. 1991

Education/Credentials
1976-81 Bsc Engineering (Mechanical), UET (Lahore) 2007-2009 MS TQM (Total Quality Management) PU (Lahore) courses in CPM/PERT PIM Lahore Project planning/Control work shop ARAMCO, Dahran Primavera users conference in Jeddah. Heat recovery systems quality inspection in China 220 Kv transmission line tower manufacturing quality assurance at Lahore

Awards and Honors
- Best service award from Saudi German Hospitals Group (SGH), Jeddah during the construction planning/scheduling and monitoring of Abha Hospital, Saudi Arabia. - Selected as Steering Committee member for SGH Group, Jeddah. - Selected as Strategic Committee for business development, SGH, Jeddah. - Headed the committee for standardized recrutment of medical staff from different parts of the world for initial start-Up of hospitals.

Past/Present Clients
Water and Power Development Authority KaracHi Electric Supply Corporation Saudi German Hospitals Group,Jeddah Civil Aviation Authority, Islamabad, Pakistan Laraib Energy Limited, Mir Pur Azad-Kashmir, Pakistan Central Power Generation company processing the Eot Claims and cost compensation of claims CPGCL-GENCO-II, Lahore

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