Chapter-Four

TIME CONTROL AND

MONITORING
 Introduction
2

q Scheduling is a mechanical process for laying out the various

activities of a certain project or program along a time scale
and in a proper sequence.
q In other words, scheduling is the preparation of a time table
or an action plan which serves as a guide for the
implementation of the activities and computation of
resources required at different stages in time.
q Every construction projects are time bounded.
q Due to the above nature, based on the contract time delays
results to might earn rewards penalties while early
completion
q There may be many reasons both foreseeable and
unforeseeable, for non-completion of a project on the
intended completion time.
 3
Contd
q The absence of a project time plan almost makes certain
that a project cannot be completed on schedule without
incurring extra costs.
q Advantages of having a Construction plan/ Work
program before the commencing the construction
project is:
Formulating directions,
Optimum utilization and orderly arrangements of resources,
control of cost, progress and quality of executed work,
Controlling performance and motivating people
 4
Contd
q Planning requires an intimate knowledge of construction
methods combined with the ability to visualize distinct
work elements and to establish their mutual
interdependencies.
q Construction planning is a fundamental and challenging
activity in the management and execution of
construction projects.
q A good construction plan is the basis for developing the
budget and the schedule for works.
 5
Contd

q Construction planning consists of the following basic

steps
Choice of technology and method of construction,
Definition of work tasks,
Creating logical relationship among individual tasks
Estimation of the required resources and durations for
individual tasks, and
Project schedule
qThe approved Master schedule, called the schedule
baseline, is a component of the overall project plan.
qIt provides the basis for measuring and reporting
schedule performance.
qIn PPA, the general conditions of contract Clause
29-32 has clear stipulation on project
schedule(program),
 Time Control (PPA)

q Clause 27.1
The Contractor shall submit the work program showing the
general methods, arrangements, order, and timing for all the
activities in the Works within the time stated in special
condition of contract
q Clause 27.2
The work program shall be updated based on the progress of
the work including any changes
q Clause 27.3
The contractor is responsible for updating the work program within
the time stated in SCC
 Contd
8
q Clause 27.4
The Engineers approval of the Program shall not alter the
Contractors obligations,
The Contractor may revise the Program and submit it to the
Engineer again at any time.
A revised Program shall show the effect of Variations and
Compensation Events.
q Clause 28, Extension of the intended completion date
q Clause 28.1
The Engineer shall extend the Intended Completion Date if a
Compensation Event occurs or a Variation are issued
 Contd
9

q Clause 28.2
The Engineer shall decide whether and by how much to extend
the Intended Completion Date within 21 days after recipt of
the time extention claim.
If the Contractor has failed to give early warning of a delay or
has failed to cooperate in dealing with a delay, the delay by this
failure shall not be considered in assessing the new Intended
Completion Date.
 Contd
q Clause 29, (Acceleration) 10

q Clause 29.1 and 29.2

When the Employer wants the Contractor to finish before the
Intended Completion Date, the Engineer will obtain priced
proposals for achieving the necessary acceleration from the
Contractor
If the Employer accepts these proposals,
1. the Intended Completion Date will be adjusted accordingly and
confirmed by both the Employer and the Contractor.
2. The new proposal will be incorporated in the Contract Price and it
will be treated as a Variation.
 Contd
11
q Clause 30, (Delays ordered by the Engineer)
q Clause 30.1
The Engineer may instruct the Contractor to delay the start or
progress of any activity within the Works.
q Clause 31, ( Management Meetings)
q Clause 31.1
Either the Engineer or the Contractor may require the other to
attend a Management meeting,
q Clause 31.2
The Engineer shall record the business of management meetings
and provide copies of the record to those attending the meeting and
to the Employer
 Contd
12
q Clause 32, (Early Warning)
q Clause 32.1
The Contractor shall warn the Engineer at the earliest opportunity
of specific likely future events or circumstances that may adversely
affect the quality of the work, increase the Contract Price or delay
the execution of the Works.
The Engineer may require the Contractor to provide an estimate of
the expected effect of the future event or circumstance on the
Contract Price and Completion Date
q Clause 32.2
The Contractor shall cooperate with the Engineer in making and
considering proposals for how the effect of such an event or
circumstance can be
 Performance reports

q Performance reports provide information on

schedule performance such as which planned dates
have been met and which have not. It may also alert
the project team to issues which may cause problems
in the future.
q Performance reporting involves collecting and
disseminating performance information in order to
provide stakeholders with information about how
resources are being used to achieve project objectives.
 Performance reports
Status reporting_ describing where the project now stands
Progress reporting- describing what the project team has
accomplished
Forecasting- predicting future project status and progress.
Performance reporting should generally provide information on
scope, schedule, cost, and quality.
 Change requests

q Change requisites may occur in many forms-oral or

written, direct or indirect, externally or internally
initiated, and legally mandated or optional. Changes
may require extending the schedule or may allow
accelerating it
 Construction work progress recordings
and keeping dairies
q Site records
Delay in construction projects are very common specially in countries like
Ethiopia.
This demand the follow up of the activities over a prolonged time.
Therefore keeping accurate records plays a significant role, particularly when
there is a tendency for varying the work.
It is therefore become imperative to maintain accurate written site records,
which include;
Work progress
Material quality for quality control
Weather data
Working hours
Any incidents
Material on sites
Labor and equipment deployed
Instructions issued (co-signed by all)
 Construction work progress recordings
and keeping dairies

q Maintain work progress

q Maintain a log sheet of materials delivered/used
q Maintain record of instructions, date given and to
whom given
q Maintain record of variation orders given, date given
and to whom given
q Keep record of measurements, co-signed
q Record details of works before covering up( ex.
Foundations)
q Keep record of tests and relevant material data
 Construction work progress recordings
and keeping dairies
qThe following items should also be a part of the
construction administration record keeping

Field observations reports: follow-ups on all unresolved items

Shop drawings, samples, product data, checklist of all required
submissions
Submittals: checklist of all required submittals correspondence
Payment requests, schedules of contract sum and time, change
orders
Change orders and construction change directives
Drawings and revisions
Specifications and revisions
Status of requests for information's and requests for quotations
Memos on delay caused by weather, strikes, unavailability of
materials, and other things.
 Reports
q The purpose of the inspectors site visit is to become
generally familiar with the progress and quality of
the work and to determine if the work is being done
in a manner which will yield results consistent with the
contract documents.
q The supervisor is required to keep the owner informed of
the progress and quality of the work.
q Most inspectors discharge this continuing obligations by
sending the owner a written report of each site visit with
a copy sent to the contractor.
q The report should be a complete record of the
 Reports

Date
Time, duration
Weather conditions
Persons present
Percentage of work completed by trade
Work progress compared to schedule
Work now being accomplished, work scheduled before next visit
Questions raised by the contractor or owner
Determinations made by the engineer
Any questions or actions which remain pending for appropriate later
attention.
 Formats
21

Site Diary
Progress report
Schedule
Chapter-Five

COST CONTROL AND

MONITORING
 Introduction
23

qIn countries like Ethiopia most construction

projects didnt completed with the estimated
project cost because of the following reasons:
Variations due to request from either parties,
Delay,
Under estimated quantities,
Incompleteness of designs,
qThe method of cost controlling in PPA has been
defined from clause 37 up to 54 of General
conditions of contract.
 Cost Control
v Clause 37 : Bill of Quantities or activity schedule
q Types of Contract
Admeasurements contract BOQ
Lump sum Activity schedule
q The quantities set out in the Bill of Quantities are the estimated
quantities for the Works, and they are not to be taken as the actual and
correct quantities of the Works to be executed by the Contractor in
fulfilment of his obligations under the Contract.
v Clause 38: Change in bill of quantities
q Option 1: Changes in the Bill of Quantities for Admeasurements
Contracts
If final qty >qty in BOQ by 25% provided that the change exceeds 5% of
the contract price, the engineer shall adjust the unit rate.
The engineer shall not adjust the unit rate if the change exceeds 15% of
the contract price.
The contractor shall submit the cost breakdown up on request
 Continued
25
q Option 2: Changes in the Activity Schedule for Lump Sum
Contracts
Prices in the Activity Schedule shall not be altered.
v Clause 39: Variations
All Variations shall be included in updated program produced by the
Contractor

v Clause 40: Payment for Variations

For both Admeasurement and Lump Sum Contracts, the Contractor
shall provide the Engineer with a quotation for carrying out the
Variation when requested to do so by the Engineer.
For Admeasurement Contracts only, if the work in the Variation
corresponds with an item description in the Bill of Quantities and if, in
the opinion of the Engineer, the quantity of work above the limit
stated in Sub-Clause 38.1 or the timing of its execution do not cause
the cost per unit of quantity to change, the rate in the Bill of Quantities
shall be used to calculate the value of the Variation
 26
Continued
If the cost per unit of quantity changes, or if the nature or timing of the work
in the Variation does not correspond with items in the Bill of Quantities, the
quotation by the Contractor shall be in the form of new rates for the relevant
items of work.
For both Admeasurement and Lump Sum Contracts, if the Contractors
quotation is unreasonable, the Engineer may order the Variation and make a
change to the Contract Price, which shall be based on the Engineers own
forecast of the effects of the Variation on the Contractors costs.
For both Admeasurement and Lump Sum Contracts, if the Engineer decides
that the urgency of varying the work would prevent a quotation being given
and considered without delaying the work, no quotation shall be given and
the Variation shall be treated as a Compensation Event
For both Admeasurement and Lump Sum Contracts, the Contractor shall
not be entitled to additional payment for costs that could have been avoided
by giving early warning.
 27 Continued
q Clause 41: Cash flow forecast
When the Program is updated, the Contractor shall provide the Engineer
with an updated cash flow forecast.
q Clause 42: Payment Certificates
The Contractor shall submit to the Engineer monthly statements of the
estimated value of the work executed less the cumulative amount certified
previously
The Engineer shall check the Contractors monthly statement and certify
the amount to be paid to the Contractor.
The value of work executed shall be determined by the Engineer.
 28
Continued
P The value of work executed shall comprise the value of:
a) The quantities of the items in the Bill of Quantities completed in the
case of Admeasurement Contracts; or
b) Completed activities in the Activity Schedule in the case of Lump
Sum Contracts.
The value of work executed shall include the valuation of
Variations and Compensation Events.
The Engineer may exclude any item certified in a previous
certificate or reduce the proportion of any item previously
certified in any certificate in the light of later information.
 29 Continued
q Clause 43: Payments
Payments shall be adjusted for deductions for advance payments and
retention
If an amount certified is increased in a later certificate or as a result of
an award by the Adjudicator or an Arbitrator, the Contractor shall be
paid interest upon the delayed payment as set out in this clause
Unless otherwise stated, all payments and deductions will be paid or
charged in the proportions of currencies comprising the Contract Price.
Items of the Works for which no rate or price has been entered in will
not be paid for by the Employer and shall be deemed covered by other
rates and prices in the Contract
 Continued
30
q Clause 44: Compensation event
q Clause 45: Tax
Unless otherwise specified in the SCC, the Engineer shall not adjust the
Contract Price if taxes, duties, and other levies are changed that
subsequently affect the Contract Price.
q Clause 46: Currencies
Where payments are made in currencies other than Ethiopian Birr, the
exchange rates used for calculating the amounts to be paid shall be the
exchange rates stated in the Contractors Bid.
 31
Continued
q Clause 47: Price Adjustements
Price Adjustments formula
Ln Mn En
pn A b c d etc .
Lo Mo Eo
q Clause 48: Retention
q Clause 49: Liquidated damage
q Clause 50: Bonus
q Clause 51: Advance Payment
q Clause 52: Securities
q Clause 53: Day work
q Clause 54: Cost of repair
Sample of payment certificate
and how to prepare
Chapter: Six

QUALITY CONTROL
AND MONITORING
 Quality Control
34

q Clause 33: Identifying Defects

The Engineer shall check the Contractors work and notify the Contractor
of any Defects that are found. Such checking shall not affect the
Contractors responsibilities
q Clause 34: Tests
If the Engineer instructs the Contractor to carry out a test not specified in
the Specification to check whether any work has a Defect and the test
shows that it does, the Contractor shall pay for the test and any samples. If
there is no Defect, the test shall be a Compensation Event.
 Continued
q Clause 35:Correction of Defects35
The Engineer shall give notice to the Contractor of any Defects before the
end of the Defects Liability Period, which begins at Completion, and is
defined in the Special Conditions of Contract
Every time notice of a Defect is given, the Contractor shall correct the
notified Defect within the length of time specified by the Engineers notice.
The Defects Liability Period shall be extended for as long as Defects remain
to be corrected.
q Clause 36: Un corrected defects
If the Contractor has not corrected a Defect within the time specified in the
Engineers notice, the Engineer will assess the cost of having the Defect
corrected, and the Contractor will pay this amount.
 Quality control
EBCS2-1995, 9.4 measures to be taken in case of non-
compliance
qIf the quality of the structure is found to be in doubt
after an inspection or from the test results, then a
special examination shall be made to verify the
soundness of the information received and to asses the
actual strength of the structure constructed with possible
recourse to more accurate methods of calculations.
Sequence of measures
The following sequential measures shall be taken where
the results of compliance control tests or inspection are
unsatisfactory:
a) The position of concrete which does not fulfill the
compliance criterion shall be identified
b) The structural safety shall be checked by appropriate
calculations on the basis of the actual tests which did
not comply. If safety is assured, the concrete can be
accepted.
c) If the structural safety or durability are not assured,
then the strength of the concrete shall be examined
by taking drilled cores or by non-destructive methods.
 Continued
d) If this new information's shows that structural safety is assured, the
concrete may be accepted after it has been decided whether repairs are
necessary to ensure durability

e) If the results of check tests by non-destructive methods show that the

quality of concrete is inadequate or show other defects, the engineer may
require a loading test to be made which shall then carried out in
accordance with procedure set in 9.4.4
f) If the structural safety and durability are not assured, then the possibility
of strengthening the structure must be investigated. If strengthening is not
feasible, then the concrete shall be rejected, and the structure or member
demolished or given a reduced structural grading by limiting its service
rating, as appropriate.
 Example on EVA technique

Given project
5km road project
5month contract time of completion
Budgeted cost of Br. 500M
Scheduled(time and cost)
1km1month100M.Br
Physical progress
At the end of 2nd month 1.5 km
Actual cost 180M.Br
Question
Under spending?/ over spending?
Behind schedule?/ ahead schedule?
 Example on EVA technique

Solution
Cost over run=180-150= 30M
BCWS=200M here the schedule is measured by Br.
BCWP=150M
ACWP=180M(Earned Value) from cost statement of the
project(Report)
Variance
SV=BCWP-BCWS=-50M
(schedule variance in terms of money, it could be in MH or equipment,
labor..)
CV=BCWP-ACWP=-30M(negative variance as of monitoring day )
Example on EVA technique/cost controlling

Conclusion
As the SV & CV indicates the project is Overspending and as well lagging
behind the schedule.
SPI=BCWP/BCWS=150/200=0.75 behind schedule
CPI=BCWP/ACWP=150/180=0.83 cost overrun
Example on EVA technique/cost controlling

Budget at completion BAC=500M

Estimate at completion Estimate to completion
3.5km each with 100
EAC= ACWP+ETC=180+350=520M
EAC=(ACWP/BCWP)x BAC=(180/150)x500=600
(EAC=BAC/CPI=500/0.83=600)
EAC=AC+BAC-EV=180+500-150=530
EAC=AC+ (BAC-EV)/CPI=180+(500-150)/0.83=601.69
Which one is the exact estimate????
Variance at competition
VAC=BAC-EAC=500-???=???
 COST CONTROL(EVA)
Description of Earned Value Management terms
Three quantities form the basis for cost performance measurement using
Earned Value Management are:
Budgeted Cost of Work Scheduled (BCWS) or Planned Value (PV),
Budgeted Cost of Work Performed (BCWP) or Earned Value (EV)
and
Actual Cost of Work Performed (ACWP) or Actual Cost (AC) .

Budgeted Cost of Work Scheduled (BCWS) or Planned Value (PV) The sum of budgets
for all work packages scheduled to be accomplished within a given time period.

Budgeted Cost of Work Performed (BCWP) or Earned Value (EV) The sum of budgets
for completed work packages and completed portions of open work packages.
 COST CONTROL(EVA)
Description of Earned Value Management terms

Actual Cost of Work Performed (ACWP) or Actual Cost (AC) The actual cost incurred
in accomplishing the work performed within a given time period. For equitable
comparison, ACWP is only recorded for the work performed to date against tasks for
which a BCWP is also reported.

qFrom these three quantities we can determine our total program budget as
well as make a determination of schedule and cost performance and provide an
estimated cost of the project at its completion.
 COST CONTROL(EVA)
Additional terms are defined to record cost and schedule performance and program
budget:

Performance Measurement Baseline (PMB) The sum of all work packages Budgeted
Cost of Work Scheduled (BCWS) for each time period, calculated for the total program
duration. The PMB forms the time-phased budget plan against which project
performance is measured.

Budget At Completion (BAC) The sum of all the budgets allocated to a program.

Schedule Variance (SV) The difference between the work actually performed (BCWP)
and the work scheduled (BCWS).
 COST CONTROL(EVA)
Additional terms are defined to record cost and schedule performance and program
budget:

Cost Variance (CV) The difference between the planned cost of work performed
(BCWP) and actual cost incurred for the work (ACWP).

Cost Performance Index (CPI) The ratio of cost of work performed (BCWP) to actual
cost (ACWP). CPI of 1.0 implies that the actual cost matches to the estimated cost. CPI
greater than 1.0 indicates work is accomplished for less cost than what was planned or
budgeted. CPI less than 1.0 indicates the project is facing cost overrun.
 COST CONTROL(EVA)
Additional terms are defined to record cost and schedule performance and program
budget:

Schedule Performance Index (SPI) The ratio of work accomplished (BCWP) versus
work planned (BCWS), for a specific time period. SPI indicates the rate at which the
project is progressing.

Estimate At Completion (EAC) It is a forecast of most likely total project costs based
on project performance and risk quantification. At the start of the project BAC and EAC
will be equal. EAC will vary from BAC only when actual costs (ACWP) vary from the
planned costs (BCWP).
 COST CONTROL(EVA)
Additional terms are defined to record cost and schedule performance and program
budget:

Estimate At Completion (EAC)-

Most common forecasting techniques are some variations of:

1.EAC = Actual to date plus a new estimate for all remaining work. This approach is most
often used when past performance shows that the original estimating assumptions were
fundamentally flawed, or they are no longer relevant to a change in conditions.

2.EAC = Actual to date plus remaining budget. This approach is most often used when
current variances are seen as atypical and the project management team expectations are
that similar variances will not occur in the future.
 COST CONTROL(EVA)
Additional terms are defined to record cost and schedule performance and program
budget:

Estimate At Completion (EAC)-

Most common forecasting techniques are some variations of:

3.EAC = Actual to date plus the remaining budget modified by a performance factor,
often the cumulative cost performance index (CPI). This approach is most often used
when current variances are seen as typical of future variances.

4.EAC = Budget At Completion (BAC) modified by a performance factor, cumulative cost

performance index (CPI). This approach is most often used when no variances from BAC
have occurred.
 COST CONTROL(EVA)
Additional terms are defined to record cost and schedule performance and program
budget:

Estimate To Complete (ETC) The difference between Estimate At Completion (EAC)

and the Actual Cost (AC). This is the estimated additional cost to complete the project
from any given time.

Variance At Completion (VAC) The difference between Budget At Completion and

Estimate At Completion (EAC). This is the dollar value by which the project will be over
or under budget.
 COST CONTROL(EVA)
As of first quarter of year 2002 there is a shift in using the terms Planned
Value (PV), Earned Value (EV) and Actual Cost (AC) instead of Budgeted Cost
of Work Scheduled (BCWS), Budgeted Cost of Work Performed (BCWP) and
Actual Cost of Work Performed (ACWP).
COST CONTROL(EVA)
COST CONTROL(EVA)
 Project cost control: the EVA
Status date Planned comp. Actual
date comp.date
EAC

Over budget VAC

cash flow
BAC ACWP=AV ETC
Cost

BCWS=PV

CV SV=EV-PV
CV=EV-AV
Forecast
CPI=EV/AV
time overrun
BCWP=EV SPI=EV/PV

SV Time
 Project cost control: the EVA
Benefits of EVMS

1. It is a single management control system that provides reliable data.

2. It integrates work, schedule and cost using a work breakdown structure
(WBS).
3. The associated database of completed projects is useful for comparative
analysis.
4. The cumulative cost performance index (CPI) provides an early warning
signal.
5. The schedule performance index (SPI) provides an early warning signal.
6. The CPI is a predictor for the final cost of the project.
7. It uses an index-based method to forecast the final cost of the project.
8. The periodic (e.g. weekly or monthly) CPI is a benchmark.