Project Controls

The outlined guide on functional implementation

By : Faisal Jasim Parokot , PMP®

Project Controls-The outlined guide on functional implementation

Table of Contents PAGE

- Abbreviations ............................................................................... 2

1.0 Introduction ................................................................................. 2

2.0 Project Management V/S Project Controls.. ......................................... 2

3.0 Project Controls in Structured Organizations.. ...................................... 2

4.0 Project Controls - Functional Framework ............................................. 3

5.0 Project Controls Implementataion...................................................... 7

6.0 Project Controls Deliverables, Document Control and Reporting ............... 10

7.0 History Repository and Close out Documents ........................................ 11

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Abbreviations
-WBS: -Work Break down Structure
-OBS:-Organizational Break down Structure
-CBS:-Cost Break down Structure
1.0 Introduction
The Project Controls development, implementation and management are of seemingly relevant and
coexist in project management to consciously improve work and efficiency of managed projects or
programs. The Project Controls implementation of work processes, procedures and application to plan,
monitor and control the work are intrinsically inevitable part of strategic projects subsequently meeting
the established business case. The document contents to outline the qualitative description of Project
Control Process and further the quantitative aspects in its Estimate, Budget & Schedule areas.
In actual scenario, organizations differs on it’s commitment towards the successfully performing the
Project Control Services and are widely tailored to meet organizational or project specific requirements.
The Project Controls practices are generally defined with common terminology and understandings to
include the below work process at minimum ;
 Project Planning and Scheduling
 Cost Estimating and Budgeting
 Communication and Risk Management
 Scope and Change Management
 Project Performance Measurement and Assessment
 Project Controls Implementation
 Project Control Deliverables, Document Control and Reporting
 History Repository and Close Out Documents
This Project Controls is integrated set of process used as the communication tool for exercising
successful project management enabling effective decision making in organizations.

2.0 Project Management v/s Project Controls

Successful Project Control functions is the mirror to successful project and programme outcomes .While
Project Management deals the art and science of utilizing the tools and techniques to effectively manage
the project, it’s the project control professional functions at center of the project performing data
gathering, data management and analytical processes which is used to predict, understand the
constructive influence and outcome of mutual interaction of project variables ,not limited to Scope, Cost
and Time ,enabling effective decision making.
Project Management in cohesive deals with making notified and accountable decisions, whereas Project
Controls are about recording and analyzing the variables to the project.

3.0 Project Controls in Structured Organizations

Project Controls is generally structured at project level within the project team and acts as the functional
heart enabling useful decision making .Project Control functions follow a phased project process with
prescribed set of related activities completed at various stages prior to obtaining management approval
to proceed to the next stage of project delivery. The staged process follows through Ideation, Planning,
Execution and Closure. Project Controls implementation is phased and hence continuously involved
over the life cycle of project.
The Project Controls at organizational level is generally organized under the operations head. At
minimum during the initiation, the Project Controls through operation head facilitate the Commercial
department to complete the technical proposal by providing high level project specific information of
preliminary schedules and budgets. Once the project is formally authorized and project charter is
validated the Projects Controls steps into detailed Planning and assumes as lead department to plan
the planning, execution, monitoring & Control of the project. Project Control Services must be capable

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of timely production of the project control documents and necessary reports that are required in order to
enable effective project delivery.
Interdisciplinary coordination and controls will be established accordingly to ensure consistent project
control management. The effective system will ensure seamless flow of information amongst various
disciplines with appropriate checks and controls.
4.0 Project Controls – The Functional Framework
4.1 Project Planning and Scheduling
In Project Controls functions, its Project Planning work process that determines project's objectives with
identification of the activities to be performed, methods and resources to be used for accomplishing the
tasks, assignment of responsibility and accountability, and further establishment of an integrated plan.
The integrated plan is represented further on time bounded logical framework which base the project
timeliness or the project schedule. The major phases in the planning and scheduling is outlined under
below heads.

4.1.1 Project Scope and Execution Strategy Development

Once the project is formalized via project charter, translation of the project implementation basis (i.e.
scope, objectives, constrains, and assumptions) into controllable Project Scope definition and an
Execution Strategy is performed. The Projects controls and Project management teams coordinates at
initial stage to define conceptual Project Scope and Execution Strategy which serves as basis for
devolving conceptual plan (i.e. Schedules & Estimates). The conceptual scope and execution strategy
is revisited to have effective final plan for execution phase.
Project Controls along with Project Management reviews the scope of work, client requirements, division
of responsibility, project objectives and constraints during planning phase to facilitate and document the
deliverables work breakdown structure (WBS), work packages and execution strategy with identification
of key deliverables and milestones.
The Project Scope statement, Work Breakdown Structure(WBS) and WBS dictionary cohesive as whole
documents the Scope Baseline (Performance Baseline I) is the outcome.
Project Controls facilitate , the development of Execution Strategy with the technical features of type of
work scope .Further definition of execution and contracting strategy is detailed and documented.

4.1.2 Control Account Development

Project Controls during planning process develops the control accounts with characteristics of WBS,
OBS, Work Package description, responsibility, Budget (Cost and Revenue), Resources, Schedule and
codes for control accounts.
The control account integrate all the project control components (i.e., Cost, Schedule, Resources, Risk,
and Procurement). The control account relates directly to a work package component from the work
breakdown structure (WBS) for which responsibility has been assigned (in accordance with the
organizational breakdown structure (OBS) and the procurement plan), and for which cost budgets and
resources have been assigned, and activities are scheduled.

4.1.3 Schedule Planning and Development

Project Controls with respect to the project plan will identify the level of detail required for the various
schedules that are prepared during the project, including resource loading and leveling. The schedule
will be detailed enough to show the effect of a changed condition to an activity sequence as well as to
accrue costs associated with scheduled work activities based on the estimate and/or budget.
Integrated with estimate development the project schedule supports the time distribution of resources
for activities, which support earned value management methodologies.
The scheduling is generally distributed at four levels in line with project specific requirements as detailed
below,

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 Level 1: This represents the schedule for the project by its major components. A Level 1
schedule is normally displayed as a Gantt or bar chart and may include key milestones.
 Level 2: Each schedule component is further subdivided for Level 2. Level 2 schedules are
shown as a bar chart although key constraints may also be displayed. Milestones are normally
included.
 Level 3: The first Control level that a meaningful critical path network can be displayed and the
CPM schedule can be used to monitor and manage (control) the overall project work. Level 3 is
neither too summarized nor too detailed.
 Levels 4-X: The level of schedule subdivision continues to whatever is appropriate detail as per
project control require to effectively manage the project. The project “rolling schedule” includes
a “look-ahead” period of time (30–180 days) and a “look-back” at recent completed work periods.
CPM (Critical path method) as tool the project detailed schedule will be drawn to effectively monitor the
progress of the project.A time-phased, logically linked, resource loaded, detailed schedule with
interpretation of the plan will be measured and assessed as Schedule Performance Baseline. The
baseline schedule will reflect the original Scope of Work, Contract Milestones, duration, inter-relationship
logic, work status and work backlog versus their scheduled targets for the different phases and the
critical path.

The project schedule will be updated periodically based on project requirements. Extracted forecast
schedules to meet requirements will be provided at project level and organizational level.

The schedule will be briefed and document as Schedule Basis Document to ensure the effective
implementation of schedule control plan. The documents and schedule will be validated accordingly
during integrated change control process upon requirements.
4.1.4 Resource Planning
Requirements are to set out by Project Controls for workface and workforce planning i.e. labor and
equipment to meet the effective execution of its projects.
Further to the resource estimate labor management planning is designed to facilitate the collection and
reporting of the project labor (home office, field office, engineering disciplines, and field trades). Time-
phased usage profiles and histograms based on the project schedule and estimate are developed as an
output for measuring actual hours / costs against the planned hours / costs to support the evaluation of
performance and prediction of final forecast hours / costs.
Equipment management planning is designed to facilitate the collection and reporting of the site
equipment. Usage profiles will be developed as an output for measuring actual costs against the planned
costs to support the evaluation of performance and prediction of final forecast costs.
4.1.5 Procurement Planning
The Project Controls during planning ensures through the procurement planning the information about
resources (e.g., labor, material, etc.) as required for the project ,is identified , incorporated in, as obtained
through the procurement process. Equipment Purchasing plan and contracting plan is communicated on
requirements.

4.1.6 Value Analysis and Engineering

Project Controls primarily intents to compliance of project specification with improved value.
Improvement techniques ,the function or reducing the cost or both are communicated on requirement to
be in cooperated in the project life cycle. Value improvement practices and execution best practices
ensures effective project delivery.
4.2 Cost Estimating and Budgeting
Project controls outlines methodology for its effort to perform the scope of work and the associated
project budget, and the integration of the budgeting process with the schedule to ensure an effective
performance measurement baseline. Project Controls integrate the estimate development, basis of
estimate and estimate validation process in cost estimating and budgeting work process .Sample
hierarchy project cost estimate hierarchy is as descripted below for construction projects

 Direct Costs

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• Labour
• Material
• Equipment
• Subcontract
 Indirect Cost
• Taxes
• Risk
- Profit
- Contingency
• Overhead
• Escalation

In general activity-based costing techniques ensure optimum control over unbalanced allocations.
Pricing includes charging techniques that various stakeholders in the plan (bidders, contractors, etc.)
apply to costs in the estimate to allow for overhead and profit, to improve cash flow, or to otherwise
address market conditions and serve their business interest.
Estimating ideally includes both expected cost and probabilistic cost distribution. As a predictive process,
historical reference cost data (where applicable) improve the reliability of cost estimating. Pricing the
cost estimate includes charging techniques that various stakeholders in the plan (bidders, contractors,
etc.) apply to costs in the estimate to allow for overhead and profit, to improve cash flow, or to otherwise
address market conditions and serve their business interests. The project estimate facilitates the bidding
and estimate basis document to avoid ambiguity.
Budgeting includes allocating the estimated cost of asset or project items into cost accounts against
which cost performance will be measured and assessed. Budgeting results in a baseline for cost control
performance assessment. Budgets are time-phased in accordance with the schedule or to address
budget ,cash flow constraints to meet the actual expenditures, revenue plans .
4.3 Communication and Risk Management
The project controls addresses communication and risk management throughout the life of the project.
The Project Management team describe both qualitative and quantitate aspects of risk. The process
facilitates to identify risk factors (risk assessment), further analyze and quantify the properties of those
factors (risk analysis), mitigating the impact of those factors on project performance. A risk management
plan (risk mitigation), and implementing the risk management plan (risk control) is exercised as required
on project.
4.4 Scope and Change Management
The project controls during the planning phase facilitate development of the scope management plan
which sufficiently ensures the committed scope is executed later on and establish a control to meet the
zero scope creep. Defined Work Breakdown Structure act as a tool to communicate the scope to the
project execution. Further scope validation functions outlines the the integrity of the control basis
(performance measurement baselines) as a valid baseline (i.e., it represents a project plan in alignment
with project objectives and requirements) for performance measurement.
The Project Controls address through the contents the methodology and processes for managing
changes (whether internal and/or external to the business plan, project or contract) throughout the
project regarding scope, quality, cost and time. Various types of changes and/or trends, as well as the
desired approval process are defined. Upon approval, the change will be methodically incorporated into
the revised performance measurement baseline.
Change management intends to cover the process addressed below at minimum:

 Identify deviations, variances, and change

 Analyse variance
 Define deviation or change in scope
 Assess impact
 Record and track disposition
 Manage contingency and reserves
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 Resolve disputes and claims

 Revised control basis (PMB)

4.5 Project Performance Measurement and Assessment

4.5.1 Progress and Performance Measurement
This Project Controls describe progress and performance measurement, the process and methodology
necessary to perform progress and performance measurement and reporting. The progress and
performance measurement process will allow the Project Management team to review the current
performance of the work from inception to completion through periodic updates, and to facilitate the
adjustment of their efforts to meet the changing circumstances.
The following identify the general considered methodologies in construction projects ,
 Units Completed-For work packages measurable as units of work.
 Incremental Milestone-For work packages deliverable in sequence or steps.
 Physical Percentage Complete-For non-uniform units with sub work packages.
 Level of Effort or Cost ratio-For work packages without discrete deliverables.
 Weighted or Equivalent Units-Hybrid of Unit Completed and Incremental Milestones.

4.5.2 Progress and Performance Assessment

 Performance assessment and reporting
The Project Controls identifies process and methodology to necessitate perform performance
assessments and reporting. The intended assessment is planned as such its optimizes the identification
of variances, and opportunities and risks for all aspects of the project.
The following identify the assessment areas of project plan,

 Cost Performance
 Schedule Performance
 Resource Performance
 Work Process & Productivity
 Risk Factors
The observations along with schedule, resource, productivity, and work process and performance
assessments will forecast the project requirements and deliverables.
 Forecasting
The proactive and systematic approach are followed by Project Controls in process of evaluating the
project control baselines in consideration of assessments of ongoing project performance. The
forecasting process intent to be used to assess each applicable element of the project, which may
include scope, schedule, budget, resources, and risks. This section address quantitative forecasting for
both cost and schedule values.

 Cost Forecasting
The project requirements determine the best possible solution that identifies an accurate EAC,
and supports the mitigation of cost and schedule overruns that may surface
The below listed some standards methodologies
-Estimate at Completion= Actual Cost+ Estimate to Complete
-Estimate at Completion = Actual Cost Budget at Completion–Earned Value
-Estimate at Completion= Budget at Completion ÷ Cost Performance Index
The project team decides on the most Feasible to effectively control the project.
 Schedule Forecasting
Total float management under tool Critical Path Method is used to gain effective control over
Scheduling tasks. The past performance, resources and remaining timeline, material and

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equipment available, the sequenced schedule network are taken in to consideration while
forecasting the schedule.
The below listed some standards methodologies
-Schedule at Completion = Actual Duration + Remaining Duration.
-Schedule at Completion = Project Duration ÷ Schedule Performance Index.
5.0 Project Controls Implementation
The Project Controls Implementation is the process of integration of all aspects of the Project Controls
by setting project implementation basis; validating that the plans are comprehensive and consistent with
requirements and ready for control; initiating mechanisms or systems for project control; and
communicating the integrated project controls data to those responsible for the project’s work packages.
Project Controls implementation is governed by Project Implementation Basis. Project control process
are applied throughout the life cycle of project in phased manner as project work is implemented. As
through project implementation the project scope is defined and conceptualized as Project Plan. Project
Controls through set of established work process facilitate the further definition of Project Plan through
its estimate, schedule and cost budget at various phase as per project implementation basis.
Project Controls coordinates with Project Management Team to facilitate the project control functions
depending on the planning level required to meet the specific phases of the project. During planning
phase, a detailed schedule and cost budget is being developed and documented to facilitate project
team reviews so as to ensure effective project implementation. The Project Controls provides the
management with view of collective outcomes of cost and time at staged phases of the project. The
performance against the established schedule and cost base baselines is assed and evaluated. The
changes initiated through the integrated change control process is implemented through the project plan
upon validation and further through all the definitions of project control functions.
Appropriate review and validation process are established for communication interface. The following
list major supporting documents and general tools developed to support the implementation of Project
Controls functions,
 Work Breakdown Structure
 Schedule Basis
 Schedule Management Procedure
 Invoicing Procedure
 Budget Plan
 Progress Measurement Systems
 Progress Control Curves

5.1.1 Work Breakdown Structure (WBS)

Project Controls along with Project Management Team develops the Work Breakdown Structure
proposed for the project with hierarchical grouping of work scope required to achieve the contract
milestones. The overall project is the highest level of WBS while an individual activity required in
achieving the contract milestones is the lowest level.

The Interims of WBS will be reviewed during execution and any modification will be discussed and
suitably implemented.

5.1.2 Schedule Basis

Project Controls document; Schedule Basis which defines the basis for the development of the Project
Schedule and assists the project team and stakeholders in identifying any key elements, issues and
special considerations (assumptions, exclusions, risks/ opportunities, etc.). The Project Schedule
represents the complete logical time-phased representation of the project plan. The Schedule Basis
Document is accompanied with the Project Baseline Schedule.
The Schedule Basis substantiates the confidence and degree of completeness of the Project Schedule
in order to support change management, reconciliation, and analysis. This document also doubles as a
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tool for assisting any personnel who are transitioning into the project and may be used in claims
situations to illustrate a change of scope.

5.1.3 Schedule Management Procedure

Project Controls document; Schedule Management Procedure which establish the methods and process
for tracking actual progress, critical and near critical path activities. The Project Controls analyze and
report variances or trends to the project participants. The Project Controls interfaces with, and obtain
input from, project personnel for the progress and tracking of project activities. The Project Controls
assists the Project Management Team by analyzing effects to the critical path activities; identifying
changes to the project that affect schedule; forecasting; and by developing recovery schedules and
alternate courses of action. The Project Controls develops schedule progress reports, analyzes and
reports forecasts for all significant project activities.
Scheduling management and control procedure outline the below listed:
 Implement schedule management and control procedures.
 Maintaining the schedule during the project execution phase.
 Schedule coordination and communication.
 Schedule change management.
 Schedule reports and deliverables
 Project and schedule closeout.

5.1.4 Invoicing Procedure

Project Controls document; Invoicing Procedure which establish system, procedures and process to
have timely invoice and collect payment in accordance with the set out Contract Payment Terms of the
project. The invoicing procedure further includes methods for invoicing order variations due to revisions
and hence ensure full final settlement and successful project close out.
Invoicing procedure outline the below listed:
 Implement periodic invoicing procedures.
 Coordination and communication for progress review and approval.
 Invoice submission and payment procedure.
 Final documentation and close out terms.

5.1.5 Budget Plan

Project Controls document; Budget Plan establish system, procedures and process for allocating the
estimated cost of project items into cost accounts against which cost performance will be measured and
assessed. The Budget plan establish procedures for time-phased budget in accordance with the
schedule or to address budget and cash flow constraints with process of measuring and reporting actual
costs for financial reporting and project control purpose.
Budget plan outline the below listed:

 Cost estimate allocation and control account development procedure.

 Assessment for cost performance baseline.
 Method for controlling budget from cost estimate.
 Cash flow and forecasting techniques.
 Practices for integrated earned value management.

5.1.6 Progress Measurement Systems

The Project Schedule together with the Work Breakdown Structure will form the basis of Progress
Measurement System. Progress is measured in accordance with the WBS integrating all phases of the
project as per the contract specification and requirement. Unless and otherwise constrained by contract
system ,a system shall be adopted which allows the weighting of various activities using a common unit
of measure relative to the total project for accurate and meaningful measurement of project progress.
Actual project progress figures will be quantified based on physical work performance, quantities
completed and calculated using the Progress Measurement System. The frequency of updating is on a
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weekly basis unless and otherwise stipulated by requirement of contract of involved parties. Reporting
format is governed by contract agreement or mutually agreed within both involved parties.
Progress Measurement System must cover the complete scope of work. The progress will be measured
and will be validated accordingly as per project specifications.
Each phase of project is monitored as a discrete package and the relative percentage weighting is
allotted to each phase based on the relative cumulative cost of that phase, in order to calculate the
“Overall” Progress. The overall weightings established will remain fixed unless there are changes in total
work scope of a large magnitude or the base contract has changed significantly

5.1.7 Progress Control Curves

Project Controls develop, maintain, update and report against a series of progress control curves and
manpower histograms. The baseline curves shall be in line with the established performance baselines
and should show the monthly planned vs. actual progress, which shall be generated directly from the
approved schedules, scope and cost base lines shall form the basis of the progress control system. The
planned progress will be based on early dates of schedule and actual progress will be extracted from
Progress Measurement System.
The execution of the work and integrated change control will be established with the actual monthly
progress curves and will be analyzed against planned. A forecast shall be introduced to monitor the
changes to the plan. The integrated control for progress monitoring at levels as described below
Level I Progress Control Curve

The Level I Progress Control Curve shall be a summation (Overall) Progress Control Curves for all
phases of project. The progress figures for each phase and their respective weightings shall be shown,
as well as the overall work figures, either in tabular format below the curve or separately as a progress
table.
Progress Curves (S-Curves)
Individual Progress Control Curves(S-Curves) for all phases to ease effective controls. The general
philosophy for construction in terms of the controls curves is as described below,
a. Subjected to project specification the engineering curve shall be supported by a table of the weighting
and progress figures for all engineering disciplines. Engineering disciplines shall include all disciplines
contributing to the engineering, procurement and contract services. A separate table shall be produced
showing progress figures per discipline in accordance with the WBS.
b. Subjected to project specification procurement curves shall be shown separately and overall for
equipment and bulk materials. They shall be generated from the relevant procurement schedules
whereby the weighting of equipment, bulk materials and procurement steps are used to describe planned
progress.
The curves shall be supported by a table of the weightings and progress figures for each equipment
group or bulk material category as appropriate. Additionally, curves shall also be produced showing
‘Order Placement’, Manufacturing, and ‘Shipping and Delivery to Site’ separately for Equipment and
Bulks where ever applicable.
c. Subjected to project specification fabrication curve shall be supported with the table of weightage for
shop fabrication.
c. Subjected to project specification the construction curve shall be fully supported by a table of the
weightings and progress figures for all of the direct construction disciplines. A separate table shall be
produced showing progress figures per discipline in accordance with the WBS.
The approved planned Progress Control Curves shall provide the baseline of the work and shall be fixed
for the duration of the work. All changes shall be superimposed on the original curves to reflect any
approved changed once incorporated within the current schedule and tracking tools.
Manpower Histogram
Project Controls develop histograms for direct and indirect manpower separately. The histograms shall
show the monthly planned manpower vs. the actual manpower and forecast shown if different from plan.

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Manpower per man month shall be clearly indicated. A table detailing the breakdown by discipline/trade
shall be provided below the histogram or as a separate tabulation. During the execution of the work, the
actual manpower shall be compared with the planned and a forecast shall be produced to support any
progress curves as necessary.
6.0 Project Controls Deliverables Document Control and Reporting
Project Controls generate appropriate communication plan in line with project requirements to provide
the project team with an understanding of the outputs, i.e. deliverables that are required for the execution
and management of the project.
Project Controls deliverables support the team in their decision making process to support the
identification of threats and impacts to the project, and determine corrective action where necessary.
Project Controls delivers in general the below list of deliverables to support the effective delivery of the
project which is subjected to meet the project specifications;

Area Deliverable

Project Controls Project Control Organization

Roles and Responsibilities
Coding Structures Work Breakdown Structure(WBS)
Estimate
Estimate Basis Document
Budget
Estimate & Budgets
Cash Flow
Contingency Report(Draw Down)
Cost report by Area, function, estimate hierarchy, etc.
Forecast Reports
Schedule
Schedule Schedule Basis Document
Schedule Risk, Log Report
Forecast Schedule
Commodity Reports
Graphical Reports Resource Histogram
Equipment Plan(Timescale)
Manpower Plan Direct & Indirect(Timescale)
Change Management Change Register
Risk Management Risk Log
Monthly Reports ( Internal & Client Reports)
Progress Reports
Weekly Reports ( Internal & Client Reports)
Daily Progress Reports
Subcontract Report
Other Reports Project Calendar
Lesson Learned Register
Backup Log
The schedule deliverables levels may include

Deliverable Classification Level

Project Milestone Schedule Level I Schedule

Project Summary Schedule Level II Schedule

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CPM Network Schedule Level III Schedule

Detailed Control Schedules Level IV Schedule
7.0 History Repository and Close Out Documents
Project Controls is structured within the project team to produce close out reports at project completion.
The project controls in general identifies the below listed as history repository for the projects which
enable smooth close out.

 Lessons learned, historical from past projects and previous phases / stages.
 Budget and estimate, estimate basis
 Final cost report
 Baseline schedule, schedule basis
 Final schedule
 Final executive project report
 Resource histogram(s), cash curves, progress charts
 Final change order log, complete with costs, hours, and quantities
 Final progress and performance report
 Qualitative and quantitative metrics & analysis
 Contractor evaluation report

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