What is a Project A project is a planned non repetitive enterprise undertaken to achieve planned result within a time limit and

a cost budget with Limited Resources. Peculiarities of an construction Project Uncertainties are very high.

New Place New People / Client Hostile Weather Lack of Supporting Infrastructure Poor Communication Facilities Away from HO / Home Mostly unwilling, Home Sick staff / workers with lack of commitment Very demanding and monotonous life style at Site Unrealistic expectations from client Always in front of client hence always in Firing Line

1 - OPENING THE SITE Site Mobilization First Survey Collect all information Scout Party Establish Base Camp Give Signal for others to Arrive Establish Organization for Site Management First Survey Before Mobilization of any site of any size One should have all relevant Information regarding that Site. Form No. I) is given as guidelines to Various Information required. Obtain complete details of all suppliers, details of order on them and their contact details Decide how you are going to monitor the Project Schedule/Progress Scout Party to Establish Base Camp Establish Own Office Establish Communication Channels Phone / Fax E mail Courier Arrange required conveyance Establish Store Establish Own Residence Find out various Statutory Requirements to comply with Carry out Detailed Market Survey Establish Labor Camp Arrange Water / Electricity / Raw Material / Consumables Give Signal for others to Arrive Staff Contractor / Labors Construction Equipments You have now MOBILIZED THE SITE. Inform HO / Client as usually it is linked to release of Payments

Establish Communication

2 - SITE ORGANIZATION Requirement of Site Organization 1- Size of Organization should match with Project Requirements like total value, duration, Technical complicacy, Various Functional Requirements, Site conditions etc. 2- Requirements and Policies of Parent Organization and Client i.e. Some Organizations Insist on very Elaborate Reporting Systems, for some Account is more important, Some insist on close monitoring of Expenses and Purchases, Some client insist for separate Safety Officer, Engineer QC, Labor Officer etc. 3- No. of workers / contractors 4- Build a Team, not rival Groups 5- Authorities and Responsibilities should be clearly defined 6- Communication Channel should be clearly Defined 7- As far as possible work should be divided in such a way that one gets the type of work he is expert in and has only one Head to report. 8- Though work is divided, there should not be a Water Tight Compartment for areas of work so that there is awareness of work status and requirement to other persons too and each one can contribute in over all Site Working. 9- It should provide effective supervision and Control at all levels. 10- There should be smooth and natural Delegation of Power for Harmony & Efficiency. There can be many types of Site Organizations. Make one to suit your requirements Each has its own Advantages and Disadvantages. YOU HAVE NOW SUPPORTING STAFF, OFFICE AND RESOURCES Note: Make it a Point to get all necessary Personal Details as per form No. from every one, Staff as well every one working for you, directly or indirectly, preferably with a Photo. This comes handy during any eventuality.

3 - STORE MANAGEMENT Main Functions of Store 1. Receipt of Material 2. Verification for Quality and Quantity 3. Record keeping of Receipt, Unloading and Issue 4. Safe and proper Storage of material so that any thing is easily retrievable 5. To maintain minimum level of inventory if necessary 6. Suppliers Bill Certification 7. In case some receipts and issues are debit-able, then make necessary notes 8. To comply with various formalities of Excise, Sales Tax / VAT and Road Permits etc. 9. Packing and Transporting - if necessary 10. Re-conservation if needed 11. Requirements of Insurances and Claims as may be necessary HOW SITE STORE & MANUFACTURING STORE DIFFERS Types of Material is Different for Project and that for Manufacturing Repetition is very less Capital Goods form a major part Project Store is Temporary Material Flow/Consumption Pattern is Different. Wastage/Scrap generation is very high Material Codification is less important

Various types of Stores: Bulk Material Store Capital Equipment Store Electrical Item Store Stationery Store Construction Equipment Store Liquid / Chemical / Paint Store Machine Part Store Gas Cylinder Store Steel Raw Material Store Covered Store for Cement etc. Consumable Store Scrap Store

Various Records to be maintained by Store: 1. Material Entry Register 2. Incoming Details Record a. Suppliers Invoices b. Road Permit c. Incoming DC d. Incoming Excise Records e. Material Rejection Record f. Suppliers Invoices Certification g. Location Identification of material for very Large Stores 3. GRIN 4. Stock Register 5. Daily issue Register 6. Register of Local Purchase 7. Register of Issue / Dispatch 8. Local Purchase Register 9. Shelf Life / Re-conservation Plan 10. Cost Center/Contractor wise Consumption Register Item Wise 11. Cost Center/Contractor wise consumption cost register if needed Item Wise 12. Insurance Related Records Now Various Formats can be developed

LOCATION SELECTION/LAYOUT 1. Centrally Located with proper approach 2. Enough Covered/Open Space 3. Well Ventilated 4. Proper Stacking Arrangements 5. Well Segregation of Different Types of Materials to be Stored/Handled 6. Safety Precautions STORE TAKES CARE OF MATERIALS RECEIPT, RECORD, STORAGE AND ISSUE. NOW FEW TIPS REGARDING STORE MANAGEMENT: 1. TAKE CARE TO PREVENT a. PHYSICAL DAMAGE b. THEFT / PILFERAGE c. OBSOLESCENCE (SHELF LIFE EXPIRY) d. IDENTITY- LOSS OF MATERIAL 2. SEGREGATE TOTAL STORES ON FOLLOWING LINES a. VOLUME OF MATERIAL b. COST c. CONSUMPTION PATTERN i.e. FAST MOVING OR SLOW MOVING d. SUSPTABILITY TO WEATHER e. SUSPTABILITY TO THEFT f. FLAMMABILITY g. EXPLOSIVENESS h. RADIOACTIVITY i. AREA OF CONSUMPTION j. CRITICALITY FROM WORK CONTINUITY POINT OF VIEW

SOME IMPORTANT TIPS REGARDING SAFETY 1 Keep First Aid Box at proper place and teach Basic First Aid to every one 2 Keep Adequate numbers of Fire Fighting Equipments and conduct Training Programs 3 Insist for Safety Gadgets i) Safety Shoes ii) Safety Goggles iii) Face Mask iv) Safety Belts v) Safety Helmets vi) Welding / cutting Hand Gloves vii) Welding Screens 4 Always keep torches / Emergency lights handy 5 Never allow loose electrical connections 6 Always use Grinding machine Wheel Guards 7 All lifting tackles & Equipments should be certified for Load Bearing Capacity by competent authority at least in the beginning of Site 8 Check License of all drivers / Crane Operators 9 All dangerous openings / working Places should be Barricaded 10 Display all important Contact phone nos. prominently at convenient places. 11 Always insist for Load Chart at the time of hiring any Crane. Never believe on their words.

4 - SITE PURCHASE HOW PROJECT SITE PURCHASE IS DIFFERENT All Capital Goods / Plants are usually very long delivery and cost intensive items which need to be ordered much before Site is born Just in Time concept has less importance especially in India. It changes to NOT AT SITE = NOT AVAILABLE WHEN NEEDED. For major requirements Project team should decide the Supplier, Rates and Delivery Schedule well in advance, i.e. for items like o Cement o Steel Sections / Rounds o Stone / Sand o Construction Equipments o Cables o Bulk & special Consumables Major Responsibilities of Site Purchase Team is Those items which are procured in Bulk, is available near site and quantity is huge e. g. Sand, Bricks, Stone, Diesel etc. for which Transportation is also substantial (some times even water) Emergency Procurement of Spare Parts Consumables Short Supplies by Plant/Equipment supplier Damaged Parts Chasing all suppliers Escorting-when Over Sized Equipment has reached your vicinity Difficulties experienced during site purchases Requirement is known only at the last moment Unknown market Lack of correct specification Lack of supporting infra structure Procurement Team is always under tremendous pressure as it is they who are in forefront Quantity is very less Inexperienced Staff No familiarity with material to be procured Usually it is One Time Requirement Usual Suppliers do not care for site man Due to obvious reasons site procurement rate is usually more than what it is for bulk from HO 8

How to manage Site Purchase Fix Responsibilities of Procurement correctly Collect details of material/suppliers well in advance Understand consumption pattern and importance of NONAVAILABILITY of that particular material from continuity of work point of view Have a close control over Min-OrderingQty in Store Take regular feedback from actual consumer regarding availability, quality and after sales service provided Draw procurement plan in advance in consultation with PM Total Quantity Requirement Schedule List out available suppliers and evaluate them Negotiate rate, payment terms and delivery schedule Always have contingency plan ready 5 - BILLING SITE DEALS WITH FOLLOWING BILLING A- ON CLIENT i. SUPPLIES ii. SERVICES / LABOR JOBS B- FROM SUBCONTRACTORS ASite Invoicing depends on Type of Project, Price Structure (whether Taxes & Duties are included in price), Supply & working methodology and Payment Terms. It can be classified into following categories: C- Invoicing for Supplies B- Invoicing for Services / Labor Jobs Invoicing for Supplies attracts various taxes and duties where as for Labor Jobs it is Service Tax Civil works on only - unit labor rate basis for this site measurement has to be certified at site in MB Civil work including material supply on Total LS Basis for this work done is to be certified at site Total Plant Supply for this Billing Breakup (based on Mile Stones) is prepared, got approved by client, then Mile Stone Wise Invoicing is done For Direct Bought-out some times Sale in Transit is preferred. Records Needed for Site Billing Authorization of person concerned

Contract Documents Billing Breakup Measurement Books Registration under appropriate categories of Taxes

Total Payments are usually broken up as follows: Advance with Order Payment Against submission of Drawings Payments Against Site Mobilization Payment against material supply Progressive Pro-rata Payment on completion of part work Payment after work is complete Payment after Trials are over Payment after Performance Guarantee Run are accepted

Depending on Size of Project and Policies of Organization first decide whether all Invoicing will be from HO or Site. Deciding Factors: 1. Size of Project 2. Value of Project 3. Organizational Policies 4. Duration of Site Activities 5. Payment Terms 6. Facilities available at site 7. Taxes and Duties 8. Payment mode of Client 9. Location of Bankers Some Organizations prefer all Invoicing from HO only where as for some all Supplies are billed from HO and Labor works are invoiced from Site. Requirements for Invoicing: Appropriate Staff for Measurements Proper Infrastructure for Record Keeping Proper Knowledge about Taxes and Duties Correct understanding about Contract Terms & Conditions Advantages of HO Billing Centralized Recording HO gets Automatic confirmation of Progress Better control on over all Cash Flow Better management of Tax Burden Better management of Bank Facilities

10

6 COORDINATION WITH HO COMMUNICATION IS NEEDED FOR 1 Reporting Progress Commercial Requirements of Material/Resources Technical Clarifications/Modifications Discussions/MOM 2 Movement of Materials 3 Movement of Personnel 4 Movement of Documents 5 Queries regarding suppliers/contractors & their services IT SHOULD BE ONE TO ONE COMMUNICATION ONLY The Project Manager at Site should communicate with one Designated Coordinator in HO and vice versa. Procedure: 1. 2. 3. 4. 5. 6. 7. Make Inward and Outward Register of Documents Flow Freeze Style and procedure for giving Reference No. Decide types of various Reports Decide Formats of various Reports Decide frequency of Reporting Decide recipients of reports Make Guidelines for Mode of Dispatch of Reports/Documents

In spite of availability of Mobile Phones / e mails, Importance of Records of Dispatch and Receipt is not reduced. On the contrary, some ISO procedures demand serial references of all communications and Proof of Receipt Various Reports: Man Power Report Work Progress Report Material Consumption Report Report of Submissions of Documents to client Invoicing Report

11

Report of Discussions with client Report of Material Movement Inward Outward Report of various Statutory Requirements Stock Statement Report of Expenses Budget Report of Vehicle movement and expenses Accident Report 7 - DE-MOBILIZATION OF SITE IT ALL DEPENDS ON TYPE AND SIZE OF PROJECT Major Activities: 1. Obtain work completion Certificate 2. If it is a Process Plant then Hand over site to Commissioning Team 3. Complete following: a. Invoicing b. Material Reconciliation c. Certification of Measurements d. Certification of Subcontractors bills & make their Final Bill e. Get Subcontractors consent of Final Summery including Debit/Credit Notes if any. f. Close Site Account / Bank Account g. Make Final Summery of all pending Points h. Ensure that all subcontractors have paid Full & Final Payments to their labors and take their undertaking to this effect i. Take All Dues Cleared Certificate from your direct suppliers as well as from those, which supplied to Subcontractors. j. Serve Proper Notice of Closure of all Activities to all Concerned Govt. Departments. k. Ensure that all Telephones / Mobiles are suitably returned / disconnected (if not done this can be very serious HAZARD in future) l. Dispose off Scrap as per Company Policy. m. Make a detailed report of Pending Insurance claims. n. Segregate All Documents as below and take appropriate action: i. Commercial Documents to be Preserved and sent to HO with List and Receipt ii. Contractual Documents to be Preserved and sent to HO with List and Receipt iii. Documents to be handed over to Client with Receipt make a copy to be sent to HO iv. Documents which can be destroyed o. Discontinue hired vehicles etc. and vacate Hired Residences

12

p. Demolish or Hand over all temporary construction to client as may be required. q. Retrench all Temporary staff / workers hired directly.

Various Forms ONLY MAJOR CONTENTS ARE GIVEN BELOW. ACTUAL FORMAT NEED TO BE DEVELOPED ON CASE-TO-CASE BASIS

FORM I First Survey Report 1 - Project / Site Name Full Address Name of Client Phone Nos. / mail ID Contact Person with his Phone Nos. / mail ID Client HO Address with Phone Nos. / mail ID Contact Person at Ho with his Phone Nos. / mail ID 2 How to get there Nearest City / Village Nearest Airport Nearest Railway Station Nearest Bus Stand Nearest Highway Nearest Post Office 3 Details about Site Site Condition as regards to mobilization Availability of Office Availability of Covered Store Safety & Security Arrangement for Material Arrangement of Unloading Cranes & Man Power 4 Availability of various Items required: Water its source and qty. available against requirement Electricity - its source and qty. available against requirement

13

Standby arrangement if any. Bulk Material required for that particular Project e.g. For - Civil-Sand, Metal, Cement Bars etc. sources and rates For MS Tanks/Structural MS Plates, Various Strl. Sections, consumables like Gases etc. - sources and rates Man Power Construction Equipments Availability and Maintenance Facilities 5 Other Information about nearby facilities available :Hotels / Restaurants Courier Phone Booth / Fax / Xerox Mobile Phone Network Conveyance Residential Facilities for Staff/Workers Weather Conditions Medical Facilities Banks & ATM Police Insurance Agencies Available Testing Labs Petrol/Diesel Pumps 6 Statutory Requirements : Local Labor Laws and General Practices Local HR Practices Whether ESI is applicable Does the Area comes under any Special Zone Formalities for Bringing Material from other States 7 Any other Peculiarity worth mentioning Local Language Political Situation Any particular Local Custom

14

FORM II GOODS RECEIPT CUM INSPECTION NOTE Site Details / Stamp GRIN Sl. No. Received From: PO No. / Date DC No. / Date Mode of Transport LR No./ Date Inward Register No. / Date Table will contain Sl. No. Material Description Unit of Measurement Qty As per DC As received Accepted Rejected Remarks Unloaded by Unloaded at Damage if any Details of Packings Quantities Wooden Boxes Cartons Gunny Bags Bundles Loose Items FORM III REPORTING FREQUENCY AND MODE 1- Site Progress Report on every Saturday by e mail to project Coordinator at HO 2- Progress Photos 3- Site Account Report Date

15

4- Site Bank Statement 5- GRIN 6- Budget 7- Staff Attendance 8- Drawing Receipt Statement 9- Stock Statement 10- Discussion with Client 11- Work Deviation Report Etc. 1 - It is important that each report should have fixed format, Reference No. Date, Name of Originator and Receiver, Name of the person making the report and signature of authorized Person. It is a good practice to mention Name of person signing along with the signature. 2 Each Courier Packet should have Mail Forwarding Memo

16

FORM IV MAIL FORWARDING MEMO Sl. No. Site Stamp From Details of contents 1 2 3 4 Receivers signature, date of receipt To Date.

17

FORM V PERSONAL DETAILS Organization Full Name Age / Date of Birth Fathers Name Name of Wife Permanent Address with Phone No. Local Address Place for Photo Designation / Trade: Qualification Total Experience Working in present Organization sinceWhom to contact in case of emergency Name Relationship Phone no. Address Nominee: Signature of the person / signature of contractor / witness Date of Signature, Place

18