Site Procedures Manual Final

Documents Type: Document Title: Effective Date: Revision No:
Financial System Site procedures 1 February 2013 0

Procedure
Document No: Prepared by: Finance Manager Approved by: Managing Director
MC 01 SP A Makamure A. Ilic
8.10.13 8.10.13
MASIMBA CONSTRUCTION ZIMBABWE A DIVISION OF

MASIMBA INDUSTRIES (PRIVATE) LIMITED
SITE PROCEDURES MANUAL
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INDEX
Page No.
INTRODUCTION 3
SITE ORGANISATION 9
LABOUR MANAGEMENT 12
SITE PETTY CASH MANAGEMENT 17
MATERIAL CONTROL 20
PLANT & TRANSPORT 30
STEEL EQUIPMENT 41
REPORTING 47
PROJECT SUSPENSION 53
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MASIMBA CONSTRUCTION ZIMBABWE
INTRODUCTION
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1. GENERAL
1.1 Introduction
This manual is to be used as a guide in the execution of projects. On large sites it is
probable that many of the duties described will be delegated but the ultimate
responsibility for ensuring that these duties are carried out will remain with the Site
Agent.
Words purporting any one gender shall include the other and words purporting singular
shall include the plural and vice versa.
1.2 Training of Personnel

Coordinating the training of company personnel is the responsibility of the Human
Resources Manger. The Site Agent must discuss and agree his training requirements
with his Contracts Manager/Director who will make necessary arrangements, with
training bodies or organizations through the Human Resources Manager
1.3 Client Liaison

As the Company’s senior representative on site, the Site Agent will liaise closely with
client’s representative. He will endeavor to maintain a good relationship with client and
his representative.
1.4 Public Relations and the Media

For many clients or stakeholders, the Site Agent will be the only company employee with
whom they deal with. Therefore it is of importance that the Site Agent should ensure that
his image and site management conduct themselves in a manner that will not tarnish the
image of the Company.
The Site Agent is not allowed to speak to the media. Any approach from the media must
be referred to the Contracts Director at Head office or in the Director’s absence to the
Managing Director. If the Site Agent feels that any feature of his site is worthy of media
coverage, he should refer this to his Contracts Director. Any resulting publicity will be
arranged from Head Office.
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1.5 Gifts or Gratuities

The Site Agent shall not accept any gifts or gratuities except those of a minor nature. If
any supplier, subcontractor or representative thereof offers excessive inducement or
gratuity, the Site Agent must report this to his Contracts Manager/Director immediately.
As a guide a minor gift should be something that has a market value of less than
USD50.
1.6 Disposal of Company Property

The Site Agent has no authority to dispose of company assets or property.
Company assets include materials, tools and other equipment.
1.7 Limits of Authority

On commencement of the project the Contracts Director to set the signing
instructions and issue a Site Signing Instructions to Buying, Finance, Steel
Equipment, Plant and Stores department (Annexure 1).
2. PLANNING AND PROGRAMMING

Planning and programming will be in line with the requirements of the planning procedure
and will include the following:-
2.1 Planning
2.1.1 Contract Programme
Purpose:-
To anticipate and plan for eventualities and avoid short term panic and crisis
management.
The programme will:-
 Form part of the main contract

 Form part of all subcontract documents necessary
 Show all Masimba Construction and subcontractor activities
 Form the basis for overall contract control
 Form the basis for information schedules
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 Form the basis for progress reporting

 Conform to the requirement specified in the conditions of contract.
 Conform to resources and allowable contained in the tender unless there
is a variation order.
 Basis for overall procurement of material
 Bases for plant requirement
 Basis for manpower requirement
 Basis for cash flow preparation
Responsibility:-
Contract Manager, Site Agent.
Produced by:-
Site Agent (with appropriate assistance as necessary from the planning

department)
Format:-
Gantt chart planning system (including resources)
Approval:-
To be agreed internally with the Contract Director and then with the
Client’s Representatives for compliance with contract requirements and
mutual acceptance.
Distribution:-
 Masimba Construction- Site, Contracts Manager, Subcontractors

 Client Representatives – As specified in conditions of contract
Reporting:-
 Weekly at site meetings
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 Weekly as part of update to head office

 Monthly with contract report
Updating:-
 Any revision which involves major changes is to be agreed on between

the responsible persons and client representatives as per
contract.
 Original copy of plan to be kept in planning department at Head Office.
2.1.2 Four Week Short Term Programme
Purpose
This programme will:-
 Include Masimba Construction work content and critical path for the next
four week period
 Indicate labour requirements to meet targets
 Comply with main programme
 Indicate key interfaces between work elements
 Information should be extracted from the approved master programme
Primary use – to ensure correct labour requirements are on site, plant and
material.
Responsibility:-
Contract Manager, Site Agent/Project Manager
Produced by:-
Site Agent/Project Manager
Format:-
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Planning system as per company policy
Updating:-
Weekly
2.1.3 Weekly Programme
Purpose:-
To plan in detail the following week’s work and share with the relevant personnel
the targets for the week
The programme will:-
 Identify short falls in labour and material requirements

 Comply with the four weekly and contractual programme
 Enable preparation of an accurate cash flow for the week
Responsibility:-
 Contract Manager, Site Agent/Project Manager
Produced by:-
 Site Agent / Project Manager

Format:-
 Planning system as per company policy
Implementation:-
 The weekly programme of work for the following week will be completed
and issued to the relevant parties before close of work every Friday.
Acceptance of the programme must be confirmed by all relevant parties.
2.1.4 Progress Reporting

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 The Site Agent/Project Manager will record progress against the

contractual construction programme every two weeks and the latest
available report will be table with the contract report each month.
SITE ORGANISATION
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1. SITE ORGANISATION
1.1 Objective
This procedure exists to ensure that there is accountability on the construction sites and
works are conducted in line with the Company’s strategy.
1.2 Responsibility
 It is the responsibility of Site Agent on site to ensure that these procedures are adhered
to.
 The Site Agent is directly responsible to his Contract Director for the complete operation
of the site.
1.3 SITES ARE SERVICED FROM THREE MAIN SOURCES:-
(a) The Yard For:

1 Plant and Transport
2 Fabrication
3 Second-hand Trading
4 Steel Equipment
(b) The Buying Department for:

1 Materials
2 Services
(c) The Administrative department for:

1 Site Clerks
2 Wages
3 Petty Cash
4 Personnel & Labour matters
5 SHEQ issues
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1.4 Site Clerks

The Site Clerks are directly responsible to the Site Agent/Supervisor for the paperwork
performance of their duties, but their engagement, discharge and transfer is the
responsibility of the Human Resources Manager.
1.5 Head Office Visits

Regular visits will be made to each site by Administrative and Accounting staff to ensure that
procedures laid down in this manual are being adhered to and every assistance is to be
given to visiting staff on these occasions.
1.6 Training School

The Training School offers training to site labour on a regular basis in order to improve skills
and sites must make the most of this facility.
It is the responsibility of the Site Agent to communicate to the HR department of the training
needs required
HR Department will issue a training timetable at the beginning of each calendar year and it’s
mandatory to attend the training seminars.
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LABOUR MANAGEMENT
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2. LABOUR MANAGEMENT
2.1 Objective
 To ensure that labour is managed in a cost effective manner and according to the governing
labour laws of the Republic of Zimbabwe.
2.2 Responsibility
It is the responsibility of Site Agent to ensure that this procedure is adhered to.
The HR Department will be responsible for the coordination of site labour requirements and
movements.
Coordination of labour involves issues of contract issuance and termination thereof.
2.3 Labour Planning

 Site Agent is responsible for determining the labour requirements and communicating the
requirements to the HR Department
 Request for labour shall be in writing and have to be completed on a Labour Request Form
(Annexure 2)
 The recruitment or employment of either casual, limited duration or permanent labour is not
permitted without express written approval from the HR department.
2.4 Labour Engagement

 After approval of the labour Request Form by HR Department, Site will be advised of the
recruitment method especially in situations where we are required to employ a certain
proportion of locals.
 The following information is to be filed for each employee recruited on site
 Contract Agreement Form
 Labour Record Card.
 N.E.C. card or Exemption letter from the relevant National Employment Council
 Induction on company procedures and policies
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 Update the labour register with the above details

 It is the responsibility of the Site Agent to ensure that each employee has a valid contract
agreement at any point in time.
2.5 Transfer of labour

 Labour transfers should be limited as much as possible as it is not a cost effective method of
managing labour as the company would be required to pay the employee reallocation
allowances.
 Site to complete an Employee Transfer Advice Form (Annexure 3) and submit to HR
Department for approval.
 The HR Department will be responsible for notifying other contracts of the intended labour
transfer.
2.6 Termination of Contracts

 The Site Agent advises the HR Department of the intention to reduce labour numbers on
site.
 The HR Department informs in writing the employees to be terminated.
2.7 Personnel Records

The Site Agent is to maintain records of all hourly paid employees. The files are to be
retained on site by The Site Agent under lock and key.
Employee personnel files will be kept at Head office. These files are to contain information
such as the employees’ contract, personal details, disciplinary record and safety issues.
2.8 Rates of pay

 Rates of pay will be as per the respective current NEC gazette
 Wage rates for individual employees may not be varied by Site Agent except on approval
from Head Office.
 Site Agent can recommend for an increase in the wage rate by completing a Wage
Increment Form (Annexure 4)
2.9 Hours of Work and Overtime

 Hours to be worked should be as per bid document
 Overtime should be approved before its worked by completing an Overtime Request Form
(Annexure 5) authorized by the respective Contracts Director
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 In instances where it’s inevitable to work overtime prior to authorization, Site Agent should
adequately document the reasons thereof and such instances should be kept at a minimum.
 The Overtime Request Form is completed in duplicate and distributed as follows
 First copy to Wages department
 Second copy , File on site
2.10 Recording of Time and Payment of wages

 Time cards (Annexure 6) are to be prepared and issued to each worker at the start of the
week. These time cards are to be collected prior to starting work each day and returned to
the worker at the end of each shift with the previous shift’s hours entered.
 The Site wages clerk will transfer these hours into the time book daily, time tickets that meet
the following conditions:-
 Should be closed off by the supervisor i.e Gang Boss, Foreman or Site Agent
 If not closed off should not be paid and indicated as such on the time ticket.
 At the end of the week the Site Agent will sign the time book. Hours are to be accumulated
weekly and should match with the duly approved time tickets on site.
 The time book should be sent to Head Office as advised so that employees are paid on
time.
 Payment will be done monthly by bank transfer prepared at Head Office. Cash payments will
only be made in the first month of recruitment and thereafter all payments to be done by
bank transfer. It’s the responsibility of the employee to ensure that the bank details held at
Head office are correct.
 Cash wages will be administered by the Risk and Security department at Head office.
2.11 Timekeeping
Site Agent to ensure that a record is kept of hours worked.
It is the responsibility of the Foreman that the company pays for actual time worked.
Foreman must patrol the site at intervals during the day to check on the presence of
workers.
Detailed below are the minimum procedures to be adopted to ensure that time is accurately
recorded
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 On commencement of work, employees deposit their time tickets at the designated

points.
 The Foreman collects the tickets between 07:00am and 07:10am
 The Foreman will then indicate on the time ticket the start time and Site Clerk
updates the time book.
 At the end of the shift the Gang bosses close off the time tickets by signing off and
indicating the time.
 Time tickets for Supervisory employees e.g. gang bosses, charge hands should be
signed off by the Foreman or Site Agent where applicable
 It is a dismissable offence for an employee to sign off his own time ticket.
 At the end of the week the time tickets are handed over to the Site Clerk to update
the time book.
 The Site Clerk should only enter into the time book properly authorized time tickets.
 The Site Agent will then sign the Time book ensuring the hours correspond to the
signed time tickets.
 The time tickets collected at the end of the week should be kept under lock and key
by the Site Agent.
Its prohibited to forecast overtime hours.
2.12 Loans and Deductions

The Site Agent should make it clear to all employees that the Company will deduct
money from wages for any loss of or damage to equipment such as safety equipment,
tools, safety helmets etc issued to the employee.
Site is prohibited to advance any loans to employees; applications for loans are to be
submitted to HR Department for approval and disbursed by the Finance Department.
2.13 Unclaimed Wages

After pay-out, the Site Agent should ascertain wages which were unclaimed.
a) Enter them in the unclaimed Wage Book.
b) Receipt the unclaimed wages into the Petty Cash account as “unclaimed Wages”. Tear
the original page of the unclaimed Wages Book and attach it to the Petty Cash Return.
c) If a Petty Cash account is not held on site unclaimed wages should be returned with the
Wages Sheets to the Office from which they were drawn.
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d) Once all the entries have been made in the Petty Cash account and unclaimed wages
book, payments of unclaimed wages must be made from Petty cash. The Petty cash
voucher must indicate the following information:-
 Name and employee number
 Amount to be paid
 Wages for which period
e) The appropriate entry in the duplicate copy remaining in the unclaimed wages book should
be paid ex-petty cash and date paid.
f) Unclaimed wages must not be kept “over a week-end” or “for a couple of days” in
anticipation that employees will appear to claim them. They must be dealt with in the
manner described above that is immediately after a pay-out.
SITE PETTY CASH MANAGEMENT
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3. MANAGEMENT OF SITE PETTY CASH ACCOUNTS
3.1 Objective
Site Petty Cash is to be utilized to procure miscellaneous items on site and should not be
substituted as an alternative source of procuring materials for site use.
As a guideline you are only authorized to procure a maximum of 5 items per category of
material per month through petty cash or less than USD100.
The Petty Cash must be used exclusively for the company’s benefit; loans and advances for
site employees from Petty Cash may be made only in exceptional circumstances and as
authorized.
3.2 Responsibility
The Site Agent to ensure that petty cash is utilized according to company laid down
procedures. Any shortfalls should be immediately notified to Head office.
3.3 Utilization and reimbursement

 Petty Cash is drawn by sites from the Head office or from the bank if a requisition of credit is
operated. The limit of the cash which may be drawn will depend on the size of the site and
other circumstances.
 Tight controls of expenses must be adopted.
 All expenses should be properly allocated to the respective cost code
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 Vouchers and receipts should be certified by the Site Agent on signing the weekly cash
return. The expense vouchers to be authorized first before disbursement of cash.
 Cash balances should be correct every week-end and check again on the opening Monday.
 See below extract of the Petty Cash return
Receipts Payments
Date Receipt Amount Date Receipt Amount
23.04.2001 Bal, B/fd. 100.00 24.04.2001 Pay Offs 205.00
25.04.2001 Ex-bank 2000.00 25.04.2001 w/s 234 1540.00
25.04.2201 Unclaimed wages w/s 235 134.00
23 A Sand w/e By cash on hand 521.00
24.04.01 300.00
2400.00 2400.00
Site Clerks Signature Site Agent Signature

_________________ ____________________
The above signatures will confirm that all supporting documents are correct and the return
can be posted to Head Office.
 Petty Cash must at all times be kept in the safe in a metal cash box to which the Site Agent
holds the keys. Where safes are not provided, the Site Agent must make other adequate
arrangements for the safe custody of the cash. Under no circumstances should it be the
practice for the Site Petty Cash to be kept on an employee’s person.
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3.4 Head Office Visits

 From time to time checks on the Petty Cash account will be carried out from Head
Office.
 Severe discrepancies in the Petty Cash account may result in instant dismissal.
MATERIAL CONTROL
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4. MATERIAL CONTROL
4.1 General
All temporary and permanent materials required for the carrying out of works are to be
sourced through the Buying department, which will allocate a designated contract buyer for
the project.
4.2 Buying Schedule

Immediately after award of a contract, the Contracts Director in conjunction with the Site
Agent, will examine the documents and produce a buying schedule for all materials,
services and subcontractors.
Schedules should be forwarded to the Contract Buyer. At the start of the contract the Site
Agent should provide the Buyer with a delivery programme for all the built-in-items.
Based on the Buying Schedule the Contract Buyer identifies items that require longer lead
times and advises Site Agent to place requisitions ahead of time.
A copy of the buying schedule should be forwarded to the planning Department.
4.3 Requisitions
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4.3.1 Manual System

 The requisition form (annexure 7) is to be used for the ordering of materials and services.
 The buyer will only action properly authorized requisitions, as per site instructions. As a
general rule all requisitions should be authorized by the respective Contracts Director and
countersigned by the Managing Director before an order is approved.
 Separate requisitions must be sent in for:
a) Materials to be obtained from suppliers
b) Services required by the site.
c) Stores or services that is required from the Yard. These can be sent by the Buyer direct
to the Yard saving copy work.
 Show clearly on the requisition the following information:-
a) Date
b) Contract code number and name.
c) Be specific of the materials required (size, type, grade, finish, quantity). Where possible
indicate a reference to the bill of quantities item.
d) Date required on site
e) Cost code for each item and allowable figure as per the bill of quantities.
f) Delivery instructions
 Telephoned requisitions to the Buyer are only permitted in cases of emergency and must be
followed up by a requisition form clearly marked “Confirmation of telephone requisition”.
 Requisitions can also be sent through e-mail to speed up the procurement process.
 Pay particular attention to the following points:-
a) Send your requisition to the Buyer by the fastest possible means.
b) Clearly mark requisition concerning P.C. items with the words “P.C. Items”.
c) Drawings or sketches must be attached separately so that they can be forwarded direct
to the merchant with the buying order and do not have to be copied from the requisition.
d) Wherever possible, give the Buyer adequate notice (10 days) to arrange for purchase at
the most advantageous price before delivery date.
 Bulk orders should be monitored closely and overrun on deliveries will necessitate
explanation to the Managing Director.
 The Buying Schedule to be updated with the following information and to be presented to
Head Office (Planning Department) on a weekly basis so that we manage the risk of stock
outs and excessive purchases:-
 Orders placed
 Materials delivered
 Materials still to be delivered
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 Statement to indicate whether procurement is on target with project programme.

 Buyer to communicate to Site Agent on any requisitions with materials that are in
short supply, specifications not available and alternative available for possible
substitution, or replacement, etc
4.3.2 Buildsmart Procurement Module

 Site Clerk logs onto the system and prepares an electronic requisition which should be
approved by the Site Agent and Contract Director
 The approved requisition is then sent to the respective buyer for processing as per
above documented procedures.
4.4 Order Books

Procurement is centralized at Head Office and hence no order books are issued to Sites
4.5 Receipt of Materials

The effective control of materials received, returned, dispatched and transferred to and from
sites depends solely on the proper use of the Material Received (M.R) Form (annexure 8)
4.5.1 General Rules for the use of the M.R. Form- Manual System
 Forms must be used consecutively, and under no circumstances may a book be
used for more than one current contract.
 Entries must be made daily, and the original and duplicate copies sent immediately
to Head Office.
 Cancelled forms must not be destroyed, but instead should also be sent to Head
Office.
 They must be dated the day on which the materials arrive on Site.
 They should be filled in as follows:-
1. Quantity.
2. Unit. Kgs.; Metres; Cubic Metres; No.; etc.
3. Complete Description. This entails copying what appears on the suppliers
Delivery Note but this can be abbreviated as long as it is quite clear what has
been received.
4. Supplier. This will show either the supplier’s name or in the case of receipts on
D/C Advice Notes that the Yard or another contract is the supplier.
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5. Transporter. This column is for truck registration number, the names of the
person who delivered the goods to the site
6. Delivery Note Numbers. As this is the only means the office has of distinguishing
between deliveries of identical quantity this is very important.
7. Amount. This is the value of the delivery if known.
8. Cost Code Numbers. This column should bear the cost code to which the cost is
to be allocated and should conform to the cost code shown on the requisition and
order.
9. Order Number
 All supporting Delivery Notes and Dockets must be attached to the original M.R.
Form in the same order as the entries on the form.
 Short deliveries should be clearly endorsed on the Supplier’s delivery note and only
the actual quantity received is recorded on the MR. R Form.
 All Materials received on site should be checked for quality and quantity
 Only one MR Form per supplier is to be used.
 The M.R. form when complete should bear the signature of the Site Clerk/ Storeman
and the Site Agent.
 Dispatch M.R. forms to Accounts Department on a weekly basis to ensure that we
maintain our credit terms with the suppliers.
 All fields on the M.R Form are mandatory and to be completed in full.
4.5.2 Buildsmart procurement- receipt of materials
These procedures are to be adopted when receiving goods through the procurement
module. Follow the procedures as detailed below:-
i. Log on to the procurement module.

ii. Go to the status menu and select purchase orders.
iii. Insert the order number as indicated and click the search tab to call the order
from the system.
iv. Click the printer icon to view order details. Check that the quantity and price
match details on the invoice or delivery note.
v. If properly match go back to menu and click on Bulk deliveries and insert the
purchase order number , click “keep GRN”, and then click delivery tab to
display the following screen:-
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vi. Ensure the following is correct,

 Supplier details match to invoice.
 The invoice is tax complaint
 Delivery date
 Cost Period
 Insert quantity to be received, and this should be equal to or less than
the ordered quantity.
vii. Then click on the save and print tab and attach to delivery notes or invoices
to be forwarded to Head Office as per the manual system detailed under
section 4.5.1
4.5.2 Procedures for the receipt of aggregates
(i) Ensure that you have the order for the aggregates and compare to the delivery
notes.
(ii) Check the capacity of the Trucks delivering sand and stone to the contract both
at the commencement of the contract and periodically thereafter.
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(iii) Maintain a register of the vehicle registration number and capacity of all vehicles
delivering to the contract.
(iv) Check the materials as they are off-loaded, and sign the Delivery Note, retaining
the original for the M.R. Form. The Delivery Note should be endorsed with the
date/time of delivery and vehicle registration number.
(v) If there are any discrepancies in quantity they must be pointed out to the Driver
immediately, and all copies of the Delivery Note endorsed accordingly.
4.5.3 Material receipt from Other Contracts and Service Departments

(i) Ensure that the materials are accompanied by two copies of Debit Credit Advice
Notes (DCA) bearing the dispatching contract’s valuation of the materials and
cost code allocation.
(ii) Examine the materials and record your valuation on both copies of the DCA.
(iii) Record any discrepancies in quantity and quality on both copies of the DCA, sign
both copies, attach the original to the daily M.R. and send the copy back to the
Issuing Site.
(iv) Disputes in regard to the valuation should be settled between the two contracts,
and failing this referred to the Contracts Director for decision. These disputes
should be resolved within two weeks failure to which the DCA will be processed
as is.
4.6 MATERIALS ISSUE
Materials on site can be issued from the stores to the following locations and hence different
procedures will need to be identified. These have been documented below.
 Works
 Defective materials returned to supplier
 Issued to another project
Generally we use the Debit Credit Advice Note (DCA) to account for the movement of
materials and is completed in quadruplicate and distributed as follows:-
 First and second copy should be attached and sent to the recipient
 Blue copy is sent to Finance
 Fast copy
 The recipient must acknowledge receipt of the goods by signing on the tear off slip
on the first site copy and the site copy is sent to the originator of the DCA
 The tear off slip is attached to the MR Form and send to accounts
 Accounts will match the tear off slip with the blue copy and process the transaction.
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4.6.1 Materials Issued to Works

 When issuing materials to the works from stock:-
(a) The Foreman responsible for the works issues a pre-numbered material request form
(annexure 9) and is authorized by the Site Agent.
(b) The Stores Clerk receives the authorized materials request form from the Foreman
and prepares a pre-numbered stores issued voucher (SIV) (annexure 10) and
attaches to the material request form.
(c) Stores clerk issues the materials and the Foreman signs the SIV as evidence of
receipt of the materials.
(d) Stores Clerk updates the stock card and materials book.
4.6.2 Defective materials returned to supplier

 When returning goods to Suppliers for credit or exchange:-
(a) Make out a DCA with the price.
(b) Have all four copies of the D/C Advice Note signed by the lorry driver transporting the
goods.
(c) Obtain the Supplier’s signature on the original and triplicate copy.
(d) Attach the signed original and triplicate to the relevant M.R. Form and send to head
office. (N/B at the bottom part of the MR form there is a section that has to be completed
when returning goods to suppliers).
4.6.3 Material issued to another project

 When sending materials to other contracts or to the Company’s Yard:-
(a) Make out a DCA and record the valuation and cost code number against each item.
(b) Obtain the signature of the lorry driver on all four copies. Send the first and second
copies with the materials, attach the third (Accounts) copy to the M.R. and keep the
fourth copy in the book.
(c) The Site Clerk should within a week follow up the second copy that was sent to the
receiving site to confirm receipt of the goods and attach it to the file copy.
(d) The Stores Clerk updates the stock card and materials book with the issue.
4.7 Procedures for Cement

1. Site Agents must maintain a daily check on cement supplies.
2. Maintain a book ruled in the following manner in which is recorded all receipts and issues of
cement and details the balance on hand at any time.
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Receipts Issues Balance

Date M.R. Qty Total to Date To SIV # Qty Total to Theo- Actual
No Rec’d date Issued date retical
3. Physically check at least ONCE A WEEK that the stocks on hand agree with the book
balance.
4. Take precautions for the protection of your cement stocks against rain.
5. DO NOT …..
Sell, lend or give cement to any person for use other than on your contract. Only in
exceptional cases and on the authority of the Contracts Director may cement be sold to
clients or outside firms or persons. Such sales must be covered by a DCA Note priced by
the Engineer or Quantity Surveyor and all four copies of the Delivery Note signed by the
recipient. The Accounts copy must be sent immediately to Accounts Department for
processing.
4.8 Procedures for Fuel

1. The Site Agent should keep very rigid controls over fuel supplies.
2. A site fuel book as detailed below should be maintained for petrol, diesel and oil. The book
should be updated with all receipts and issues on fuel and should detail the balance on hand
at any time.
Receipts Issues Balance
Date M.R. Qty Total Date Vehicle Qty SIV # Total to Theo- Actual
No Rec’d to Reg/Plant # Issued date retical
date
28
Procedure
8.10.13 8.10.13
3. Physical check of book balance to actual on hand to be done on a weekly basis.

4. DO NOT ………….
(a) Issue any fuel other than for company vehicles or plant unless prior approval of the
Contract Director has been obtained.
4.9 GOOD HOUSEKEEPING TIPS

The effective control of materials stored on site pending use is essential if losses by theft,
breakages, etc., are to be avoided.
Adequate arrangements must therefore be made to safeguard all materials in the site yard,
and furthermore, a stores accounting system must be established to account for movement
of site stocks.
1. Site Stock Cards
(a) Receipt. All materials received into site stocks must be entered from the delivery
note on to the individual item stock card.
(b) Issues. On issue of material, the item must be entered on the applicable stock
card, indicating wherever possible the unit to which issued, and a running
balance be maintained.
(c) Month end Stock-take. All material in stock on date of the monthly measurement
of the contract should be agreed to the stock cards, and a schedule prepared for
the Site Agent in support of his monthly claim.
2. SITE YARDS should be adequately fenced to prevent pilfering, and unauthorized

removal of company property.
3. SITE CHECKERS should check all vehicles leaving site to ensure that all materials
contained thereon are covered by properly signed DCA Notes.
4.10 MONTH END PROCESS

On the 25 of every month, an inventory count is to be conducted by the Site Agent and he
th
should sign off the materials book as evidence of this count.

Any variances of actual to book should be thoroughly investigated and Head Office to be
advised accordingly of such differences.
29
Procedure
8.10.13 8.10.13
PLANT & TRANSPORT
30
Procedure
8.10.13 8.10.13
5. PLANT AND TRANSPORT
5.1 General
 At tender stage the Managing Director, Contracts Director and the Plant Manager will decide
on major items of plant to be used on the project and tentative programme dates. On award
of the project, they will review this plan with the Site Agent and a list of major plant together
with the required dates will be issued to the Plant Manager.
 The Site Agent is responsible for the care and use of plant and vehicles on their sites and
must ensure that abuse by overloading, maltreatment and lack of site maintenance is
avoided. Site Agents must also enforce the instruction that private use of plant and vehicles
is prohibited.
 Reference to plant items will also include transport, unless specified otherwise.
 The hire out rates will be communicated to the Site Agent and Quantity Surveyor at
commencement of the project and these should be kept confidential.
 Particular attention is drawn to Section 5.5 on the maintenance and use of plant.
 Depending on the size and quantity of Plant items on site, a mechanic and auto electrician
should be resident on site. They will assist in maintaining the service record of the plant
items on site. The personnel should be consulted on all technical matters.
 Each item of plant and transport is identified by a Company Plant Number/Registration

number, which must be quoted in all documentation.
 From time to time during the course of the contract the Site Agent must review his plant
holdings on site and inform the Plant Manager of any changes to the plant requirements
 No plant or transport may be hired to outside sources without the prior authority of the Plant
& Transport Manager and Contract Directors.
31
Procedure
8.10.13 8.10.13
5.2 Requisitions
PLANT
1. Plant is obtained by requisition on the standard requisition form addressed to the Plant &
Transport Manager.
2. Telephonic requisitions should be made to the Plant & Transport Manager only as an
exception and must immediately be followed up by a requisition form clearly marked
“confirmation of telephone requisition”.
3. The requisition form must state clearly:-
(a) The contract name
(b) The items of plant required.
(c) The date on which it is required.
(d) The estimated time for which it is required.
(e) The Site Agent’s signature as authority for the requisition.
4. Plant items should be requested at least a month in advance so as to:-
(a) Ensure that the right plant is available when it is needed.
(b) Avoid delays in the work programme.
(c) Keep hire charges to a minimum.
5. Make sure that your requisition gets to the Plant & Transport Manager by the most certain
and fastest possible means, and check up in good time to be sure that it has been received.
6. Plant should not be hired from an outside supplier, unless approved in writing by the
Finance Manager and/or Contract Director.
VEHICLES
1. Company vehicles will be:-
(i) Allocated to the site by the Plant & Transport Manager in consultation with the
Contracts Director at the commencement of a Contract. Delivery of Plant and
Equipment to and from sites is to be arranged with the Plant & Transport
Manager.
32
Procedure
8.10.13 8.10.13
2. Non-Company
(a) Site Agents on sites outside the Harare area have authority to hire transport for delivery
of materials to site. This is done through the normal procurement process.
(b) Cartage Contractors should preferably be engaged on a “per load” basis.
(c) Transport may be hired on a “time” basis only with the prior consent of the Plant &
Transport Manager and Contract Director and if such consent is given, the
order/requisition procedure in (a) above will apply.
5.3 Plant and Transport movement and control
All plant and vehicles are under the direct control of the Plant & Transport Manager, whose
decision on their utilization, allocation, maintenance and repair is final. Their movement is
controlled in the following manner.
5.3.1 Procedures for Receiving Plant and Transport (Plant) Items
1. From the Yard

(a) Plant will be transported to the site by the Yard except in the case of inter-site transfers
when sites may make their own arrangements.
(b) Sites will receive with the plant the white copy of the Debit/Credit Advice Note on which
the following items should be documented:-
 Description
 Asset number
 Quantity
(c) Check the condition of the plant and endorse any comment on its condition on the DCA
Note (See Plant Maintenance Section 5.5).
(d) Complete the receipt “tear-off” section of the DCA Note and return it to the Plant &
Transport Manager.
(e) Make the necessary entry in the MR Form with any comment on the condition of the
plant noted in “Remarks” column.
33
Procedure
8.10.13 8.10.13
(f) Attach the white copy of the DCA to the MR form and file accordingly.
2. From other Sites

(a) Plant may not be transferred from a site to which it has been issued by the Yard to
another site without the consent of the Plant Manager.
(b) Sites may make their own arrangements for the transport of plant between sites, but if
available Company – owned vehicles are not suitable, the Plant & Transport Manager
must be consulted before outside transport is hired.
(c) The receiving site will:-

(i) Receive with the plant the white copy of a DCA Note which should clearly
describe the following items:-
 Description of plant item
 Plant number
 The names of the contracts from and to which the plant is being
transferred.
 Quantity
(ii) Check the condition of the plant and endorse any comment on its condition on
the DCA Note (see Plant Maintenance Section 5.5).
(iii) Complete the receipt “tear-off” portion of the DCA Note and return it to the
sending site.
(iv) Make the necessary entry in the MR Form with any comment on the condition of
the plant noted in “Remarks” column.
(v) Attach the white copy to the MR form and file accordingly.
5.3.2 Procedures for the dispatch of Plant Items
1. To the Yard
(a) If site transport is not suitable or not available make arrangements for the transport of
the plant with the Plant & Transport Manager.
(b) Make out a DCA Note clearly stating the following:
 contract name
 Description of plant item
 Plant number
 Indicate the corresponding DCA # to which the site received the asset on.
34
Procedure
8.10.13 8.10.13
(c) Make the necessary entry on the daily MR Form regarding the condition of the Plant.
(d) Send the driver with the white copy of the DCA to the Plant and Transport Manager.
(e) The receipt portion of the DCA Note will be returned from the Yard and should be filed
and attached to the MR file copy
2. To other Sites
(a) Plant may not be transferred to another site without the consent of the Plant and
Transport Manager.
(b) For transport arrangements see paragraph “Receipt – 2(b)” above.
(c) Make out a DCA Note clearly stating the following
 Contract name from which it is being dispatched and the contract name of the
receiving site
 Description of the plant item
 Plant number
 Quantity
(d) Send the white copy of the DCA Note to the receiving site and the yellow copy to the
yard.
(e) Make the appropriate entry in the daily MR Form.
(f) Site Clerk to follow up tear off slip (DCA) from receiving site and match with file copy.
5.3.3 Record Keeping

 All items received on site should be recorded in the plant and transport register and should
at a minimum include the following information
 Description and plant number of asset
 Date received on site
 Endorsement for major breakdowns
 Date when returned to Yard or transferred to another site where applicable.
 Hired Transport
(a) A register must be maintained of all vehicles/plant on hire listing the Contractor’s name,
vehicle registration number and load capacity.
(b) Loads delivered by hired transport will be recorded by:-
(i) Delivery notes endorsed with vehicle no and date/time of delivery.
(ii) Entries in the MR Form.
(c) Vehicles hired on a “time” basis will be controlled by a record on the MR Form daily of
the time vehicle was available to the site.
35
Procedure
8.10.13 8.10.13
 Weekly plant and transport returns

 Weekly returns (annexure 11) are to be completed and returned to the Plant &
Transport Manager. Monthly charges will be based on these returns. Details of
Breakdowns and Standby must be shown in the Remarks column.
5.4 HIRE CHARGES
5.4.1 Plant
1. Hire charges will be levied from the day the plant leaves the Yard until the day it leaves the
site.
2. If an item of plant is no longer required or has broken down the Plant & Transport Manager
must be notified immediately. If this is not done the full daily hire rate will continue to be
charged.
3. In special cases and only with the prior agreement of the Plant & Transport Manager, plant
which is not required for a definite period may be kept on site free of charge. This depends
on the requirements of other contracts and on the availability and cost of transport.
4. Hire charges are fixed by Management from time to time as they are based on capital cost,
running costs and maintenance and repairs which have a tendency frequently to vary
upwards
5. Each month the site will receive two copies of the Monthly Plant Hire Charges Schedule
which will show the charges raised by the Plant & Transport Manager for the plant used on
the site during the month. One copy is for the contract records; the other copy is for return
to the Plant and Transport Manager with any queries noted on it and with the signature of
the Site Agent, within two days of receipt of charges schedule.
5.4.2 Vehicles
1. Company-Owned
(a) Yard Based
As these vehicles are used mainly for transporting plant and materials to site they are
charged on “time away from Yard” basis. This rate includes driver, fuel and oil. Charges
are raised through an invoice approved by the Plant and Transport Manager.
The rate levied to site will be based on a monthly rate and as such it’s critical for Site to
communicate any major breakdowns. The monthly rate is exclusive of driver, fuel and oil
costs and these are charged separately through a DCA note.
36
Procedure
8.10.13 8.10.13
(b) Hired Transport

Actual costs of hired transport are charged direct to the site through the Contractor’s
Invoice.
External transporters monthly accounts should be carefully checked to ensure:-
(i) That it is supported by a copy of each delivery note.
(ii) That the relevant MR number is entered on the Statement against the delivery
note number.
5.4.3 Stand by Charges

Standing time will be recorded on Plant Returns and will be charged at rates to be
agreed with the Plant & Transport Manager. These rates are to be agreed prior to the
stand by time being incurred.
In a month an item of plant is allowed to be on standby up to a maximum of two weeks.
Failure to meet this threshold will result in the plant department levying the full month’s
rate.
5.5 MAINTENANCE
5.5.1 General
 A large proportion of the Company’s capital is tied up in Company owned plant and vehicles
and the annual profits are directly affected by the way they are treated on site.
 Both the cost of repairing plant and vehicles which have been mistreated and the drain on
capital caused by its shortened life directly affect the amount of work that the Company can
undertake, the rates that can be applied to tenders and therefore the employment of all site
personnel.
 For these reasons it follows that plant and vehicles must be maintained properly and the
instructions detailed in this section must be strictly adhered to.
MAITENANCE PROCEDURES
(a) Centralized Scheduled Maintenance/Service Control.
(b) Application of Plant and Vehicle Maintenance/Service.
(c) Breakdowns
(d) Accidents
(e) Maintenance/ Service Record Forms.
(f) Ordering of Spares.
(g) Repairs by Local Garages.
37
Procedure
8.10.13 8.10.13
(a) Centralized Scheduled Maintenance/Service Control

(i) The control of Scheduled Maintenance/Service for every item of Plant and Vehicles
owned by the Company will be administered by the Plant & Transport Manager.
(ii) The Plant and Transport clerk maintains a record detailing the following per plant
item:-
 Description of the item
 Plant number
 Hours worked /Kilometers to date
in order for the Plant and Transport clerk to draw up a maintenance/service
schedule, it is imperative that sites submits weekly plant returns as scheduled.
(b) Application of Plant and Vehicle Maintenance/Service

(i) Plant and Vehicles based on sites will be maintained by a Service Mechanic
allocated to the Site; he will be responsible for the application of the regular
scheduled maintenance/service programme, as specified by the Plant and Transport
Manager and the running repairs of Plant and Vehicles based on Sites.
(ii) All major repairs will be carried out in the Company Yard Workshops; any exception
to this rule must have prior consent of the Plant and Transport Manager.
(iii) Site Agents must co-operate with Site Service Mechanics, to ensure that the
Scheduled Maintenance/Service Programme of Plant and Vehicles is carried out
efficiently.
(iv) Site Agents must ensure that all Plant and Vehicles allocated to their Sites are
maintained in a clean condition, in particular items used for handling of concrete,
which should be thoroughly washed down and cleaned after use; this rule is also
applied when items of Plant and Vehicles are transferred to another site, or being
returned to the Company Yard. Any abnormal cost incurred in cleaning returned
items will be charged to sites.
(v) Site Agents must inform the Plant & Transport Manager of any Plant or Vehicle
problems.
(c) Breakdowns
All breakdowns or similar problems are to be referred to the Plant and Transport
Manager who will either carry out repairs directly or place orders necessary for a
third party to carry out the repairs.
(d) Accidents
38
Procedure
8.10.13 8.10.13
The Risk and Security Manager and the Plant and Transport Manager are to be
jointly informed immediately by telephone of all accidents and an accident report
should be submitted within 48 hours of such accident. Plant Department will handle
all insurance queries.
(e) Maintenance/Service Records

(i) Maintenance /Service records are maintained by the Plant and Transport Manager
(ii) The Plant and Transport Manager will inform the Site Agent when a plant item is due
for service. He will also indicate if the service can be carried out on site or at Head
office.
(iii) If the service is being carried out at Head Office, it is the responsibility of the Site
Agent to ensure that the item is delivered within the agreed timeframes.
(f) Ordering of Spares

Spares, including types of batteries, for any item of Plant or Vehicle, must not be
procured or ordered without prior consent of the Plant & Transport Manager.
(g) Repairs by Local Garages

No repairs may be carried out by a Local Garage to any item of Company Plant or
vehicle except on specific instruction of the Plant & Transport Manager.
5.6 PHYSICAL VERIFICATION

1. A stock count of all items of plant and all vehicles on sites will be carried out once in a
calendar year and the Administration department will advise on the dates of when such
counts should be conducted.
2. Duplicate stock sheets will be sent to each site; one for Site records and the other to be
returned to the Plant and Transport Manager signed by the Site Agent.
3. In order to assist Site personnel to take stock as many people as possible will visit sites on
that day to count all plant and vehicles and list plant numbers and serial numbers, etc.
4. Site Agents are responsible for the stock count on their sites and must plan in advance to
make certain that it is done meticulously.
39
Procedure
8.10.13 8.10.13
5.7 LOOSE TOOLS

1. A considerable amount of money and profits on contracts are lost as a result of inadequate
control of loose tools.
2. The following items but not limited to should be described as “loose tools” , air hose, axes,
brooms, buckets, crow bars, earth augers, electric drills, floats, grease guns, hacksaws, jack
hammers, kango hammers, ladders, lamps, measuring tapes, picks, power guns, pumps 6
inches and under, sanding machines, shovels, spades, wheelbarrows, vibrator motors,
pokers, etc.
3. Site Agents are responsible for maintaining a Loose Tools Register ( annexure 12). Serial
numbers of tools and items of equipment should be recorded in this register.
4. Loose tools should be locked up at night and issued daily to employees. In the event of
employees not returning tools at the end of shifts, these employees become responsible for
the replacement of the missing tools. The Site Agent must be kept informed of all such
matters.
5. Loose tools are acquired by purchase through the Buying Office or from Second Hand
Trading Store at the Company Yard. Site Agents should, before a contract starts and from
time to time during a contract visit the Second Hand Trading Store to ascertain what loose
tools are available.
6. At the end of a contract all loose tools must be returned to Second Hand Trading Store at
the Company Yard and credit will be passed to the contract for the value agreed between
the Yard Manager and the Site Agent.
7. Site Agents must not allow employees to appropriate loose tools for their own use during
and after a contract.
8. Repairs to mechanical loose tools will be done by the Site Service Mechanic or by the Yard
Manager and in every instance a requisition must be made out. Cost of repairs will be a
charged to the Site.
9. Adequate facilities should be provided to safeguard artisans’ own tool boxes left on site
overnight.
10. Prior to completion of a contract, a stock-take of all Company owned loose tools will be
undertaken and a variance analysis be submitted to the Finance Manager.
40
Procedure
8.10.13 8.10.13
STEEL EQUIPMENT
41
Procedure
8.10.13 8.10.13
6.1 GENERAL
“Steel Equipment” is a term given by the Company to certain specific items of scaffolding –
shuttering etc.
Find below a non exhaustive list : -
Scaffold Tubing Column Clamps
Scaffold Fittings Hoist Towers
Scaffold Trestles Swing Scaffold
Shutter Panels Prometo Hand Pumps
Acrow Props and Extensions Prometo Hydraulic Pumps
Self-Locking Scaffolding Prometo Hydraulic Jacks
Shorload Equipment Prometo Yokes
Well Pointing Equipment Rapid Metal Formwork (inc. Panels,
Steel Scaffold Planks Channels, Soldiers, Internal corner posts,
Floor Centres fittings, etc).
42
Procedure
8.10.13 8.10.13
Steel Equipment may either be hired from the Yard, or, in exceptional circumstances, hired from
outside suppliers through the Yard manager.
Care should be taken in the treatment of Steel Equipment on Site and when awaiting use,
should be stacked neatly. Sites will be charged for any damage caused to Steel Equipment
through gross negligence.
Consumable items of Steel Equipment, i.e. Ferrule Cones will not be hired to the site, but
charged in full to contract costs as a consumable loose tool.
6.2 REQUISITION
1. Steel Equipment requisitions on the standard requisition form must be for Steel Equipment
only and should be addressed to the Yard manager.
2. Requisitions must include the following information:-

(a) The quantity and description of the equipment required.
(b) The period for which it will be required.
3. Steel Equipment may only be hired through the Yard manager and may not be hired by sites
direct from suppliers.
4. Scaffolding decking and propos may, on occasion, be supplied, erected and dismantled on
site by a sub-contractor on a lump sum basis. If this service is required the Contracts
Manager/Director will make the necessary arrangements in consultation with the Yard
Manager and progress payments must be made by the use of sub-contract certificate, and
in accordance with the Company’s agreement with the Sub-contractor.
5. If there is a scaffolding sub-contractor on site and the site holds stocks of Company owned
Steel Equipment it is doubly important that a close watch be kept to prevent its removal by
the Sub-contractor.
6.2 CONTROL
43
Procedure
8.10.13 8.10.13
1. Steel Equipment stock cards are issued with every site’s establishment stationery kit, but if
missing should be obtained from the Yard Manager.
2. These cards must be kept up-to-date on site by recording all Steel Equipment received and
dispatched in the following manner:-
RECEIPTS
(a) When the Steel Equipment arrives on site the Site Clerk will receive with it the
white copy of a Debit/Credit Advice Note on which there will be a description of
the items and the numbers issued.
(b) Check the equipment received and compare to original requisition, complete the
receipt “tear-off” portion of the DCA Note and return it to the Yard manager or the
site from which it has come from.
(c) Any variances between requisition and actual quantity should be immediately
followed up with a memo to the Yard Manager requesting details of when the
shortfall will be delivered to site.
(d) Enter the DCA Note number and the number of items received in the appropriate
columns of the Steel Equipment stock card (annexure 13)
(e) All receipt entries should be indicated in blue ink
(f) File the white copy of the DCA Note.
(g) Make the necessary entry on the MR Form.
ISSUES
Returns to Yard/Site
(a) Make out DCA Note with the description and number of items being returned.
(b) Send the white copy of the DCA Note to the Yard/Site with the Steel Equipment.
(c) Make the appropriate entry in the Stock card capturing the DCA number and the
number of items returned.
(d) All entries should be marked in red ink.
(e) The yellow copy of the DCA Note should be sent to the Yard Steel Equipment
Clerk.
Transfers to Other Sites

(a) Transfer of Steel Equipment to other sites may not take place without the
consent of the Yard Manager.
(b) When a transfer has been approved follow the procedure as in above paragraph
regarding the issue of a DCA Note.
44
Procedure
8.10.13 8.10.13
(c) Send the white copy of the DCA Note to the site to which the Steel Equipment is
being transferred and the yellow copy to the Yard Steel Equipment Clerk.
(d) Site Clerk to follow up with the receiving Site Clerk for the DCA tear off slip within
a week of transferring the equipment.
3. Sub Yards
In certain areas where a number of contracts are operating, sub-yards are established to
which Steel Equipment may be returned. In such instances the same procedure as outlined
above must be followed. Yard Clerks in these sub-yards will send the yellow copies of DCA
Note issues and the white copies of DCA Note receipts to the Yard Steel Equipment Clerk,
who will maintain the master records.
4. Variances and Dispute Resolution
 This procedures provides a guideline on how to resolve disputes between the Site and
Yard regarding Steel Equipment
 If the Steel Equipment received from the Yard is in an unacceptable condition, the
receiving site should immediately prepare a DCA returning to Yard indicating nature of
problem. The cost of such transportation shall be for the account of the Yard Manager
 If receiving site notes discrepancies between information/ description of details and
quantities, the Site Agent is required to inform the Yard Manager and/or Site Agent of
dispatching site in writing detailing the nature of discrepancies noted and such
correspondence should be done within 24 hours and copied to the Finance Manager.
6.3 CHARGES
1. Steel Equipment is charged to sites at hire rates which are established from time to time as
a percentage of the capital cost of the equipment if it is Company owned. If it is hired from
an external supplier, the site will be charged the hire rate paid to the external supplier.
2. Charges for Steel Equipment are raised every month from the Yard records, of the Steel
Equipment on site on the last day of the month. Hence the importance of sending the yellow
copy of the DCA Note to the Steel Equipment Clerk at the Yard.
45
Procedure
8.10.13 8.10.13
3. This is prepared in the form of a Steel Equipment Hire Schedule (annexure 14) two copies
of which are sent to each site. One copy is for site records; the second copy must be signed
by the Site Agent and returned to the Yard manager with any queries clearly noted on it.
4. The signed form should be attached to a MR form and sent to Head Office for processing.
5. Site clerks should check the monthly return against the Site Stock Card to ensure that the
correct charge has been made prior to signature by the Site Agent
6.4 STOCKTAKING
1. A stock count of Steel Equipment is taken annually on the 30 th of April, or as advised by

Head Office.
2. Each site will receive two copies of a standard stock sheet listing all the items of Steel
Equipment used by the Company and Site Agents are responsible for ensuring that the
stock count is accurately conducted and the stock sheet completed with the number of items
on site.
3. One completed copy of the stock sheet must be signed by the Site Agent and returned to
the Yard Manager within the agreed timeframes.
4. Taking stock of Steel Equipment is not easy and it should be planned in advance to ensure
that adequate time is set aside for it and sufficient personnel made available. Ensuring that
Steel Equipment stock cards are kept up-to-date will materially assist in the stock count.
5. Care must be taken that scrap panels purchased from the yard and used as a base for
storing aggregate are not included in the stock count and that scaffolding belonging to sub-
contractors is not counted.
46
Procedure
8.10.13 8.10.13
REPORTING
47
Procedure
8.10.13 8.10.13
7.1 GENERAL
The two important aspects on site costing are:-
(a) The daily control of major items in order to increase efficiency and productivity and therefore
ensure profits, i.e. labour and materials.
(b) The clerical aspect of ensuring an accurate financial monthly cost report.
7.2 MONTHLY REPORTING
7.2.1 ISSUE OF COST SHEETS

 For sites that have access to the accounting module, they can view costs sheets on a
daily basis.
 The Accountant, will advise on the close of a financial period for reporting purposes
upon which the following procedures should be adopted.
 For sites that do not have access to the accounting module, head office will send
through the cost sheets and the following procedures should be adopted:-
a) From your materials received book , check that all items have been processed on the
cost sheet, if not then an account held back schedule should be created indicating
48
Procedure
8.10.13 8.10.13
the document number, date, description and amount of the cost excluding VAT
(where applicable), cost allocation.
b) Check if any previous understated/ accounts held back costs have been posted and
tick them off your previous month list.
c) Check if any previous over costed have been reversed and tick them off.
d) Check if previous month’s reallocations have been debited and credited correctly and
tick them off.
e) Thereafter the following lists are drawn up - Costs overstated; accounts held back;
misallocations; residual effects.
f) Any of the items above from previous months not taken care of must be carried
forward.
g) The under and overstate costs are effects for materials, labour and other agreed cost
transferred between contracts. Wages for days short and over the 25th of the month
must not be shown as contras but under or overstated costs.
7.2.2 DEFINITION OF COST ADJUSTMENTS
 ACCOUNTS HELD BACK

 These are costs that have been incurred by site but not processed on the costs
sheets due to delays to:-
i. Late or no MRs submitted to Head Office.
ii. Supplier submitting non compliant invoices and cannot be processed in
the system.
iii. .Various queries such as price differences on invoices.
 Subcontractors
Accounts held back on subcontractors are when the company has claimed the value of the
works but no costs have been processed in ledger due to timing differences. Materials
 Others
These are general costs such as rentals, fees, fuel, telephone, disbursement claims,
accommodation, electricity, etc.
49
Procedure
8.10.13 8.10.13
 PROVISIONS FOR FUTURE COSTS (Maintenance, salaries, clear site, provision)

 These are costs that will be incurred in future without revenue against them e,g
EOT , estimating errors. Otherwise you are likely to be faced with future costs for
which you have made no provision and also you are overstating your interim
profitability, treat these as understated costs.
 OVERSTATED COSTS
 These are costs that have been incorrectly processed to your site and amount
not correct.
 A schedule to be prepared with reasons why site is rejecting the costs.
7.2.3 CONTRACT REPORT FORM

 To standardise the financial information submitted from site, a contract report is
completed (annexure 15).
 This form should be completed in full and discussed on site before submission to head
office as per agreed timelines.
 Refer table below on the basic instructions to complete this form:-
Section Description
1. Total certified per  This is the total claimed form the client and this
Masimba valuation value to be reconciled to total revenue recorded
per cost sheet
2. Under /(over) claims  Under claim is value that has been claimed due to
either differences in measurement dates of the
client and Masimba.
 Under claims are not usually encouraged as we
have to ensure we claim everything that is due to
the company to manage cash flows.
 Over claims are instances where we have
claimed for works to be carried out in the future.
These should also be kept at a minimum.
 Included in over claims are materials on site, as
this is not yet revenue earned.
50
Procedure
8.10.13 8.10.13
 A detail of the over and under claims should be

documented on page 2.
3. Adjusted value  This is the summation of items 1 and 2 above.

4. Less Sub-Contract  This should be basically the value of the works
Costs done by the subcontractor claimed to date by
Masimba Construction and is supported by page
3
5. Less Materials on  Should be supported by a schedule which splits
Site between actual materials on site that should have
been counted at reporting date which is usually
the 25th of each month and also over claim of
materials, included in value but not yet received
on site.
6. Masimba Work done  This is the summation of items 3 to 5 and
represents value of work done excluding
subcontractor work to date.
7. Subcontractor costs  Amount should be equivalent to amount disclosed
under item 4 on the face of the contract report.
8. Salaries & Wages  These are arrived at by extracting the figures from
the cost sheet and adjusting for any cost effects
as per page 3.
9. Other Costs  Same as 7 above , however summary of the
costs effects are as per page 4.
10. Total costs  The total costs per cost sheet should be extracted
from the costs sheet and should tally to the
summation of items 7 to 9 above.
11. Gross Profit  This is the difference between item 6 and 10 and
always expected to in the positive.
12. Ratio  The significant point to be made on the ratios is
that when compared to the tender ratios they are
an indication of a contract’s productivity.
13. General  The correct procedure for completing the form is

to first fill in the total contract – to-date column
then subtract the previous month’s total contract
to-date column to give you the actual current
month. Then add the actual current month to
previous month’s year to-date to get this month’s
year to-date column. The reason for completing
the C1 in this order is that by using accumulative
51
Procedure
8.10.13 8.10.13
numbers should a mistake be made one month, it

will automatically adjust itself the following month.
 The estimate for next month is done for each
contract and this is then recorded on the C1 to be
compared with the actual month column and
discussed at the cost report meeting.
The importance of a correct estimate cannot be
overstressed because:-
a) Early correction action can be taken on site.
b) Monthly cash forecast
c) Early confirmation of the company’s financial
position.
14. Mileage  This should be completed for all site vans and
transport on site
15. Payment and  To be completed so that management is made
Certificate summary aware of any payment or certification risk on the
project so that corrective action is taken timeously
16. Project date statistics  This is to measure if the project will be completed
within the agreed timeframes.
7.2.4 ALLOWABLES
 This report is critical and is mandatory to be submitted with each monthly contract report,
exception to this should be approved by Finance Manager in writing.
 It is essential to measure the works every month. If guesses are made they will only
complicate the issues when giving an accurate financial report. The allowables are
compiled using the certificates/ valuation quantities and careful note must be made of
the allocation of rate build ups, in that they must coincide with the cost allocations and
your requisitions (e.g. if you have used ready mixed concrete then your allowables must
be shown as such and not broken in plant sand, cement and stone. You should
compare banana to banana not kilometers or tones to cubic’s.
 Preparation of Profit and Loss Assessment

This is required for the following reasons:-
i. To enable us to establish the true financial position of a contract and
subsequently to enable senior management to establish the true financial
position of the company and the group. It is therefore essential that your
costs are accurate and honest.
ii. To enable management to control cash flow.
iii. To assist management in forecasting budgets.
52
Procedure
8.10.13 8.10.13
 The allowables analysis is done as per page 5 of the contract report.

 Any significant variances above 10% should be explained and a report be attached to
the contract report.
53
Procedure
8.10.13 8.10.13
PROJECT SUSPENSION
8 GENERAL
Projects are suspended due to the occurrence of the following
 Cash flow constraints by client.
 On occurrence of accidents that would have caused loss of lives on site.
Included below are the procedures to be adopted when site is closed off before completion
of works.
The extent of us moving off site is primarily dependent on when we will move on site. If
closure of the site is less than 3 months then these procedures are not applicable. These
procedures are applicable when we are closing off site for more than 3 months.
54
Procedure
8.10.13 8.10.13
8.1 DOCUMENTATION
 The Site Agent should receive a letter of instruction from Head Office signed off by the
Managing Director.
 The instruction will state the duration of the suspension
8.2 COMPANY PROPERTY

 The Site Agent and the Risk Manager will have to ensure that all the company property
is removed from site with the exception of all equipment that is fixed to the works.
 The Risk Manager will ensure adequate watchman are assigned to the site to protect our
works.
 The Site Agent will submit to the Managing Director a list of equipment that could not be
removed from site.
 Documentation to return all plant and equipment, materials is as per system procedures
which is mainly DCAs
 The DCAs should specifically date expiry dates of materials that have been returned to
site.
 If we have client materials on site a list be drawn up and countersigned with client. Client
to be informed that they will be charged storage charges as agreed with the Finance
Manager.
8.3 COMMUNCIATION TO CLIENT

 The Managing Director is responsible for all communication with client during this
suspension period.
 Client to be informed of all costs that they will incur as a result of the suspension
namely:-
 Security costs, Storage costs of client materials.
 Interest charges, where applicable
55

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Documents Type: Document Title: Effective Date: Revision No:

Financial System Site procedures 1 February 2013 0

MASIMBA CONSTRUCTION ZIMBABWE A DIVISION OF

SITE PROCEDURES MANUAL

SITE PETTY CASH MANAGEMENT 17

PLANT & TRANSPORT 30

MASIMBA CONSTRUCTION ZIMBABWE

1.2 Training of Personnel

1.3 Client Liaison

1.4 Public Relations and the Media

1.5 Gifts or Gratuities

1.6 Disposal of Company Property

1.7 Limits of Authority

2. PLANNING AND PROGRAMMING

The programme will:-

 Form part of the main contract

 Form the basis for progress reporting

Contract Manager, Site Agent.

Site Agent (with appropriate assistance as necessary from the planning

Gantt chart planning system (including resources)

 Masimba Construction- Site, Contracts Manager, Subcontractors

 Weekly at site meetings

 Weekly as part of update to head office

 Any revision which involves major changes is to be agreed on between

2.1.2 Four Week Short Term Programme

This programme will:-

Contract Manager, Site Agent/Project Manager

Site Agent/Project Manager

Planning system as per company policy

2.1.3 Weekly Programme

The programme will:-

 Identify short falls in labour and material requirements

 Contract Manager, Site Agent/Project Manager

 Site Agent / Project Manager

 Planning system as per company policy

2.1.4 Progress Reporting

 The Site Agent/Project Manager will record progress against the

1.3 SITES ARE SERVICED FROM THREE MAIN SOURCES:-

(a) The Yard For:

(b) The Buying Department for:

(c) The Administrative department for:

1.4 Site Clerks

1.5 Head Office Visits

1.6 Training School

2.3 Labour Planning

2.4 Labour Engagement

 Update the labour register with the above details

2.5 Transfer of labour

2.6 Termination of Contracts

2.7 Personnel Records

2.8 Rates of pay

2.9 Hours of Work and Overtime

2.10 Recording of Time and Payment of wages

 On commencement of work, employees deposit their time tickets at the designated

Its prohibited to forecast overtime hours.

2.12 Loans and Deductions

2.13 Unclaimed Wages

SITE PETTY CASH MANAGEMENT

3. MANAGEMENT OF SITE PETTY CASH ACCOUNTS

3.3 Utilization and reimbursement

 See below extract of the Petty Cash return

Site Clerks Signature Site Agent Signature