precise guide construction projectmanagement projectaccounting

8/18/2019 Precise Guide Construction ProjectManagement ProjectAccounting

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Contents

Foreword Preface

About the Author

Chapter 1 Overview of Construction Industry.......................................1

Chapter 2 Understanding the Basics of Construction Project.............5

Chapter 3 Preparing Project Proposal and Awarding Contract .......11

Chapter 4 Planning and Scheduling..................................................17

Chapter 5 Risk Assessment and Assurance.........................................21

Chapter 6 Procurement, Sub-Contracting and Outsourcing............25

Chapter 7 Management of Inventory, Plant and Machinery...........29

Chapter 8 Human Resource Management .......................................33

Chapter 9 Project Execution and Billing .............................................37

Chapter 10 Project Accounting and Reporting ...................................41

Chapter 11 Project Cost Management.................................................51

Chapter 12 Quality, Health, Safety and Environment .........................55

Chapter 13 Management Information System.....................................59

Chapter 14 Monitoring and Control, Demobilization and Close out.63

Annexure - Case Study

Appendix - List of Documents


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A Precise Guide to Construction Project

Management and Project Accounting

Institute of Cost and Management Accountants of Pakistan

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Overview of Construction Industry

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3


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Institute of Cost and Management Accountants of Pakistan4


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Understanding the Basics of Construction Project




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7


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9


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Preparing Project Proposal and Awarding Contract




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13


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15


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Planning and Scheduling




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Risk Assessment and Assurance




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Procurement, Sub-Contracting and Outsourcing




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Management of Inventory, Plant and Machinery




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Human Resource Management




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Project Execution and Billing




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Project Accounting and Reporting




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Project Cost Management




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Project Cost Management




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Quality, Health, Safety and Environment




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Management Information System




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Report Frequency

Finance

Monthly Basis – Revised on project plan revision

Monthly

Monthly

Balance Sheet Monthly

Cash Flow Monthly

Project Plan vs. Progress Daily, Weekly, Monthly

Procurement Weekly, Monthly

Quality Daily, Weekly, Monthly

Headcount Monthly

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Monitoring and Control, Demobilization and Close out




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Estimated Bid Material Cost

ABC Company Limited

Estimated Material Cost

Proposal No:

S. No Description Unit Rate Qty Amount Remarks

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Estimated Bid Labour Cost

ABC Company Limited

Estimated Labour Cost

Proposal No:




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Estimated Sub Contracting Cost

ABC Company Limited

Estimated Sub Contracting Cost

Proposal No:


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Estimated Bid Equipment Cost

ABC Company Limited

Estimated Bid Equipment Cost

Proposal No:

This cost may be divided into three parts i-e Equipments purchasedand charged to project, received from head ofce and rented.




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Estimated Site Facilities Cost

ABC Company LimitedEstimated Site Facilities Cost

Proposal No:


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Budget Revision 0

ABC Company Limited

Budget Revision 0

Project:

Client:

Validity:

Rs

Proposed Price: X XXXXXX

Less Sales Tax X XXXXXX

Net Price X XXXXXX

Material X XXXXXX

Man Power XXXXXXX

Sub Contracting XXXXXXX

Supervision XXXXXXXEquipment X XXXXXX

Site Facilities XXXXXXX

Financial Cost X XXXXXX

Other XXXXXXX

Total XXXXXXX

Project Margin XXXXXXX

Prepared By Checked By Approved By



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Project PlanABC Company Limited

Activity Code Description

Time1

Time2

Time3

Time4

Time5

Time6

Time7

Time8

Time9

Time10

xxxxxx A Planned

Actual

xxxxxx B Planned

Actual

xxxxxx C Planned

Actual

xxxxxx D Planned

Actual

xxxxxx E Planned

Actual

xxxxxx F Planned

Actual

xxxxxx G Planned

Actual

xxxxxx H Planned

Actual

Prepared By

Checked By

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InvoiceABC Company Limited

Invoice No: …………………………..

…………………………..Date:

To

No Description Unit Rate Qty Amount

Total

Sales Tax

Grand Total



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Debit NoteABC Company Limited

Invoice No: …………………………..…………………………..Date:

To


Total

Sales Tax

Grand Total

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Credit NoteABC Company Limited

Invoice No: …………………………..

…………………………..Date:

To


Total

Sales Tax

Grand Total



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Request for Purchase

ABC Company LimitedRequest For Purchase

RFPNo:

Date:

Code Description UnitBudgetedUnit Cost

QtyRequired

BudgetedCost

DateRequired

SuggestedSupplier

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Request for Quote

ABC Company LimitedRequest For Quote

RFPNo:

Date:

Code Description UnitBudgetedUnit Cost

QtyRequired

BudgetedCost

DateRequired

SuggestedSupplier



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Comparative Statement

ABC Company LimitedComparative Statement

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Purchase Order

ABC Company LimitedPurchase Order

P.O. No: …………………….Date: ………………………………….

To

S. No Description Unit Rate Qty Amount

Total

Sales TaxGrand Total



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Goods Received Note

ABC Company LimitedGoods Received Note

Good Received Note

From:

No:

Date:

S. No Code Description Unit QtyReceived

QtyAccepted

QtyRejected

Remarks

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Store Issue Requisition

ABC Company LimitedStore Issue Requisition

From: ……………………

No: ……………………

Date: ……………………

S. No Code Unit Qty Required Qty Issued Remarks

Required By:Issued By:



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Prot and Loss Account

ABC Company LimitedMonthly Prot and Loss Account

ActivityCode

DescriptionTime1Time2Time3Time4Time5Time6Time7Time8Time9Time10Total

Billing Revenue

Project Cost:

MaterialManpowerSub ContractingSupervisionMachineryOtherTotal Cost

Project Margin

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Balance Sheet

ABC Company Limited

Project ABCAs at xx/xx/xxxx

Description

Fixed Assets

Land xxxxxx

Building xxxxxx

Plant and Machinery xxxxxx

Office Equipments xxxxxx

Furniture and Fixture xxxxxx

Motor Vehicles xxxxxxTotal Fixed Assets xxxxxx

Current Assets

Cash and Bank xxxxxx

Accounts Receivables xxxxxx

Stock xxxxxx

Total Current Assets xxxxxx

Total Assets xxxxxx

Long Term LiabilitiesLong Term Loan xxxxxx

Other Long Term Liabilities xxxxxx

Total Long Term Liabilities xxxxxx

Short Term Liabilities

Accounts and Notes Payable xxxxxx

Short Term Loans xxxxxx

Total Short Term Loans xxxxxx

Head Office Investments xxxxxx

Total Liabilities and Investment xxxxxx



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Cash Flow

ABC Company LimitedProject ABCMonthly Cash Flow

DescriptionTime1

Time2

Time3

Time4

Time5

Time6

Time7

Time8

Time9

Time10

Total

Opening Balance

Receipts

Project Billing

Other

Total Receipts

Payments

Suppliers

Payroll

Others

Total Payments

Net Change

Balance C/F

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Analytical Study

ABC Company LimitedProject ABC

Analytical Study

ActivityCode

Description Budget ActualBalance

Costto Complete

Cost atCompletion

Variance

Project To date Month To date Month PTD Month AtCompletion

Billing Revenue

Project CostMaterial

Manpower

Sub Contracting

Supervision

Machinery

Other

Total Cost

Project Margin

At Completion



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Non-Conformity Report



S. No Date Reported Status Remarks

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Risk Analysis



S. No H M L Remarks



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