Chapter-Four

Time control and monitoring

 Introduction
qScheduling 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.
qIn 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.
qEvery construction projects are time bounded.
qDue to the above nature, based on the contract time delays results to might
earn rewards penalties while early completion
qThere may be many reasons both foreseeable and unforeseeable, for non-
completion of a project on the intended completion time.

2
 Contd
qThe absence of a project time plan almost makes certain that a project cannot
be completed on schedule without incurring extra costs.
qAdvantages 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

3
 Contd
qPlanning requires an intimate knowledge of construction methods combined
with the ability to visualize distinct work elements and to establish their mutual
interdependencies.
qConstruction planning is a fundamental and challenging activity in the
management and execution of construction projects.
qA good construction plan is the basis for developing the budget and the
schedule for works.

4
 Contd

qConstruction 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

5
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)

qClause 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
qClause 27.2
The work program shall be updated based on the progress of the work
including any changes
qClause 27.3
The contractor is responsible for updating the work program within the time stated in SCC
 Contd
qClause 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.
qClause 28, Extension of the intended completion date
qClause 28.1
The Engineer shall extend the Intended Completion Date if a Compensation Event occurs
or a Variation are issued

8
 Contd

qClause 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.

9
 Contd
qClause 29, (Acceleration)
qClause 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.

10
 Contd
qClause 30, (Delays ordered by the Engineer)
qClause 30.1
The Engineer may instruct the Contractor to delay the start or progress of any activity
within the Works.
qClause 31, ( Management Meetings)
qClause 31.1
Either the Engineer or the Contractor may require the other to attend a Management
meeting,
qClause 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

11
 Contd
qClause 32, (Early Warning)
qClause 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
qClause 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

12
Performance reports

qPerformance 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.
qPerformance 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

qChange 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
qSite 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
qMaintain work progress
qMaintain a log sheet of materials delivered/used
qMaintain record of instructions, date given and to whom given
qMaintain record of variation orders given, date given and to whom
given
qKeep record of measurements, co-signed
qRecord details of works before covering up( ex. Foundations)
qKeep 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
qThe 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.
qThe supervisor is required to keep the owner informed of the progress and
quality of the work.
qMost inspectors discharge this continuing obligations by sending the owner a
written report of each site visit with a copy sent to the contractor.
qThe report should be a complete record of the proceedings at the inspectors job
site visit and should include;
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

Site Diary
Progress report
Schedule

21
 Chapter-Five
Cost control and monitoring
 Introduction

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.

23
 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
qOption 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

25
 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.

26
 Continued
qClause 41: Cash flow forecast
When the Program is updated, the Contractor shall provide the Engineer with an
updated cash flow forecast.
qClause 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.

27
 Continued
PThe 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.

28
 Continued
qClause 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

29
 Continued
qClause 44: Compensation event
qClause 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.
qClause 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.

30
 Continued
qClause 47: Price Adjustements
Price Adjustments formula
Ln Mn En
pn A b c d etc .
Lo Mo Eo
qClause 48: Retention
qClause 49: Liquidated damage
qClause 50: Bonus
qClause 51: Advance Payment
qClause 52: Securities
qClause 53: Day work
qClause 54: Cost of repair

31
Sample of payment certificate
and how to prepare
 Chapter: Six
Quality Control and Monitoring
 Quality Control

qClause 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
qClause 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.

34
 Continued
qClause 35:Correction of Defects
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.
qClause 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.

35
 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.
The results of the tests shall be assessed on the basis of the prescribed acceptance
criterion, taking into account any differences in age.
 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
EAC= ACWP+ETC=180+350=520M 3.5km each with 100

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 time
CPI=EV/AV
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.