PROCEDURE

PREPARATION OF PROPOSALS
AND ESTIMATES

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Procedure
Preparation of Proposal
& Estimation

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AND ESTIMATES

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Table of Contents
1.0

Introduction ............................................................................................................................................... 4

2.0

Purpose ...................................................................................................................................................... 4

3.0

Scope ......................................................................................................................................................... 4

4.0

Resources................................................................................................................................................... 4

4.1

Proposal Manager.................................................................................................................................. 4

4.2

Proposals Engineer ................................................................................................................................ 4

4.3

Proposals Co-ordinator.......................................................................................................................... 5

5.0

Proposals ................................................................................................................................................... 5

5.1

Introduction ........................................................................................................................................... 5

5.2

Project Number ..................................................................................................................................... 5

5.3

Preparation Prior Proposal .................................................................................................................... 5

5.4

Client Supplied Information .................................................................................................................. 5

5.5

Proposal Document ............................................................................................................................... 6

5.6

EPCM Proposal ..................................................................................................................................... 6

5.6.1

Material Take Off (MTO) ................................................................................................................. 6

5.6.2

Requests for Quotation (RFQ) & Request of Information (RFI) ...................................................... 6

5.6.3

Estimate Sheet .................................................................................................................................. 7

5.6.4

Labour Rate Calculator ..................................................................................................................... 7

5.6.5

Mark-up Sheet .................................................................................................................................. 7

5.6.6

Pricing Schedule for Submission ...................................................................................................... 8

5.7

Lump Sum Proposal .............................................................................................................................. 8

5.7.1

Material Take Off (MTO) ................................................................................................................. 9

5.7.2

Requests for Quotation (RFQ) & Request of Information (RFI) ...................................................... 9

5.7.3

Estimate Sheet .................................................................................................................................. 9

5.7.4

Labour Rate Calculator ................................................................................................................... 10

5.7.5

Mark-up Sheet ................................................................................................................................ 10

5.7.6

Pricing Schedule for Submission .................................................................................................... 11

5.8

Unit Rate Proposal .............................................................................................................................. 11

5.8.1

Material Take Off (MTO) ............................................................................................................... 11

5.8.2

Requests for Quotation (RFQ) & Request of Information (RFI) .................................................... 11

5.8.3

Estimate Sheet ................................................................................................................................ 12

5.8.4

Labour Rate Calculator ................................................................................................................... 12

5.8.5

Mark-up Sheet ................................................................................................................................ 12

5.8.6

Pricing Schedule for Submission .................................................................................................... 13

5.9

PMCM Proposal .................................................................................................................................. 13

5.9.1

Material Take Off (MTO) ............................................................................................................... 13

5.9.2

Requests for Quotation (RFQ) & Request of Information (RFI) .................................................... 14

5.9.3

Estimate Sheet ................................................................................................................................ 14

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5.9.4

Labour Rate Calculator ................................................................................................................... 14

5.9.5

Mark-up Sheet ................................................................................................................................ 15

5.9.6

Pricing Schedule for Submission .................................................................................................... 15

6.0

Schedules ................................................................................................................................................. 15

7.0

Manpower Histogram & S Curve ............................................................................................................ 17

7.1

Manpower Histogram.......................................................................................................................... 17

7.2

S Curves .............................................................................................................................................. 17

8.0

Execution Plans ....................................................................................................................................... 19

9.0

HSE Plan ................................................................................................................................................. 20

10.0

Project Quality Plan ................................................................................................................................. 21

11.0

Construction Execution Plans (CEP) ....................................................................................................... 21

12.0

Client Required Information .................................................................................................................... 22

13.0

Final Bid Review ..................................................................................................................................... 22

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Instruction:
Please read this document in conjunction with Estimation & Proposal Flow Chart (Doc No: 000.350.
TP003 Rev 1) which contains links on relevant Forms & Templates for individual Estimation task.

1.0

Introduction

The policy of the SEPAM GROUP and its subsidiaries is to ensure that the applicable standards,
specifications, contractual, commercial administrative requirements and verification arrangements are
correctly identified during the preparation of proposals and the requirements of such documents are
adhered to by third parties.
It is also the policy of SEPAM GROUP to ensure a smooth auditable flow of information throughout
the preparation of the Proposal and to initial a process of continuous improvement in order to gain a
reputation in the market pace as the specialist contractor of choice by our clients.

2.0

Purpose

To define the methods of documenting and authorizing the issuance of proposals in order to ensure
that the services conform to specified requirements and are handled and controlled in a systematic
and auditable fashion.

3.0

Scope

This procedure is applicable to all proposals issued from all Sepam offices.

4.0

Resources

Based on the size and complexity of the inquiry, resources will be allocated based on the
requirements. These positions will be continuously reviewed and revised as dictated by the size and
complexity of the project being bid.

4.1

Proposal Manager

A Proposal Manager will be appointed to be responsible and accountable for the proposal under
preparation.
The Proposals Manager (PM) will report directly to the SBU Manager and is responsible for the review
of all technical, commercial and contractual matters relating to the proposal and the planning and
controlling of all the efforts necessary to ensure that a proposal of the required Quality and Accuracy
is delivered in a timely manner and at a competitive price by allocating the necessary resources.

4.2

Proposals Engineer

Suitably qualified and experienced Engineers based on the proposed Scope of Work will be appointed
by the Proposal Manager to assist in the preparation of the technical content of proposals.
Under the guidance of the Proposal Manager the proposals engineer is responsible to obtain the
prime costs associated with the installation on the project taking into careful consideration the local

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construction standards, clients requirements and any specific project/site agreements. They are also
responsible for keeping a knowledgeable experience of ever changing industry standards and to
ensure competitive prices are obtained from manufacturers/subcontractors.

4.3

Proposals Co-ordinator

Under administration direction of the Proposals Manager, the Proposals Co-ordinator is directly
responsible for the logging in and issuance of specific project numbers to each inquiry as and when
they are received and for the preparation of the proposal documents necessary for submitting to the
Client.

5.0

Proposals

5.1

Introduction

It is the policy of SEPAM to offer our clients the most competitive proposal to the correct specification
and in a timely manner. SEPAM operates a continuous improvement process actively working with
suppliers/Subcontractors in order to streamline the proposal process in order to obtain value for
money and offer our clients services at a competitive price.

5.2

Project Number

Upon confirmation from Business Development and/or senior Management that the inquiry is to be
bid, it is the responsibility of the Proposal Co-ordinator to confirm with Business Development and
make sure the receipt of TOFs, Strategy paper etc. then confirm/request Project Number from Project
Controls. Project should not be bid without TOFs and Project number. The assigned Project Number
should be used for all correspondence, RFQs and other documents associated with the particular bid.
Standard Project Proposal Folder should be set-up with assigned Project Number.

5.3

Preparation Prior Proposal

A Bid Team should be assigned for the proposal; Cost of bidding will then be estimated using
Proposal Costing Sheet if required. Proposal Manager would be responsible to assign tasks to each
member of the bidding team by accomplish the Responsibility Matrix.

5.4

Client Supplied Information

All Client supplied information is to be submitted to Document Control to ensure the correct versions
of all documents are stored in the appropriate locations on Contract Manager and in the Project
Folder.
Once the Request for Proposal / Invitation to Bid is received by Sepam and correctly filed in
Document Control the Proposal Manager must review the client supplied information to ensure that all

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required information is provided and at a level of detail and completeness to allow Sepam to prepare
a complete and accurate estimate and proposal. Any information not provided but required should be
recorded and transmitted to client in the form of Technical or Commercial Clarifications by the
Proposal Manager. Clarifications will be included in our proposal to support any decisions or
strategies employed by Sepam during the proposal or estimating process.

5.5

Proposal Document

The Proposal Document is prepared by the Proposal Manager with assistance from the relevant
Engineering, Technical and Commercial Functions Co-ordinator under the guidance of the Engineer/s
and is laid out in line with the Clients requirements and may contain such information as:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

5.6

Cover Letter
Pricing Breakdown / Summary - Sepam Mark Up Sheet
Commercial Clarifications Sample Commercial Clarifications
Technical Clarifications Sample Technical Clarifications
Major Milestone Schedule
Project Organisation Chart
Manpower Histograms
Project S Curve
Execution Plans Use Standard Sepam Templates
HSE Plan Sample HSE Plan
Quality Plan Sample Quality Plan
Project / Client Specific Information

EPCM Proposal

A complete proposal for Engineering, Procurement, Construction & Management based on the client
requirements / documents for the project. Bid Calculations and considerations can be derived from
the following sheets:
5.6.1

Material Take Off (MTO)

The Bill of Quantities/Material Take Off (BOQ/MTO) is a form which provides the team with an
efficient method of laying down all project requirements. The BOQs will be generated by the
Proposal Engineer/s or supplied directly by the client as part of the Inquiry documents and will contain
detailed breakdowns of the main components of the proposal generally as outlined below:
1. Materials
2. Subcontracts
3. Labour / Man-hours requirements
5.6.2

Requests for Quotation (RFQ) & Request of Information (RFI)

Upon preparation/receipt of the BOQ/s and after checking its contents, the Proposal Engineers are
then responsible for the RFQ and the bid list development. A minimum of three reputable bids shall
be obtained for all major materials, with the exception of approved company pre-selected vendors.

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An RFQ is drawn up to accompany the BOQs in order to invite vendors to submit offers for project
requirements.
The Engineers will screen bids for conformance to the specifications, terms and conditions, quality
requirements, and any other information that may be missing or unclear. Missing information may be
requested by phone, but must always be confirmed in writing by the bidder.
Request of Information and Clarification from client should be proposed in standard RFI format, and
each RFI issued should be logged into RFI Register, with current status and regularly updated with
Clients reply.
5.6.3

Estimate Sheet

The Estimate Sheet is an MS computer-generated form, which provides the team with an efficient
method of laying down all project requirements and will contain the following information:

1.
2.
3.
4.
5.
6.
7.
8.
9.

Project title and location.

Project number.
Date of quotation and any applicable revisions/updates.
Brief description of equipment or material.
Unit cost of Materials for each item.
Unit Cost of subcontracts for each item.
Unit Norm (Man-hours) for each item.
Totals for each of the line items mentioned in 5, 6 and 7 above.
Labour, Subcontracts &Material Multiplier

Cypher 1 as estimation software is used during estimation process, it has a material database, which
provides material unit norms, material class, and labour class for each item. For detailed instruction
for Cypher 1 software, please refer to Cypher 1 Estimating.
BOQ could be imported to Cypher 1 in a specific Excel format, please refer to Import Excel BOQ to
SEC Procedure for detailed procedure.

5.6.4

Labour Rate Calculator

Labour Rate Calculator is an MS computer generated from which enables the proposal team to come
up with a overall unit cost of Indirect Man Hours depending on the location of the project, local laws &
regulations, Indirect cost incurred (Visa, mobilisation ,recruitment charges, R&R etc).
The Labour Rate Calculator is maintained and held by the SBU Manager and the Estimating
Department.
Please click on link here for current Estimating Department LRC copy: LRC

5.6.5

Mark-up Sheet

The Mark up Sheet is prepared taking the main information collated in the Estimate sheet:

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PREPARATION OF PROPOSALS
AND ESTIMATES

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.

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Design & Engineering Cost

Material & Equipment Cost
Labour Cost
Construction Cost ( Labour, Small Tools, Safety Equipment, transportation,
Consumables, Expendables, Scaffolding and other High elevation Access)
Project Management Cost
Prelims & General ( Site Facilities, Office Equipment, Site Services, Production
Equipment, Direct & Third Party Testing Cost, Head Office Cost)
Commissioning Cost
Total Subcontract Cost
Escalation Cost
Project Cost
Contingency Cost
Management Fee
Joint Venture Cost
Agent fee
Nominal Ledger
Change Orders/Variation Cost

A commercial review should be carried out by Proposals Manager with the Management team prior
the application of the associated cost. Once Management approved the Mark-up sheet, Associated
Cost of the project can then be brought back to the estimate.
The Mark up sheet is maintained by each SBU Manager and their Estimators for each project.
Please click on link here for standard Mark-up Sheet: Mark-up Sheet_Rev.02 (26-MAY-11).xlsx

5.6.6

Pricing Schedule for Submission

A Pricing Schedule as per Clients required format should be generated from the Cypher 1 estimate
sheet after Management approved mark-up assigned to the project estimate.
Once the associated costs have been assigned to the project it is then the responsibility of the
Proposals Manager along with the Engineer/s to present this information to the Company Directors for
approval.

5.7

Lump Sum Proposal

A complete proposal for construction / installation which consist of a single sum of money based on
the client requirements / documents for the project. Bid Calculations and considerations can be
derived from the following sheets;

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5.7.1

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Material Take Off (MTO)

The Bill of Quantities/Material Take Off (BOQ/MTO) is a form which provides the team with an
efficient method of laying down all project requirements. The BOQs will be generated by the
Proposal Engineer/s or supplied directly by the client as part of the Inquiry documents and will contain
detailed breakdowns of the main components of the proposal generally as outlined below:
1. Materials
2. Subcontracts
3. Labour / Man-hours requirements
5.7.2

Requests for Quotation (RFQ) & Request of Information (RFI)

Upon preparation/receipt of the BOQ/s and after checking its contents, the Proposal Engineers are
then responsible for the RFQ and the bid list development. A minimum of three reputable bids shall
be obtained for all major materials, with the exception of approved company pre-selected vendors.
An RFQ is drawn up to accompany the BOQs in order to invite vendors to submit offers for project
requirements.
The Engineers will screen bids for conformance to the specifications, terms and conditions, quality
requirements, and any other information that may be missing or unclear. Missing information may be
requested by phone, but must always be confirmed in writing by the bidder.
Request of Information and Clarification from client should be proposed in standard RFI format, and
each RFI issued should be logged into RFI Register, with current status and regularly updated with
Clients reply.
5.7.3

Estimate Sheet

The Estimate Sheet is an MS computer-generated form, which provides the team with an efficient
method of laying down all project requirements and will contain the following information:
1.
2.
3.
4.
5.
6.
7.
8.
9.

Project title and location.

Project number.
Date of quotation and any applicable revisions/updates.
Brief description of equipment or material.
Unit cost of Materials for each item.
Unit Cost of subcontracts for each item.
Unit Norm (Man-hours) for each item.
Totals for each of the line items mentioned in 5, 6 and 7 above.
Labour, Subcontracts &Material Multiplier

Cypher 1 as estimation software is used during estimation process, it has a material database, which
provides material unit norms, material class, and labour class for each item. For detailed instruction
for Cypher 1 software, please refer to Cypher 1 Estimating.
BOQ could be imported to Cypher 1 in a specific Excel format, please refer to Import Excel BOQ to
SEC Procedure for detailed procedure.

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AND ESTIMATES

5.7.4

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Labour Rate Calculator

Labour Rate Calculator is an MS computer generated form which enables the proposal team to come
up with a overall unit cost of Indirect Man Hours depending on the location of the project, local laws &
regulations, Indirect cost incurred (Visa, mobilisation ,recruitment charges, R&R etc).
The Labour Rate Calculator is maintained and held by the SBU Manager and the Estimating
Department.
Please click on link here for current Estimating Department LRC copy: LRC

5.7.5

Mark-up Sheet

The Mark up Sheet is prepared taking the main information collated in the Estimate sheet:

1.
2.
3.
4.

5.
6.

7.
8.
9.
10.
11.
12.
13.
14.
15.
16.

Design & Engineering Cost

Material & Equipment Cost
Labour Cost
Construction Cost ( Labour, Small Tools, Safety Equipment,
transportation, Consumables, Expendables, Scaffolding and other High
elevation Access)
Project Management Cost
Prelims & General ( Site Facilities, Office Equipment, Site Services,
Production Equipment, Direct & Third Party Testing Cost, Head Office
Cost)
Commissioning Cost
Total Subcontract Cost
Escalation Cost
Project Cost
Contingency Cost
Management Fee
Joint Venture Cost
Agent fee
Nominal Ledger
Change Orders/Variation Cost

A commercial review should be carried out by Proposals Manager with the Management team prior
the application of the associated cost. Once Management approved the Mark-up sheet, Associated
Cost of the project can then be brought back to the estimate.
The Mark up sheet is maintained by each SBU Manager and their Estimators for each project.
Please click on link here for standard Mark-up Sheet: Mark-up Sheet_Rev.02 (26-MAY-11).xlsx

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PREPARATION OF PROPOSALS
AND ESTIMATES

5.7.6

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Pricing Schedule for Submission

A Pricing Schedule as per Clients required format should be generated from the Cypher 1 estimate
sheet after Management approved mark-up assigned to the project estimate.
Once the associated costs have been assigned to the project it is then the responsibility of the
Proposals Manager along with the Engineer/s to present this information to the Company Directors for
approval.

5.8

Unit Rate Proposal

A complete proposal consisting amount of a charge or payment relative to each work line item based
on the client requirements / documents for the project. Bid Calculations can be derived from the
following sheets:

5.8.1

Material Take Off (MTO)

The Bill of Quantities/Material Take Off (BOQ/MTO) is a form which provides the team with an
efficient method of laying down all project requirements. The BOQs will be generated by the
Proposal Engineer/s or supplied directly by the client as part of the Inquiry documents and will contain
detailed breakdowns of the main components of the proposal generally as outlined below:
1. Materials
2. Subcontracts
3. Labour / Man-hours requirements
5.8.2

Requests for Quotation (RFQ) & Request of Information (RFI)

Upon preparation/receipt of the BOQ/s and after checking its contents, the Proposal Engineers are
then responsible for the RFQ and the bid list development. A minimum of three reputable bids shall
be obtained for all major materials, with the exception of approved company pre-selected vendors.
An RFQ is drawn up to accompany the BOQs in order to invite vendors to submit offers for project
requirements.
The Engineers will screen bids for conformance to the specifications, terms and conditions, quality
requirements, and any other information that may be missing or unclear. Missing information may be
requested by phone, but must always be confirmed in writing by the bidder.
Request of Information and Clarification from client should be proposed in standard RFI format, and
each RFI issued should be logged into RFI Register, with current status and regularly updated with
Clients reply.

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PROCEDURE
PREPARATION OF PROPOSALS
AND ESTIMATES

5.8.3

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Estimate Sheet

The Estimate Sheet is an MS computer-generated form, which provides the team with an efficient
method of laying down all project requirements and will contain the following information:
1.
2.
3.
4.
5.
6.
7.
8.
9.

Project title and location.

Project number.
Date of quotation and any applicable revisions/updates.
Brief description of equipment or material.
Unit cost of Materials for each item.
Unit Cost of subcontracts for each item.
Unit Norm (Man-hours) for each item.
Totals for each of the line items mentioned in 5, 6 and 7 above.
Labour, Subcontracts &Material Multiplier

Cypher 1 as estimation software is used during estimation process, it has a material database, which
provides material unit norms, material class, and labour class for each item. For detailed instruction
for Cypher 1 software, please refer to Cypher 1 Estimating.
BOQ could be imported to Cypher 1 in a specific Excel format, please refer to Import Excel BOQ to
SEC Procedure for detailed procedure.

5.8.4

Labour Rate Calculator

Labour Rate Calculator is an MS computer generated form which enables the proposal team to come
up with a overall unit cost of Indirect Man Hours depending on the location of the project, local laws &
regulations, Indirect cost incurred (Visa, mobilisation ,recruitment charges, R&R etc).
The Labour Rate Calculator is maintained and held by the SBU Manager and the Estimating
Department.
Please click on link here for current Estimating Department LRC copy: LRC

5.8.5

Mark-up Sheet

The Mark up Sheet is prepared taking the main information collated in the Estimate sheet:

1.
2.
3.
4.
5.
6.
7.
8.

Design & Engineering Cost

Material & Equipment Cost
Labour Cost
Construction Cost ( Labour, Small Tools, Safety Equipment, transportation,
Consumables, Expendables, Scaffolding and other High elevation Access)
Project Management Cost
Prelims & General ( Site Facilities, Office Equipment, Site Services,
Production Equipment, Direct & Third Party Testing Cost, Head Office Cost)
Commissioning Cost
Total Subcontract Cost

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PREPARATION OF PROPOSALS
AND ESTIMATES

9.
10.
11.
12.
13.
14.
15.
16.

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Escalation Cost
Project Cost
Contingency Cost
Management Fee
Joint Venture Cost
Agent fee
Nominal Ledger
Change Orders/Variation Cost

A commercial review should be carried out by Proposals Manager with the Management team prior
the application of the associated cost. Once Management approved the Mark-up sheet, Associated
Cost of the project can then be brought back to the estimate.
The Mark up sheet is maintained by each SBU Manager and their Estimators for each project.
Please click on link here for standard Mark-up Sheet: Mark-up Sheet_Rev.02 (26-MAY-11).xlsx

5.8.6

Pricing Schedule for Submission

A Pricing Schedule as per Clients required format should be generated from the Cypher 1 estimate
sheet after Management approved mark-up assigned to the project estimate.
Once the associated costs have been assigned to the project it is then the responsibility of the
Proposals Manager along with the Engineer/s to present this information to the Company Directors for
approval.

5.9

PMCM Proposal

A complete proposal for Procurement, Construction & Management based on the client requirements /
documents for the project. Bid Calculations and considerations can be derived from the following
sheets:

5.9.1

Material Take Off (MTO)

The Bill of Quantities/Material Take Off (BOQ/MTO) is a form which provides the team with an
efficient method of laying down all project requirements. The BOQs will be generated by the
Proposal Engineer/s or supplied directly by the client as part of the Inquiry documents and will contain
detailed breakdowns of the main components of the proposal generally as outlined below:
1. Materials
2. Subcontracts
3. Labour / Man-hours requirements
4.

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PREPARATION OF PROPOSALS
AND ESTIMATES

5.9.2

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Requests for Quotation (RFQ) & Request of Information (RFI)

Upon preparation/receipt of the BOQ/s and after checking its contents, the Proposal Engineers are
then responsible for the RFQ and the bid list development. A minimum of three reputable bids shall
be obtained for all major materials, with the exception of approved company pre-selected vendors.
An RFQ is drawn up to accompany the BOQs in order to invite vendors to submit offers for project
requirements.
The Engineers will screen bids for conformance to the specifications, terms and conditions, quality
requirements, and any other information that may be missing or unclear. Missing information may be
requested by phone, but must always be confirmed in writing by the bidder.
Request of Information and Clarification from client should be proposed in standard RFI format, and
each RFI issued should be logged into RFI Register, with current status and regularly updated with
Clients reply.

5.9.3

Estimate Sheet

The Estimate Sheet is an MS computer-generated form, which provides the team with an efficient
method of laying down all project requirements and will contain the following information:
1.
2.
3.
4.
5.
6.
7.
8.
9.

Project title and location.

Project number.
Date of quotation and any applicable revisions/updates.
Brief description of equipment or material.
Unit cost of Materials for each item.
Unit Cost of subcontracts for each item.
Unit Norm (Man-hours) for each item.
Totals for each of the line items mentioned in 5, 6 and 7 above.
Labour, Subcontracts &Material Multiplier

Cypher 1 as estimation software is used during estimation process, it has a material database, which
provides material unit norms, material class, and labour class for each item. For detailed instruction
for Cypher 1 software, please refer to Cypher 1 Estimating.
BOQ could be imported to Cypher 1 in a specific Excel format, please refer to Import Excel BOQ to
SEC Procedure for detailed procedure.

5.9.4

Labour Rate Calculator

Labour Rate Calculator is an MS computer generated form which enables the proposal team to come
up with a overall unit cost of Indirect Man Hours depending on the location of the project, local laws &
regulations, Indirect cost incurred (Visa, mobilisation ,recruitment charges, R&R etc).
The Labour Rate Calculator is maintained and held by the SBU Manager and the Estimating
Department.
Please click on link here for current Estimating Department LRC copy: LRC

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PREPARATION OF PROPOSALS
AND ESTIMATES

5.9.5

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Mark-up Sheet

The Mark up Sheet is prepared taking the main information collated in the Estimate sheet:

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.

Design & Engineering Cost

Material & Equipment Cost
Labour Cost
Construction Cost ( Labour, Small Tools, Safety Equipment, transportation,
Consumables, Expendables, Scaffolding and other High elevation Access)
Project Management Cost
Prelims & General ( Site Facilities, Office Equipment, Site Services,
Production Equipment, Direct & Third Party Testing Cost, Head Office Cost)
Commissioning Cost
Total Subcontract Cost
Escalation Cost
Project Cost
Contingency Cost
Management Fee
Joint Venture Cost
Agent fee
Nominal Ledger
Change Orders/Variation Cost

A commercial review should be carried out by Proposals Manager with the Management team prior
the application of the associated cost. Once Management approved the Mark-up sheet, Associated
Cost of the project can then be brought back to the estimate.
The Mark up sheet is maintained by each SBU Manager and their Estimators for each project.
Please click on link here for standard Mark-up Sheet: Mark-up Sheet_Rev.02 (26-MAY-11).xlsx

5.9.6

Pricing Schedule for Submission

A Pricing Schedule as per Clients required format should be generated from the Cypher 1 estimate
sheet after Management approved mark-up assigned to the project estimate.
Once the associated costs have been assigned to the project it is then the responsibility of the
Proposals Manager along with the Engineer/s to present this information to the Company Directors for
approval.

6.0

Schedules

During the proposal process our client may request the submittal of a variety of different schedules to
support our proposal and demonstrate that we have an adequate understanding of the overall project
schedule and most effective and efficient schedule for our planned scope of work.

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The common types of schedule requested at this stage of the process would be:

Major Milestone Schedule - The milestone schedule is a summary level schedule that allows
the project manager to review and identify all of the significant and major project related
milestones that may exist in the course of a project, and can be proven helpful in making sure
that nothing falls behind schedule of off the radar entirely.
Critical Path Schedule (CPM) This is a schedule which comprises the following elements:

1) A list of all activities required to complete the project (also known as Work breakdown
structure)
2) The time (duration) that each activity will take to completion
3) The dependencies between the activities.
Using these values, CPM calculates the longest path of planned activities to the end of the project,
and the earliest and latest that each activity can start and finish without making the project longer. This
process determines which activities are "critical" (i.e., on the longest path) and which have "total float"
(i.e., can be delayed without making the project longer). In project management, a critical path is the
sequence of activities which add up to the longest overall duration. This determines the shortest time
possible to complete the project. Any delay of an activity on the critical path directly impacts the
planned project completion date (i.e. there is no float on the critical path). A project can have several,
parallel, near critical paths.

Mobilisation Schedule the proposed schedule to mobilise a project team, facilities and
equipment to a project location.
Construction Schedule planned durations, and sequence of the proposed construction
activities required to complete a Scope of Work.
Procurement & Subcontracts Schedule Where the selection of vendors and
subcontractors and subsequent award of contracts or placement of Purchase Orders for Long
Lead items is deemed to be critical to project success then our clients may request the
submittal of procurement and subcontracting schedules with our proposals.

Please refer to Schedule Planning Flow Chart for Scheduling procedures.

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7.0

Manpower Histogram & S Curve

7.1

Manpower Histogram

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Manpower histograms are used to demonstrate to clients our effective and efficient planning of labour
resources. The histograms are also used to achieve uniform distributions of labour by moving
activities that are not on critical path.

Typical Manpower Histogram

7.2

S Curves

The S Curve is a well known project management tool and it consists in "a display of cumulative
costs, labour hours or other quantities plotted against time. The name derives from the S-like shape
of the curve, flatter at the beginning and end and steeper in the middle, because this is the way most
of the projects look like.
The S curve can be considered as an indicator and it's used for many applications related to project
management such as: target, baseline, cost, time etc.
That's why there is a variety of S Curves such as:
-Cost versus Time S Curve ;( Appropriate for projects that contain labour and non-labour tasks).
-Target S Curve;(This S Curve reflects the ideal progress of the project if all tasks are completed as
currently scheduled)
-Value and Percentage S Curves;(Percentage S Curves are useful for calculating the project's actual
percentage complete)
-Actual S Curve;(This S Curve reflects the actual progress of the project to date)

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In order to be able to generate a S Curve, A Baseline and Production Schedule are necessary
because they contain important information for each task: -the Baseline - contains information about
Actual Start date and finish date.
-The Baseline - can also contain information about Man Hours and costs.
-The Production Schedule contains information about the actual percentage complete.
Sample project S Curve

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8.0

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Execution Plans

Purpose:
The PEP is the core document for the management of a project. It is a statement of policies and
procedures defined by the project director, although usually developed by the project manager for the
project sponsor/project director's approval. It sets out in a structured format the project scope,
objectives and relative priorities.
The Project Execution Plan will:
Include plans, procedures and control processes for project implementation and for
monitoring and reporting progress?
Defines the roles and responsibilities of all project participants, and is a means of ensuring
that everyone understands, accepts and carries out their responsibilities?
Set out the mechanisms for audit, review and feedback, by defining the reporting and meeting
requirements, and, where appropriate, the criteria for independent external review?
Suggested contents:
Sepam utilise a standard PEP for all projects but this will need to be modified to meet the particular
circumstances of each project. A typical PEP might cover the items listed below, although some may
appear under a number of headings with a cross reference system employed to avoid duplication:

Project definition and brief;

Project Objectives
Roles, responsibilities and authorities;
Project cost plan and cost management procedures;
Risk management;
Programme management;
Contracting and procurement;
Administrative systems and procedures;
Safety and environmental issues, such as the construction design
and management regulations;
Quality assurance;
Commissioning; and
Post project evaluation.

Notes:
The PEP will change as a project progresses through its design and construction stages. It should be
a dynamic document regularly updated and referred to as a communication tool, as well as a control
reference.
The Proposal Manager is responsible for the preparation of the Project Execution Plan.

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9.0

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HSE Plan

A preliminary or typical HSE Plan is often required for proposals prepared by Sepam to demonstrate
to our clients that we have an effective approach and awareness of the regulations and requirements
for managing HSE related risks on site.
It is a working document, which will be changed and modified upon award and throughout the
duration of the project, by the HSE Manager The workmanship, systems of work employed, health
and safety standards and materials utilised etc, will be documented and recorded.
The plan will contain the following information:
Names and responsibilities of the project team
Overview of the project
Other activities on site
Activities with particular risks to safety and health
General safety arrangement on site
Information for sub-contractors
Ongoing communications and co-operation on site
Accident and emergency procedures and reporting
Welfare arrangements
Information and Training
Safety file information
Project review and monitoring
The HSE Manager is responsible for the preparation of HSE Plans for Project proposals.

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10.0

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Project Quality Plan

Purpose
The purpose of the Project Quality Plan is to define how Sepam intends to deliver a service or facility
meet the customer's quality expectations and the supplier's quality standards.
The Project Quality Plan should
Clearly define ways in which the clients quality expectations will be met?
Define the methods and procedures to achieve the required quality?
Define Quality Responsibilities of all project personnel.
Conform to the corporate quality policy?
Composition:
Sepam utilise a standard Project Quality Plan which will be modified as required with project specific
information:
The Project Quality Plan should contain:
Customer quality expectations / objectives
Acceptance criteria, a prioritised list of criteria for the final product(s) that must be met before
the customer will accept the final product(s).
Quality responsibilities, who is responsible for each of the aspect of quality of the final
product(s)
Reference to any standards that need to be met
The quality-control and audit processes to be applied to project management
Subcontractor and Vendor Quality Management
Inspection & Test Planning
Quality Records
Engineering & Design Quality Management
Commissioning and Turnover
Any tools to be used to ensure quality.
Organisational or programme quality management system and standards
The Project Quality Plan will need to take account of any internal or external standards that are
applicable to the project, e.g. ISO standards
The Quality Manager is responsible for the generation of all Project Quality Plans.

11.0

Construction Execution Plans (CEP)

Sepam will produce a Construction Execution Plan for all projects with Construction or Construction
Management scope. An effective CEP ensures that Safety, Quality, Project Costs, and Schedule
deliverables are achieved.
The CEP will outline the subcontract structures, resourcing, negotiations, management, coordination,
quality surveillance associated with the all direct field labour.
The CEP will outline plans for mobilisation, temporary facilities, the work site and offsite fabrication
yards, modularisation, structural steel, conveyors, and equipment will ensure that construction
activities are not delayed by fabricated items.

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Client Required Information

In most cases client requires answers or information in response to specific questions or queries. A
review of the RFP should be conducted by the Proposal Manager and a list of supplementary
information required must be generated which also outlines who will be responsible for providing this
information and when this information will be required. It is imperative that sufficient time is provided
for the provision and review of the required information.

13.0

Final Bid Review

A project proposal is an extremely important and confidential document and must not be issued to
clients or other parties without the appropriate level of review and sign off by Senior Management.
The Review of all proposals must be scheduled and leave adequate time to conduct the review and
make any comments, corrections or additions as necessary.
Therefore in advance of planned submission dates a Proposal Review Team should be assembled
and a review session scheduled and the Proposal Manager should ensure that all relevant information
is assembled and available for review.
The Review Team should include
Project Sponsor - optional
SBSM Manager
Proposal Manager
SBU Commercial Manager
Proposal Engineers
Group QHSE Manager
Finance Manager as required
Proposed Project / Construction Managers
A copy of the document is stored with the rest of the documents pertaining to the inquiry for future
reference / discussions with the client.

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