Critical Vendor Drawing List

PROJECT

EQUIPMENT

VENDOR

VENDOR DRAWING

FOR APPROVAL

REQ'D REC'D RET'D

FINAL

REQ'D REC'D

Figure 7-6. Subcontract Summary Report.

project job no. report no. date

SUBCONTRACT SUMMARY REPORT

contract no.

contractor

work scope

budget

original contract value

changes a extras

claims

forecast

co m mo.

expend.

that daily logs, schedules, work programs, etc. be maintained for all major subcontracts. Contract value increases of over 10% can lead to a "legitimate claim for unit price increase for all the work.

c) Unit Price Quantities Variations

On unit price subcontracts developed with a minimum of engineering definition, factors of 20% respectively for quantity increases and claims should be added to the original contract price (labor only). Should an independent bid evaluation indicate a low bid, a further allowance should be made in anticipation of the subcontractor getting into financial difficulties or requiring additional monitoring/control.

d) Low Bids

A low bid can result through ignorance of the work and/or site conditions or through a subcontractor "buying the job." There can be occasions when subcontractors will attempt to break into a new area of work, or alternatively, attempt to keep out competitors. Such situations can result in low bids, which, in turn, can lead to serious schedule consequences for an entire project should a subcontractor subsequently get into financial difficulties.

Subcontractors in financial trouble will generally reduce their field effort to a minimum to contain their losses. This results in low manpower levels and a minimum of construction equipment and supervision, and often leads to schedule extension.

Each "low" bid should be very carefully evaluated on a case-by-case basis, and if the decision is made to accept the "low" bid, then that contract should be closely monitored as it is probable that the subcontractor will try every "trick" to increase the revenue.

KEY COST ITEMS

CONTROL/REPORT (SMALL PROJECTS)

This is a technique used on smaller projects. This method concentrates on the high cost items, usually material and construction contracts, and evaluates the budget versus the commitments for these items on a continuous (monthly) basis. An initial review of the estimate should reveal the high cost items, and these items should be identified on this report. The listing of the key cost items should be developed in conjunction with other control and reporting items.

Ensure that the accounting/cost report can identify all commitments to the estimate item number. The budgeted amount should be shown on the report for each estimate item. This will then allow comparisons, evaluations, and forecasts to be made of the "Key Cost Items." The "Key Cost Items Report" should be issued monthly to show the cost situation of these items. The forecasts will probably be developed by the project manager.

Was this article helpful?

0 0
Productivity Without Pain

Productivity Without Pain

Being able to do little yet reap a lot is every individuals ideal work formula. Though not always possible there are some interesting ways this can be achieved to some level of satisfaction for all.

Get My Free Ebook


Post a comment