PROJECT PLANNING AND CONTROL

SUBMITTED BY

LECTURE BY R. SHANKAR NARAYANAN

GHRITACHI PAUL(CE14M110)

The planning process in L&T s based on Master planning and control schedule (MPCS). The time is pre-scheduled
and resources pumped in accordingly.
The tendering system consists of schedules from T0 to T10 each reflecting one of construction programme, schedules
of invoicing, milestone events, P&M, staff, labour, bulk material, specialized agencies, direct costs, overheads &
return on capital employed and cash gap statement.
There are two types of cases in the forms of capital advance:
1. The owner provides monetary advance which helps in starting the project
2. The contractor employs its own capital which gets locked up in the form of fixed asset. This kind of situation
is to be necessarily avoided.
Accepted cost estimate (ACE) or zero cost report
Actual estimation is again done after job acceptance. This results in the generation of schedules S0 to S10. These
schedules are similar to their counterparts in the tendering stage T0 to T10. After its preparation it is compared with
the tendering stage to estimate the time and cost buffer available for the project. For monthly estimate of progress
achieved, job cost report (JCR) is prepared.
The ACE contains the data
1. Job status to date: This contains the job progress in terms of its activity wise details till date.
2. Estimates to complete: This column has the information of the estimates to complete the pending activities in
terms of quantity and cost.
3. Revised estimate: Revised estimation of the activities of the job in terms of quantity and cost.
4. Revised quantities: In case, the owner altered the quantity of any activity/activities, this column caters to it.
All these major categories are subdivided under the headings Quantity, Rate and Total cost.
Earned value of budget
The progress of a project needs to be represented by a single number even though the progress of every activity under
the project differs. Hence it is difficult to find a parameter which can represent all the activity progresses as a whole.
Moreover there lies a chance of misrepresentation of project progress on the basis of the progress of the non-critical
activities. To avoid this, weights can be designated to each activity based on the criticality or importance of each
activity in the project. The percentage complete of the project is calculated on the basis of the weights multiplied by
the quantity/cost achieved of the individual activity. The S curves for the actual and planned progress are monitored
continuously on a monthly basis and a catch up plan is devised to push the actual S curve towards its planned route.
Delhi International Airport project (DIAL)
The DIAL is one of the most prestigious project bagged by L&T. The construction planning of the project was broken
down as follows:

Construction
project (100%)

Design (5.60%)

Procurement
(33.40%)

Installation
(61%)

Each of the activities was again subdivided into its sub-activities with their individual weightages. During
monthly meetings the progress was thus monitored and if need arose the progress of each activity could be
followed in detail and remedial measures taken as required.