Principles of Construction Controls

Volume II (Sub)Contract Execution

1998 Edition

BECHTEL CONSTRUCTION OPERATIONS

INCORPORATED
©1998 Bechtel Corporation
1998 Edition. All Rights Reserved.

Contains confidential information proprietary to

Bechtel and that may not be disclosed to a third
party without Bechtel’s prior written permission.

Printed in the United States of America.

Table of Contents
Principles of Construction Controls, Volume II,
(Sub)Contract Execution

TABLE OF CONTENTS

SECTION 1 Introduction 1-1

BECHTEL CONSTRUCTION OPERATIONS GUIDING PRINCIPLES 1-1
PURPOSES AND OBJECTIVES 1-1
DOCUMENT SCOPE 1-2
THE PROJECT CONTROL CYCLE 1-4

SECTION 2 Project Controls Planning 2-1

OVERALL CONTROL CYCLE AND PROJECT PLANNING 2-1
SCOPE 2-1
PROJECT SCHEDULING 2-1
PROJECT BUDGETS 2-2
BUDGET CONTROL 2-3
CODE OF ACCOUNTS AND ALLOCATION OF BUDGETS 2-8
ORIGINAL BUDGET DEVELOPMENT 2-10
PROJECT CONTROLS PLAN 2-10

SECTION 3 Summary of Jobsite and (Sub)Contracts Control Tools 3-1

INTRODUCTION 3-1
CONTRACT TYPES/METHODS OF PAYMENT 3-2
Lump Sum (Fixed Price) Contract Based on Definitive Specifications 3-2
Lump Sum Design/Build (Engineering/Procurement/Construction) 3-2
Contracts Based On Preliminary Design
Unit Price 3-3
Cost Reimbursable 3-3
Cost Plus Fee—Guaranteed Maximum 3-3
Cost Plus Fixed or Incentive Fee With Guaranteed Maximum and 3-4
Shared Savings
Convertible Contracts 3-4
Time and Materials Contracts 3-4

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Bonus/Liquidated Damages Incentives Based on Time of Completion 3-4

Bonus/Liquidated Damage Incentives Based on Operation and 3-5
Performance
Methods of Payment 3-5
Summary 3-6
CONTRACT FORMATION PROCESS 3-6
Planning 3-6
Project Implementation 3-6
Bid Package Development 3-7
Bid Period 3-8
Evaluation 3-8
Negotiation and Award 3-9
THE CONTRACT DOCUMENTS 3-9
The Proforma Family 3-9
Terms and Conditions 3-10
Exhibit C Data Request Forms 3-11
SELECTION/ASSIGNMENT OF CONTROL TOOLS/REPORTS 3-13
Assessment of the (Sub)Contractor’s Capabilities 3-13
Selection/Assignment of (Sub)Contractor-Submitted Control 3-14
Tools/Reports
Bechtel Control Tools 3-18
RESPONSIBILITIES 3-20
(Sub)Contractor 3-20
Bechtel 3-21
ATTACHMENT 3-1, (SUB)CONTRACTOR SCHEDULING 3-23
& REPORTING REQUIREMENTS
ATTACHMENT 3-2, RECOMMENDED CONTRACT LANGUAGE 3-31
TO COVER PAYMENT REQUIREMENTS UNDER COST
REIMBURSABLE (SUB)CONTRACTS

SECTION 4 Project Summary Reports 4-1

PROJECT PROGRESS REPORTING 4-1
PROJECT FINANCIAL REPORTING 4-3
PROJECT DATA SHEET 4-4
MILESTONE SUMMARY SCHEDULE (Level 1) 4-9

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FIELD PROGRESS AND RESOURCE CURVES 4-9

SECTION 5 Working Level Planning and Scheduling 5-1

SCHEDULE HIERARCHY 5-1
Level 1—Milestone Summary Schedule 5-2
Level 2—Project Integrated Intermediate Schedule 5-3
Level 3—3/6 Month Rolling Schedules and Special Schedules 5-3
Level 4—Weekly Work Plan 5-3
CONSTRUCTION INTERMEDIATE SCHEDULE (Level 2) 5-7
3/6 MONTH ROLLING /SPECIAL SCHEDULES (Level 3) 5-14
WEEKLY WORK PLAN (Level 4) 5-15
SCHEDULE CHANGE PROCESS 5-17
(Sub)Contract Related 5-17
Prime Contract Related 5-17
RESOURCE PLANNING FOR (SUB)CONTRACT MANUAL LABOR 5-21
COSTRUCTION INTERMEDIATE SCHEDULE 3/6-MONTH ROLLING 5-21
SCHEDULE REVIEW
WEEKLY WORK PLANNING REVIEWS 5-22
Review Process 5-22
Schedule Analysis 5-23
QUANTITY CURVES 5-23
Development 5-27
Evaluations 5-28
QUANTITY REPORTING SYSTEM 5-29
System Description 5-30
Automation 5-31
ATTACHMENT 5-1, QUANTITY REPORTING 5-33

SECTION 6 Working Level Cost Control 6-1

FIELD RELATED ACCOUNTING 6-1
Automation 6-1
Use of Centralized Accounting Function Approaches 6-2
(SUB)CONTRACT MONITORING/MATERIALS COST CONTROL 6-3
Overall (Sub)Contract and Materials Cost Control 6-3
Detailed Control of (Sub)Contracts 6-4

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Cost and Commitment Automation 6-11

DISTRIBUTABLE REPORTS 6-13
ATTACHMENT 6-1, PROJECT CONTROLS DELIVERABLES MATRIX - 6-27
COST CONTROL
ATTACHMENT 6-2, DEFINITION OF SYSTEM APPLICATIONS 6-29
ATTACHMENT 6-3, MATERIAL ASSIGNMENT SCHEDULE FOR 6-33
GENERIC FOSSIL PROJECT

SECTION 7 (Sub)Contract Progress and Coordination Reviews 7-1

DAILY REPORTS 7-1
REVIEW MEETINGS 7-1
Sample Agenda 7-4
COORDINATION MEETINGS 7-4
CONTRACT COORDINATOR’S ROLE 7-4
COST AND SCHEDULE SUPPORT 7-4

SECTION 8 Trending and Forecasting 8-1

TREND PROGRAM AND CHANGE CONTROL 8-1
Trend Program 8-1
Scope Changes 8-11
Construction Work Orders 8-17
FORECASTS 8-18
Overview 8-18
Quantity Development 8-20
Material Analysis 8-21
(Sub)Contract Analysis 8-21
Distributable Services Support (Sub)Contracts Analysis 8-22
(Bechtel Related)
Distributable Material Cost Analysis 8-22
Construction Equipment Analysis(Bechtel Supplied) 8-22
Field Nonmanual Labor and Field Office Cost Analysis 8-23
ATTACHMENT 8-1, ASSESSMENT OF SCOPE CHANGE 8-27
ATTACHMENT 8-2, SAMPLE FORECAST PRESENTATION 8-29

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APPENDIX A Glossary of Terms A-1

APPENDIX B Field Scheduling Guidebook, (Sub)Contract Execution B-1

APPENDIX C Example Resource-Loaded Schedule Analysis C-1

APPENDIX D Contract Division of Responsibility Matrix D-1

APPENDIX E PCWorks Project Cost Module Reports (PDF) E-1

APPENDIX F Trend Report Template for Lump-Sum Projects* F-1

APPENDIX G Trend Report Template for Reimbursable Projects* G-1

APPENDIX H Bulk Commodity Curve Templates* H-1

APPENDIX I Progress, Performance and Resource Curves/Reports* I-1

* SEE THE ATTACHED DISC FOR THESE MICROSOFT EXCEL TEMPLATE FILES.

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Section 1
Introduction
Effective project control is the glue that binds together the Engineering, Procurement, Construction,
and Commissioning work processes on successful Bechtel projects and allows the project team to
function as an integrated unit. Bechtel manages a wide variety of construction projects in many
cultures and geographic locations, and a significant amount of work is being executed employing
(sub)contracted manual labor. The Principles of Construction Controls, Volume II, (Sub)Contract
Execution defines the standard project control work process for projects being performed exclusively
using (sub)contracted manual labor.

In addition to establishing mandatory field controls work process standards, The Principles of
Construction Controls, Volume II, (Sub)Contract Execution also recognizes and incorporates the
powerful benefits of corporate Engineering, Procurement, Construction–Process Innovation initiatives
and embraces the concept of reducing net present values and total installed costs for our customers.
This handbook also recognizes and capitalizes on the benefits that can be derived from the integration
of cross-functional work processes and from the adoption of advanced automation and
telecommunication technologies in project execution.

BECHTEL CONSTRUCTION OPERATIONS GUIDING PRINCIPLES

The following guiding principles have been adopted by Bechtel Construction Operations regarding the
management, planning, and control of construction work execution:
1. Cost and schedule processes are to be integrated so that there is consistency and agreement.
2. Engineering, Procurement, Construction, Pre-commissioning, and Startup (Commissioning)
planning and control processes are to be integrated and monitored by the project team.
3. Lower level budgets and plans are to be tested and validated against higher level control tools to
avoid inconsistencies.
4. Complete buy-in and commitment to planning and control tools are to be achieved through active
participation, in the review process, by project personnel responsible for execution and all
participating Regional Industrial Unit and Execution Unit organizations.
5. Basic standards and formats of information are to be established for use on all Bechtel
construction projects.
6. Automation technology will be maximized to enhance quality, consistency, effectiveness,
timeliness, and integrity of information.
7. Internal, off-project management reports will be provided in a summary format, with intent to
minimize duplication and report volume and to maintain an appropriate level of information
provided.

PURPOSES AND OBJECTIVES

1. To document the overall philosophy and guiding principles to be implemented to manage, plan,
and control cost and schedule activities on all Bechtel construction projects employing
(sub)contracts.

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2. To define management planning and control methods, responsibilities, and procedures to control
the following elements of fully (sub)contracted and/or construction management projects
(excluding Operating Plant Services projects):
• Quantities - Forecast and Takeoffs; Purchased, Received, and Installed
• (Sub)contractor - Cost, Jobhours, Performance, and Progress
• Field-Purchased Materials and Costs
• Distributable Costs - Indirect Manual Labor, Nonmanual Labor, Site Communications, etc.
3. To support the emphasis placed on management philosophy and project cost and schedule
performance tools.
• This handbook draws heavily from the Bechtel Group Incorporated (BGI) Project Controls
Procedures Manual. The BGI procedures are the controlling documents for project controls.
As such, numerous cross references are contained in this handbook to assist in locating
additional information and backup.
4. To establish guidelines for standardized reporting on Construction projects. It is expected that
functional groups such as Project Controls, Accounting, Contracts Administration, and
Procurement will continue to maintain and develop procedures and systems in further detail, as
deemed necessary, to support their functional responsibilities in project execution.
5. To establish standard formats and methods that will allow for maximum use of automation
technologies to improve the quality and effectiveness of the planning and control process.
6. To improve confidence level regarding quality and consistency of management information and in
management's use of the data provided. This is to be achieved by standard, streamlined reports
based on integrated data that have been balanced to total project scope.
7. To provide a basic specification of the information requirements that project controls will be
required to furnish to site management for site control.
8. To assist in the development of construction personnel and improve their understanding of
Bechtel’s basic project controls work processes.

In summary, the 1998 Edition of the Principles of Construction Controls, Volume II, (Sub)Contract
Execution is specifically targeted, on a global basis, to achieve the following:

• Define standard field controls work processes for fully contracted construction projects

• Provide field controls personnel with the information required to establish and maintain effective
field controls for fully contracted construction projects

• Provide the basis for employee development on the basics of field controls

DOCUMENT SCOPE
The Principles of Construction Controls, Volume II is the (sub)contracts counterpart to the direct hire
version – Volume I. As is Volume I of the Principles of Construction Controls, so is this volume focused
on the construction site field controls work process and closely aligned with the Bechtel Group
Incorporated (BGI) Project Controls Procedures Manual and Bechtel’s ProjectWorks suite of standard
automation tools.

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In addition, since it is specifically geared to control of (sub)contracts, it is also closely aligned to the
following:
• Contracts/Subcontracts Formation Manual (Blue Book)
• Contracts/Subcontracts Management Manual (Brown Book)
• Contracts/Subcontracts Coordination Handbook
• Contracting Guidelines No. C-1, Construction Participation in (Sub)Contract Formation
• Prime Contract Management Manual
• Corporate Policy Number 230, Procurement of Goods and Services

Also refer to other project controls and contracts-related procedures issued on a regional basis, as
these will provide additional specific direction.

This handbook covers (sub)contract execution but will necessarily address prime contract impacts and
related control requirements. The terms prime contracts and (sub)contracts are used throughout this
handbook to clarify which Bechtel interface is being addressed.

(Sub)contracts are used for work execution within a number of different overall frameworks ranging
from construction management to complete responsibility for engineering, procurement, construction,
and startup. The requirements of this handbook are directly applicable to all (sub)contract execution
work where Bechtel has the full management responsibility for construction. Bechtel may be either
working under a self-performing arrangement or acting as an Owner agent (i.e., construction
management). The assumption is that the control requirements are needed and that staffing
arrangements will support the workload.

When Bechtel is acting as an Owner agent it may not have full responsibility for execution, because
Bechtel’s role may be one of providing services (Note: this may still be referred to as construction
management). The control tools and approaches can vary significantly, since the role for Bechtel may
vary. The Owner may require specific control tools not normally used by Bechtel. And the staffing
levels paid for may not be sufficient to support Bechtel’s full array of control tools. It is advisable to
review both Bechtel’s control and (sub)contract management work processes with prospective
customers to see if the overall approach may be strengthened.

There may be other situations where the process and the tools need to be adjusted as necessary to
meet the contractual needs. For instance, where work is performed as a fully integrated joint venture,
the project team must review the project partner’s control tools at the outset of the project and
establish, in the project division of responsibility, which tools will be used.

Control tools and processes must be carefully selected. It is important that these selections be made
to ensure proper control of the job during project execution from Bechtel’s perspective, even if this
means adding to the set specified by clients for their needs.

While the handbook’s focus is the execution phase, it is emphasized that effective execution can only
be ensured through effective proposal/bid/contract development. All functional areas need to be well
represented early in the proposal process to ensure that all requirements are part of the (sub)contract
well before final signoffs.

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Section 1 Introduction

During the bidding phase it is most important that Contracts and Project Controls work closely. The
requirements, including the types of reports, the content, and the frequency of issue, must be well
defined in the original Issue for Bid package. The early interface with the (sub)contractors should
address the control reporting requirements so that they are clearly understood.

Also, constructability evaluations are most important in the proposal stage and the initial phase of
project execution. Improvements or solutions to difficult erection issues can be more cost effectively
addressed and implemented early on. A construction coordinator, assigned early, can facilitate the
process of getting a cost-effective design to the field in a timely manner so that delays and rework are
avoided. Refer to Section 3 for details on establishing the control requirements during the proposal/bid
stage.

THE PROJECT CONTROL CYCLE

The Project Control Cycle, shown in Figure 1-1, defines Bechtel’s guiding principles regarding the
management, planning, and control of construction work execution. This handbook is organized
around the implementation of this cycle on Bechtel construction projects.

SCOPE
SCOPE
DEFINITION
CHANGES * PHYSICAL SCOPE
* DIVISION OF RESPONSIBILITY
* ESTIMATE (COST & SCHEDULE)

PRIME
CONTRACT

EXECUTION
TRENDS
PLAN FIELD CONTROL
* BUDGET PLAN
* SCHEDULE
* METHODS

CORRECTIVE INTEGRATED MONITORING

PROJECT CONTROL
ACTION PLAN
* BUDGET ADJUSTMENT BECHTEL * COST
* SCHEDULE ADJUSTMENT OWNER * SCHEDULE
* METHOD ADJUSTMENT

DEVIATIONS
* IDENTIFICATION WEEKLY
ACTION ITEMS * TRENDING REVIEWS
* FORECASTS
* REPORTING

FIGURE 1-1 - THE PROJECT CONTROL CYCLE

Once the contract has been awarded, the Bechtel project team develops a detailed project execution
plan, which includes detailed budgets, schedules, and work method selections. This plan includes
information that is used as the basis for developing the construction plan and budget included in the
field control plan for the project construction phase.
During the execution of the construction work, the construction team monitors its budget and schedule
performance, evaluates deviations, and implements corrective actions in accordance with the field
control plan. This handbook focuses on the field control processes and related reporting systems for
these last three elements of the control cycle:
• Monitoring the Plan

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Introduction Section 1

• Evaluating Deviations
• Implementing Corrective Actions
It does this by initially identifying the summary level reporting process, followed by the working level
control process descriptions for schedules and cost that support it. The handbook concludes with
sections on the (sub)contract progress and coordination reviews, the trend program, and the
forecasting process, which evaluate cost and schedules together to facilitate identification of proper
corrective action.
The sections in the handbook in general address either the prime contract interface or the
(sub)contract interface. Sections 2, 4, and 8 deal primarily with the former, and Sections 3, 5, 6, and 7
cover the latter.

To assist project-assigned personnel in implementing the concepts outlined in the handbook, a

number of sample reports and electronic templates have also been included. The Categories used in
these sample reports are examples only and are not intended to replace the standard categories used
by different business lines.

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Section 2
Project Controls Planning

OVERALL CONTROL CYCLE AND PROJECT PLANNING

The key elements of the project control cycle include establishing the project scope definition and
execution plan, monitoring progress and performance, identifying and reporting deviations, and
applying corrective actions. The starting point for the control cycle is the development of the project
estimate. From this estimate the project plan is developed. The project plan includes the scope, the
execution plan, the baseline schedule, and the original budget.

SCOPE
To be meaningful, scope must be defined at a detailed level in accordance with the contractual
commitment/requirements and the engineering design documents. Therefore, all facilities, equipment,
and controls are identified and described. Metrics for the size of the facilities; equipment ratings; and
anticipated quantities of equipment, controls, and required bulk materials are needed to fully define the
scope. Also, specific metrics should be included to define the facility’s performance. The latest design
drawings and criteria further define the scope.
A Division of Responsibility should be part of every prime contract arrangement. This notes
who does what, and this may have major implications to the field work for the project. Exclusions and
areas of responsibility handled by others should be clearly documented.
The project execution plan covers the description of services, procedures, basis for work plans, and
Bechtel’s project organization. It emphasizes how the work will be done.

Often the scope of services document is attached to the prime contract. Generally it covers
engineering, procurement, construction, commissioning (startup), and selected controls-related items.
Normally, invoicing, progress reporting, and change control procedures are included in the selected
controls items.
Construction, Contracts, and Project Controls have manuals, handbooks, and generic procedures,
which are available to assist those responsible for developing the project-specific procedures. These
project procedures are normally maintained internal to Bechtel and outline the division of
responsibilities within Bechtel among management organizations, departments, and individuals.

Additional plans, such as the Project Controls Plan, the Automation Plan, and the Contracting Plan
(also known as the Material Assignment Schedule [MAS]), are referenced in the execution plan. The
Project Controls Plan is covered in more detail later in this section.

PROJECT SCHEDULING
Overall, there are four levels of scheduling:
• Level 1 is the Milestone Summary Schedule.
• Level 2, known as the Project Integrated Intermediate Schedule, integrates engineering,
procurement, construction, and commissioning (startup).
• Level 3 includes 3/6-Month Rolling Schedules and special schedules that expand on the
intermediate schedules.

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Section 2 Project Controls Planning

• Level 4, the Weekly Work Plan, provides the detailed activity breakout for work on a day-by-day
basis.

The Milestone Summary Schedule provides the execution framework on a timescale and is based on
meeting management’s objectives. This schedule graphically presents the major work scope and
incorporates all important due dates.

The Milestone Summary Schedule serves as a basis for more detailed schedules and establishes a
benchmark against which to measure progress. The schedules present a logical sequence for
completing work, taking into account available resources such as manual staffing and construction
equipment, as well as external constraints such as owner-supplied items.

Each of the subsequent levels further defines the project plan. Along with related resource allocation
and bulk materials installation plans, these schedules provide a basis for monitoring project progress.
In accordance with the control cycle process, deviations that are identified in this monitoring process
should lead to timely corrective actions. It is noted these deviations may result in (sub)contractor
pricing increases, and early identification can help to mitigate the impacts.

PROJECT BUDGETS
The Original Budget sets the financial baseline using the most recently developed estimate and is the
foundation for all cost control systems. This budget will be refined as additional detail is required for
project execution and as additional information becomes available.
Figure 2-1 shows the overall cost control process starting with the Original Budget. This budget is also
referred to as the Trend Base at the beginning of the project. The client, Bechtel management, and
the project team recognize the Trend Base as the base for identifying variances and deviations.
Generally, on lump sum projects the Trend Base remains the same as the Original Budget from the
beginning to project completion. For cost reimbursable projects, the Trend Base may change because
the budget may be reset as the project evolves or annual budgets may be required.

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Project Controls Planning Section 2

Scope Change &

Adjustments Adjustments
Current
Budget

Scope
Changes
Other
Trends Trends Current
Original Trend Resolved
Budget Base Forecast

No Impact
Unresolved Cancelled

FIGURE 2-1 - OVERALL COST CONTROL FLOW CHART

There are two general categories of modifications to the Trend Base: ones that do not affect the value
of work (e.g., transfers) and ones that do. Modifications that change the value of work are called
trends. Trends include changes to project scope, pricing, schedule, or intended plant quality that
cause an addition or reduction to the trend base. Trends also include corrections for scope/estimate
omissions. Note that both schedule and financial variations are tracked.
Trends are classified as scope change trends or other trends. Scope change trends are items of
change to the Trend Base requested by the client, recommended by Bechtel, or required by regulatory
agencies and subsequently documented to the client by the project scope change program. Other
trends are those variations that cannot be classified as scope changes, but are attributable to project
evolution or other developments.

The status of trends is categorized as resolved or unresolved. Resolved trends include those items
that have been approved by the project manager for inclusion in the project. Unresolved trends are
those that have not been approved and require further action to become resolved. It is noted that
resolved and unresolved trends may be canceled at any time if it is determined that there are neither
schedule nor cost impacts.

Resolved trends are reflected in the Current Budget if they are client-approved scope changes. The
Current Budget is, therefore, the Original Budget plus all client-approved scope changes, orders, and
budget adjustments (e.g., transfers).

All changes in the Current Budget are reflected in the forecast. In addition, the other resolved trends
are also included as part of the forecast updates. Therefore, the Current Forecast equals the Original
Budget plus all resolved trends and transfers. The Current Forecast reflects the current approved
forecast, which means it has been reviewed (usually quarterly) and accepted by Execution Unit
(EU)/Regional Industry Unit (RIU)/Construction Management and is reflected in the current Project
Financial Status Report, which documents the official financial status of the project.

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Section 2 Project Controls Planning

BUDGET CONTROL
The budget control process flow chart shown in Figure 2-2 depicts the development of the Original
Budget and the maintenance of the budget. The first steps shown involve the development of the cost
codes. Both the Work Breakdown Structure (WBS) and a coding system are employed in the
development process. A WBS is the top-down, logical structuring of the project scope that defines and
displays all of the work to be performed in accomplishing the project objectives. The coding system,
which is referred to as the Standard Code of Accounts (COA), assigns an alphanumeric code to a
standard WBS and includes all the work required to complete a typical construction project. The cost
code contained within the COA is the key method of assigning commodity information; it is completely
numeric.
Typically, the WBS, Organizational Breakdown Structure (OBS), and COA will have been developed
during the proposal stage of a project, but will be refined following notice to proceed. The (on-)project
controls manager is responsible for establishing the level of detail and the interface points between
cost and schedule for the project. The basis for cost and schedule integration is the WBS, supported
by the COA and the OBS. Figures 2-3 through 2-5 demonstrate this relationship.

Figure 2-3 is an example WBS for a project. In the example, each successive level bores deeper into
the detail, eventually highlighting the contents in a specific work package. Figure 2-4 highlights the
levels within the WBS hierarchy.

DEVELOP COST CODES

OBTAIN MATERIAL SELECT PRELIMINARY TO

REVIEW OBTAIN STANDARD INCORPORATE
ASSIGNMENT SCHED. COST CODES FROM PROJECT TEAM
PROJECT PROJECT CODE AND OTHER INPUT COMMENTS AND
STANDARD CODES AND PROJECT
FROM PROJECT TEAM ISSUE.
ESTIMATE OF ACCOUNTS BASED ON PROJECT CONTROLS MANAGER
ON HOW PROJECT
WILL OPERATE. REQUIREMENTS FOR REVIEW.

DEVELOP ORIGINAL BUDGET

USE HISTORICAL USE HISTORICAL
SPREAD BECHTEL PRELIMINARY DATA, ESTIMATE DATA, ESTIMATE PUT REMAINING
SPREAD OF SPREAD ESCALATION
SERVICES COSTS BACKUP, CONST. BACKUP, CONST. ITEMS (COST OF
OVER ALL COSTS
TO BUDGET. ESTIMATE INPUT, ETC, TO INPUT TO BREAK CAPITAL, FEE,
AS NECESSARY.
DIRECTS TO FURTHER SPREAD DISTRIBUTABLE CONTINGENCY, ETC.)
COST CODES. DIRECTS INTO HOURS AND COST IN PROPER
DETAILED COST INTO DETAILED ACCOUNTS.
CODES. COST CODES.

MAKE SURE ISSUE FOR INCORPORATE

TOTAL MATCHES PROJECT TEAM COMMENTS AND
ORIGINAL REVIEW AND ISSUE FOR USE.
ESTIMATE. PROJECT CONTROLS
REVIEW.

MAINTENANCE BUDGET

PREPARE TRENDS AFTER APPROVAL ISSUE CURRENT

AND TRANSFERS OF TRENDS OR BUDGET AS
AS THEY ARE TRANSFERS, NECESSARY.
IDENTIFIED. INCORPORATE INTO
BUDGET CONTROL
PROGRAM

FIGURE 2-2 - BUDGET CONTROL PROCESS FLOW CHART

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Project Controls Planning Section 2

In Figure 2-5, the WBS is shown starting in the upper right. It identifies construction areas and related
work packages. Each work package has an associated schedule (depicted) and a related control
account. The control account is defined using cost codes, which allows the work to be cross-
referenced to the organizational structure shown on the left.

The influences of the OBS and the COA must be considered when establishing levels of cost and
schedule interfaces. Normally, both will function as the conduits for collecting and organizing data in
the format and structure necessary to update the selected levels of schedule with current status
information.

Refer to Project Controls Department Procedure (PCDP) 1.01 for rules and descriptions for developing
the WBS.

Projects need to incorporate the concept of total installed cost (TIC), where the entire scope and
budget of the project are divided into TIC elements based on the specifics and scope of the project.
Under this approach the focus of project execution becomes more process-based (e.g. civil,
mechanical, electrical). Budgets and schedules are viewed, controlled, and evaluated from this
perspective. This concept may be formally adopted into the project’s organizational structure as
shown in Figure 2-6 or may be enacted on the project using a less formal approach but still employing
team-building concepts.

LEVEL

TOTAL
1 PROJECT

2 ENGINEERING PROCUREMENT CONSTRUCTION STARTUP

SITE/YARD BOILER TURBINE CONTROLS FLUE GAS FUEL WATER MISC.

3 TREATMENT

FOUNDATION BLDG. STEEL/ COMBUSTION STEAM MECHANICAL ELECTRICAL

4 ENCLOSURE TURBINE TURBINE EQUIPMENT EQUIPMENT

STEEL DESIGN HVAC DESIGN ARCHITECTURAL FOUNDATION PILING FIRE PROTECT.

5 PACKAGE REQUIREMENT PACKAGE PACKAGE PACKAGE PACKAGE

SPEC/MR/PO DESIGN DESIGN

6 DRAWINGS TASKS

SITE GRADING PILING LOC. PILING DESIGN

7 PLANS PLANS DRAWINGS

FIGURE 2-3 - EXAMPLE WORK BREAKDOWN STRUCTURE

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Section 2 Project Controls Planning

Project

Department

Facility

Commodity Group

Commodity

Commodity Detail

Additional Commodity Detail As Needed

FIGURE 2-4 – LEVELS WITHIN WORK BREAKDOWN STRUCTURE

PROJECT

WORK BREAKDOWN
PROJECT
STRUCTURE (WBS)
TYPICAL
PROJECT
SUB

(PROJECT PHASE) CONSTRUCTION STARTUP

TYPICAL

PROCESS OFF-SITE
(MAJOR COST ELEMENTS) INDIRECTS
WBS ELEMENT

AREAS AREAS
TYPICAL

UNIT 80
(PLANNING AREAS) UNIT 50 UNIT 60 UNIT 70
SOUR WATER
HYDRO TREATER HYDROGEN SULFUR STRIPPER

(CONSTRUCTION AREAS)

Location
AREA AREA AREA
Responsible Work Is Cost Responsible
Organization Executed Type Discipline 51 52 53

(Typical)
90 DAY ROLLING CPM - ACTIVITY
As Required
STRUCTURAL
OVERHEADS
ORGANIZATIONAL BREAKDOWN STRUCTURE (OBS)

CONTROL CONTROL
OFFICE
OTHER

CIVIL/

ACCOUNTS ACCOUNTS
MANAGEMENT
EXPENSES

PROJECT

CONTROL
OFFICE

CONTROL
HOME
ENTITY

PACKAGE #1
WORK PACKAGES

ACCOUNTS ACCOUNTS (Typical)

CONTROL LEVEL
SCHEDULE - Tasks
As Required
SERVICES
FIELD

DESIGN
LABOR

PLANT

CONTROL
PACKAGE #2
ACCOUNTS Detail Line
MATERIALS

PROCESS

CONTROL PACKAGE #3

ACCOUNTS

CONTROL ACCOUNTS (Cost Code Numbers)

FIGURE 2-5 - RELATIONSHIP BETWEEN WBS, OBS, AND CODE OF ACCOUNTS

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GENERAL NOTES:

o CURRENT FUNCTIONAL REPORTING

RELATIONSHIP REMAIN IN PLACE!
PROJECT TEAM > PROJECT MANAGER o FUNCTIONAL DEP'TS COORDINATE
WORK/LESSONS LEARNED TO DEP'T

PROJECT SITE MGR HO PROC HO PROJ STARTUP

EXAMPLE TIC TEAM ENGINEER Proj Sup't/PFE MGR CNTRL MGR MANAGER
(See Note Below) C/S Supv,S/C

CIVIL TEAM | CIVIL EGS | LD CIVIL SUPT | PROC | PROJ CNTLS |

| | LD CIV FLD ENG | REP | REP |

MECH TEAM | MECH EGS | LD MECH SUPT | PROC | PROJ CNTLS | STARTUP
| | LD MECH FLD ENG | REP | REP | REP

PIPING TEAM | PLT DES EGS | LD PIPING SUPT | PROC | PROJ CNTLS | STARTUP
| | LD PIPE FLD ENG | REP | REP | REP

I & C TEAM | CNTRL EGS | LD I&C SUPT | PROC | PROJ CNTLS | STARTUP
| | LD I&C FLD ENGR | REP | REP | REP

ELEC TEAM | ELEC EGS | LD ELECT SUPT | PROC | PROJ CNTLS | STARTUP
| | LD ELEC FLD ENG | REP | REP | REP

SPECIAL TEAMS | RESP ENGRS | RESP SUPT | PROC | PROJ CNTLS | STARTUP
| & MGRS | RESP FLD ENGR | REP | REP | REP

NOTE: Each Project, based on scope, will determine optimum TIC Team structure.

FIGURE 2-6 - TOTAL INSTALLED COST PROJECT ORGANIZATIONAL STRUCTURE

Process-based control involves performing evaluations with the objective of optimizing the cost and
schedule scope of that process, considering both specific scope and overall project scope. The
evaluation teams should draw on the project-assigned expertise of the functional departments, with
members from Engineering, Procurement, Construction, Startup, and Project Controls being assigned
as required. The TIC program empowers all personnel, fostering an awareness of the cost impacts
that the daily decision-making process has on a project. This awareness should result in incorporating
cost effectiveness into these decisions, yielding the lowest cost outcome without compromising quality
in the process. The assigned teams are empowered to make engineering, procurement, construction,
and commissioning tradeoffs (with project team concurrence), and the team’s effectiveness is
measured on its entire budget, not individual department budgets.
Essential to the success of reducing TIC is the project team’s focus on reducing the impacts of
quantities. This focus must include pre-quantity issuance recognition of deviations to the project
estimate basis/budget and a proactive engineering, procurement, construction, and commissioning
team approach to reducing the TIC impacts of quantity design. To accomplish this, an effective
turnover of the scope basis from the proposal team to the executing team and an aggressive
management of scope growth are necessary.

The following are additional characteristics of the TIC process:

1. Forecasting is performed on an ongoing basis, with reports being updated as deviations are
identified. Trend summaries, commodity curves, etc., are updated with the latest information when
issued and do not wait for management approval before incorporation.
2. Budget Transfers: With the team’s empowerment to optimize the engineering, procurement,
construction, and commissioning cost components within its scope of responsibility, it is recognized
that scope and work will be transferred between departments within the team. Since the
performance of the team is the focus of the program, minor budget transfers between the
individual budgets are not required. However, if a major scope transfer occurs such as performing

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a function that was budgeted as a subcontract (use transfer > 1,000 jobhours or $100 K) the
project has the flexibility to enact a transfer. The purpose of this is to avoid expending resources in
minor transfers when the bottom line TIC is the focus.
3. Bulk Commodities are adjusted as required monthly to reflect the latest engineering design.
Schedule and cost impacts are reviewed as part of the monthly reporting process.
4. Stretch Targets and Strategies are established for each assigned evaluation team and then
integrated with the overall stretch goal strategy by the project team. Progress against these targets
is shared with the teams on an ongoing basis.
5. Project Reviews, both internal and off project, may be structured by the TIC team rather than by
the department breakdown used if the formal organizational approach is taken.

The update of the Project Controls Department Procedures (PCDP) scheduled for 1998 will
incorporate TIC concepts into the revised documents.

It is important to note that TIC concepts should not be used to dismiss the need to track individual
metrics. Tracking items such as jobhour expenditures is still very important to properly monitor a
project and assess performance.

CODE OF ACCOUNTS AND ALLOCATION OF BUDGETS

All Bechtel companies, Regions, Industry Units, Special Operations and Services, and designated
associates and affiliates have adopted the Standard COA for use.
As shown in Figure 2-7, the overall Cost Account is a 6-to-11-character code that identifies labor,
material, subcontract, or revenue items by a specific project Subdivision, Locator, and Cost Code.

Bechtel Job Sub- Locator

.
Cost
No. division Detail Type
Commodity
Commodity Group
Category

Cost Code

Cost Account

FIGURE 2-7 - COST ACCOUNT DEFINITION

The Subdivision code is a one-to-three-character code used to break the project down into major
facility groups (e.g., units in a power plant or trains/product lines in a petrochemical or mining
project). Both alphabetical and numerical characters are employed.
The Locator code is a two-character code that defines a physical area of the project. It may be
either alphabetical or numerical. Standard Industry Locator codes are used, if available. On a
power plant project, the Locator code could designate the boiler (steam generation process); on a
petrochemical project, the Locator code could designate the refining process area.

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The Cost Code is a three-to-six-character code that identifies labor, material, subcontract, or
revenue items. All characters are numeric:

• The category of work is the first character. Examples include bulks, general equipment,
special equipment, etc.

• The commodity group is the second character. Concrete, steel, architectural, piping bulks,
electrical bulks, and instrumentation are examples of commodity groups included in the bulk
category of work. Pumps, compressors, heat exchangers, and tanks are examples of
commodity groups included in the general equipment category of work. Steam turbine
generators, precipitators, switchyards, columns and vessels, fired heaters, and steam
generation equipment are examples of commodity groups included in the special equipment
category of work.

• The third character adds further detail related to the commodity group. Formwork, reinforcing
steel (rebar), embeds, and concrete placement are examples of details within the concrete
commodity group.

• The final three characters provide additional detail breakdowns. Examples of additional detail
reporting for reinforcing steel would be special detail codes for wall reinforcing and slab
reinforcing.
An example of a complete Cost Account is shown in Figure 2-8.

1 B G 1 5 . 3 1

Detail
Commodity
Commodity Group
Category
Locator
Subdivision

FIGURE 2-8 - EXAMPLE COST ACCOUNT

In using this system, the project team has the flexibility of defining the level of reporting detail
appropriate for the project. However, there are minimum levels of detail that are mandatory to
track material, subcontract, and labor costs. This is to ensure consistency in reporting historical
costs. The required breakdowns are defined in the Standard COA.

It is to be noted that in certain instances, portions of the Cost Account (e.g., subdivision
designator) may not be required by PCWorks or the accounting system. Nevertheless, the Cost
Code will need to be completely defined. The definitions of work categories and commodity
groups must, however, remain consistent in all applications. Refer to Project Controls
Department Procedure 4.11 for more information on COA.

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The Project COA should be developed in agreement with the Standard COA by identifying the
applicable/required codes within the COA. Additional detail may be added through extensions, but
these must be developed in a way that ensures proper roll-up and avoids multiple definitions for the
same code over time. Therefore, the added codes must be extensions of the most detailed codes
defined in the Standard COA.

When establishing the Project COA, the following should be considered:

• The level of detail should be consistent with the control required, both in the Design Office
and the field, and be compatible with the WBS and the OBS.

• The COA should be consistent with activities necessary to establish responsibility for performance,
both in the Design Office and in the field.
In ensuring the consistency noted above, items such as the MAS that specify how the project will
operate, as well as project requirements, need to be taken into account. The preliminary Project COA
should be reviewed with the Project Team and the project controls manager. After incorporating all
comments, the Project COA is issued for use.
As noted on the flow chart shown in Figure 2-2, the budget development process allocates the
estimate, including Bechtel services cost, to correspond with the breakdown in the Project COA.
Budget allocations relate to items of work that are clearly the responsibility of an individual or
organization and must provide information to enable the project team to control the work before it
commences. Direct and distributable cost items may require considerable work to be matched up with
the detail codes specified. Use of historical data, estimate backup, and additional construction input is
recommended.
Escalation is addressed next. On most projects, escalation is allocated over all costs, as necessary.
On selected reimbursable projects, the client may require that escalation (normally a separate line in
the estimate) be held as a separate account. The process continues with the placement of the
remaining items such as cost of capital, fee, contingency, etc., in the proper accounts.
After checking to be sure the preliminary budget distribution matches the estimate, the Project Team
and project controls management review the budget. Comments are incorporated, and the original
budget is officially released for use. An example is shown in Figure 2-9.

ORIGINAL BUDGET DEVELOPMENT

On cost-reimbursable projects where Bechtel has been awarded engineering, procurement,
construction, and commissioning (startup) responsibilities, original budgets are prepared from the
preliminary project estimate. A more detailed and definitive project estimate is subsequently
developed based on a technical scope document that typically includes piping and instrumentation
diagrams, plot plans, general arrangements, and electrical single-line diagrams. At this point,
engineering is approximately 20 to 40 percent complete and/or construction is about to begin. In
addition, selected major equipment awards have been made. This estimate forms the basis for
developing detailed budgets for engineering and other Design Office costs, quantities, construction
labor, equipment, material, and subcontract costs.

On lump-sum projects, the original budget is developed directly from the proposal estimate, adjusted
for any subsequent changes in scope and price resulting from contract negotiations, clarifications, and
tender documents. The original budget includes all the scope defined in the proposal and/or scope
book. For projects with engineering and design by others, the original budgets are based on the bid

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Project Controls Planning Section 2

estimate and the conformed contract at time of award. The bid estimate values are distributed to the
appropriate accounts for monitoring and control.

The maintenance of the budget is noted in sufficient detail earlier in this section. Refer to Project
Controls Department Procedure 4.01 for more information on budget development, maintenance,
reviews, and approvals.

PROJECT CONTROLS PLAN

Subsequent to notice to proceed, the (on-)project controls manager is responsible for preparing the
detailed Project Controls Plan. The scope of the Project Controls Plan includes all design and field
office aspects of the project controls functions, such as estimating, cost control, planning and
scheduling, financial reporting, and their related automated systems, as applicable. It contains:

• The project controls staffing requirements over the project and the applicable project-specific
procedures

• The definition of the project controls deliverables and identification of key areas of responsibility

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Section 2 Project Controls Planning

COST INSTALL MATERIAL EXTENDED EXTENDED EXTENDED

CODE DESCRIPTION QTY UOM RATE RATE INSTALL MATERIAL TOTAL

15.2011 Small Bore Pipe 986 EA 37.76 34.17 37,231 33,692 70,923
15.2012 Small Bore Pipe 44 EA 6.90 0.01 304 0 304
15.2100 Small Bore Pipe Carbon 2,254 LM 6.41 6.87 14,448 15,485 29,933
15.2300 Small Bore Pipe Stainless 347 LM 6.24 71.39 2,165 24,772 26,938
15.2800 Small Bore Pipe 55 LM 6.67 1.81 367 100 466
15.3100 Large Pipe 2-1/2" Carbon 65 LM 13.23 19.72 860 1,282 2,142
15.3101 Large Pipe 3" Carbon 31 LM 15.82 17.85 490 553 1,044
15.3102 Large Pipe 4" Carbon 167 LM 17.83 23.06 2,978 3,851 6,829
15.3103 Large Pipe 6" Carbon 266 LM 25.79 39.98 6,860 10,635 17,495
15.3104 Large Pipe 8" Carbon 716 LM 33.69 69.99 24,122 50,113 74,235
15.3300 Large Pipe 3" Stainless 16 LM 10.30 119.67 165 1,915 2,080
15.3301 Large Pipe 4" Stainless 15 LM 11.45 169.33 172 2,540 2,712
15.3302 Large Pipe 6" Stainless 72 LM 25.60 342.62 1,843 24,669 26,512
15.3303 Large Pipe 8" Stainless 39 LM 27.65 719.16 1,078 28,047 29,126
15.3400 Large Pipe 2-1/2" Chrome 4 LM 12.55 0.43 50 2 52
15.3660 Floor Drains 407 LM 10.36 123.25 4,217 50,163 54,379
15.3800 Large Pipe 152 LM 6.40 6.67 973 1,014 1,987
15.3801 Large Pipe 4" 869 LM 6.87 15.96 5,970 13,869 19,839
15.3802 Large Pipe 6" 327 LM 7.60 24.38 2,485 7,972 10,457
15.3803 Large Pipe 8" 49 LM 14.64 43.82 717 2,147 2,865
15.4100 Large Pipe 12" Carbon 251 LM 75.28 154.08 18,895 38,674 57,569
15.4101 Large Pipe 16" Carbon 1 LM 67.61 209.40 68 209 277
15.4300 Large Pipe 12" Stainless 36 LM 58.69 573.82 2,113 20,658 22,770
15.4402 Large Pipe 13" Chrome 16 LM 209.90 26.48 3,358 424 3,782
14.4800 Large Pipe 10" 389 LM 13.69 51.69 5,325 20,107 25,433
15.4801 Large Pipe 12' 141 LM 15.84 72.67 2,233 10,246 12,480
15.5100 Large Pipe 20" Carbon 27 LM 98.56 489.65 2,661 13,221 15,882
15.5400 Large Pipe 20" Chrome 16 LM 98.56 6.05 1,577 97 1,674
15.5800 Large Pipe 16" 41 LM 18.67 144.78 765 5,936 6,701
15.5100 Large Pipe 18" 49 LM 18.67 144.78 915 7,094 8,009
15.5802 Large Pipe 20" 40 LM 20.59 178.82 824 7,153 7,976
15.6100 Large Pipe 30" Carbon 84 LM 42.49 664.18 3,569 55,791 59,360
15.6910 Large Pipe 30" Concrete 420 LM 19.81 664.15 8,320 278,943 287,263
15.7011 Large Bore Pipe Hangers 213 EA 9.60 74.00 2,045 15,762 17,807
15.7021 Large Bore Pipe Hangers on 138 EA 8.61 56.93 1,188 7,856 9,045
15.7030 Large Bore Pipe Hangers from 67 EA 9.60 74.00 643 4,958 5,601
15.8100 Stress Relieving 226 EA 323.59 73,131 73,131
15.9316 NDE 269 EA 59.44 15,989 15,989
251,117 759,950 1,011,066

FIGURE 2-9 - BUDGET REPORT BASED ON ORIGINAL BUDGET

• The distribution matrix noting when the first issue of the deliverable is due and the frequency
of issue thereafter
The Project Automation Plan is approved and owned by the project manager. The Project Controls
Automation Plan (a subset of the overall plan) is developed by the (on-)project controls manager and
needs to be fully integrated with this overall automation plan.

After determining which control elements are to be implemented, the tools can be properly selected. In
selecting each component, the interrelationships must be considered so that the controls program can
be optimized. Both hardware and software should be identified by work process (e.g., budget control,
trending, scheduling) and by position.

Hardware and software must comply with Bechtel standards, which are known as Bechtel Standard
Application Programs (BSAPs). To ensure that the BSAPs will run properly, hardware selection must

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 Project Controls Planning Section 2

be subordinate to the application, and standard configurations must be used whenever possible. The
Generic Site Automation Plan developed by Construction is an excellent reference for more specific
guidance. Refer to the Construction site on the BecWeb for this document.

Figures 2-10 and 2-11 provide overviews of the field (construction) controls programs. Refer to Project
Controls Department Procedure 2.02 for more information on the contents and format of the Project
Controls Plan and the automation tool selection process. Section 3 identifies the minimum set of
control tools required on a jobsite.
It is to be noted that deviations from department standards are subject to review and approval
coordination by the sponsoring project controls manager, the chief cost engineer, and the chief
planner. The sponsoring project controls manager is responsible for providing direction in the
formulation of the structure of the project controls program during the proposal process or
development phase. The key project team members should review and comment on the detailed
Project Controls Plan. The sponsoring project controls manager and the project manager are
responsible for reviewing and approving the detailed Project Controls Plan.

The following illustrates the basic management philosophyadpoted by Bechtel Construction Operations for the planning and
control of field progress and performance:
Base Control Documents Intermediate Schedules Detail Schedules Results Measurement

Level 1 Level 2 Level 3

Milestone Summary Schedule Integrated CPM Logic Networks
Process
Concrete Engineering Procurement 90/180 Day Rolling CPM Windows/
Piping Special Schedules
Off sites Construction/Startup

•Manual or electronic drawn •Display by month •Display by month

•One or two pages •Initially field needs dates for
engrg •Weekly planned quantities for selected
•Statusedmonthly and procurement deliverables major commodities
•Defines work packages •Additional planning for special critical
work operations
•May be manpower loaded
•System turnover planning

Current Forecast
Installed Quantity Plan
Current Budget J F M A
Conc CY 20 40 60 80
Original Budget Conduit LF 1000 800 300 200 Level 4
Equipment Progress & Performance Table
Pipe By Category Weekly Work Plan Category Progress Performance
Electrical QTYs URs MHs
Concrete &$ Progress and Performance Curves
100
o Activity Resources
Equipment This To Actual
Site PF
1.00 Pour concrete fdns Conc pump Pipe Week Date PF
Inst SBI LG pipe Crawler crane Electrical Actual Actual vs
Concrete vs. vs Forecast
•Code of Accounts Run PH wire/table Scaffold Site Forecast Forecast
•Current budget maintained monthly Set compressor K10 Crew size
•Current forecast approved by mgmt,
•Ties to current financial status reports Resource Curves •Site Mgmt review tool
•Display at day by day level •Highlights - Forecast plan
vs actual
•Activity focused •Actual data also shown on P&P curves
•Prepared byfld supvsn- Supt, GF, F, etc •Supported by detailgty and unit raterpts
with support from FE and Controls •Qty reporting and MH charging based on
•Crew oriented standard, efficient guidelines
•Manpower loaded •Problems and corrective actions
•Shows planned quantities identified
•By category and total project •Weeklymtg for following week plan
•Based on quantity installation curves by month •Key reports for offsite management
•May also include 1 or 2 week look ahead
•Lotus spreadsheet
•Validated back to current forecast

FIGURE 2-10 - FIELD MANAGEMENT AND CONTROLS PROCESS

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Cost/Schedule Control Diagram - (Sub)Contract Execution (Field Perspective)

Technical Scope
and
Scope of Services
Estimate
Schedule
Contract
Milestone
Project
Summary
Budget
Categories Schedule

Code of Accounts

EPC Integrated
Intermediate Schedule
Quantity Curves
Distributables Subcontracts Quantities Weekly Work Plan
Construction Intermediate
Installed Intermediate Startup
Quantity M/R Schedule Schedule
Purchase Order (Sub)Contract
Accounts Payable
Verify

Quantity System Resource

(Sub)Contract Curves Punchlist Curves
Distributables Cost and
Plan and Adminsistration Commitment Verify S/C
Curves

Weekly
Trends Work Plan

S/C
Change Performance
Forecasts Progress Critical Items
Orders Reports Cash Flows
Reports Action Report

Cost Daily
Reports
Schedule
Weekly
Monthly
Other

FIGURE 2-11 - COST/SCHEDULE CONTROL DIAGRAM (FIELD PERSPECTIVE)

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Summary of Jobsite and (Sub)Contracts Control Tools
INTRODUCTION
Two BSAPs are specifically available for project control purposes. One is for schedule control, the
commercially available Primavera. The other, PCWorks, covers cost control and was developed by
Bechtel.

Primavera is the standard critical path scheduling application used to develop fully integrated
Engineering/Procurement/Construction project intermediate schedules (Level 2) and may be used for
more-detailed rolling schedules at Level 3. Level 1 and Level 4 schedules are normally developed
using Excel or some similar application.

There are three PCWorks Modules:

1. Engineering Progress and Performance Report
2. Bechtel Services
3. Project Cost
The Project Cost Module is the one that most affects field controls. The Project Cost Module
contains four sections (submodules), covering General Information, Budget, Cost and Commitment,
and Craft Performance, used in cost control.

• General Information is used to identify general project information, the cost code structure, the
project calendar, and various sort codes for reporting purposes.

• Budget provides the mechanisms for setting up the original budget and tracking variances via
the current budget and forecast (current and trend), using a cost code breakdown structure.
Labor, equipment, bulk materials, subcontracts, and other costs are presented separately in
most overall project reports. Actual cost-to-date and commitment information, which is handled
in Craft Performance and Cost and Commitment, is included in many project cost reports as
well.

• Cost and Commitment tracks equipment, materials, and subcontracts by purchase order and
contract number. Contract values (amounts) and quantities are tracked for the allocated budget,
forecast, commitments, and actuals to-date by pay item and cross-referenced to cost codes. For
each contract, Cost and Commitment is capable of tracking a line-item breakdown of pay items,
with roll-up to bid item and contract totals. Variance information (e.g., committed over forecast)
is reported by Purchase Order/Contract number or cost code.
Separate sections are provided for Contract Administration and Contract Monitoring. Under
these sections, progress and performance can be statused by period (e.g., weekly) for both
installed quantities and expended hours.

• Craft Performance tracks manual labor hours and costs by cost code. Installed quantities,
expended hours, and resultant unit rates are compared to budget and forecast information.
Progress and performance can be statused by period (e.g., weekly). Status of manual labor
earned value is provided by detail cost code breakdown in several formats. This module will not
normally be used on fully contracted construction projects except possibly cost reimbursable
ones or where labor broker approaches are employed. Refer to Principles of Construction
Controls, Volume I for use of this control tool.

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Section 3 Summary of Jobsite & (Sub)Contracts Control Tools

While PCWorks provides the ability to evaluate cost at a working level and does produce related
summary reports, it does not produce all the reports and graphical presentations required to
implement the field controls work process. As a result, the additional reports needed are normally
developed using Excel spreadsheets.

In the contracts management arena, other programs have been used on some projects for
detailed contract administration and monitoring. These include PICES (M&M) and Primavera’s
Expedition program. In fact, Expedition is being evaluated by Contracts, and adjustments are
being worked in conjunction with Primavera to match Bechtel’s specific needs. The plan is to
adopt it as a BSAP for (sub)contract administration once Bechtel’s requirements are met.
Further, in the contracts management arena, Bechtel relies on (sub)contractors to provide much
of the information used to monitor progress at the jobsite. A large amount of direction and
guidance is given in the contracts-related manuals and procedures on this and related subjects.
The following are major key documents:

• Contracts/Subcontracts Formation Manual (Blue Book)

• Contracts/Subcontracts Management Manual (Brown Book)
• Contracts/Subcontracts Coordination Handbook
• Contracting Guidelines No. C-1, Construction Participation in (Sub)Contract Formation
• Prime Contract Management Manual (Red Book)
• Corporate Policy Number 230, Procurement of Goods and Services

CONTRACT PRICING TYPES/METHODS OF PAYMENT

The structure and configuration of a (sub)contract is determined by the scope of work involved.
The following pricing types are used to calculate the cost. Their selection is dependent on how
well developed the scope is at time of award.

Lump-Sum (Fixed Price) Contract Based on Definitive Specifications

This type of (sub)contract is based on a well defined scope. Technical specifications and
drawings should be essentially complete so bidders can accurately determine their costs without
sizable contingencies for work that cannot be accurately estimated. Undefined scope may
eventually trigger Bechtel initiated change orders.

Lump-Sum Design/Build (Engineering/Procurement/Construction) Contracts Based On

Preliminary Design
This type of (sub)contract is used only if the conceptual design is complete, the prime contract
requires lump sum, or other factors indicate the (sub)contractor can accurately estimate cost.
Typical applications include projects where:
• Schedule is key—no time for Bechtel to complete design before initiating construction.
• The project is based on known technology.
• Design, procurement, and construction (possibly including commissioning) are performed by a
single (sub)contractor.

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• The customer’s preference is to award design/build contracts to local (sub)contractors.

Unit Price
This pricing type is a form of fixed price contract that is flexible with respect to quantity changes. It
is used where the type and complexity of the work is shown on the drawings, but the quantities
for each unit have not been finalized.
Typical applications include:

• Specialty (sub)contractors providing installation of commodities or components for the project

(e.g., heating/ventilation/air conditioning, insulation, etc.) or civil work (earth moving,
drilling, etc.)
• (Sub)contractors in the international arena where direct hire is not possible or places Bechtel
at a major disadvantage
The measurement for payment provisions for unit payment must be carefully written to include all
related costs to complete a unit. A variation of this type of (sub)contract uses work breakdowns
with applicable lump-sum values defined. Adjustments are made to cover variations in scope
(e.g., quantity change) from the lump-sum subtotals using agreed-to unit prices for each item.

Cost Reimbursable
This pricing type is used when contract scope definition is not fully developed; where project risks
would cause (sub)contractors to include unacceptable contingencies in a fixed price; or when
work conditions are such that any form of fixed price will be subject to continual change or claims.
Payment is made for the actual costs incurred by the (sub)contractor for performing the work, plus
a fee, which may be a fixed fee, an established target fee, an incentive fee, a fee as a
percentage of cost, or a combination of the foregoing.
Typical applications include:

• (Sub)contract with uncertain work scope

• (Sub)contract work subject to many design changes (e.g., heating/ventilation/air conditioning)
• Project conditions requiring Bechtel control of (sub)contractor's schedule and/or
(sub)contractor's access to the work
• Maintenance or major revamping of existing facilities
• State-of-the-art or developmental projects
• (Sub)contracts requiring continuous accelerated performance

Cost Plus Fee—Guaranteed Maximum

This pricing type reimburses the (sub)contractor on the basis of cost plus a fixed or incentive fee;
however, the total price cannot exceed a predetermined amount unless there is a significant
increase in the scope. Thus, for the original contract scope, the (sub)contractor absorbs all of the
cost overruns above the guaranteed maximum. In other words, the (sub)contract is cost
reimbursable up to the guaranteed maximum. If costs exceed the guaranteed maximum, the
(sub)contract is fixed price.

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Typical applications include fast-track projects where a fair degree of (sub)contractor-initiated cost
control is important.

Cost Plus Fixed or Incentive Fee With Guaranteed Maximum and Shared Savings
This pricing type encourages the (sub)contractor to reduce project costs. The incentive to do so is
in sharing the savings below the guaranteed maximum price.

Typical applications include fast-track projects where a fair degree of (sub)contractor-initiated cost
control is important and where the potential for cost savings is significant.

Convertible Contracts
Using this pricing type is a "two-step" arrangement that begins on a cost reimbursable or unit
price basis and continues until the project is more clearly defined and drawings and specifications
are fundamentally complete. At this point, based upon an agreed-to definitive estimate, the
(sub)contract is converted to a fixed price arrangement.

Typical applications include:

• Projects requiring a balance between minimum project duration and cost

• Projects where customer or Bechtel and (sub)contractor have been involved in similar projects
with each other and (sub)contractor performance has been exemplary

Time and Materials Contracts

Using this pricing type, labor, equipment, and associated items are charged at agreed-upon rates
that include factors for overhead expenses and profit. Materials are charged at cost plus a
percentage markup.
Time and materials contracts are used on small simple projects where the (sub)contractor is
essentially a labor broker.
Typical applications include:

• (Sub)contracts for repair, inspection, and related services

• Small "quick and dirty" construction or modifications
• Change order work in which the scope cannot be well defined at the outset

The Bechtel construction pro-forma long form contract contains provisions in the special
Conditions for force account work. If mutual agreement cannot be reached on (sub)contract
changes, the special condition titled "Changes" permits Bechtel to require these changes to be
performed on a force account basis using the time and materials payment provisions preset in the
special condition titled "Pricing of Adjustments." Force account work requires establishment of a
special cost account and daily written records of the (sub)contractor's time and materials.

Bonus/Liquidated Damages Incentives Based on Time of Completion

Using this pricing type, the (sub)contractor is paid an additional fee (bonus) if the facility is
operationally functional ahead of schedule. If the facility is late, the (sub)contractor pays from its
fee the amount agreed to in advance to compensate for all or a portion of the damages suffered

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by the customer or Bechtel due to (sub)contractor's delay. Upper limits are usually applied to both
the bonus and liquidated damages (e.g., maximum of 50 percent of fee).

Typical applications include projects where on-time completion is essential.

Bonus/Liquidated Damages Incentives Based on Operation and Performance

Using this pricing type the (sub)contractor's fee is based on the performance factors for operation
of the completed project. The extent of the bonus or penalty may be computed from product yield;
raw material or utility consumption rates; separation or scrubbing efficiency; minimum effluent or
by-product generation; or maintenance costs.

Typical applications include projects where Bechtel desires to optimize certain predetermined
production performance characteristics.

Methods of Payment
The methods of payment include:

• Fixed or variable payment schedules based on milestone achieved and/or activities completed
(e.g., lump sum)
• Variable payment based on the units of work done and/or percent complete (e.g., unit price
for quantities installed)
• Variable payment based on the levels on manual labor used and costs incurred (e.g., cost
reimbursable)

Table 3-1 shows the three basic (sub)contract pricing types and the factors to consider in
selecting when to use each.
TABLE 3-1 - FACTORS TO BE CONSIDERED IN SELECTING COMPENSATION METHOD

FACTOR/METHOD LUMP SUM UNIT PRICE COST

REIMBURSABLE
Scope definition Must be well defined. Well defined, but Not well defined or
Target for 100% design. subject to variation in subject to considerable
quantity. change.
Critical schedule Acceptable, although Not preferred. Preferred. Higher
not preferred if it is Contractor tends to do probable cost in
likely that contractor's the most profitable units exchange for directing
work will be frequently first, rather than critical attention to the critical
redirected. ones. items.
Complex interfaces Not preferred for same Acceptable. Preferred for same
reasons as for "critical reasons as for "critical
schedule." schedule."
Large quantities of Not feasible because a Preferred. Not preferred unless an
same type of work with fixed price cannot be incentive contract or a
quantities likely to vary given for an imprecise target contract is used.
quantity.

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FACTOR/METHOD LUMP SUM UNIT PRICE COST

REIMBURSABLE
Design by specialist Preferred. May not be suitable if Preferred for "state of
contractor quantities are the art" work only.
determined by the
contractor and Bechtel
quantity confirmation is
uneconomical.

Summary
For controls requirements (sub)contract are usually considered in the context of one of the three
basic pricing types:

• Lump sum
• Unit price
• Cost reimbursable

For instance, a time and materials contract is a form of cost reimbursable contract where pre-
established cost factors are applied to the level of effort to complete the work. The noted
bonus/liquidated damages incentives can effectively be applied to the three basic types.
Payments over the course of the job remain consistent with the payment method selected, with
the incentive adjustments occurring at job completion.
Refer to Contracts/Subcontracts Formation Manual, Section 4.4.1, Contract Types by Price, for
more detail about the advantages and disadvantages of each pricing type.

CONTRACT FORMATION PROCESS

The contract formation process includes:

• Planning
• Project Implementation
• Request for Proposal (RFP or Bid Package) Development
• Bid Period
• Evaluation
• Negotiation and Award

Planning

During this phase Bechtel’s work scope is analyzed, broken down into a list of probable purchase
orders and subcontracts using the Project Material Assignments Schedule (MAS), and made
compatible with the Project Milestone Summary Schedule. Subcontract formation begins with the
development of a preliminary Project Bidders List and gathering of departmental input for the
Project Proforma (Sub)Contract Documents. Procurement will lead this process. Project Controls
and Construction should be represented and active from this point forward.

Project Implementation

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Optimally, during this phase, the Project Proforma (Sub)Contract Documents and Project Bidders
List are finalized by the contracts specialist assigned by Procurement. This means the
(sub)contract wording has been developed to a point so that each individual (sub)contract need
only become an adaptation of the project proformas for its specific work scope and bidder
selection can be expedited by picking from a ready pool of pre-qualified bidders.

Direction to the bidders on control process requirements should be developed at this phase to
include appropriate adjustments and/or appendices to the standard proforma general and special
conditions, specifications, project procedures and applicable forms. Specifications or appendices
for the controls report requirements and forms should be covered. The information included
should clearly display the level of detailed expected in the reports. Guidance on this is given later
in this section.

Bid Package Development

This phase commences with issue of a requisition for a specific (sub)contract. Unlike a Purchase
Order, which originates in Engineering, the requisition is initiated by the department requiring the
services. For major elements of work, it could be either Construction or Engineering. Upon
receipt of the requisition, the assigned contract specialist either holds a contract formation kickoff
meeting (for large complicated packages) or informally contacts department representatives to
coordinate development of the RFP. Construction Contracts Administration should be
represented and active from this point forward.

The best way to ensure effective, minimal cost (sub)contractor reporting is to make certain
reporting requirements (types of report, content, and frequency of issue) are specified in the
appropriate (sub)contract documents at bid issue. This should have occurred during Project
Implementation when the project proformas were developed; however, even then, some
requirements may still require individual tailoring to fit each (sub)contract scope. If base data
reporting requirements essential to controlling the project have been left out, a (sub)contract
change at increased cost may be required to obtain the information.

A key role of Project Controls is assisting in development of the Exhibit C, Form A “Schedule of
Prices and Quantities.” Project Controls should participate in determining pricing breakdown to
ensure it provides satisfactory control and forecasting detail, including appropriate schedule tie-in
and measurement for payment requirements. Payment types may include fixed priced items, unit
price items, and/or time and materials items. The bid item breakdown must be logical, easily
administered and support scheduling, historical reporting requirements, and logically tied to the
organization of the Exhibit D “Scope of Work” so pricing items relate to scope description.

A reasonable determination that each selected (sub)contractor has the ability to submit a realistic
bid for the pricing type(s) in use should be made prior to finalizing each specific (sub)contract bid
list.

The Exhibit “C” data request Form K “Miscellaneous Information” should include Project Controls
requirements for bid evaluation data. As a minimum each bidder is asked to describe the control
processes they will use. Optimally, this information should be developed during Project
Implementation, in conjunction with the project proforma, and then adjusted for each
(sub)contract during this Bid Package Development phase.

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As the RFP is prepared, an Evaluation Plan is developed in conjunction with the Exhibit C Data
Request forms as noted above. Projects Controls must prepare the appropriate evaluation
criteria for its Form K data request. Just as standard data forms have been developed, so have
evaluation forms and suggested criteria. These are found on BecWeb in Group 5 of the
Procurement (Sub)Contract Proformas in the Procurement Filing System (ProFiSy) or see
Contracts/ Subcontracts Formation Manual, Appendix II, Attachments 2.14-A and 2-14-B for
additional information.

Bid Period

During the Bid Period, the contracts specialist will coordinate and process bidder questions and
Bechtel’s answers, which are received and returned in writing. Irrespective of which bidder
submitted the question, in order to maintain total impartiality, both the question and answer are
returned to all bidders. In support of this requirement, Project Controls will, in a timely manner,
provide a written response to all bidder controls questions.

The Pre-Bid Meeting normally occurs about two (2) weeks after the RFP is issued. It is chaired by
the contract specialist but normally held at the Jobsite and hosted by Construction. It provides an
opportunity to walk the site and explain specific requirements on a direct contact basis with the
bidders. Each department also participates in a discussion of the RFP and Project Controls must
address schedule and resource related reporting and cover the controls specifications,
appendices or general and special conditions requirements. The meeting ends with a question
and answer session. Following the meeting the contract specialist will issue detailed meeting
minutes based on departmental feedback. The minutes will include an answer to any question
not answered during the meeting. Project Controls must provide the appropriate controls input for
these minutes.

Evaluation

When the bids are received, the contracts specialist chairs the bid evaluation team, using the
evaluation plan as a focus for ratings and discussion. Use of the plan permits separate pricing
(bid tab) and technical ratings. In this way the formalized technical rating can eliminate low priced
but technically incapable bidders, establishing the lowest technically acceptable price.

During Evaluation, Project Controls must review and comment on the proposed control systems
submitted by each bidder. (Sub)contractors should be allowed to use established systems and
processes with which they are familiar, unless the use of Primavera Expedition has been required
in the (sub)contract documents. The evaluation must determine if these controls systems or the
bidder’s capability to adapt to Primavera will match with Bechtel’s reporting requirements and
provide adequate information to properly coordinate the (sub)contract and feed the project
database.

Project Controls will participate in the pricing review to ensure bid item prices are consistent with
the related work scope. A comparison of bidder prices may indicate a portion of the work is ill
defined, resulting in a wide disparity between bidders. To eliminate possible misinterpretation this
should be explored with the bidders and, if necessary, any inaccurate drawings and specifications
redone to level the bids. Specifically, attention must be given those pay items, which may be one
or a combination of payment types. Keep in mind (sub)contractor monitoring may depend heavily
on information supplied through pay item billings.

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Data Request Form D requires each bidder submit a preliminary (Sub)Contract Schedule.
Coordinating with other departmental project leads(e.g., Construction, Engineering), Project
Controls will carefully evaluate these schedules and, through the contract specialist secure bidder
clarification of uncertain areas.

Other Project Controls evaluation support consists of analyzing all submitted data for
reasonableness with regard to execution. This includes, but is not limited to, review and analysis
of (sub)contractor staffing levels over time for manual and nonmanual personnel, construction
equipment scheduling, schedule durations for executing specific activities versus estimated
quantities, etc. Other analyses should include, but not be limited to, extensions of unit rates, total
potential cost exposure due to changes, and understanding and inclusion of interfaces where
appropriate, etc. For example, care should be taken to ascertain that selected unit rates have not
been inflated. This can have serious cost impacts if scope grows in these pay items.

Negotiation and Award

When it is impossible to fully clarify a bidder’s proposal without discussions, bid clarification
meetings are held with the low bidder or those bidders in close contention. This is done to
resolve information deficiencies to the satisfaction of both parties and place the bidders pricing on
a mutually understood basis. In the case of close bidders, it may be the final determinant in
(sub)contractor selection.

A major task of Project Controls during negotiations is to bring the selected (sub)contractor’s
preliminary schedule to an acceptable status. All key schedule issues should be resolved prior to
award.

Once a (sub)contractor has been selected and fully approved, the contract specialist
obtains any changed (sub)contracts documents from the appropriate departments and puts
together the final (sub)contract. The changes may the result of the negotiations or Bechtel scope
changes accepted by the (sub)contractor. If necessary, work may commence based on a Letter
of Award and Notice to Proceed pending finalization of the (sub)contract documents.

Once the approved (sub)contract is prepared, the contracts specialist conducts a pre-award
meeting to check the updated (sub)contract documents with the selected (sub)contractor, stress
key (sub)contract requirements such as bid bonds and insurance, and then get the document
signed. The (sub)contractor should be able to leave with a signed agreement. The meeting is not
a construction kickoff meeting, although such a meeting, conducted by contract administration,
can take place after the (sub)contract is signed and the contracts specialist steps down.

The contract specialist’s responsibilities conclude by printing and distributing conformed contract
copies for distribution. Responsibility for the (sub)contract normally transitions to Construction at
this time. The assigned field (sub)contract administrator assumes control for the execution
phase.

THE CONTRACT DOCUMENTS

The Proforma Family

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The Bechtel Corporate Proforma (Sub)Contract Documents family is found on the BecWeb in the
Procurement Filing System (ProFiSy), Procurement Procedures and Manuals category, Proforma
(Sub)Contract Documents directory. It provides a variety of (sub)contract formats which includes
“short form” versions used when the work scope is uncomplicated and total contract value does
not exceed prescribed monetary limits.

The long form (sub)contract is used for all complex construction contracts and where the
(sub)contract value exceeds US$3,000,000. The short form (sub)contract is used when the work
scope is basic construction and the total (sub)contract value is below US$3,000,000. A Services
Order may be used for values below US$250,000. The Contract Documents are always the
same, except the short forms have reduced terms and conditions in Exhibits A and B, basic
Exhibit C pricing, and basic Exhibit D scopes of work. Services (sub)contracts (e.g., Technical
Services Contracts, General Services Contracts, and A&E) are not covered in this handbook
because its emphasis is on executing significant construction that results in permanent facilities.
Refer to the Contracts/Subcontracts Formation Manual, Section 4.5.5 for additional information
on (Sub)Contract Documents and the proforma family.

Terms and Conditions

Examining the long form construction (sub)contract, the following Special Conditions (SC) are the
most important to (sub)contract cost and schedule control:

SC-8, Commencement, Progress, and Completion of Work

SC-9, Contract Schedule

SC-14, Measurement for Payment

SC-15, Invoicing and Payment

SC-16, Pricing of Adjustments

SC-8, Commencement, Progress, and Completion of Work establishes the contract milestones
for the (sub)contractor's work and important supporting interfaces (e.g., utilities available) and
requires the (sub)contractor to furnish the resources necessary to meet these milestones. If work
falls behind schedule, Bechtel and the customer have the right to monitor progress and order the
(sub)contractor to take corrective action to meet the schedule. This is a powerful and effective
tool when used wisely and correctly. With proper notice and when lack of progress is due to
(sub)contractor action or inaction, it permits Bechtel to direct the (sub)contractor to work overtime
and/or additional shifts or add personnel at no additional expense to recover schedule. if
the(sub)contractor fails to improve progress, Bechtel or the customer may declare the
(sub)contractor in default and terminate the (sub)contract.

SC-9, (Sub)Contract Schedule, requires the (sub)contractor to prepare an initial baseline

schedule in Critical Path Method (CPM) format and to maintain this schedule based on the
progress of the work. It also establishes format and frequency of periodic progress reports. An
alternate clause provides for a bar chart schedule, which may be used with small (sub)contracts.

SC-14 Measurement for Payment, details the manner in which the (sub)contractor is to measure
its work for payment.

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SC-15, Invoicing and Payment, sets up the procedure for scheduling progress payments. It also
sets forth the requirements for payment and the conditions under which payments to the
(sub)contractor may be withheld. This clause will differ depending on the pricing arrangements
(lump sum with progress payments, lump sum with milestone payments, unit price, cost
reimbursable, etc.).

SC-16, Pricing of Adjustments, is used in conjunction with the General Condition titled
“CHANGES" to set forth the order of preference for pricing changes. It also contains details for
payment of Force Account work, which can be directed when a negotiated price adjustment
cannot be agreed or is delayed.

Specific (sub)contract wording for each of these special conditions is provided on BecWeb in the
Procurement Filing System’s Proforma (Sub)Contract Documents directory. There are a number
of sets of both general(Exhibit A) and special(Exhibit B) condition options listed. Those under the
heading “CSC Group (5)“ are the long form construction (sub)contract documents which are most
used to establish (sub)contracts for permanent plant construction.

These special condition clauses may be edited at project discretion to meet its requirements.
During the Project Implementation and Bid Package Development phases Project Controls
should review and recommend changes to these clauses as required. Attachments 3-1 and 3-2
provide some specific guidance.

The proforma special condition titled “(Sub)contract Schedule” provides a listing of progress
reports. This listing was designed for basic construction requirements . Attachment 3-1provides
an alternate listing of progress reports that meet more rigorous (sub)contractor reporting
requirements defined later in this section. Only the most complex projects would need all these
reports and using the guidance in this handbook, responsible project controls personnel are able
to select those which apply to specific project needs. In this manner the recommended
Attachment 3-1 may be used to replace the reports specified in the proforma clause.

Attachment 3-2 is supplemental to the alternate proforma special conditions titled “Measurement
for Payment” which contain sample language for lump sum and unit price payment types and are
found on Procurement’s BecWeb page as noted above. Attachment 3-2 provides sample
language for cost reimbursable projects.

Exhibit C Data Request Forms

The data request forms of Exhibit C are the primary tools for standardizing bidder proposals.
When the forms are carefully selected and the information requests logically presented, each
bidder will submit similarly organized packages, simplifying comparison and evaluation.

These forms may be edited to fit the requirements of each (sub)contract. This is done by the
appropriate project department. At the same time a complimentary evaluation plan and its
tabulation sheets are updated to ensure appropriate evaluation criteria have been established for
the requested information.

The list of standard forms in ProFiSy is quite lengthy and may be reviewed in its entirety on
BecWeb at the address noted above. The following data request forms affect cost and schedule
control:

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Form A, Schedule of Quantities and Prices

Form B, Construction Plant and Equipment List

Form D. (Sub)Contractor Schedule

Form E, Personnel Tabulation

Form K, Miscellaneous Information

Form 0, Camp Schedule

Form P, Estimated Payment Schedule

Form A, Schedule Of Quantities and Prices. In the Form A format given on the BecWeb, the cost
information is rolled up to summary levels. It recommended that cost for materials, manual labor
and lower tier (sub) contractors be separated on this form if significant construction work is
involved. This will promote an understanding of the (sub)contractor’s execution process and will
provide appropriate information to gauge (sub)contractor’s progress and to clarify cost impacts for
scope changes during execution. On many bids, more detailed scope breakouts are requested for
pricing purposes. For example, spreadsheets separate material supply costs from installed costs
(refer to Figure 2-9 for example format). This information may be incorporated in Form A to
preserve the distinction between material and installation. Also, it may be made a (sub)contract
provision that the (sub)contractor submit a final update of this breakdown with the final invoice.
This would provide invaluable historical information. Customizing this form should be discussed
with the contracts specialist during Bid Package development, but this customization is performed
by Project Controls.

Form D, (Sub)Contract Schedule. A narrative is a required Form D submittal. In developing the

form and then at the Pre-bid Meeting, Project Controls should stress this plan, explaining it should
include a breakdown of the work scope into work Items with scheduled duration and completion
dates in conformance with the (Sub)Contract Milestones of the special condition titled
“Commencement , Progress and Completion of the Work” and Form A pay items. For each work
item the estimated direct manual jobhours required to complete the work should be provided. The
plan should include the total estimated staffing (headcount) and jobhours by time period. Staffing
detail is provided on Form E which segregates direct manual labor, maintenance and support
labor, and supervisory labor. A percent-complete curve by time period and cumulative should be
developed based on the estimated direct jobhours.

Form K, Miscellaneous Information. As noted in Bid Package Development this form should
include Project Controls requirements for bid evaluation data. Specifically each bidder must
prepare a controls procedure outlining the following:

• The approach each will use to prepare and submit reports in accordance with the special
condition titled “(Sub)Contractor Schedule.” Selected reports from the (Sub)Contract
Schedule clause(having been edited, as appropriate in accordance with Attachment 3-1)
should be referenced on Form K and their supporting forms from this section (Attachment
3.1.1 through 3.1.8) appended to the form. Accompanying instructions should instruct the
bidders how to prepare a procedure demonstrating how they will prepare and submit each

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report. Caution the bidders that Bechtel schedule approval under the (Sub)Contract Schedule
clause will depend on adherence to this procedure.
• Identify computer hardware/software and staffing commitments;
• Describe the control process the bidder will use,
• Designate an individual in the bidder’s employ who is skilled in scheduling techniques and
experienced in providing scheduling and reporting requirements, whose primary responsibility
will be to perform these functions, and
• Provide a resume of the person designated above with the Form H “Resumes of Key
Personnel” submittals.

Form O, Camp Schedule. For projects requiring camps, available beds often determine the
maximum number of personnel available at the site to perform the work. (Sub)Contractor’s camp
requirements must be fully understood and monitored throughout the (sub)contract progress. In a
camp situation, Form 0 is a required data request form. It is also noted that the proforma
examples contain optional special conditions related to camp accommodations which allow for
control of this situation during the execution phase.

For (sub)contracts bid out of a Home Office, the (on)project controls manager participates in the
development of the RFP as set forth in above, emphasizing those areas that have cost impact on
the entire project. During the final project RFP review, Project Controls rechecks scope definition,
general conditions, special conditions, bid pay Items, payment terms and schedules, measure for
payment, technical specification, and drawing index. Deviations from budget/forecast scope and
technical specifications, as well as planned scheduled dates, must be noted and, if appropriate,
trended. This review is completed before the RFP package is issued for customer review and/or
bid.

Additionally, the field project controls manager provides a budget breakdown by bid item based
on either quantities supplied by engineering or information available from the latest estimate
necessary over the life of the contract.

SELECTION/ASSIGNMENT OF CONTROL TOOLS/REPORTS

The requirement for information can vary considerably depending on the type of contract used
and the management reporting capabilities of the selected (sub)contractors. The control
tool/report requirement issues are continually addressed throughout the formation process at both
prime contract and (sub)contract levels. The (sub)contractor’s capabilities in the control work
process arena will reveal themselves more clearly during the (sub)contract formation phase, and
adjustments to the Project Controls Plan and/or onsite staffing plan may be necessary.

Assessment of the (Sub)Contractor’s Capabilities

(Sub)contractor capabilities may be initially assessed in the prime contract bid development
stage. This allows appropriate Bechtel staffing levels to be reflected in Bechtel’s price to the
customer. If Bechtel has worked previously in the area, historical information should be available.
Otherwise, Bechtel’s regional Procurement representatives should evaluate the capabilities of the
anticipated (sub)contractors and report back to those preparing the prime contract proposal.

For basic construction (sub)contracts the standard Procurement pre-qualification forms are used
(the forms are also found on through Procurement BecWeb home page in ProFisy). But for

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important (sub)contracts involving major facilities, such as refineries, tailored pre-qualification

requirements are developed to include these key assessment areas:

• Planning

à What levels of detail are completed in advance of mobilization?

à To what level is resource (labor staffing, construction equipment) planning done?

à Is actual use of resources compared over time to planned/scheduled?

à Are development of designs and supply of materials related to planned installations of

equipment and quantities?

• Schedule development and monitoring

à Are computerized or bar charts used?

à Which computer programs are used (e.g., Primavera, Excel, Expedition)?

à Are detailed schedules produced showing planned day-to-day activities?

à Are planned/scheduled activities (e.g., start, durations) compared to actuals?

• Progress/quantity tracking

à Are installed commodities tracked separately?

à Are equipment installations progressed separately?

As the bidding process proceeds, a clearer picture of each individual (sub)contractor’s capabilities
will develop. The requested descriptions of their control processes and levels of commitment to
supply the required reports at the requested frequency and level of detail will provide
considerable insight.
In addition, it is recognized that the negotiation process is the last point at which Bechtel can
ensure that the contract language is clear regarding control deliverables and that the agreed-
upon price reflects timely submittal. Changes after this will likely involve price increases.
If the (sub)contractor is incapable of providing the required level of information, then
consideration needs to be given to selecting another (sub)contractor or adjusting Bechtel’s onsite
staffing plans to ensure that the data are generated. Optionally, if capabilities are in doubt, a
clause may be placed in the (sub)contract to allow Bechtel to assign its own personnel to assist
the (sub)contractor should report requirements not be met, with the cost backcharged to the
(sub)contractor. To be effectively used, the backcharge clause needs to be thoroughly
understood and rigorously followed. It should be considered as a last resort only.

Selection/Assignment of (Sub)Contractor-Submitted Control Tools/Reports

The following constitutes the identified minimum set of essential tools/reports:

• (Sub)Contractor CPM schedules/bar charts (monthly detail)

• Weekly tracking of installed quantities (scheduled vs. actual) at the commodity level per the
standard COA

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• Weekly Work Plan–4-week rolling schedules (day-by-day detail) (This is preferred to 3-week
look-ahead schedules because it records the as-built schedule in detail on a week-by-week
basis.)
• Daily force reports (including nonmanuals)
• Engineering/procurement status report for design and supply of materials/equipment
furnished by the (sub)contractor (including a section on overages, shortages, and damaged
goods)
There are additional tools/reports that are highly recommended. They should be sought on all
(sub)contracts and deferred from inclusion only if there will be considerable difficulty in getting the
(sub)contractors to agree due to confidentiality. The following tools/reports are in this category:

• Weekly tracking of jobhours

• Weekly tracking of installed quantities by detailed Weekly Work Plan activity
• Weekly tracking of manual staffing (headcount) levels (scheduled vs. actual)
• Weekly tracking of construction equipment utilization
• Periodic updating of camp requirements
For a number of these tools there are alternative tracking approaches; for instance:
• Under weekly tracking of jobhours, alternatives include:
à By work items performed
à By commodity level per the Standard COA
• Under weekly tracking of manual staffing (headcount) levels, alternatives include:
à By category of work (e.g., concrete, steel, pipe, etc.)
à By category of labor (e.g., pipefitters, carpenters, electricians, etc.)
à By detailed Weekly Work Plan activity (scheduled vs. actual, placed directly on the
Weekly Work Plan)
• For weekly tracking of construction equipment utilization alternatives include:
à Schedule durations (scheduled vs. actual usage)
à Utilization (active vs. idle)
à Assignment in support of weekly work plan activities (tracked at bottom of each page of
the Weekly Work Plan)
Sometimes the contract pricing type dictates the need to employ certain tools; at other times, the
circumstances affect the selection of tools/reports. The following discusses some of the issues
involved.
When jobhour data are given for key work, significant insight is gained about the local labor force
capability. This information is particularly useful for locations where Bechtel’s intelligence is
insufficient to allow more effective coordination of the (sub)contractor, regardless of the type of
contract. Also, regardless of (sub)contract type, there may be a need for detailed jobhour
information if the job is at a remote site, because this could directly affect Bechtel’s costs. The
cost of providing transportation (e.g., planes, buses) or camp facilities (e.g., sleeping, dining, and

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recreational facilities) are site population dependent and may be very expensive. On cost-
reimbursable projects, the performance tracking may depend upon payment detail.

Resource tracking of construction equipment and manual labor (e.g., headcount) supports all
types of (sub)contracts during weekly reviews, but particularly cost-reimbursable (sub)contracts.
The information can be quite useful in resolving disputes for any contract type because it
documents the effort level put forth by the (sub)contractors.

For any tool that is selected/assigned to a (sub)contractor, the level of detail to be reported must
be clearly defined in the (sub)contract. To do this, it is recommended that the Standard COA be
used as the guiding document. As noted in Section 2, the COA contains area-related designators
(e.g., subdivision/facility) and commodity-based cost codes. It also contains a definition of work
that is useful in pinning down scope on unit-price contracts. As a minimum the commodity level
(e.g., 12.1, 12.2, 15.1, 16.2, etc.) should be reported on the Weekly Work Plan and installed
quantity reports and there should be breakouts to the facility level for major categories of work.
Certain commodities may need to go the other levels (e.g., 13.11, 14.11, 14.12) to ensure
sufficient breakdown. For particularly large facilities (e.g., boilers, turbines, vessels) the breakout
may need to note the detailed level/sections of the facility. The key is to have sufficient
information to clearly demonstrate the status of the (sub)contractor’s work. Additional guidance on
commodity level report requirements is contained in Attachment 3-1.
Other factors to consider when defining the level of detail to be submitted in periodic
(sub)contractor reports include:

• Customer requirements

• Priority of work (e.g., critical path or near critical path have the highest concerns)

• Value of work (e.g., the higher the value, the greater the need for more information)

• Type of contract (i.e., lump sum, cost reimbursable, unit price, or combination)

• Type(s) of work (e.g., complexity and mix of scope; permanent plant or services)

• Bechtel’s future needs for information

Customer requirements are a part of Bechtel’s prime contract. They must be included in the
reporting requirements of the (sub)contracts so that the conditions of the prime contract are met.

The next three listed factors (priority of work, value of work, and type of contract) will affect the
requirement for more detail application of control tools and reporting of information in a manner
that can be characterized. Priority and value of work affect the need for schedule information,
including status of installed quantities. The type of contract affects the reporting needs for
resources (e.g., labor and construction equipment). Figure 3-1 displays a decision tree that
provides guidance on determining the level of reporting detail required based on these three
factors.

The type of work represents a parameter (i.e., factor) that may result in some adjustment to the
reporting requirements specified in the (sub)contract. Finally, Bechtel’s needs vary with the
specific circumstances of the location, and requirements should be adjusted to meet those needs.

Another consideration is comparison of planned/scheduled data to actuals. The most

comprehensive method of display is reporting actuals and scheduled data on separate lines. This

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(Sub)Contractor Reporting Requirements Decision Tree

Include Customer
Customer Mandatory
Start Mandatory Yes Submittals
Requirements? Requirements in
Subcontract

No

(Sub)Contract (Sub)Contract (Sub)Contract

Value over No Value over No Work Schedule
$250,000? $3 Million? Critical?

Yes Yes Yes

No Require Statused
(Sub)Contractor Require Detailed
Require Statused Require Statused
Schedule or Installed Status
(Sub)Contractor Critical Path
Barchart & Weekly Data on Critical
Schedule & Schedule & Detail
Work Plan of Key Equipment &
Weekly Work Plan Weekly Work Plan
Activities Quantities

Require
(Sub)Contractor
Statused Barchart Reimburseable
Fixed Price Unit Rate
of Key Activities No Labor No
(Sub)Contract? (Sub)Contract?
(Sub)Contract?

Yes Yes Yes

Require Detailed
Require Quantity Require Quantity
Quantity
Data on Key Work Data on Key Work
Monitoring
Items Items
Submittals

Require Resoruce Require Resoruce

Require Detailed
Performance Performance
Labor Monitoring
Monitoring Monitoring
Submittals
Submittals Submittals

Type of Work Adjust Reporting

Scope Yes Requirements as
Considerations? Appropriate

No

Include Bechtel
Bechtel Data
Yes Requirements in
Needs?
Subcontract

No

Final (Sub)Contract
Reporting Requirements

FIGURE 3.1 - DECISION TREE FOR (SUB)CONTRACT REPORTING

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reveals the level of the (sub)contractor’s ability to plan work effectively and meet the overall
(sub)contract completion milestones. This comparison should be applied, at a minimum, to work
that is critical path or near critical path.

Bechtel Control Tools

A large number of tools are required to control jobsite field work effectively. The following list
identifies the minimum set provided by Bechtel on most construction projects where Bechtel is
leading the design and procurement efforts. Where Bechtel is not responsible for either design or
procurement, the set must be tailored to Bechtel’s responsibilities and needs.

• Basis for Scope (Design Office responsible)

• Original Budget (Design Office responsible)
• Budget Adjustments Register (Design Office responsible)
• Scope Change Register (Design Office responsible)
• Current Budget (Design Office responsible)
• Current Forecast (Design Office responsible)
• Milestone Summary Schedule (Design Office responsible)
• Integrated Intermediate Schedule (Design Office responsible)
• Engineering Intermediate Schedule (Design Office responsible)
• Construction Intermediate Schedule (including Startup) (Field responsible)
• Systems Completion Punchlist (Field responsible)
• System Completion Exceptions Lists (Field responsible)
• Engineering Documents Register (Design Office responsible)
• Material Assignment Schedule (Design Office/Field responsible)
• Field Material Requisitions (Field responsible)
• Field Purchase Order Register (Field responsible)
• Buck Sheets and Other Multi-Purchase Agreements/ Procurement Tracking System/Bechtel
Procurement System Reports (Design Office/Field responsible)
• Short-Term Work Plan (Design Office responsible)
• Critical Action Items Report (Design Office responsible)
• Percent Complete Curves (Design Office/Field responsible)
• Commodity Design Release Curves (Design Office responsible)
• Commodity Installation Curves (Field responsible)
• Backcharge Log and Process (Field responsible)
• Cost and Commitment Program (Design Office/Field responsible)
• (Sub)Contract Monitoring Reports (Field responsible)

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• Subcontract Jobhour Curves (Field responsible)

• Bechtel Distributable Manual Jobhour Curves (Field responsible)
• Bechtel Distributable Materials Cost Graph (Field responsible)
• Bechtel Distributable Materials Cost Report (Field responsible)
• Bechtel Field Nonmanual Staffing Bar Chart (Field responsible)
• Bechtel Field Nonmanual vs. Subcontract Labor Percent Curve (Field responsible)
• Bechtel Field Nonmanual Payroll/Material Cost Graphs (Field responsible)
• Bechtel Field Nonmanual Cost Report (Field responsible)
• Project Data Sheet (Field responsible )
• Trend Program (Design Office responsible)

The following reports are the responsibility of Subcontract Administration. The latest blank
versions of these tracking forms are available on the BecWeb Contracts home page. Projects
using Expedition may have slightly different formats. The most important reports relating to cost
and schedule are:

• (Sub)Contract Change Notice

• Change Notice Log
• (Sub)Contractor Proposal/Claims Log
• (Sub)Contract Change Order
• (Sub)Contract Amendment
• Change Order/Amendment Log
• Daily Summary of Time and Materials
• Notice of Backcharge Work To Be Performed
• Backcharge Log
• Daily Backcharge Summary
• Notice of Backcharge Completion
• Daily Report
• Invoice for Progress Payment
• Invoice for Progress Payment/Alternate
• Certificate of Payment
• Invoice Concurrence Sheet
• Daily Report of Force Account Work
• (Sub)Contract Proposal Summary
• Overage, Shortage, and Damage Report (Procurement)
• Correspondence Logs

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These report forms are maintained for every (sub)contract in accordance with the Contract/
Subcontract Management Manual (Brown Book) and implementing procedures are found on the
BecWeb Construction home page under Construction Works, Forms, Generic Procedures, etc..

The Period Reports Matrix for (Sub)Contract Execution shown in Figure 3-2 lists all field-issued
working level and summary reports, including those by the (sub)contractors as well as Bechtel. In
addition to noting the frequency of issue, the Bechtel internal distribution, and responsibility for
preparation of reports are highlighted. Information on important Design Office-issued project control
reports is provided in Attachment D of Project Controls Department Procedure 2.02, Project Controls
Plan.

Period Reports Matrix for (Sub)Contract Execution

PERIOD REPORTS/FREQUENCY CONTRACT TYPE PROJECT DISTRIBUTION
Description
Lump Unit Cost Project Site Contracts (On)Project Field Field Construction Business Regional
Frequency Sum Price Reinbusable Manager Manager Manager Controls Controls EngineeringCoordinator & Line Office Controls
(Sub)Contractors Manager Manager Manager Manager Management Management

Subcontractor Schedules Monthly YES YES YES C C C C C

Installed Quantity Report By Cost Code Weekly YES YES YES C C C C

Weekly Work Plan (4-Week Rolling Schedule) Weekly YES YES YES O O C O C C O

Force Reports Daily YES YES YES A C

Engineering/Procurement Status Report(If
Weekly YES YES YES C C C
Responsible)
Manhour Report Weekly RECOMMENED RECOMMENED YES A C C

Manual Personnel(Headcount) Staffing Report Weekly RECOMMENED RECOMMENED YES A C C

Construction Equipment Schedule/Utilization

Weekly RECOMMENED RECOMMENED YES A C C
Reports(Optional)
Camp Requirements(If Bechtel impacted) Monthly YES YES YES C C C
3/6-Month Rolling Schedules(Optional) Monthly OPTIONAL OPTIONAL OPTIONAL C C C C
Payment Plan Status Report Monthly YES YES YES A C C
Installed Quanitity Report By Pay Item Monthly OPTIONAL YES OPTIONAL A C C

Bechtel Contracts Administration/Coordination

Daily Reports Daily YES YES YES A X C C

(Sub)Contractor Change Notice Log Monthly YES YES YES C X C C
(Sub)Contactor Proposal/Claims Log Monthly YES YES YES C X C C
(Sub)Contractor Change Order/Amendment
Monthly YES YES YES C X C C
Log
(Sub)Contract Proposal Summary Monthly YES YES YES C X C
Backcharge Log Monthly YES YES YES C X C C
Action Items Lists Weekly YES YES YES C C C C C X C Critical List only
(issued from home office)
Bechtel Field Project Controls

Construction Intermediate Schedule Monthly YES YES YES O O C O X C O

Cost & Commitment Reports Monthly YES YES YES O O C X C C Summary Report as required
Subcontract Monitoring Reports Monthly YES YES YES C C C X C
Bulk Commodity Installation Curves (Total
Monthly YES YES YES C C C C X C C C C
Project)
Subcontract Field Staffing /Hour Graph Monthly OPTIONAL OPTIONAL YES C C C C X C C C
(Sub)Contact & Bechtel Distrib Manual
Monthly A A A C C C X C C C
Jobhour Graph
System Completion Punchlists Weekly YES YES YES C C C X C C
System Completion Exceptions List Weekly YES YES YES C C C X C C
Distributable Material Cost Report Monthly A A A C X
Field Nonmanual Bar Chart Monthly YES YES YES X O C
Field Nonmanual Cost Report Monthly YES YES YES O C X C
Field Nonmanual Staffing/Jobhour Graphs Monthly YES YES YES C C C X C C C

Field Nonmanual Payroll/Material Cost Graphs Monthly YES YES YES C C C X C C C

Project Data Sheet (Optional) Quarterly OPTIONAL OPTIONAL OPTIONAL A C C X C A A

Legend
A: As Required O: Recipient of Original of Document
C: Recipient of Copy of Document X: Issuer of Document

FIGURE 3-2 - REPORTS DISTRIBUTION MATRIX

RESPONSIBILITIES
(Sub)Contractor.

The (sub)contractors responsibilities are defined in the contract. As noted earlier, a

(sub)contractor controls procedure, enforceable under the contract should be required from the
(sub)contractor. This procedure should include commitments on the timing and content of the
related deliverables and the resource commitments to meet their procedural requirements. The
updating of all progress documents shall be consistent and timely. The standard proforma special

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condition titled “INVOICING AND PAYMENT” allows for payments to be withheld if schedules as
defined in the special condition titled “SUBCONTRACT SCHEDULE have not been submitted.
This does not cover the supporting reports listed in that clause and full payment should not be
withheld for failure to submit one or more of these reports unless it can be shown it has a direct
effect on the actual work performance. Appropriate partial withholding may be applied if fairly
calculated.

As part of the controls procedure to be submitted by each bidder with Exhibit C, data request
Form K, the (sub)contractor should have designated an individual in its employ who is skilled in
scheduling techniques and experienced in providing the aforementioned scheduling and reporting
requirements, and whose primary responsibility will be to perform these functions. This name
should be listed in the special condition titled “Key Personnel,” which Project Controls should
request the contact specialist include in Exhibit B.

In the event that the (sub)contractor’s personnel are unable to perform these functions, Bechtel
shall offer to provide an individual to the (sub)contractor who will perform such functions and
whose costs will be backcharged to (sub)contractor. The proposal will be made pursuant to the
proforma general condition titled “BACKCHARGES” as a correction of nonconforming work. Once
the (sub)contractor is so notified and a reasonable time elapses and by its action indicates that it
is unable or unwilling to proceed, Bechtel may terminate the contract under general condition
titled “Termination for Default”. Bechtel may not supply a replacement from its own staff without
the (sub)contractor’s affirmative concurrence.

Bechtel
Assigning and communicating the functional responsibilities for each (sub)contract is facilitated by
completing the Contract Division of Responsibility Matrix. The generic version of this matrix is provided
in Appendix D.
The Bechtel project manager or Bechtel site manager, depending on the management structure of the
project, assigns contract management functions among the field staff (by name not title) and review
the division of responsibility with each employee who has been assigned a functional responsibility.
Copies of the completed Contract Division of Responsibility matrices indicating assignments will be
distributed to those involved in the project’s (sub)contracts management.

The two primary field functions assigned for each (sub)contract are:

• Contracts Administration

• Contract Coordination

The contract administrator has primary responsibility for (sub)contract administration on the
project. The emphasis is on the commercial aspects of the process. Some of the primary
responsibilities of the contract administrator include:

• Read, understand, and implement the full (sub)contract on behalf of Bechtel

• Provide and receive contractually required notices
• Obtain a detailed and reasonable schedule from the (sub)contractor at the start of the job
describing how the work will be performed

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• Obtain periodic revised schedules from the contractor that accurately reflect job progress and
any requests for additional time
• Monitor (sub)contract progress and maintain records of performance if a (sub)contract extra is
submitted for cost overruns
• Ensure that the contractor does not assume responsibility for work outside the scope of the
(sub)contract without proper authorization, since this could lead to a (sub)contact extra (i.e.,
change)
Contract coordinators are involved with the technical aspects of the (sub)contract, as well as the
schedule. Contract coordinators are typically recruited from the ranks of Field Engineering,
Subcontract Administration, Project Controls, and field supervision and receive specific training on
required coordination methods. Typical contract coordinator responsibilities include:

• Monitoring (sub)contractor work progress

• Preparing the daily report
• Inspecting (sub)contractor work quality
• Validating (sub)contractor progress payments
• Monitoring (sub)contractor daily force reports
• Coordinating (sub)contractor activities on the project
Project Controls must maintain continuous coordination with these key personnel and, as required,
coordination with others on the matrix. Refer to Appendix D, Contract Division of Responsibility Matrix,
and other sections of this handbook where additional information on project team interfaces is given.

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ATTACHMENT 3-1

(SUB)CONTRACTOR SCHEDULING & REPORTING REQUIREMENTS

During the performance of the Work, SUBCONTRACTOR shall submit to CONTRACTOR periodic progress
reports on the actual progress. Such reports shall be provided in form and format directed by CONTRACTOR
and include the following:
1. Monthly– A copy of the Subcontract Schedule showing actual progress to date for the major parts of
the Work, as compared to planned progress [ Note: This report is required].
2. Weekly– A weekly report of project quantities installed by SUBCONTRACTOR, showing actual versus
scheduled weekly installed totals for commodity level cost codes selected by
CONTRACTOR. The initial submittal of this report shall coincide with submittal of the
Subcontract Schedule for approval. [Note: This report is required. Also, it is best to list
the selected quantities in this section and ensure that the price covers the work to
provide data. See related attachment for cost code list of possible candidates for
quantity tracking, See Attachment 3-1.1].
3. Weekly– Weekly Work Plan—A rolling 4-week schedule showing one (1) week of actual progress and
a three (3)-week look-ahead forecast of detailed work activities. The day-to-day progress
shall be compared with the day-to-day planned work by activity. Variations will be noted and
rationalized. [Note: These reports are required, see Attachment 3-1.2] Each activity
related to items of Work noted in 2 above shall show scheduled installed quantities by week
for all weeks (including the forecast) on the 4-week rolling schedule. Actual installed
quantities for these items of Work will be noted for each activity worked during the week
[Note: Italicized text is recommended, see Attachment 3-1.3 for example approach to
be taken.]
4. Daily– A daily force report listing all personnel (including office and supervisory nonmanual) by craft
and work assignment. The force report specifies the number of persons actually engaged on
work during the reporting period, with such total stated separately as to maintenance and
support, supervisory, and manual personnel, including numbers of national citizens, third-
world country, and expatriate employees. Manual personnel shall be noted by skill or craft.
[Note: This report is required, see Attachment 3-1.4]
5. Weekly– A procurement status report for all materials provided by SUBCONTRACTOR included in its
scope. [Note: This report is required where applicable. See Attachments 3-1.2 and 3-
1.3 which allow for input on the status of design drawings and materials deliveries
supporting the identified installation Work.]
6. Weekly– Tracking of actual jobhours either by Work items or by commodity level cost codes selected
by CONTRACTOR, and comparing actual to planned jobhours. Variations from approved
plans shall be noted and rationalized. The initial submittal of this report shall coincide with
the submittal of the Subcontract Schedule for approval. [Note: This report is
recommended, see Attachment 3-1.5]
7. Weekly– Tracking of manual labor staffing (headcount) either by Work Area or Labor Craft as
specified by CONTRACTOR, showing both planned and actual numbers on a day-by-day
basis. The Staffing Tabulation Chart is updated weekly for the succeeding thirty (30)
calendar days, stating the total number of manual, supervisory, and lower-tier subcontractor
personnel working on the subcontract. [Note; on international projects the numbers of
national citizens, third-world country, and expatriate employees may need to be in
separate categories.] The initial submittal of this report shall coincide with the submittal of
the Subcontract Schedule for approval. [Note: This report is recommended, see
Attachment 3-1.5]

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ATTACHMENT 3-1 (CONTINUED)

8. Weekly– Tracking of construction equipment used in the work on a day-to-day basis, using a 4-week
rolling schedule approach. [Note: This report is recommended, use either a separate
spreadsheet, Attachment 3-1.7, or place data at the bottom of each page of the Weekly
Work Plan, Attachment 3-1.3)
Weekly Equipment Report listing all construction equipment on the site during the reporting
period, specifying equipment used in the work and equipment idle. The initial submittal of
this report shall coincide with the submittal of the Subcontract Schedule for approval. [Note:
This report is optional, see Attachment 3-1.8]

9. Monthly– A rolling 3-month schedule showing 1 month actual progress and a 2-month look-ahead
forecast of detailed work activities on a week-by-week basis. The week-by-week progress
shall be compared with the week-by-week planned work by activity. Variations will be noted
and rationalized. [ Note; This schedule is optional].

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Attachment 3-1.1

QUANTITY
CONTRACT NO:
CONTRACTOR: Date:

PAY ITEM COST CODE DESCRIPTION UNIT Contract Forecast This Week To Date
(Including Number)
S
A
S
A
S
A
S
A
S
A
S
A
S
A
S
A
S
A
S
A
S
A
S
A
S
A
S
A

GRADING & SITE WORK CONCRETE RELATED

11.21 Clear & Grub AC/HC 12.1 FORMWORK SF/SM
11.22 Strip Rough grade CY/CM 12.2 METAL DECKING SF/SM
11.23 Final Grade SY/SM 12.3 REINFORCING STEEL TN/MT
11.24 Slope Protection SY/SM 12.4 EMBEDS LB/KG
STRUCTURAL EARTHWORK 12.5 CONCRETE CY/CM
11.31 Structural Excavation CY/CM OTHER CONCRETE
11.32 Structural Backfill CY/CM 12.61 Mudmat CY/CM
11.33 Rock Excavation CY/CM 12.62 Tremie concrete CY/CM
11.34 Final grade SY/SM 12.63 Ductbanks CY/CM
11.35 Trenching CY/CM 12.64 Catch Basins EA
11.36 Fillcrete/Flowable Fill CY/CM 12.65 Manholes EA
11.37 Erosion Control CY/CM 12.66 Miscellaneous Concrete CY/CM
11.38 Pre-loading for Compaction CY/CM 12.7 CONCRETE SPECIALTIES
11.391 Mass Excavation CY/CM 12.71 Waterproofing SF/SM
11.392 Mass Fill CY/CM 12.72 Welded Wire Fabric for Slabs SF/SM
11.393 Mass Compaction CY/CM 12.8 PRECAST CONCRETE EA
11.394 Rough Grading CY/CM
11.395 Blasting in Rock CY/CM STEEL FRAMING & EQUIPMENT SUPPORTS
PILES & CAISSONS 13.11 Fabricated Steel TN/MT
11.41 Test Piles On & Off LF/LM 13.12 Field Fabricated Steel TN/MT
11.42 Bearing Piles LF/LM OFFSHORE PLATFORM
11.43 Sheet Piling - Permanent SF/SM 13.21 Jacket TN/MT
11.44 Piling Temporary EA 13.22 Deck TN/MT
11.45 Caissons Permanent LF/LM 13.23 Subsea Structure TN/MT
PLATFORM & MISCELLANEOUS STEEL
11.8 RAILROAD TRACK(W/BALLAST) LF/LM 13.31 Walkway & Platforms TN/MT
13.32 Grating SF/SM
LANDSCAPING, FENCING & ROADS 13.33 Stair Treads EA
11.91 Landscaping LOT 13.34 Checkered Plate SF/SM
11.92 Fences & Gates LF/LM 13.35 Handrail & Toeplate LF/LM
11.93 Paved Surfaces SY/SM 13.36 Ladders & Safety Cages LF/LM
11.94 Unpaved Surfaces SY/SM OTHER STEEL RELATED
11.95 Guard Rails & Dividers LF/LM 13.41 Steel Pipe Stanchions TN/MT
11.96 Marking, Signs, Flag Post Etc. EA 13.42 Steel Pipe Sleepers TN/MT
11.97 Guard Post EA
13.5 LINER PLATE SF/SM

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Attachment 3-1.1 (Continued)

THERMAL & MOISTURE PROTECTION 16.1 CABLE TRAY/RACK, CHANNEL & FITTINGS LF/LM
14.11 Siding SF/SM 16.2 SCHEDULED CONDUIT & SUPPORTS LF/LM
14.12 Roofing SF/SM 16.3 UNSCHEDULED CONDUIT & SUPPORTS LF/LM
14.13 Doors EA 16.4 SCHEDULED WIRE & CABLE LF/LM
14.14 Windows & Glazing SF/SM 16.5 SCHEDULED CONNECTION & SPLICES EA
MASONRY 16.6 UNSCHEDULED WIRE & CABLE CONN. LF/LM
14.21 Concrete Masonry Block Walls Nonloadbear SF/SM 16.7 OVERHEAD POLE LINE DISTRIBUTION LF/LM
14.22 Concrete Masonry Block Walls Loadbearing SF/SM INSTRUMENTATION
14.23 Brick Walls SF/SM 17.11 Instrument Rack EA
14.24 Restoring & Cleaning SF/SM 17.12 Instrument Enclosures EA
14.25 Stonework SF/SM 17.21 Panel Mounted Instruments EA
14.26 Glass Block Walls SF/SM 17.22 Field Mounted Instruments EA
ARCHITECTURAL FINISHES 17.3 TUBING RACEWAY & SUPPORTS LF/LM
14.41 Partitions - Lath & Plaster SF/SM 17.51 Main Control Panels EA
14.42 Partitions - Drywall, Metal Studs SF/SM 17.52 Analyzer/ Sampling Systems EA
14.43 Wall Finish - Lath & Plaster SF/SM 17.61 Distributed Control EA
14.44 Wall Finish Acoustical SF/SM 17.62 Burner management EA
14.45 Ceiling Finish - Lath & Plaster SF/SM 17.63 Programmable Logic Controllers EA
14.46 Ceiling Finish - Acoustical SF/SM 17.64 Multiplexers EA
14.47 Special Finishes SF/SM 17.65 Supervisory Control & Data Acquisition EA
14.48 Plumbing Equipment EA 17.66 Emergency Shutdown EA
FIELD FABRICATE PIPING 17.67 Boiler Control System EA
15.11 < 2 1/2"Pipe LF/LM 18.1 PAINTING & COATINGS SF/SM
15.12 2 1/2" - 8" Pipe LF/LM 18.18 Tank Special Coatings SF/SM
15.13 10" - 16" Pipe LF/LM FIREPROOFING
15.14 18" - 30" Pipe LF/LM 18.21 Structural steel CY/CM
15.15 > 30" Pipe LF/LM 18.22 Cable tray LF/LM
15.16 Large Hangers EA 18.23 Equipment SF/SM
15.2 INSTALL SMALL PIPE & HANGERS < 2-1/2" LF/LM 18.3 EQUIPMENT INSULATION EF/EM
15.3 INSTALL LARGE PIPE 2-1/2" - 8" LF/LM 18.4 PIPING INSULATION EF/EM
15.4 INSTALL LARGE PIPE 10" - 16" LF/LM 18.5 INSTRUMENTATION INSULATION EF/EM
15.5 INSTALL LARGE PIPE 18" - 30" LF/LM
15.6 INSTALL LARGE PIPE > 30" LF/LM
15.7 INSTALL LARGE PIPE HANGER & SUPPORTS EA

21.1 CENTRIFUGAL PUMPS W/DRIVERS EA 26.1 POTABLE WATER TREATMENT EA

21.2 RECIPROCATING PUMPS W/DRIVERS EA 26.2 RAW WATER TREATMENT EA
21.3 INJECTION & PROPORTIONING PUMPS EA 26.3 MAKE-UP CONDENSATE DEMINERALIZERS EA
21.4 TURBINE DRIVER ONLY EA 26.4 WASTE WATER TREATMENT EA
21.5 MOTOR DRIVER ONLY EA 26.5 CHEMICAL FEED EA
21.9 REFURBISH PUMPS & DRIVERS EA 26.6 MISC. PURIFICATION & FILTRATION EA
22.1 CENTRIFUGAL COMPRESSORS W/DRIVERS EA 26.7 WATER DESALINATION EA
22.2 CENTRIFUGAL COMPRESSORS W/TURBINES EA 26.9 REFURBISH WATER TREATMENT EA
22.3 RECIPROCATING COMPRESSORS W/MOTORS EA 27.1 PACKAGED UNITS & MODULES EA
22.4 RECIPROCATING COMPRESSORS W/TURBINES EA 27.2 PHYSICAL PROCESSING EQUIPMENT EA
22.5 BLOWERS, FANS W/DRIVERS EA 27.3 VACUUM EJECTORS EA
22.6 DRIVERS FOR COMPRESSORS EA 27.4 CATALYST AND CHEMICALS EA
22.7 HYDRAULIC TURBINES, REDUCTION GEARS EA 27.5 HVAC EQUIPMENT & DUCTWORK EA
22.9 REFURBISH COMPRESSORS EA 27.6 ELEVATORS & LIFTS EA
23.1 SHELL & TUBE EXCHANGERS EA 27.7 STACKS, FLARES & CHIMNEYS EA
232 AIR COOLED EXCHANGERS EA 27.8 SPECIALIZED MOBILE AND SHOP EQUIP EA
23.3 COOLING TOWERS EA 27.9 REFURBISH OTHER EQUIPMENT EA
23.4 CONDENSERS EA 28.1 TRANSFORMERS EA
23.5 PLATE & FRAME EXCHANGERS, PLATE COILS EA 28.2 BUS DUCT AND SUPPORTS LF/LM
23.7 EVAPORATORS EA 28.3 MEDIUM VOLTAGE POWER DISTRIBUTION EA
23.8 OTHER HEAT EXCHANGER EA 28.41 METAL CLAD SWITCHGEAR EA
23.9 REFURBISH HEAT EXCHANGERS EA 28.42 MOTOR CONTROL CENTERS EA
24.1 SHOP FABRICATE TANKS EA
24.2 FIELD ERECT TANKS EA 28.5 DC & EMERGENCY EA
24.3 BINS, HOPPERS, CHUTES, GATES & SILOS TN/MT 28.61 Relay Panels EA
24.9 REFURBISH TANKS EA 28.62 Other Misc. Elect Devices EA
25.1 CONVEYORS EA 28.7 LIGHTING SYSTEMS EA
25.2 FEEDERS EA 28.8 HEAT TRACING EA
25.3 SCREEN, GRIZZLY TROMEL EA 28.91 Cathodic Protection EA
25.4 CRUSHER MILLS EA 28.92 Communication EA
25.6 DUST COLLECTION CYCLONES, FILTERS EA 28.93 Fire & Smoke Detection EA
25.7 DUCTWORK & EXPANSION JOINTS TN/MT 28.94 Plant Security EA
25.8 UNLOADING & STACKING TN/MT 28.95 Prefabricated Electrical Modules EA
25.9 OTHER MATERIAL HANDLING EQUIPMENT EA

3-26 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
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Summary of Jobsite & (Sub)Contracts Control Tools Section 3

Attachment 3-1.2
CONTRACT NO: WEEKLY WORK PLAN JOB NO.
CONTRACTOR: WEEK NO.
BY ISSUE DATE PAGE OF
APPVD MEETING DATE

C LAST WEEK dd THIS WEEK dd NEXT WEEK dd WEEK AFTER NEXT dd D M

COST SCHED R DESCRIPTION M T W T F S S M T W T F S S M T W T F S S M T W T F S S W T REMARKS
CODE REF I G R
T S L
S
A
S
A
S
A
S
A
S
A
S
A
S
A
S
A
S
A
S
A
S
A
S
A
S
A
S
A

Attachment 3-1.3
CONTRACT NO: WEEKLY WORK PLAN JOB NO.
CONTRACTOR: WEEK NO.
BY ISSUE DATE PAGE OF
APPVD MEETING DATE

C LAST WEEK dd THIS WEEK dd NEXT WEEK dd WEEK AFTER NEXT dd D M

COST SCHED R DESCRIPTION M T W T F S S WK- M T W T F S S WK- M T W T F S S WK- M T W T F S S WK- W T REMARKS
CODE REF I LY LY LY LY G R
T QTY QTY QTY QTY S L
S
A
S
A
S
A
S
A
S
A
S
A
S
A
S
A
S
A
S
A
S
A
S
A
S
A
S
A
LEGEND TOTAL MEN 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

* - CRITICAL E WITH ADDED QUANTITY/

S - SCHEDULE Q RESOURCE TRACKING
A - ACTUAL P
T

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 3-27
55210\Construction Manua\Vol-2
Section 3 Summary of Jobsite & (Sub)Contracts Control Tools

Attachment 3-1.4

PROJECT ( )
DAILY FORCE REPORT
Contract No:_________________ Report Date __________
Contractor:___________________ (End of Day Shift)

Colunm Number 1 2 3 4 5 6 7
Total
Total (-) (+) Payroll (-) (-) Total Staff on Apprentice Total Johours
Payroll Terminations Total Hires Force Absent Rotation Working Order (included) expended
Force Last Since Last Since Last Today Today Today Column in Since Last
Report Report Report Col.s 1+2+3 Column 4 Report
Boilermaker/Welder
Brick/Bricklayers
Carpeters/Formworkers
Cladder
Concrete Worker/Cement Masons
Dogman
Drillers
Electrical Lineman
Electricians
DIRECT MANUAL

Electrical Trade Assistants

Elevator
Equipment Operators
Fitters - Mechanical/Pipe
Insulators
Iron Workers
Laborers
Mechanical Trade Assistants
Millwrights
Operating Engineers
Painters
Plumbers/Drainers
Powder Monkeys
Riggers
Roofers
Sheet Metal
Sprinkler Fitters
Steel Fixers
Truck Drivers

Total Direct Manual

Building Maintenace Trademan

INDIRECT MANUAL

Chainmen
Cleaners/Laborers
Cooks
Equipment Greasers/ T A s
Kitchen Hands
Truck / Bus Drivers
Warehouseman

Total Indirect Manual

Administrtion & Accounting

Cost Engineers/Planinng & Scheduling
NONMANUAL

Engineers & Survey

Management
Procurement
Safety & First Aid
Startup
Surpervision

Total Nonmanual

Direct Manaul Jobhours Indirect Manual Jobhours

Available Available
- Rain - Rain
- Industrial - Industrial
- Pubic Holidays - Pubic Holidays
- Other - Other

Total Expended Total Expended

3-28 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
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Summary of Jobsite & (Sub)Contracts Control Tools Section 3

Attachment 3-1.5

JO B H O U R R EP O R T
CONTRACT NO:
CONTRACTO R: D a te :

P A Y IT E M COST CODE D E S C R IP T IO N U N IT C o n tra c t F o re c a s t T h is W e e k T o D a te

(In c lu d in g N u m b e r)
S
A
S
A
S
A
S
A
S
A
S
A
S
A
S
A
S
A
S
A
S
A
S
A
S
A
S
A

Attachment 3-1.6

ST AFFIN G T ABU LAT IO N C H A R T

C O N TR AC T N O : ______ ______ _______ ___
C O N TR AC T O R :__ ______ _______ _______ __ D ate:

W O R K A R E A /LA B O R G R O U P W E E K /M ON T H
M o n th 1 M o n th 2 M o n th 3 M o n th 4 M o n th 5 M o n th 6 M o n th 7
C A TE G O R Y 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 T otal
S
A
S
A
S
A
S
A
S
A
S
A
S
A
S
A
S
A
S u p p o rt & M a in ten a n c e S
A
TO TA L M A N U A L S
A
No n m an u a l S u p erv iso rs S
A
F ie ld En g in ee rs & S u rv e y S
A
Co s t/Sch e d u le En g in ee rs S
A
Ad m in & A cc o u n tin g S
A
Sa fte y & First A id S
A
P ro cu re m e n t S
A
M a n a g em e n t S
A
TO T A L S
A

NO T E: Staffin g to re p re s en t a ve rag e fo r p e rio d

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 3-29
55210\Construction Manua\Vol-2
Section 3 Summary of Jobsite & (Sub)Contracts Control Tools

Attachment 3-1.7

CONSTRUCTION EQUIPMENT SCHEDULE

CONTRACT NO:
CONTRACTOR:________________________ Date:

EQUIPMENT WEEK/MONTH
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7
CATEGORY 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Total
150 T CRAWLWER S
A
75 TRUCK CRANE S
A
15 T HYDRO CRANE S
A
FORK LIFT S
A
CONCRETE PUMP S
A
WELDING MACHINES S
A
PIPE BENDER S
A
ETC. S
A
S
A
S
A
S
A
S
A
S
A
S
A
S
A
S
A

3-30 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
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Summary of Jobsite & (Sub)Contracts Control Tools Section 3

Attachment 3-1.8

PROJECT ( )
WEEKLY EQUIPMENT REPORT
Contract No:_________________
Contractor:___________________

No. of Total Equipment Hours

Vehicles & Description
Machines (Make/Model/Capcity Working Idle
M T W T F S S M T W T F S S
Air Track
Backhoe - Tracked
Batch Plant
Bus - Personnel Carriers
Compactors
Concrete Mixers
Concrete Pumps
Concrete - Transit Mixer
Conveyors
Cranes
- 8-20 Ton
- 20-50 Ton
- 50-150 Ton
- Tower
Crushing Plant
Dozers
Drag Lines
Drilling Rigs
Dump Trucks - Off Highway
Fans
Fork Lift
Front End Loaders
Generators
Graders
Lifts (personnel)
Motor Cycles
Pile Driver
Pumps
Rollers
- Rubber Tire
- Sheeps Foot
- Smooth
Scrapers
Tractor - Rubber Tire
Trailer
- Semi
- Low Boy

Trencher
Truck
- Light
- Flatbed
- Dump
- Fire
- Water
- Fuel
- Service
- Van
- Prime Mover
Vehicles
- Sedans, Utilitie
- Wagons, 4-wheel Drive
Welding Machines
- Electric
- Diesel
Winches

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 3-31
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Section 3 Summary of Jobsite & (Sub)Contracts Control Tools

ATTACHMENT 3-2

RECOMMENDED CONTRACT LANGUAGE TO COVER CONTRACT

PAYMENT REQUIREMENTS UNDER COST REIMBURSABLE
(SUB)CONTRACTS

Special condition titled “Measurement for Payment”

SUBCONTRACTOR shall within ten (10) calendar days after subcontract award provide a projected
subcontract cost breakdown based on Exhibit D “Scope of Work.”
The breakdown shall show material cost, labor cost, and lower tier subcontractor cost separately for each
item. SUBCONTRACTOR shall provide the same breakdown with respect to the adjusted compensation with
SUBCONTRACTOR’s final invoice.
CONTRACTOR shall review SUBCONTRACTOR’S subcontract cost breakdown and advise
SUBCONTRACTOR in writing of required refinements.
Also within ten (10) calendar days after subcontract award, SUBCONTRACTOR shall provide a schedule of
monthly payments (Estimated Payment Schedule) required to perform the Work in accordance with the
Subcontract Schedule submitted pursuant to Special Condition titled “SUBCONTRACTOR SCHEDULE.” It
will relate to the expenditure of jobhours anticipated to complete each task, as well as magnitude and timing
of other expenditures to support the Work. The submittal shall contain separate commitment and expenditure
forecasts for each currency and shall be updated monthly. Reports shall be in both tabular and graphical
formats.
SUBCONTRACTOR shall submit verified time sheets, materials invoices, construction equipment rental
costs, lower tier subcontractor costs, and CONTRACTOR-approved equipment lists with the invoice.
SUBCONTRACTOR shall identify the progress completed and shall verify the reported progress to
CONTRACTOR, based on a joint walkdown. Marked up drawings may be used as a supplemental method of
documenting progress. Copies of field notes, computations, and other records made by SUBCONTRACTOR
for the purpose of determining progress shall be furnished to CONTRACTOR upon request.

Special condition titled “Invoicing and Payment”

Written estimates shall be prepared by SUBCONTRACTOR for CONTRACTOR’S approval ten (10) calendar
days before invoicing, covering the amount and value of work satisfactorily performed by
SUBCONTRACTOR up to the date of the estimate. Such estimates shall not include materials or equipment
not incorporated into the Work. CONTRACTOR will review the estimates with SUBCONTRACTOR and, upon
approval, return the estimates for submittal with SUBCONTRACTOR’S invoice.

3-32 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
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Section 4
Project Summary Reports
This section covers the following reporting processes and related reports, including guidelines on field
involvement:
• Project Progress Reporting
• Project Financial Reporting
• Project Data Sheet
• Milestone Summary Schedule (Level 1)
• Field Progress and Resource Curves

The report examples included represent standard formats for presenting overall project status and
performance, particularly as related to the prime contract. The term standard refers to the contents of
the sample reports and the general arrangement. Whether or not PCWorks is used, automation
should be used to its fullest extent to assemble summary level information as it exists in other
databases or control systems. When complete automation is not possible, a primary source database
should be identified to sponsor the report. Open or blank fields should be provided for manual entry of
data from other systems.

PROJECT PROGRESS REPORTING

At the beginning of the project, the project manager establishes with the client the outline for the
Progress Report, in accordance with the contractual requirements and/or Bechtel needs. Depending
on the scope of the project, contract type, and client requirements, the Progress Report may differ in
the level of detail from that sent to Bechtel management, where additional confidential information will
be added.
The project manager also establishes a calendar for submittal of progress report input from various
team members for project manager review, approval, and incorporation into the report. The report is
issued no later than the tenth of each month.
In the past, separate monthly construction progress reports were developed. In the interest of TIC and
efficiency, field progress reporting is limited to providing input to the overall monthly project report. For
field-related items, the overall report may typically contain:

• Construction Status, including:

à Summary narrative of construction progress identifying significant activities during the report
period
à Detailed list of construction activities completed during the reporting period
à List of major and/or critical activities under progress during the report period (These activities
are reported through completion.)
à List of significant activities scheduled for the following month
à Graphical display of bulk commodity installation
à Graphical display of equipment utilization and down time (heavy civil projects)
à Areas of concern deserving/requiring management attention

1998 Bechtel Corp. Principles of Construction Controls, Vol. II, (Sub)Contract Execution 4-1
55210\Construction Manua\Vol-2
Section 4 Project Summary Reports

à Tabular summary of field forces at the end of the reporting period, by Bechtel nonmanual,
Bechtel manual (if any), major Bechtel subcontractor, and other subcontractors
à List of site visitors (optional)
• Startup Summary, including:
à Summary narrative of significant startup activities for the reporting period, including actual
percent complete versus scheduled
à List of startup activities by system for the reporting period (Activities shown in progress are
reported through completion.)
à Activities scheduled for the following month
à Status of system turnover indicating actual number versus scheduled for the reporting period
and through the reporting period (Total number of systems is also indicated.)
à Areas of concern deserving/requiring management attention
• Safety Summary, including:
à Tabular display of total craft hours worked, recorded injuries, and time lost due to accidents
(This information is for the current month and inception to date.)
à Narrative describing any significant injury/accident during the reporting period
• Meetings
à List of project meetings held during the reporting period, indicating date, meeting subject,
location, and companies attending (optional)
• Appendices
à Milestone Summary Schedule
à Critical Items Action Report (CIAR)
à Scope Change Register
à Owner-Bechtel Action Items List
à Trend Report (if cost reimbursable)
à Progress photos
Even though most of the items listed as Progress Report appendices are controlled in the Home
Office, they are shown here because they involve significant supporting input from the field. For
example, the field maintains the list of action items that are shown in other sections of this handbook.
These lists feed into the overall project CIAR maintained by the project planner in the Home Office.
The CIAR review is held weekly and may involve a phone conference to ensure proper interface with
the field. The sample project CIAR format is shown in Figure 4-1. A process flow chart for critical item
reporting is shown in Figure 4-2. Refer to Project Controls Department Procedure 6.03 for more
information on reporting project critical items.
Other selected items from the list of appendices are covered elsewhere in this handbook. These
include the Milestone Summary Schedule and trend reporting/scope change control. Refer to Project
Controls Department Procedure 6.02 for more information on progress reporting.

4-2 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
55210\Construction Manua\Vol-2
Project Summary Reports Section 4

Critical Items Action Report

WEEKS LATE

ITEM DESCRIPTION REFERENCE PREVIOUS CURRENT CAUSE & EFFECT RESPONSIBILITY ACTION

4 Delivery of E-2027 4 4 Cause: Configuration Engineering 05-10-95

Containment E-2073 changes, vendor Two Electrical
Electrical technical & production Engineers are
Penetration problems have caused presently at vendor
Assemblies slippage in scheduled shop to resolve
ship dates. technical problems.
Schedule:
06-01-95 Effect: Cable pulling & Procurement 05-12-95
Forecast: terminations in control Negotiate incentive
07-17-95 room cannot begin until payment for
15 selected assemblies assemblies shipped
are on-site and on schedule
installed 05-11-95
Identify key
- 100,000 Ft of Cable assemblies (15) to
- 4,300 connections support construction
cable pulling
schedule.

FIGURE 4-1 - SAMPLE PROJECT CRITICAL ITEMS REPORT

ASSEMBLE CIAR
DETERMINE ANALYZE AND ISSUE CIAR REVIEW
INITIAL
CRITICALITY ORDER DATA (WEEKLY) (WEEKLY)
INFORMATION

ASSEMBLE FOLLOW UP
ADDITIONAL ACTION
INFORMATION ITEMS

OTHER
GROUPS
FOLLOW UP
ACTIONS

FIGURE 4-2 - CRITICAL ITEMS REPORTING FLOW PROCESS DIAGRAM

PROJECT FINANCIAL REPORTING

The Project Financial Status Report (PFSR) reports the financial status of the project in accordance
with Project Controls Instruction No. 1. Depending on the project’s location, this report is compiled
either in the field or in the Home Office by the (on-)project controls cost engineer. The project-
developed report is submitted to the Execution Unit’s Management Information (MI) group after review
by the (on-)project controls manager, the sponsoring project controls manager, the business manager,
and the project manager. MI schedules a review with the Execution Unit office and regional
management. The frequency of reporting (normally bimonthly) is determined by MI. The overall work
flow is shown in Figure 4-3, and a copy of the report’s Financial Overview is shown in Figure 4-4. The

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 4-3
55210\Construction Manua\Vol-2
Section 4 Project Summary Reports

current report includes sections covering contract overview, gross margin analysis, risk assessment,
change order status, cost of capital, staffing (including direct hire and Subcontracted manuals),
procurement status, outstanding receivables, quantity data, project progress and performance data,
and related discussion. A template, along with a set of definitions and instructions, is available from
each Execution Unit’s MI group to assist in completing this entire report.

Refer to Project Controls Department Procedure 6.04 for more information on the Project Financial
Status Reports.
PCWorks also has the ability to generate a Project Cost and Revenue Summary. As a minimum, this
report should contain the Original Budget, Current Budget, and Current Forecast for all revenue
categories. Contract scope and unique project requirements will dictate the number of cost and
revenue categories. Figure 4-5 shows typical lists of major cost categories. The PCWorks budget
reports (shown in Appendix E), show similar information. Refer to Project Controls Department
Procedure 6.06 for further explanations.

PROJECT DATA SHEET

The Project Data Sheet (PDS), shown in Figure 4-6, provides a one-page summary of project
performance for use on fully (sub)contracted construction projects. The sheet contains selected key
construction performance metrics, safety metrics, schedule and progress data, staffing levels and
jobhour data, construction and total project cost breakdowns, and background information. It brings
together all the information that is unique to construction projects but may not be provided on the
PFSR. In fact, all of the information is covered in the current version of the PFSR except Estimate
Basis (VI), Project Metrics (IX), and Safety Metrics (X). Summary engineering status is included, in
addition to construction, so that engineering impacts to construction can be viewed.
The PDS is prepared as BCOI management deems necessary. If the PDS is required, the timing of
report updates should follow the frequency of the PFSR (generally bimonthly). For projects
experiencing performance problems, a more frequent issue may be requested. The report format
emphasizes construction information. Additional requirements may be added by the project team to
reflect appropriate design status and performance metrics.

PDS data sources are shown in Table 4-1.

TABLE 4-1 - PROJECT DATA SHEET DATA SOURCES

Project Data Sheet - Data Block Item Source

I. Schedule Information Project Schedules
II. Progress (% Complete) Progress Curves, Project Financial Status Report
III. Performance (PF) Field Labor Summary Report
IV. Cost Summary Project Cost Summary, Project Financial Status Report
V. Nonreimbursable (NR) Costs Field N/R ledgers, CFIS Reports
VI. Estimate Basis Project Estimator (one time only)
VII. Staffing Jobsite Force Report
VIII. Jobhours Project Financial Status Report, (Sub)Contract Labor
Summary Report
IX. Project Metrics Calculated by field controls staff
X. Safety Metrics Standard Field Safety Reports

4-4 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
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Project Summary Reports Section 4

MANAGEMENT RIU & EU PROJECT

INFORMATION MANAGEMENT CONTROLS TEAM

START

DETERMINE
WHICH PROJECTS
REQUIRE PFSR

ISSUE MEMO GATHER

TO PROJECTS INFORMATION

SCHEDULE DEVELOP
REVIEW MTGS PRELIMINARY
REVIEW WITH FORECAST
MGR. OF PROJ.

GATHER ACTUALS
EXPENDITURES
& JOBHOURS
N
PFSR
OK?
N
FCST
Y OK?

ISSUE PFSR Y
RECEIVE PFSR'S
TO MI
FROM PROJECTS
COMPLETE
FORECAST

Y RECONCILE TO
ANY ERRORS NOTIFY
PREVIOUS FCST
OR MISSING PROJECT
DATA?
CONCUR AND
PROVIDE DATA FILL IN FORM
N
INCORP
COMMENTS
REVIEW WITH
PROJECT
CONTROLS MGR

PREPARE PFSR REVIEW WITH

REVIEW BOOK RIU MGMT
N
FCST
OK?

N JOINT REVIEW
FCST W/PM & PCM
OK?
Y
Y
FCST
UPDATE ORS RIU MGMT OK?
DATABASE SIGNS APPROVED
PFSR'S N

INCORP
COMMENTS
ARCHIVE PFSR
OPTIONAL REVIEW
BY EU MANAGER
Y
STOP NEW FCST
REQ’D?

INCORPORATE
COMMENTS

FIGURE 4-3 - PROJECT FINANCIAL STATUS REPORT WORKFLOW BY DEPARTMENT

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 4-5
55210\Construction Manua\Vol-2
Section 4 Project Summary Reports

ABCD CAPITAL PROJECT - Job No. 12345

Project Financial Ov erv iew - Firm W ork
Date: (A ) (B) (C) (D) (E) (F) (G) (H) (I) (J) (K)

Sectio n 1 T OTAL P R OJEC T C urrent Yea r:1997 N ext R emain'g

REVE NUE As C urrent To Date: C urrent Op YTD: C urrent Year Years
"As So ld " GM/Jh r: Booked B udget Fcst Delta Plan Fcst Delta Fcst Fcst
1 Agency / C lient Furnished
2 Reim bursable
3 Burden
4 Lum p Sum
5 Unit Price / Multiplier
6 Fee
7 Incentives
8 Reserves
9 Contingency
10 O ther

11 T otal Contract Re v e nue 0 0 0 0 0 0 0 0 0 0 0

COS T
12 Agency / C lient Furnished 9,678
13 Non-R eim bursable Costs
14 NM Labor / Adds & Agency
15 Charge for W orking C apital
16 O ther C osts - Reim bursable
17 O ther C osts - Lum p Sum
18 Other Costs - UR , Multiplier
19 Contingency
20 W arranty
21 O ther

22 T otal Contract Costs 9,678 0 0 0 0 0 0 0 0 0 0

23 T OT AL PR OJE CT GM -9,678 0 0 0 0 0 0 0 0 0 0

24 T otal Non-M anual Jhrs

25 GM /Jhr

26 GM Share RIU @ %

27 GM Share RIU @ %
( All D o llar Fig u re s in 1 ,00 0 's )

Sectio n 2 (A ) (B) (C) (D) (E) (F)

Tota l P roje ct Curre nt Ye a r
GM R econc iliatio n E xpla nation GM Jhrs GM/Jhr GM Jhrs GM/Jhr
1 Forecast of GM & Jobhours for Previous PFSR Issue
2 List of C hanges this P eriod
3 -
4 -
5 -
6 -
7 -
8 -
9 -
10 -
11 -
12 -
13 -
14 Sub-total All Changes

15 New C urrent Forecast of GM & Jobhours

FIGURE 4-4 - PROJECT FINANCIAL STATUS REPORT

4-6 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
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Project Summary Reports Section 4

PROJ EC T NA M E (J OB XXXXX)
P ROJ EC T C OST AND REV ENUE SUM M A RY
ST A T US T HRU

ORIGINA L CURRENT CURRENT CURRENT COST TO- GO TO-GO

BUDGET BUDGET FORECA ST COMMITMENT TO DA TE COMMITMENT COST
(A ) (B) (C) ( D) (E) (F)=(C) -(D) ( G) =( D)-( E)

>>>> COST <<<<

MA TERIA L S
DIRECTS $0 $0
FIEL D DISTRIBUTA BL ES $0 $0
STA RTUP $0 $0
SUB TOTA L $ 6 0,10 1,4 33 $ 59 ,09 9,5 80 $6 5,6 69 ,8 8 6 $ 40 ,37 3,95 8 $ 4,24 8 ,7 63 $ 25 ,29 5,9 28 $ 36 ,1 2 5,19 5

S UBCONTRA CTS
DIRECTS $0 $0
FIEL D DISTRIBUTA BL ES $0 $0
STA RTUP $0 $0
SUB TOTA L $ 18 5,12 5 ,0 51 $1 86 ,89 9,6 39 $ 17 6,0 08 ,6 7 5 $1 59 ,68 0,3 68 $2 3,5 35 ,7 98 $ 16 ,32 8,3 07 $1 36 ,14 4,57 0

MA NUA L L A B OR
DIRECTS $0 $0
FIEL D DISTRIBUTA BL ES $0 $0
STA RTUP $0 $0
SUB TOTA L $ 4 6,39 5,8 51 $ 45 ,61 0,6 75 $4 7,3 15 ,7 2 7 $3 ,70 5,0 82 $ 3,70 5 ,0 82 $ 43 ,61 0,6 45 $0

CONS TRUCTION NONMA NUA L

SA LA RIES/W A GES $ 8,24 7 ,0 04 $9 ,22 3,9 08 $ 9,7 83 ,6 40 $1 ,20 0,3 44 $ 1,20 0 ,3 44 $8 ,58 3,2 96 $0
MA TERIA L S $ 1,77 3 ,3 29 $1 ,98 0,2 58 $ 1,9 89 ,7 78 $ 52 2,2 08 $ 52 2 ,2 08 $1 ,46 7,5 70 $0
SUB TOTA L $ 1 0,02 0,3 33 $ 11 ,20 4,1 66 $1 1,7 73 ,4 1 8 $1 ,72 2,5 52 $ 1,72 2 ,5 52 $ 10 ,05 0,8 66 $0

FIELD STA RTUP NONMA NUA L

SA LA RIES/W A GES $ 1,24 9 ,9 40 $1 ,28 5,7 52 $ 1,3 25 ,2 63 $1 ,32 5,2 63 $0
MA TERIA L S $ 79 7 ,6 60 $ 80 4,4 37 $ 8 04 ,4 37 $ 80 4,4 37 $0
SUB TOTA L $ 2,04 7 ,6 00 $2 ,09 0,1 89 $ 2,1 29 ,7 00 $0 $0 $2 ,12 9,7 00 $0

HOME OFFICE
SA LA RIES/W A GES $ 1 2,21 9,5 45 $ 14 ,42 2,4 90 $1 4,4 22 ,4 9 0 $5 ,71 0,8 39 $ 5,71 0 ,8 39 $8 ,71 1,6 51 $0
MA TERIA L S $ 4,17 2 ,4 34 $4 ,84 2,4 63 $ 4,9 42 ,4 63 $1 ,74 2,7 37 $ 1,74 2 ,7 37 $3 ,19 9,7 26 $0
SUB TOTA L $ 1 6,39 1,9 79 $ 19 ,26 4,9 53 $1 9,3 64 ,9 5 3 $7 ,45 3,5 76 $ 7,45 3 ,5 76 $ 11 ,91 1,3 77 $0

TA XES $0 $0 $0 $0 $0 $0 $0
INSURA NCE $ 3,88 0 ,0 00 $3 ,90 2,1 33 $ 3,7 33 ,2 84 $3 ,71 1,3 88 $ 3,71 1 ,3 88 $2 1,8 96 $0
W A RRA NTY W ORK $0 $0 $0 $0 $0 $0 $0
COST OF W ORK ING CA PITA L $ 1,90 6 ,0 00 $1 ,90 6,0 00 ($ 2,8 00 ,0 00 ) ( $1 ,02 9,50 4 ) ($ 1,0 29 ,5 04 ) ( $1 ,77 0,4 96 ) $0
B A CK CHA RGE COST: FIEL D $0 $0 $0 $3 8,2 48 $ 38 ,2 48 ( $3 8,2 48 ) $0
HOME OFFICE $0 $0 $0 $3 7,3 77 $ 37 ,3 77 ( $3 7,3 77 ) $0
B A CK CHA RGE RECOV ERY $0 $0 $0 $0 $0 $0 $0
CONTINGENCY $ 1 5,95 3,4 50 $ 12 ,75 4,9 97 $1 4,3 85 ,8 5 7 $0 $0 $ 14 ,38 5,8 57 $0
RISK $0 $0 $0 $0 $0 $0 $0
OTHER $0 $0 $0 $0 $0 $0 $0
CURRENCY TRA NSLA TION $0 $0 $0 $0 $0 $0 $0
TOTA L L UMP SUM COS T $ 34 1,82 1 ,6 97 $3 42 ,73 2,3 32 $ 33 7,5 81 ,5 0 0 $2 15 ,69 3,0 45 $4 3,4 23 ,2 80 $1 21 ,88 8,4 55 $1 72 ,26 9,76 5

EXTRA W ORK ORDERS: FIEL D $0 $0 $0 $0 $0 $0 $0

HOME OFFICE $0 $0 $0 $0 $0 $0 $0
CLIENT REIMBURSA BL E W ORK $0 $ 15 4,2 31 $ 1,1 00 ,0 00 $ 15 4,2 31 $ 15 4 ,2 31 $ 94 5,7 69 $0
OTHER $0 $0 $0 $0 $0 $0 $0
CURRENCY TRA NSLA TION $0 $0 $0 $0 $0 $0 $0
TOTA L COST $ 34 1,82 1 ,6 97 $3 42 ,88 6,5 63 $ 33 8,6 81 ,5 0 0 $2 15 ,84 7,2 76 $4 3,5 77 ,5 11 $1 22 ,83 4,2 24 $1 72 ,26 9,76 5

>>>> REV ENUE <<<<

L UMP SUM $ 37 8,11 2 ,0 00 $3 79 ,53 4,5 00 $ 37 9,5 34 ,5 0 0

EXTRA W ORK ORDERS: FIEL D $0 $0 $0
HOME OFFICE $0 $0 $0
CLIENT REIMBURSA BL E W ORK $0 $ 15 4,2 31 $ 1,1 00 ,0 00
B ONUS $ 2,27 0 ,0 00 $2 ,27 0,0 00 $ 2,2 70 ,0 00
OTHER $0 $0 $0
CURRENCY TRA NSLA TION $0 $0 $0
TOTA L REV ENUE $ 38 0,38 2 ,0 00 $3 81 ,95 8,7 31 $ 38 2,9 04 ,5 0 0

GROSS MA RGIN $ 3 8,56 0,3 03 $ 39 ,07 2,1 68 $4 4,2 23 ,0 0 0

GROSS MA RGIN + CONTINGENCY $ 5 4,51 3,7 53 $ 51 ,82 7,1 65 $5 8,6 08 ,8 5 7

FIGURE 4-5 - PROJECT COST AND REVENUE SUMMARY

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Bechtel Construction Operations (Contracts Management)

Project Data Sheet (PDS)
As of:

Job Number Job Description

Client Location
Job Scope Contract Type
Regional Off. Execution Office
Proj. Mgr. Site Manager

I. Schedule Information (Dates) Schedule Basis:

Total Job Sched Actual Fcst Construction Sched Actual Fcst
Start Start
Finish Finish
SU/Final Acceptance

II. Progress % Sched Actual Fcst III. Perf Factor-PF - Not Applicable
Engr & P.O.
Construction (1)
Total Project

IV. Cost Summary Orig. Cur. Cur. V. Project N/R's Orig. Cur. Cur.
(US $ in Millions) Bud. Bud. Fcst I-T-D (US $ in Thousands) Bud. Bud. Fcst I-T-D
Direct S/C Field N/R's
Field Distribs H.O. Construction
S/T Field H.O. All Other (2)
Perm/Proj Office
Contingency
Cost of Capital VI. Estimate Basis
Total Proj. Cost Estimate Standard (TPO, R&C, etc.)
Total Proj. Rev. Overall Multiplier

VII. Personnel VIII. Bechtel Jhrs Orig. Cur. Cur.

Current Month Staffing Level Fcst Actual (In Thousands) Bud. Bud. Fcst I-T-D
Construction FNM Perm/Proj Office NM
BL/RO FNM Field NM
Total Bechtel
S/T NM
(Sub)Contractors (3) Manual - Direct
Manual - Distrib
S/T Manual
Total Bechtel Jhrs
(Sub)Contractor Jhrs

Cur. Cur. Cur. Last

IX. Project Metrics Bud. Fcst I-T-D X. Safety Metrics (4) Target Month I-T-D
% FNM OT Hours FNM Lost Workday Cases
FNM Hrs/SC Hrs FNM OSHA Record. Cases
Fld NR $/Fld NM Hrs FNM Hours Without Lost
Time Accident (x 1,000)

Notes: S/C Lost Workday Cases

(1) Excludes Start-Up S/C OSHA Record. Cases
(2) Applies to construction-only projects S/C Hours Without Lost
(3) Non-Bechtel personnel (NM + Manual) Time Accident (x 1,000)
(4) Lost Workday Cases and OSHA Recordables
per 200,000 Jobhours

FIGURE 4-6 - PROJECT DATA SHEET

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MILESTONE SUMMARY SCHEDULE (Level 1)

The Milestone Summary Schedule is typically a one-or-two page presentation, with 10 to 40 summary
activity lines per schedule sheet, arranged by locator codes (e.g., facilities)/subdivision codes (e.g.,
unit). It illustrates summary level relationships and durations for engineering, procurement,
construction, and startup schedule activities. Milestones are shown for both owner- and project-
specific activities.

The Milestone Summary Schedule is normally drafted in Microsoft Excel (or a similar program) during
the proposal stage and adjusted after contract award to represent the signed contract scope and
schedule. Per Project Controls Department Procedure 5.02, the preferred method for the Milestone
Summary Schedule is the two-line method, which shows one line for the original dates and durations
and a second line for the actual/current forecast dates and durations. A sample Milestone Summary
Schedule employing the two-line approach is shown in Figure 4-7. It is important that visibility of actual
dates vs. Original Budget dates be maintained. An alternative approach is shown in Figure 4-8.

The Milestone Summary Schedule is updated monthly in line with the computerized CPM schedule,
using a bold vertical line on the data dateline. The vertical line is the same data dateline that is on the
CPM schedule. Activities are shown either ahead of, on, or behind schedule on the status line.
The project Milestone Summary Schedule is initially statused in the Home Office and is turned over to
the field to be statused when engineering nears completion. This particular schedule is attached to the
monthly Progress Report and is used by the bank’s engineer to check progress. It also provides a
quick summary of the overall project.
A sample responsibility and development flow chart is shown in Figure 4-9. Refer to Project Controls
Department Procedure 5.02 for additional information.

FIELD PROGRESS AND RESOURCE CURVES

Construction progress and resource curves are the backbone of field management controls because
they provide the quantitative basis of control. They should be produced for each category and for the
total job, and should reflect the production requirements of the Level 2 schedules. They should be
produced in a size and format that can be both reproduced for reports and displayed in the site office
conference room for the entire project team to view.
The Original Budget control curves are developed from the Original Budget quantity and the
manpower-loaded CPM schedules, and are frozen as the Original Schedule. This set of curves
controls the job until the next forecast is approved by management, at which time new control curves,
displayed as Forecast #__, may be established. The information shown must tie to the Current Budget
and Current Forecast data, as well as to the Level 2 Construction Intermediate Schedule.

The curve-building task may be performed with a spreadsheet, which is used to apportion and level
the requirements for installed quantities, percent complete, and manual staffing. This activity is a
prime candidate for further automation enhancements, particularly within CPM software packages
(See Section 5).

While the scale along the X axis is in months, it is expected that the monthly values will be divided into
weekly increments to provide progress goals for review in the weekly (sub)contractor progress reviews.

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FIGURE 4-7 - SAMPLE MILESTONE SUMMARY SCHEDULE

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PROJECT M ASTER SCHE DU LE

YEAR 1996 1997 1998 M R./ CP .

MONTH Ma r A p rMa y J u n J u l A u g S e p O c t N o v D e c J a n Fe b Ma r A p rMa y J u n J u l A u g S e p O c t N o v D e c J a n Fe b Ma r A p r Ma y J u n J u l A u g S e p O c t Re qui siti on

MONTH No. 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Num be r

Notice to Pr oceed Star t Engineering Mechanical

106 Mi le s to n e s 106
May 15, 1996 Construction Essentially Completion
107 Ge ne ra l & Ya rd
Complete Aug 15 1998 107
108 Eng i ne e ri ng 108
109 S ite P la n 109
110 U tility P &ID's 110
111 U nde rgrou nd S e rvic e s 111
112 S ite G ra din g & Roa d s 112
113 S ite Dra in a g e & Colle c tio n P o nd (S ) 113
114 F e nc in g 114
115 G ro und ing 115
116 R a c k P ipin g 116
117 P ipe ra c k 117
118 P ro c u re m e n t 118
F L
119 P iping Bulks 119
F L
120 P ipe ra c k 120
121 Co n s truc tio n 121
122 S ite G ra din g & Roa d s 122
123 U nde rgrou nd S e rvic e s 123
124 S ite Dra in a g e & Colle c tio n P o nd (S ) 124
125 S e tt ling P on d(S ) 125
126 F e nc in g 126
127 G ro und ing 127
128 P ipe ra c k 128
129 R a c k P ipin g 129
130 130
131 131
132 Util iti e s ` 132
133 Eng i ne e ri ng 133
134 P iling 134
135 S ubs ta t ion -F ou nda tio ns 135
136 S e wa g e Tre a tm e n t P la nt -F ou nd a tio ns 136
137 W a t e r Tre a t m e nt P la n t -Fo un da t ions 137
138 W a t e r S to ra g e Ta nk -Fo und a t ions 138
139 C om pre s s or - F ou nd a tio ns 139
140 E le c t ric a l Dis trib utio n 140
141 F ire P rote c t ion S ys t e m 141
142 P ro c u re m e n t 142
143 S e wa g e Tre a tm e n t P la nt 143
144 W a t e r Tre a t m e nt P la n t 144
145 F re s h W a te r S t ora ge Ta nk 145
146 C oolin g W a t e r Towe r 146
147 A ir Co m p re s s o r(s ) 147
148 F ire wa t e r P um ps 148
149 1 32 kV S ub s ta tion E q uipm e n t 149
150 F ire P rote c t ion S ys t e m F L 150
151 Co n s truc tio n Fresh W ater 151
152 P iling 152
Available
153 F o und a tio ns 153
154 S e wa g e Tre a tm e n t P la nt 154
Perm Power Available
155 W a t e r Tre a t m e nt P la n t 155
156 F re s h W a te r S t ora ge Ta nk Jan 01, 1998 156
157 C oolin g W a t e r Towe r 157
158 A ir Co m p re s s o r(s ) 158
159 F ire wa t e r P um ps 159
160 1 32 kV S ub s ta tion E q uipm e n t 160
161 F ire P rote c t ion S ys t e m 161
162 162
M ONTH Ma r A p rMa y J u n J u l A u g S e p O c t N o v D e c J a n Fe b Ma r A p rMa y J u n J u l A u g S e p O c t N o v D e c J a n Fe b Ma r A p r Ma y J u n J u l A u g S e p O c t MR /C P .
M ONTH No. 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 R E Q U IS IT IO N N o .

Le ge nd

Ac tivity
Is s u e for B ids
Aw a rd P O
D e live ry a t S ite
Mile s to n e 3 4/97 s s u e for De fin itive E s tim G L MT RR P ROJECT MAS TER S CHEDULE
2 4/97 Ma rc h Up d a te G L MT RR
S h ip pin g 1 3/97 F e b ru a ry Up d a te S K MT AM Jo b No D ra win g No . Re v.

F = F irs t L = La s t 0 2/97 F e b ru a ry Con trol E s tim a G L MT AM 23247 PSS-001 02

S CH P RO P RO P RO S CH P RO P RO P RO
No. Da te Re vis ion s ED CO M J J No. Da te Re vis ion s ED J J J SHEET # 2

FIGURE 4-8 - EXAMPLE ALTERNATE MILESTONE SUMMARY SCHEDULE

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Section 4 Project Summary Reports

PROPOSAL / PROJECT DEVELOPMENT TEAM

PROJECT PROJECT BUSINESS LINE
DEVELOPMENT ENGINEERING PROCUREMENT CONSTRUCTION STARTUP PLANNER CLIENT
CONTROLS ESTIMATOR MANAGEMENT
MANAGER

PROVIDE REQUEST
KICKOFF GUIDANCE INPUT

SCOPE FIRM &/OR CONSTRUCTIO STARTUP HISTORICAL PROVIDE

DOCUMENT & BUDGETARY N PLAN PLAN SCHEDULE QTYS
ENGR. PLAN QUOTES LOGICS

REVIEW PREPARE
MSS

RESOLVE
COMMENTS

TEAM REVIEW INCORPORATE

IN ESTIMATE

INCORPORATE RESOLVE REVIEW/

IN ESTIMATE COMMENTS APPROVE

RESOLVE CLIENT
COMMENTS REVIEW

DEPARTMENT SIGN-OFF INCORPORATE

IN ESTIMATE

MILESTONE SUMMARY SCHEDULE

ISSUE TO RESPONSIBILITY & DEVELOPMENT
CLIENT
FLOW CHART

FIGURE 4-9 - MILESTONE SUMMARY SCHEDULE RESPONSIBILITY AND DEVELOPMENT FLOW CHART

Examples of summary (total project) progress and resource curves are shown in Figures 4-10 through
4-20 (beginning on page 4-14).
Figure 4-10 provides a percent complete curve for the project field work. If a number of major
(sub)contractors are involved in the execution, the summary package should have a set of percent
complete curves (similar to the ones shown in Figures 4-11 and 4-12) statusing the progress of each
(sub)contractor.

A methodology needs to be established to calculate the physical percent complete for the construction
work as a whole. To properly weight the ongoing progress of various (sub)contracts, a common basis
needs to be selected on which to combine the individual (sub)contract progress. The two options for a
common basis are either jobhours or dollars.

Within Bechtel, jobhours are the recommended basis. For construction, forecast jobhours are the
specific recommended basis, so that the calculation takes the following form:

% Complete = (Earned Jobhours [Budget])/(Target Jobhours) =

(Installed Quantity x Jobhour Budget Unit Rate)/(Budget Quantity x Forecast Unit Rate)
Jobhour unit rates may not be easy to obtain at the detailed level for all (sub)contracts executing on
site. Monetary unit rates may be established and could be used in lieu of jobhours. However,
forecasts of the dollar rates may not be provided either, depending on the type of (sub)contract, say

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either lump sum or fixed unit price. Also, this calculation can be quite involved when done at the unit
rate level. As an option, jobhours may be assigned to each pay item or measured quantity and these
can act as the relative weight among various activities. The jobhours assigned should be adjusted if
the scope of a particular item changes. Actual hours would be tracked at the same level of breakdown
(e.g., pay item) and used to calculate the physical percent complete by dividing by the assigned hours.

It is to be noted that (sub)contractor performance could also be measured; this would be most
important in a labor broker situation. The performance factors use an earned concept as well, but the
calculations are based budget unit rates. The performance calculation is of the form:

Performance Factor = (Actual Hours Spent)/(Earned Jobhours (Budget)) =

(Actual Hours Spent)/(Installed Quantity x Jobhour Budget Unit Rate)
Monetary unit rates could be used by pay item for either progress or performance. This does allow
consideration of the wages of the workers employed. In the international arena where the crew mix
and wage rate options available to a (sub)contractor can vary significantly even for a given site, metrics
that consider both hours and wage rates could be the proper incentive to reduce overall costs.

The (sub)contract labor curve (see Figure 4-13) is optional, depending on the scope of work and
Bechtel’s role. If Bechtel is involved with establishing and maintaining camp facilities and/or
transportation for all workers on site, this curve is quite important in tracking the project’s progress.
Note that the (sub)contract execution may vary significantly, depending on job scope and location. As
a result, Bechtel distributable costs can range greatly. For example, worker transportation and camp
cost may well be major budget line items at remote locations. The package of summary curves and
reports should address the status and progress of these items. Distributable cost summary curves
similar to the one shown in Figure 4-14 should be maintained only where distributable costs represent
a significant project cost. Similarly, remote/offshore costs summary curves similar to the one shown in
Figure 4-15 should be maintained only where the costs represent a significant project cost.

In general, curves for Bechtel nonmanual forces (see Figures 4-16 through 4-20) provide important
information and should be included in a summary project progress package, particularly the
jobhour/headcount and labor cost curves. Due to the critical nature of the startup phase (pre-
commissioning [e.g., calibration testing and initial system operation] and commissioning),
jobhour/headcount and labor costs are normally covered on separate curves, as shown in
Figures 4-19 and 4-20.
Some analysis can be done at this summary level. However, determining specific reasons for
problems will require thorough evaluations. More information on evaluations is provided in this
handbook, as well as in the various project control procedures. Sets of more detailed breakdown
curves are produced as part of the field control process and are contained in other sections of this
handbook.

Refer to Project Controls Department Procedure 5.09 for additional information and guidance.

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CO NST RUCT IO N PRO G RESS

Percent Com plete (% )

20% 100%

16% 80%
M onthly Percentages

Cumu lative Percen t

12% 60%

8% 40%

4% 20%

0% 0%
Jul-96 A ug-96 Sep-96 Oc t-96 Nov-96 Dec -96 Jan-97 Feb-97 Mar-97 A pr-97 May-97 Jun-97 Jul-97 A ug-97 Sep-97 Oc t-97 Nov-97 Dec -97 Jan-98 2/28/98

Budget Monthly % Complete Fcst Monthly % Complete Ac tual Monthly % Comp

Budget Cum % Complete Fcst Cum % Co mplete Ac tual Cum % Complete

% Comple te Jul-96 Aug-96 S e p-96 Oc t-96 Nov-96 De c -96 Ja n-97 Fe b-97 Ma r-97 Apr-97 Ma y-97 Jun-97 Jul-97 Aug-97 S e p-97 Oc t-97 Nov-97 De c -9 7 Ja n-98 Fe b -98
Monthly Budge t 3.00% 3.00% 3.00% 4.00 % 4.00% 5.00% 5.00% 5.00% 6.00 % 8.00% 8.00% 9.00% 8.00% 7.00 % 6.00% 6.00% 5.00% 4.00% 0.50% 0 .50%
P e rc e nt Fc st 8.50% 7.00 % 6.00% 6.00% 5.00% 4.00% 0.50% 0 .50%
P rog Ac tua l 2.56% 2.32% 2.35% 3.50 % 4.50% 5.50% 5.50% 5.75% 5.75 % 7.50% 8.00% 9.00%

% Comple te J ul-96 Aug-96 Se p-96 Oc t-96 Nov-96 De c -96 J a n-97 Fe b-97 Ma r-97 Apr-97 Ma y-97 J un-97 Jul-97 Aug-97 S e p-97 Oc t-97 Nov-97 De c -97 Ja n-98 Fe b-98
Cum Budge t 3% 6% 9% 1 3% 17% 22% 27% 32% 38 % 46% 54% 63% 71% 78 % 84% 90% 95% 99% 100 % 100%
P e rc e nt Fc st 62% 71% 78 % 84% 90% 95% 99% 99 % 100%
P rog Ac tua l 3% 5% 7% 1 1% 15% 21% 26% 32% 38 % 45% 53% 62%

FIGURE 4-10 - CONSTRUCTION PROGRESS REPORTING

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CO NST RU CT ION PR OGR ESS (SU B)C ON TR ACTO R A

Percent Com plete (%)
20% 100%

16% 80%

Monthly P ercentages

C um ulative Percent
12% 60%

8% 40%

4% 20%

0% 0%
Jul-96 A ug-96 S ep-96 Oc t -96 Nov-96 D ec -96 Jan-97 F eb-97 Mar-97 Apr-97 May -97 Jun-97 Jul-97 A ug-97 S ep-97 O ct -97 N ov-97 D ec-97 Jan-98 2/28/98

Budget M onthly % C om plete F cst M onthly % C om plete Actual M onthly % C om plete

Budget C um % C om plete F cst C um % C omplete Actual C um % Complete

% Co mp le te J ul-96 Aug -96 S ep -96 Oct-96 Nov-96 De c-96 J a n-97 Fe b -97 Mar-97 Ap r-97 May-97 J un-97 Jul-97 Aug -97 Se p -97 Oct-97 No v-97 Dec-97 J an-98 Fe b-98
Mo nthly Bud ge t 6.00% 6.00% 8.00% 9.00% 10.00% 10.00% 9.00% 8.00% 8.00% 6.00% 6.00% 5.00% 5.00% 1.00% 1.00% 1.00% 1.00% 0.00% 0.00% 0.00%
Pe rce nt Fcs t 5.00% 2.00% 1.00% 1.00% 1.00% 0.00% 0.00% 0.00%
Prog Actua l 5.00% 6.50% 7.45% 9.50% 11.00% 9.25% 8.34% 9.25% 7.30% 5.00% 5.00% 6.00%

% Co mp le te J ul-96 Aug -96 Se p -96 Oct-96 No v-96 Dec-96 Ja n-97 Fe b-97 Ma r-97 Apr-97 Ma y-97 J un-97 Jul-97 Aug -97 S e p-97 Oct-97 Nov-97 De c-97 J a n-98 Feb -98
Cum Bud ge t 6% 12% 20% 29% 39% 49% 58% 66% 74% 80% 86% 91% 96% 97% 98% 99% 100% 100% 100% 100%
Pe rce nt Fcs t 90% 95% 97% 98% 99% 100% 100% 100% 100%
Prog Actua l 5% 12% 19% 28% 39% 49% 57% 66% 74% 79% 84% 90%

FIGURE 4-11 - SUBCONTRACTOR CONSTRUCTION PROGRESS - (SUB)CONTRACTOR A

C ON STR U CTION PR OG RESS (SUB)C ON TR ACT OR B

Percent C om plete (% )
20% 10

16% 80
Monthly Perc entages

12% 60

8% 40

4% 20

0% 0%
Jul-96 A ug-96 S ep-96 O c t-96 Nov-96 Dec -96 Jan-97 F eb-97 M ar-97 Apr-97 May -97 Jun-97 Jul-97 A ug-97 Sep-97 Oc t-97 Nov-97 Dec -97 Jan-98 2/28/98

Budget M onthly % C omplete Fcst M onthly % C omplete Actual M onthly % C omplete

Budget C um % C omplete Fcst C um % Complete Actual C um % Complete

% Co mp le te J ul-96 Aug -96 Se p -96 Oct-96 No v-96 De c-96 J a n-97 Feb -97 Ma r-97 Ap r-97 Ma y-97 Jun-97 J ul-97 Aug -97 Se p -97 Oct-97 No v-97 De c-97 J a n-98 Feb -98
Mo nthly Bud ge t 0.00% 0.00% 0.00% 0.00% 0.00% 5.00% 7.00% 8.00% 10.00% 12.00% 11.00% 10.00% 9.00% 8.00% 7.00% 6.00% 5.00% 2.00% 0.00% 0.00%
P ercent Fcs t 10.00% 8.00% 7.00% 6.00% 5.00% 2.00% 0.00% 0.00%
P ro g Actua l 0.00% 0.00% 0.00% 0.00% 2.00% 6.00% 7.00% 7.00% 9.00% 11.00% 10.00% 10.00%

% Co mp le te J ul-96 Aug -96 S e p-96 Oct-96 No v-96 Dec-96 J an-97 Fe b -97 Ma r-97 Ap r-97 Ma y-97 J un-97 J ul-97 Aug -97 S e p-97 Oct-97 No v-97 Dec-97 Ja n-98 Fe b -98
Cum Bud ge t 0% 0% 0% 0% 0% 5% 12% 20% 30% 42% 53% 63% 72% 80% 87% 93% 98% 100% 100% 100%
P ercent Fcs t 62% 72% 80% 87% 93% 98% 100% 100% 100%
P ro g Actua l 0% 0% 0% 0% 2% 8% 15% 22% 31% 42% 52% 62%

FIGURE 4-12 - SUBCONTRACTOR CONSTRUCTION PROGRESS - (SUB)CONTRACTOR B

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Section 4 Project Summary Reports

TOTAL (SUB)CONT RACT LAB OR

350 600

280 480
Monthly Headcount (1,000s)

Cumulative Hours(1,000s)
210 360

140 240

70 120

0 0
Jul-96 Sep-96 Nov-96 Jan-97 M ar-97 M ay-97 Jul-97 Sep-97 Nov-97 Jan-98

Budget M onthly Headcount F cst M onthly Headcount Actual M onthly Headcount

Budget Cum Hours F cst C um Hours Actual C um Hours
Ma n u a l La b o r J u l-9 6 Au g -9 6 S e p -96 Oc t-9 6 No v -96 De c -96 J a n -97 F e b -97 Ma r-97 Ap r-97 Ma y-9 7 J u n -9 7 J u l-97 Au g -9 7 S e p -9 7 O c t-9 7 N o v-9 7 D e c-9 7 J a n-9 8 F e b -9 8
Mo n th ly Bu d g e t 0 20 40 65 115 120 137 190 237 280 310 310 305 270 240 160 1 12 50 40 25
Hea d- F cs t 291 267 280 208 1 24 86 41 15
Count Ac tu a l 0 13 20 51 85 110 132 167 187 244 238 274

Ma n u a l La b o r J u l-96 Au g -96 S e p -96 O c t-9 6 N o v -9 6 D e c -9 6 J a n-9 7 F e b -9 7 Ma r-9 7 Ap r-9 7 Ma y -9 7 J u n-9 7 J ul-9 7 Aug -9 7 S e p -9 7 O ct-9 7 N o v -9 7 D e c -9 7 J a n -9 8 Fe b -9 8
C um Bu d g e t 0 4 11 23 43 65 89 124 166 217 273 328 383 432 475 504 5 24 5 33 5 40 5 45
Ma n u a l F cs t 274 326 374 425 462 4 84 5 00 5 07 5 10
H o u rs Ac tu a l 0 2 6 15 30 50 74 104 138 182 224 274

FIGURE 4-13 - (SUB)CONTRACT LABOR JOBHOUR REPORTING

DISTIBUT ABLE MATE RIAL & S/C COSTS

Total Craft Materials 51,52,53 A ccts
1,000 $6,000

800 $4,800
C umulative Costs($1,000s)
M onthly Costs ($1,000s)

600 $3,600

400 $2,400

200 $1,200

0 $-
Jul-96 Sep-9 6 Nov-96 Jan-97 Mar-97 May -97 Jul-97 Se p-97 Nov-97 Jan-98

Bu dget M onthly D is trib M atl Fcst M onthly D is trib M atl Actual M onthly D istrib M atl
Bu dget C um D istrib M atl Fcst C um D istrib M atl Actual C um D istrib M atl
D is trib Ma te ria l J ul-96 Aug -96 S e p -96 O c t-96 N o v-96 D e c -96 J a n-97 F e b -97 Ma r-97 Ap r-97 Ma y-97 J un-97 J ul-97 Aug -97 S e p -97 O c t-97 N o v-97 D e c -97 J a n-98 F e b -98
Mo nth ly Bud g e t $2 $77 $187 $406 $420 $429 $384 $326 $31 2 $304 $307 $296 $275 $240 $243 $ 169 $134 $113 $90 $68
D is trib Fcs t $175 $260 $321 $ 209 $225 $163 $115 $15
Ma tl Ac tua l $0 $0 $192 $263 $623 $358 $355 $294 $31 1 $278 $234 $265

D is trib Ma te ria l J ul-96 Aug -96 S e p -96 O c t-96 N o v-96 D e c -96 J a n-97 F e b -97 Ma r-9 7 Ap r-97 Ma y-97 J un-97 J ul-97 Aug -97 S e p -97 O c t-97 N o v-97 D e c -97 J a n-98 F e b -98
Cum Bud g e t $2 $79 $266 $672 $1,092 $ 1,521 $1,905 $2,231 $2,543 $2,847 $3,154 $3,450 $3,725 $3,965 $4,208 $4,3 77 $4,511 $4,624 $4,714 $4,782
D is trib Fcs t $3,173 $3,348 $3,608 $3,929 $4,1 38 $4,363 $4,526 $4,641 $4,656
Ma tl Ac tua l $0 $0 $192 $455 $1,078 $ 1,436 $1,791 $2,085 $2,396 $2,674 $2,908 $3,173

FIGURE 4-14 - DISTRIBUTABLE MATERIAL AND SUBCONTRACT COST REPORTING

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Project Summary Reports Section 4

R EMO TE & OFFS H ORE EX PE NS E S MA TE RIA L & S/C CO STS

Total Cost (60 A ccts)
500 $5,000

400 $4,000

Cum ulative C osts($1,000s)

Monthly Costs ($1,000s) 300 $3,000

200 $2,000

100 $1,000

0 $-
Jul-9 6 S ep-9 6 No v-96 Ja n-97 Mar-97 May-9 7 Jul-97 S ep -9 7 N ov-9 7 Jan-9 8

Bud get M onthly D istrib M atl Fcs t M onth ly D istrib M atl Actual Mon thly D is trib M atl
Bud get C um D istrib M atl Fcs t C um D istrib M atl Actual Cu m D istrib M atl
D is trib Ma te ria l J u l-9 6 Au g -9 6 S e p -9 6 O ct-96 No v-9 6 D e c -96 J a n-9 7 F e b -97 Ma r-9 7 Ap r-9 7 Ma y-9 7 J u n-9 7 J ul-97 Au g -9 7 S e p -9 7 Oc t-9 7 N o v -97 De c-9 7 J a n -98 Fe b -9 8
M o n thly Bu d g e t $ 45 6 $4 75 $ 35 7 $1 56 $ 17 5 $1 9 0 $ 2 35 $2 5 0 $ 2 70 $ 26 5 $ 2 55 $ 25 0 $2 20 $ 21 0 $2 20 $ 20 0 $1 8 0 $ 1 60 $1 7 0 $ 2 00
D is trib Fc s t $2 10 $ 21 0 $2 10 $ 20 0 $1 7 0 $ 1 50 $1 7 0 $ 2 00
M a tl Ac tua l $ 48 7 $4 97 $ 42 5 $1 35 $ 15 6 $1 8 7 $ 2 35 $2 4 7 $ 2 67 $ 27 0 $ 2 38 $ 24 2

D is trib Ma te ria l J u l-96 Au g -9 6 S e p -96 Oc t-9 6 N o v -96 De c-9 6 J a n -97 Fe b -9 7 M a r-97 Ap r-9 7 M a y -97 J un -97 J u l-9 7 Aug -9 7 S e p -9 7 Oc t-97 No v-9 7 D e c -97 J a n-9 8 F e b -98
C um Bu d g e t $ 45 6 $9 31 $1 ,28 8 $ 1,4 44 $1 ,61 9 $ 1 ,8 0 9 $2 ,0 44 $ 2 ,2 9 4 $ 2,5 64 $ 2 ,82 9 $ 3,0 84 $3 ,33 4 $ 3,5 54 $3 ,76 4 $ 3,9 84 $4 ,18 4 $ 4 ,3 6 4 $4 ,5 24 $ 4 ,6 9 4 $ 4,8 94
D is trib Fc s t $3 ,38 6 $ 3,5 96 $3 ,80 6 $ 4,0 16 $4 ,21 6 $ 4 ,3 8 6 $4 ,5 36 $ 4 ,7 0 6 $ 4,9 06
M a tl Ac tua l $ 48 7 $9 84 $1 ,40 9 $ 1,5 44 $1 ,70 0 $ 1 ,8 8 7 $2 ,1 22 $ 2 ,3 6 9 $ 2,6 36 $ 2 ,90 6 $ 3,1 44 $3 ,38 6

FIGURE 4-15 - REMOTE AND OFFSHORE EXPENSES - MATERIAL AND SUBCONTRACT COSTS

CO NST RUCT IO N FIELD NO NMANUAL LABO R

100 150

80 120
Monthly Headcount (1,000s)

Cumulative Hours(1,000s)

60 90

40 60

20 30

0 0

Jul-96 Sep-96 Nov-96 Jan-97 Mar-97 May-97 Jul-97 Sep-97 Nov-97 Jan-98

Budget Monthly Headc ount Fc st Monthly Headc ount Actual Monthly Headc
Budget Cum Hours Fc st Cum Hours Actual Cum Hours

Const FNM Jul-96 Aug-96 Se p-96 Oc t-96 Nov-96 De c -96 Ja n-97 Fe b-97 Ma r-97 Apr-97 Ma y-97 Jun-97 Jul-97 Aug-97 Se p-97 Oc t-97 Nov-97 De c -97 Ja n-98 Fe b-98
Monthly Budge t 11 15 23 27 30 32 34 37 37 39 39 39 37 37 37 37 36 32 19 5
He a d- Fc st 38 40 41 34 25 20 10 5
Count Ac tua l 11 15 23 27 30 32 34 39 37 39 39 39

Const FNM Jul-96 Aug-96 Se p-96 Oc t-9 6 Nov-96 De c -96 Ja n-97 Fe b-97 Ma r-97 Apr-97 Ma y-97 Jun-97 Jul-97 Aug-97 S e p-97 Oc t-97 Nov-97 De c -97 Ja n-98 Fe b-98
Cum Budge t 2 5 9 13 19 24 30 37 43 50 57 64 70 76 83 89 96 101 105 106
FNM Fc st 66 73 80 87 93 98 101 103 104
Hours Ac tua l 2 5 9 14 19 25 31 38 45 52 59 66

FIGURE 4-16 - CONSTRUCTION NONMANUAL JOBHOUR REPORTING

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Section 4 Project Summary Reports

FIELD NO N-MANU AL LABO R CO ST S

Cost Expenditures

800 $6,000

M onthly C osts ($1,000s)

$4,800

Cum ulative Costs($1,000s)

600

$3,600

400

$2,400

200
$1,200

0 $-
Jul-96 Sep-96 Nov-96 Jan-97 Mar-97 May-97 Jul-97 Sep-97 Nov-97 Jan-98

Budget Mo nthly FNM La bor Fcs t Monthly FNM L abo r Actua l Mo nthly FNM L
Budget Cum FNM La bo r Fcs t Cum FNM L abo r Actua l Cum FNM L abo

FNM Labor Cost Jul-96 Aug-96 Se p-96 Oc t-96 Nov-96 De c -96 Ja n-97 Fe b-97 Ma r-97 Apr-97 Ma y-97 Jun-97 Jul-97 Aug-97 Se p-97 Oc t-97 Nov-97 De c -97 Jan-98 Feb-98
Monthly Budge t $287 $199 $187 $299 $223 $265 $241 $242 $228 $377 $305 $296 $294 $296 $283 $256 $224 $168 $144
FNM Fcst $223 $296 $431 $285 $212 $160 $150
La bor Ac tua l $287 $199 $187 $299 $223 $265 $241 $242 $228 $377 $274 $248

FNM Labor Cost Jul-96 Aug-96 Se p-96 Oc t-96 Nov-96 De c -96 Ja n-97 Fe b-97 Ma r-97 Apr-97 Ma y-97 Jun-97 Jul-97 Aug-97 Se p-97 Oc t-97 Nov-97 De c -97 Ja n-98 Fe b-98
Cum Budge t $287 $486 $673 $972 $1,195 $1,460 $1,701 $1,943 $2,171 $2,548 $2,853 $3,149 $3,443 $3,739 $4,022 $4,278 $4,502 $4,670 $4,814 $4,814
FNM Fcst $3,070 $3,293 $3,589 $4,020 $4,305 $4,517 $4,677 $4,827 $4,827
La bor Ac tua l $287 $486 $673 $972 $1,195 $1,460 $1,701 $1,943 $2,171 $2,548 $2,822 $3,070

FIGURE 4-17 - FIELD NONMANUAL FIELD LABOR COST REPORTING

F IELD NO N-MANUAL MAT ERIALS COST S

Cost Expenditures(54 Acct)
500 $2,000
M onthly C os ts ($1,000s )

400 $1,600
Cu m ulative Costs($1,000s)

300 $1,200

200 $800

100 $400

0 $-

Jul-96 Sep-96 Nov-96 Jan-97 Mar-97 May-97 Jul-97 Sep-97 Nov-97 Jan-98

Budget Monthly FNM Matl Fc st Monthly FNM Matl Ac tual M onthly FNM
Budget Cum FNM Matl Fc st Cum FNM Matl Ac tual Cum FNM Mat

FNM Distrib Ma tl Jul-96 Aug-96 S e p-9 6 Oc t-96 Nov-96 De c -96 Ja n-97 Fe b-97 Ma r-97 Apr-97 Ma y-97 Jun-9 7 Ju l-9 7 Au g-97 Se p-97 Oc t-97 Nov-97 De c -97 Ja n-98 Fe b-9 8
Monthly Bu dge t $5 $ 38 $182 $304 $94 $6 9 $75 $63 $ 61 $60 $59 $59 $5 8 $48 $63 $ 39 $74 $50 $85 $6 3
FNM Fc st $4 8 $12 $12 $ 55 $36 $35 $30 $2 5
Ma tl Ac tua l $0 $0 $316 $145 $ 173 $5 4 $59 $67 $ 82 $57 $35 $37

FNM Distrib Ma tl Jul-96 Aug-96 Se p-96 Oc t-96 Nov -96 De c -96 Ja n-9 7 Fe b -97 Ma r-97 Apr-97 Ma y-9 7 Jun-97 Jul-97 Aug-97 S e p-97 Oc t-97 Nov-97 De c -9 7 Ja n-98 Fe b-98
Cum Bu dge t $5 $ 43 $225 $530 $ 624 $69 3 $768 $831 $8 93 $953 $1,012 $1,071 $1,13 0 $1,178 $1,241 $1,2 81 $ 1,355 $1,405 $1,491 $1,55 4
FNM Fc st $1,024 $1,07 1 $1,083 $1,095 $1,1 50 $ 1,186 $1,221 $1,251 $1,27 6
Ma tl Ac tua l $0 $0 $316 $461 $ 634 $68 7 $746 $813 $8 95 $952 $987 $1,024

FIGURE 4-18 - FIELD NONMANUAL MATERIAL COST REPORTING

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Project Summary Reports Section 4

ST A RT UP FIELD N O N MAN UAL LABO R

40 25

32 20

Month ly Headcount (1,000s)

Cum ulative Hours(1,000s)

24 15

16 10

8 5

0 0

S ep-96 Nov-96 Jan-97 Mar-97 May-97 Jul-97 Sep-97 Nov-97 Jan-98 Mar-98

Budget Mo nthly Hea dc ount Fc st Monthly He a dc ount Ac tual Mo nthly He adc

Budget Cum Ho urs Fc st Cum Hours Ac tual Cum Ho urs

Const FNM Se p-96 Oc t-96 Nov-96 De c -96 Ja n-97 Fe b-97 Ma r-97 Apr-97 Ma y-9 7 Jun-97 Jul-97 Aug-97 Se p-97 Oc t-97 Nov-97 De c -97 Ja n-98 Fe b-98 Ma r-98 Apr-98
Monthly Bud ge t 1 5 5 6 8 11 13 13 13 13 6 1 1
He a d- Fc st 6 8 10 12 13 13 13 6 1 1
Count Ac tua l 1 5 5

Const FNM Se p -96 Oc t-96 Nov-96 De c -96 Ja n-97 Fe b-97 Ma r-97 Apr-97 Ma y-9 7 Jun-97 Jul-97 Aug-97 Se p-97 Oc t-97 Nov-97 De c -97 Ja n-98 Fe b-98 Ma r-98 Apr-98
Cum Bud ge t 0.25 1.1 1 2.02 3.01 4.45 6.56 8.93 12.39 14.60 16 .43 17.44 17.60 17.83
FNM Fc st 1.81 2.80 4.02 5.56 9.07 12.29 15.37 17 .86 18.99 19.23 19.27
Hours Ac tua l 0.43 0.8 9 1.81

FIGURE 4-19 - STARTUP FIELD NONMANUAL JOBHOUR REPORTING

FIELD ST ART U P LABO R CO ST S

C ost Expenditures
400 $1,000
Monthly C osts ($1,000s)

320 $800
Cu mu lative Costs($1,000s)

240 $600

160 $400

80 $200

0 $-
Sep-96 Nov-96 Jan-97 Mar-97 May-97 Jul-97 Sep-97 Nov-97 Jan-98 Mar-98

Budget Mo nthly S-U L abo r Fc st Monthly S-U La bor Actual Monthly S-U L
Budget Cum S-U L abor Fc st Cum S-U La bor Actual Cum S-U Labo

Sta rtup La bor Se p-96 Oc t-96 Nov-96 De c-96 Ja n-97 Fe b-97 Mar-97 Apr-97 Ma y-97 Jun-97 Jul-97 Aug-97 Se p-97 Oc t-97 Nov-97 De c -97 Ja n-98 Fe b-98 Ma r-98 Apr-98
Monthly Budge t $12 $41 $41 $46 $66 $97 $159 $109 $102 $85 $46 $7 $11
Sta rtup Fc st $53 $58 $79 $162 $147 $138 $100 $85 $50 $25
La bor Ac tua l $20 $31 $31

Sta rtup La bor Se p-96 Oc t-96 Nov-96 Dec -96 Ja n-97 Fe b-97 Mar-97 Apr-97 Ma y-97 Jun-97 Jul-97 Aug-97 Se p-97 Oc t-97 Nov-97 De c -97 Ja n-98 Fe b-98 Ma r-98 Apr-98
Cum Budge t $12 $52 $93 $139 $205 $303 $462 $571 $673 $758 $804 $812 $823
Sta rtup Fc st $82 $135 $193 $272 $434 $581 $719 $819 $904 $954 $979
La bor Ac tua l $20 $51 $82

FIGURE 4-20 - STARTUP FIELD NONMANUAL LABOR EXPENDITURE REPORTING

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Section 5
Working Level Planning and Scheduling
This section covers:
• Schedule hierarchy (including Milestone Summary Schedule [Level 1])
• Construction Intermediate Schedule (Level 2)
• 3/6-Month Rolling/Special Schedules (Level 3)
• Weekly Work Plan (Level 4)
• Schedule change process
• Resource planning for (sub)contract manual labor
• Construction Intermediate Schedule/3/6-Month Rolling Schedule review
• Weekly work planning reviews
• Quantity curves
• Quantity Reporting System

SCHEDULE HIERARCHY
Schedule breakdown by level forms a hierarchy from the most summary level to the most detailed, as
discussed in Section 2 and as depicted in Figure 5-1. As shown in Figure 5-2, the basic project
controls elements are integrated for each level of planning.
hy
arc

Contract
Due Date
ier

Milestone
Summary
H

Schedule
le

Engineering Construction
du

Intermediate Intermediate
Schedule Schedule
he

Engineering Detail Schedule Construction Detail Schedule

Sc

• Control Logs • Pre-award Contract Schedules

• Contractor Schedules
• Short-term Work Plans • Short-term Rolling Schedules

FIGURE 5-1 - SCHEDULE HIERARCHY

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Section 5 Working Level Planning and Scheduling

Integrated Planning and Control Process

The following diagram describes the basic elements of integrated controls,
illustrating that results for each level of planning and control are verified and
that an expected level of participation is maintained to ensure full commitment
and understanding by the project
i ti
Level Planning Cost Responsibility Level

LEVEL 1 RIU Manager

Milestone Original EU Manager
Summary Budget Engineering Mgr.
Schedule Construction Mgr.
Project Controls Mgr.
Verified
Proj. Integrated Project Manager
Intermediate Current Engineering Manager
LEVEL 2 Schedules Budget Procurement Manager
Project Controls Mgr.
Construction Current Construction Manager
Intermediate Forecast
Schedule Site Manager
Lead Fld Eng/Coord
Verified Field Controls Mgr.

LEVEL 3 3/6 Month Rolling Current Site Manager

CPM Windows/ Forecast Field Engineering
Special (Sub)Contractors
Schedules Current Contract Coordinators
Trends Field Controls Mgr.

Verified
(Sub)Contractors
LEVEL 4 Field Engineers
Weekly Work Current Contract Coordinators
Plan (WWP) Trends Field Planner

Compare Results
Site Manager
Progress Field Engineering
and (Sub)Contractors
RESULTS Performance Contract Coordinators
MEASUREMENT Data Field Controls Mgr.
.

FIGURE 5-2 - INTEGRATED PLANNING AND CONTROL PROCESS

Level 1—Milestone Summary Schedule

The Milestone Summary Schedule is normally one or two pages and is the main vehicle for
communicating progress to the client, the financial institutions, and (off-)project levels of management.
Changes to this schedule normally require the concurrence of the client and perhaps the financial
institution, because it is the base justification for requested contractual invoice payments. Failure to
obtain this concurrence may lead to payments being withheld. Refer to Section 4 for additional
information on the Milestone Summary Schedule.

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Working Level Planning and Scheduling Section 5

Level 2—Project Integrated Intermediate Schedule

The Project Integrated Intermediate Schedule includes engineering, procurement, construction, and
commissioning (startup) activities. The time line is normally in months. The Construction Intermediate
Schedule (CIS) is a subset of the Project Integrated Intermediate Schedule. The CIS will typically be
loaded into a computerized CPM processor, which is the methodology applied to optimize the
schedule. The project manager may authorize changes to this schedule as long as the Milestone
Summary Schedule is not affected. Otherwise, there will be a risk of payments being withheld at
the prime contract level.

Level 3—3/6-Month Rolling Schedules and Special Schedules

The 3/6 Month Rolling Schedule looks at a specific window of time (3 to 6 months in duration) for
construction and expands on those activities in the CIS. The time line is shown in weeks. Sometimes
this level of schedule addresses a particularly important or involved area of work such as specialized
material handling or treatment systems.

In the course of execution, changes affecting the (sub)contractor may be required due to workarounds
or revised sequencing of work. These changes will most likely result in increases to the
(sub)contractor’s price, and a thorough evaluation of the options is necessary to ensure that the
impacts are minimized. With this in mind, the site manager has control of these schedules. Changes
may be authorized at this level as long as the CIS is unaffected.

Level 4—Weekly Work Plan

The Weekly Work Plan schedules activities on a day-to-day basis. For projects using (sub)contracts
as the major means for accomplishing work, the (sub)contractors themselves carry the lead
responsibility for preparing these schedules, and changes are controlled at that level as long as higher
levels of schedule are not affected. It should be noted that on some projects Level 4 schedules are
developed directly from Level 2.
Figure 5-3 displays the hierarchical relationship for projects employing (sub)contracts to execute work
at the jobsite. Consistent with the approach of this handbook, engineering is portrayed as Bechtel’s
responsibility. However, this is not always the case. Even if under Bechtel’s control, significant
portions of the design may be (sub)contracted. This may be limited to the specific battery limits of a
specialized facility (e.g., air plant) or may involve Bechtel designing selected systems (e.g., utilities)
internal to a facility designed by others. The project may be a joint venture, with engineering,
procurement, construction, and commissioning of certain facilities being done by Bechtel’s partners,
and yet, because of the nature of the scope, Bechtel’s work may very well be affected. Bechtel’s
responsibility may be limited to construction management, with the designs, as well as the supply of
materials and equipment, being accomplished by others.

In each of these cases, the need is very likely for additional coordination and planning to successfully
provide clients with the promised facilities on time. Also, there is a likelihood that Bechtel’s planners
will have less information with which to complete their work. The challenges of these situations are
significant, and the need to have all functional groups involved early in the (sub)contract process is
paramount.
The Project Controls deliverables matrix shown in Table 5-1 summarizes all schedule control field
deliverables and selected design office deliverables that provide key information to the field planner.

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Section 5 Working Level Planning and Scheduling

MILESTONE SUMMARY SCHEDULE

(Excel, CADD)

§ CONTRACT PACKAGE
§ FACILITY
§ SUMMARY ACTIVITY

PROJECT INTEGRATED INTERMEDIATE

SCHEDULE

ENGINEERING INTERMEDIATE CONSTRUCTION INTERMEDIATE CONTRACT REQUIREMENTS

SCHEDULE SCHEDULE INCLUDING STARTUP SCHEDULE
(Primavera) (Primavera) (Manual, Computerized)

w SYSTEM: w PHYSICAL: § FACILITY

§ CONTRACT SCOPE
Ø SYSTEM Ø DISCIPLINE § CATEGORY
§ MAJOR ACTIVITIES
Ø TASK Ø FACILITY § COMMODITY
Ø AREA § INTERFACES
§ ACTIVITY

CONTRACTOR PROPOSAL
SCHEDULE

§ CONTRACT SCOPE
§ MAJOR ACTIVITIES

CONTRACTOR CRITICAL PATH

METHOD OR BARCHART
SCHEDULE

§ FACILITY
§ CATEGORY
DESIGN OFFICE DETAIL § COMMODITY
CONTRACTOR DETAIL SCHEDULE
SCHEDULES § ACTIVITY
(WEEKLY WORK PLAN)

w CONTROL LOGS
§ FACILITY
Ø DWG, SPEC, TASK (PCWORKS
Engrg Performance) § CATEGORY
Ø SHORT-TERM WORK PLAN § COMMODITY
(Primavera, Excel, Manual) § ACTIVITY

FIGURE 5-3 – SCHEDULE HIERARCHY – (SUB)CONTRACT EXECUTION

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Working Level Planning and Scheduling Section 5

TABLE 5-1 - PROJECT CONTROLS DELIVERABLES MATRIX - SCHEDULE CONTROL

RESPONSIBLE IMPLEMENT. FREQ. REFERENCE

SYSTEM/DELIVERABLE DESCRIPTION/ FUNCTION LOC. PERSON TOOL TIMING* ISSUED PROCEDURE
SUMMARY LEVEL SCHEDULES
Milestone Summary Contractual, summary-level used to Design Planner Excel/ -1 Monthly 5.02
Schedule, Guaranteed document progress toward project Office AutoCAD or
completion and establish a basis for Bechtel 2-D
withholding payments to Bechtel for lack of CADD
progress
Milestone Summary Summary-level schedule establishing the Design Planner Excel/ -1 Monthly 5.02
Schedule, Target overall project time frame (excluding Office AutoCAD or
schedule contingency) and documenting Bechtel 2-D
EU/functional dept/vendor/subcontracting CADD
schedule commitments
CONTROL LEVEL SCHEDULES
Construction Intermediate Comprehensive plan and schedule for Design Planner Primavera -1 through 1 Quarterly 5.04
Schedule construction reflecting interrelationships Office
between construction activities, structures,
bulk commodities, equipment deliveries,
and startup and including key Design Office
procurement and engineering activities
Engineering Intermediate Comprehensive plan and schedule for Design Engineering Primavera -1 through 1 Quarterly 5.03
Schedule engineering reflecting interrelationships Office Planner
between engineering disciplines, between
systems and area design, and relationships
to procurement and construction
Project Integrated Variation of Construction Intermediate Design Engineering Primavera 1 Quarterly 5.01
Intermediate Schedule Schedule that adds key Design Office Office Planner
procurement and engineering activities
Startup Milestone Schedule Summary-level schedule arranged by Field Planner Primavera 1 through 2 Monthly 5.05
startup system displaying overall startup after
activity sequences, durations, and required turnovers
construction turnover dates by system start
Schedule Change Notices Proposed adjustments to the project Design Planners Excel 2 As Pro- 5.11
schedule providing change control, both Office/ cessed
internal and external to Bechtel Field
DESIGN OFFICE DETAILED SCHEDULES
Engineering Detailed Detailed engineering document and task Design Planner PCWorks 1 through 2 Monthly 5.07
Schedules logs displaying event control points used to Office Engineering
monitor progress and, based on established Performance/
weighted values, provide a basis for earned Infoworks/
jobhours calculations for schedule/budget Primavera/
performance calculations Excel/Access
Document Release Graphs Graphical displays of planned versus actual Design Planner Excel 2 Monthly 5.09
(Optional) cumulative issuance of drawings for Office
fabrication/construction and specs for bid,
and the award of purchase
orders/subcontracts
Bulk Commodity Release Graphical displays of planned versus actual Design Planner Excel 1 through 2 Monthly 5.09
Graphs cumulative design release of key bulk Office
commodity quantities as a verification of
required engineering production rates over
time
Engineering Progress and Tabular report by engineering discipline and Design Planner PCWorks 2 Monthly 5.07
Performance Report activity code, with supporting graphs and Office Engineering
analysis comparing expended to earned to Performance/
planned hours on a to-date basis Infoworks/
(Calculated and subjective forecasts are Primavera/
compared to approved budget and Excel/Access
forecast.)
Engineering Earned Graphical display by engineering discipline Design Planner Excel 2 Monthly 5.07
Jobhour Variance Graph over time of the difference between Office
(Optional) scheduled earned hours to-date versus
actual earned hours to-date for ready
identification of a schedule performance
trend and problem magnitude
*NOTE : Implementation timing reflects the number months from Notice To Proceed for items with Design Office responsibility or the number of
months from jobsite mobilization for Field responsibility.

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Section 5 Working Level Planning and Scheduling

TABLE 5-1 (CONTINUED)

RESPONSIBLE IMPLEMENT. FREQ. REFERENCE
SYSTEM/DELIVERABLE DESCRIPTION/ FUNCTION LOC. PERSON TOOL TIMING* ISSUED PROCEDURE
Short-Term Work Plan Rolling 4-week look-ahead schedule of Design Planner Primavera/ 1 Weekly 5.11
Design Office activities, used for day-to- Office Excel
day project control (A graphical format
versus tabular is preferred to enhance
readability/usefulness; information
sources include other schedules,
correspondence, meetings.)
FIELD DETAILED SCHEDULES
Bulk Commodity Installation Graphical displays of planned versus Field Subcon- Excel 1 through 2 Monthly 5.09
Graphs (Family of curves actual cumulative installation of key bulk tractors
showing relationship commodity quantities as a verification of and/or
between commodities and required construction production rates Bechtel
EPC activities that should over time Field
be used to plan the Planner
installation curves)
3/6-Month Rolling Schedule Detailed CPM-format construction work Field Subcon- Primavera 1 Monthly or 5.08
sequence used for all near-term tractors (AutoCAD Weekly
construction planning and to communicate and/or Optional)
current material and information Bechtel
requirement priorities to Procurement, Field
Engineering, and Design Office planning Planner
Weekly Work Plan (4-Week Daily work schedule with 1 week of actuals Field Sub)con- Manual, 1 Weekly 5.08
Rolling Schedule) plus a 3-week look-ahead (3rd week tractors Excel, P-3
optional) for use by superintendents, field
engineers, and general foreman; oriented
by facility, commodity, and work operation
System Completion List of remaining construction activities Field Planner Excel Initiate at start Weekly 5.11
Punchlists required to complete turnover of a system of turnovers to
to startup startup
System Completion List of incomplete, defined Field Planner Excel Initiate at start Weekly 5.11
Exceptions List system/subsystem scope at the time of of turnovers to
turnover to Startup to be completed by startup
Construction before acceptance by the
client
PURCHASE ORDER/(SUB)CONTRACTOR DETAILED SCHEDULES
Purchase Order/ Itemization of schedule requirements for Desig Planner Manual 1 As 5.07
(Sub)Contract Schedule vendor information submittals n required
Requirements (Form G321F), material/equipment Office
deliveries, subcontractor scheduled
milestones, and Bechtel-to-subcontractor
and subcontractor-to-subcontractor
interface points/dates
Material Delivery Schedule Comprehensive tabulation by purchase Desig Procure- Procuremen 1 Monthly 5.07
order pay item and by subcontract of n ment t Tracking
material/equipment deliveries, including Office System
item, supplier, origin, transport method,
date required on site, purchase order
delivery date, current shipment
forecast/actual, and remarks
Liquidated Damages Extract of liquidated damages terms and Desig Procure- Excel 1 through 2 Monthly 5.07
Report conditions from purchase orders and n ment
subcontracts, providing current status, Office
calculations of any accrued damages, and
clarifying remarks
(Sub)Contractor Schedules Detailed (sub)contractor-prepared Desig (Sub)con- Contractor 1 Monthly 5.10
schedules that are integrated with the n tractors Preference
project control schedules Office/
Field
*NOTE Implementation timing reflects the number months from Notice To Proceed for items with Design Office responsibility or the number of
months from jobsite mobilization for Field responsibility.

5-6 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
55210\Construction Manua\Vol-2
Working Level Planning and Scheduling Section 5

CONSTRUCTION INTERMEDIATE SCHEDULE (Level 2)

The CIS represents the construction portion of the Project Integrated Intermediate Schedules. The
CIS is typically loaded into a computerized CPM processor and therefore must be a complete logic
network. Although combined with the Project Integrated Intermediate Schedule, the CIS may be pulled
out of the Project Integrated Intermediate Schedule through the use of subproject identification
numbers.

The CIS is the master control schedule that displays the total scope of construction and startup work at
a level of detail that facilitates meaningful planning and analysis. The level of detail for the CIS should
be such that engineering information can be identified to a facility, system, work package, module, or
sub-block level, which will be the common level of detail between construction and engineering
schedules. This schedule establishes the need dates for design information and procurement
deliveries and is driven by the requirements for construction turnover of systems to Startup.
As depicted in the flow chart shown in Figure 5-4, the CIS development process must be a joint effort
of the project/area team. The construction team, led by Startup, needs to identify the system turnover
packages as part of an intermediate schedule. A comprehensive review should be made very early in
the project, to ensure that those responsible for (sub)contracts coordination and field engineering have
bought into and are committed to the schedule. Note that the degree of evaluation and analysis
reflected in Figure 5-4 is typical, and certain situations may not require the level of detail shown.
Review of the (sub)contractors’ proposal schedules will be ongoing as the various portions of the work
are bid. It important that these be reviewed thoroughly to ensure that the Milestone Summary
Schedule is completely met. Any differences at the intermediate level must also be thoroughly
investigated for the impacts to Bechtel and to the other (sub)contractors. As each (sub)contractor’s
schedule is approved, the CIS is adjusted as necessary to reflect both the logic and timing.
The CIS is quantity and manual labor resource loaded. These quantities are equal to and extracted
directly from the construction Original Budget. The (sub)contracted manual labor will at first be
estimated by Bechtel and then updated by input from (sub)contractors as the work is bid. The Original
Budget set of control curves is developed from the Original Budget quantities and (sub)contracted
manual labor resource-loaded CPM schedules and is frozen in all files and documents as the Original
Schedule. This set of curves controls the job until the next forecast is approved by management, at
which time new control curves, displayed as Forecast, may be established. Even though loaded CPM
techniques permit the to-go curves to be redrawn every month as the CPM schedule is statused,
progress should continue to be compared to the curves produced in conjunction with the last approved
forecast.

The control curves may be maintained in spreadsheets, like the quantify curves discussed later in this
section (see Figure 5-20).
Overall logistics planning begins with the CIS. This schedule identifies the overall plan for access and
crane coverage. Construction sequencing needs to address civil/structural building erection, major
subcontractor interfaces, and timing of yard activities with respect to major facility work access.
Considerations included with logistics planning are:

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 5-7
55210\Construction Manua\Vol-2
Section 5 Working Level Planning and Scheduling

NO TES:
DEVELO P O VERALL SCHEDULES SHOULD BE DEVELO PED ON A TIM E-
CONSTRUCTIO N LOGIC BY FRAM E PRIOR TO COMPUTERIZATION FOR ANALYSIS
MAJOR WBS ELEMENTS (WO RK PURPO SES; i.e. REFERENCING CONCURRENT
PACKAGES) ACTIVITIES.
REVIEWS WITH CO NSTRUCTION INCLUDE
CO NSTRUCTIO N COO RDINATO R AND FIELD
SUPERINTENDENTS, MANAG ER, PLANNER IF
ASSIGNED.
DEVELO P LOG ICS FOR FRONT- REVIEW RECO NFIRM SCHEDULE REVIEWS WITH CONSTRUCTIO N -
END ACTIVITIES SUCH AS WITH O VERALL Q UANTITY AND JOBHOUR LOADING WILL GENERALLY
-SITE PREP., EXCAV., TEM P BLDGS CONSTR. LOG IC & BE IN A RO UGH DRAFT MANUAL FO RM.
BASED O N QUANTITIES, AND REVIEW WITH
JO BHOURS, HISTO RICAL & ADJUST ENG INEERING
CURRENT PROJECTS

REVIEW
DEVELOP POWERBLOCK Q UANTITY &
CIVIL/ STRUCT., LOGICS, JOBHO UR
DURATIO NS, TIM ING BY LOADED
FACILITY/ELEVATIO N BASED SCHEDULE
O N: DESIGN, WITH
CO NFIG URATION, QUANTITIES CO NSTRUCTIO
& JOBHOURS HISTO RICAL & N ADJUST AS
CURRENT PROJECT REQ UIRED
DURATIO NS

LOG ISTICS
PLANNING

ESTABLISH OPTIMUM
DENSITY

DEVELO P SCHEDULES
FOR INSTALLATION OF
MAJOR ITEM S: REVIEW WITH
CONDENSER CO NSTRUCTIO
TURBINE GENERATO R N & ADJUST AS
RPV, BOILER REQ UIRED
TREND BASE CONTROL ROO M
ESTIMATE QUANTITIES BASED O N JOBHOURS &
BY JO BHOURS BY: HISTO RICAL/CURRENT
FACILITY PROJECT DURATIONS
CATEGO RY AND/O R
CO MMO DITY
FO R: PREPARE
• CONCRETE CONSTRUCTION SUM MARY
FO RMS, REVIEW INSTALLATIO N
REBAR, ESTABLISH OPTIMUM ESTABLISH DURATIO NS, TIMING & QUANTITY & RATES BY
EMBEDS, DENSITY LEVELS FOR INSTALLATIO N RATES BY ELEV., JO BHOUR FACILITY &
CONCRETE EQ UIPM ENT & BULKS FACILITY OR TO TAL PLANT FO R: LO ADED TOTAL PLANT
• STRUCTURAL STEEL • LARGE PIPE (BY ELEV. & SCHEDULES FOR FO R:
• EQ UIPMENT FACILITY) EQUIPMENT & ALL • CONCRETE
MECH., • SMALL PIPE (BY ELEV. & BULKS (INCL. • LARG E PIPE
ELECT. PIPING , DETERM INE CRAFT
AVAILABILITY & SUSTAINED FACILITY) LRG . & SM. PIPE, • SMALL PIPE
LARG E PIPE, • CABLE TRAY (BY ELEV. & CABLE TRAY) • CABLE TRAY
HANGERS, RATES
FACILITY) • CONDUIT
VALVES, REVIEW CONSTR.
• EQ UIPMENT, CO NDUIT, • WIRE &
SMALL PIPE TIES
ESTABLISH EQUIPMENT & INSTRUM ENT DUCTWO RK CABLE
• INSTRUM ENTATIO N COM PLETIO N
BULK INSTALLATION START (BY ELEV. & FACILITY) RECO NCILE TO
PANELS, DATES TO
DATE WITH LIGHTING/COMM UNICATION, M SS AND
RACKS, STARTUP ADJUST PRO JECT TEAM &
CO NSTRUCTIO N BLOCKWORK FINISHES O THER JOBS
INSTRUM ENTS, AS REQ UIRED CO NSTRUCTIO N
(BY FACILITY)
TUBING WIRE & CABLE (BY PLANT) BASED REVIEW O F:
• ELECTRICAL O N Q UANTITIES, JOBHOURS, • INSTALLATIO N
BULKS WO RK OPERATION INTERFACES & RATES
CABLE TRAY, PRIO RITIES, SPACE/CONGESTIO N • TOTAL
CONDUIT, RESO URCE
WIRE & CABLE CURVES (E.G.
• DISTRIBUTABLES M ANUAL/
MANUAL ESTABLISH ALL DEVELO P STARTUP LOGICS, DURATIO NS DEVELO P NO NMANUAL
NON-MANUAL CO NSTRUCTIO & TIM ING SUM MARIZING G ENERIC O R SCHEDULES FOR • SUMM ARIZE LABOR)
DATA BY ELEVATION N TIES & PROJECT STARTUP SCHEDULE THE YARD: JOBHO URS BY • RECO NCILE TO
M AY BE IN PECCS TURNO VER • FACILITIES CO DE O F M SS
FILES ESTIMATING DATES TO • COO LING TOWER ACCO UNTS • CO MPARE TO
BACK-UP, MATRICES, STARTUP BY • BURIED PIPE • SUMM ARIZE REFERENCE
Q TS. IF DATA IS NOT FACILITY/ELEV • TRANSFORMERS SHIFTWO RK PRO JECTS
AVAILABLE BY ATION & • SWITCHYARD REQ UIREMENTS
ELEVATIO N FO R M AJO R ITEMS • TANKS & M ISC. • REVIEW
CRITICAL Q UANTITIES BASED ON M ANUAL LABO R
(ie CO NCRETE, LARGE Q UANTITY SCHEDULE DISTRIBUTABLES BASED ON BUILD-UP &
PIPE, CABLE TRAY) DISTRIBUTIO N, DIRECT O PERATIONS-SPREAD JOBHOURS PEAKS
PLANNING MAY EQ UIP. • PERFO RM
PERFO RM ROUG H LOCATION CRAFT SPLITS &
TAKE-OFFS OR DWG S. ANALYZE
ALLO CATE USING THE CRITICAL CRAFTS
ESTIMATE SCOPE FRONT-END, BULK INSTALLATION COM PLETE BULK • RECONCILE TO
CIVIL/STRUCT., & MAJO R & STARTUP INSTALLATION & YARD M SS
ITEM SCHEDULES SCHEDULES SCHEDULES

INCORPORATE
COM MENTS &
ISSUE
INPUT LOGIC, DATES & QUANTITIES TO THE PROGRAM & DRAFT LOGIC ANALYZE SCHEDULE
ESTABLISH TYPICAL LOGIC NETWO RKS USING TIME-FRAM ED SCHEDULES AS PROG RESSIVELY CRITICAL
FO RMAT, NUMBERING SYSTEM, DEVELO PED AND REVIEWED WITH CONSTRUCTIO N. RUN PROG RAM & DEBUG PATH
VARIABLE CODES & OTHER REPORTS
PRO GRAM REQ UIREM ENTS
REVISE
IMPLEMENT M ANPO WER SPREADING PROGRAM AND INPUT ANALYZE BASED ON
DATA AS SCHEDULES ARE PROGRESSIVELY DEVELOPED SUMM ARY REVIEW
MANPOWER CO MM ENTS
& ADJUST

FIGURE 5-4 - INTERMEDIATE SCHEDULE - CONSTRUCTION (IS-C) DEVELOPMENT PROCESS

5-8 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
55210\Construction Manua\Vol-2
Working Level Planning and Scheduling Section 5

• Access - What access is available to the major facilities? What are the space and access
requirements of the major subcontractors?
• Construction Equipment and Crane Coverage - What major construction equipment and cranes
are to be used by the (sub)contractors? What are the locations and reaches of cranes? Are there
crane erection location conflicts between (sub)contractors?
The first requirement of startup planning is to establish startup systems and subsystems. This scoping
of startup systems is performed by determining system/subsystem boundaries on Revision 0 issues of
piping and instrumentation diagrams, electrical single line drawings, and electrical schematics. The
startup component of the CIS is arranged by startup system/subsystem, which displays the overall
startup activity sequences, durations, and required construction system turnover dates.

Figures 5-5 and 5-6 highlight portions of an example Project Integrated Intermediate Schedule. In the
first figure, note the logic sequence displayed from design through procurement, construction,
walkdowns, and startup. The second figure displays the relative timing of system turnovers. Other key
planning analyses for construction turnover and startup turnover are shown in Figures 5-7 and 5-8.
Refer to Project Controls Department Procedure 5.04, Intermediate Schedule for Construction, and
Project Controls Department Procedure 5.05, Startup/Testing Schedules for more information.
Figure 5-9 shows a flow chart for subcontract scheduling activities. A typical subcontract award
schedule is shown in Figure 5-10. Refer to Project Controls Department Procedure 5.06,
(Sub)Contract Requirements and Project Controls Department Procedure 5.10, Subcontract
Schedules for more information.
The (sub)contractor schedules must show logical sequence, construction methods, and estimated
durations of activities necessary to meet the milestones and completion dates established in the
(sub)contract (see Section 3, page 39, of the Contracts/Subcontracts Management Manual).

Project Controls should participate in the reviews and approval of all (sub)contractor schedules and
revisions. Project Controls should also review periodic updates, which report progress against the
current approved plan, and fragmentary networks submitted in support of (sub)contractor proposals for
adjustment to the contract milestones or completion dates based on the critical path analysis. Refer to
Section 3, page 39, of the Contracts/Subcontracts Management Manual for more on the overall review
requirements.
During the pre-construction meeting with the (sub)contractors, the following agenda is suggested for
covering the construction schedule and progress reporting:
A. Project/construction schedule (requirements for initial submittal and periodic updates)
B. Staffing curves
C. (Sub)contractor-furnished equipment and materials (schedule and coordination)
D. Project Integrated Intermediate Schedule (Level 2)
E. Weekly Work Plan (4-Week Rolling Schedule)
F. Progress review meetings
G. Coordination of work areas with others
H. Coordination meetings

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 5-9
55210\Construction Manua\Vol-2
Section 5 Working Level Planning and Scheduling

ACTIVITY ORIG M ONTHS

ACTIVITY ID DESCRIPTION DUR -2 -1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

PF - FIRE PROTECTION
EG - ENGINEERING
PF: FIRE PROTECTION ENGINEERING SUMMARY
ZEPFEG-100 PF: FIRE PROTECTION ENGINEERING SUMMARY 198
EM - ENG. MECHANICAL
PF-01: FIRE HYDRANTS & PIV'S - PREP SPEC
ZEPFEM-500 PF-01: FIRE HYDRANTS & PIV'S - PREP SPEC 20
PF: DESIGN & ISSUE P&ID REV 0
ZEPFEM-100 PF: DESIGN & ISSUE P&ID REV 0 20
EP - ENG. PLANT DESIGN
PF: LB PIPE DESIGN
ZEPFEP-100 PF: LB PIPE DESIGN 20
SC-G02: U/G FIRE PIPE PROTECTION - PREP S
ZEPFEP-500 SC-G02: U/G FIRE PIPE PROTECTION - PREP S 20
PF: LB HANGER DESIGN
ZEPFEM-110 PF: LB HANGER DESIGN 20
EE - ENG. ELECTRICAL
PF: ROUTE CABLE (SETROUTE)
ZEPFEE-350 PF: ROUTE CABLE (SETROUTE) 30
PF: CABLE DESIGN
ZEPFEE-100 PF: CABLE DESIGN 20
PF: TERMINATION DESIGN (SETROUTE)
ZEPFEE-450 PF: TERMINATION DESIGN (SETROUTE) 15
MG - MPAG
PF-01: FIRE HYDRANTS & PIV'S - BEA
ZMPFMG-500 PF-01: FIRE HYDRANTS & PIV'S - BEA 30
M PAG Lead Time = 12 wk

SC-G02: U/G FIRE PIPE PROTECTION - BEA

ZMPFMG-501 SC-G02: U/G FIRE PIPE PROTECTION - BEA 20
M PAG Lead Time = 12 wk

CN - CONSTRUCTION
PF: A/G FIRE PIPE PROTECTION - INSTAL
ZC7550-100 PF: A/G FIRE PIPE PROTECTION - INSTAL 60
PF-01: FIRE HYDRANTS & PIV'S - INSTALL
ZC0054-510 PF-01: FIRE HYDRANTS & PIV'S - INSTALL 60
SC-G02: U/G FIRE PIPE PROTECTION - INSTAL
ZC0054-500 SC-G02: U/G FIRE PIPE PROTECTION - INSTAL 60
WD - WALKDOWN
PF: FIRE PROTECTION - WALKDOWN & PUNCHLIST
ZCPFWD-100 PF: FIRE PROTECTION - WALKDOWN & PUNCHLIST 15
SU - STARTUP
PF: FIRE PROTECTION - CHECKOUT
ZSPF95-100 PF: FIRE PROTECTION - CHECKOUT 15

Plot Date 20AUG96 1240 Sheet 1 of 1 MILESTONES -----Project Schedule-----

Activity Bar/Early Dates
Data Date
Project Start
1JAN00
1JAN00
Critical Activity BECHTEL POWER HA - HAMMOCK Date Revision Checked Approved
Progress Bar
Project Finish 6AUG01 Milestone/Flag Activity POWERLINE CC1240 (TEM PLATE)
PF - FIRE PROTECTION SYSTEM DETAILS
(c) Primavera Systems, Inc.

FIGURE 5-5 - EXAMPLE INTERMEDIATE SCHEDULE

ACTIVITY ACTIVITY ORIG MONTHS

ID DESCRIPTION DUR -2 -1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

AA - STEAM GENERATOR - STEAM SIDE

AA: HRSG - CHECKOUT & CHEMICAL CLEAN
ZSAA95-100 AA: HRSG - CHECKOUT & CHEMICAL CLEAN 20
AA: HRSG - STEAM BLOWS & RESTORE
ZSAA95-110 AA: HRSG - STEAM BLOWS & RESTORE 20
AB - MAIN & REHEAT STEAM
AB: MAIN STEAM - CHECKOUT
ZSAB95-100 AB: MAIN STEAM - CHECKOUT 15
AC - STEAM TURBINE
AC: STG - CHECKOUT
ZSAC95-100 AC: STG - CHECKOUT 40
AC: STG - VACUUM TESTING
ZSAC95-110 AC: STG - VACUUM TESTING 2
AC: STG - TURBINE ROLL & SYNC
ZSAC95-140 AC: STG - TURBINE ROLL & SYNC 2
AD - CONDENSATE
AD: CONDENSATE - CHECKOUT
ZSAD95-100 AD: CONDENSATE - CHECKOUT 15
AE - FEEDWATER
AE: FEEDWATER - CHECKOUT
ZSAE95-100 AE: FEEDWATER - CHECKOUT 15
AG - COMBUSTION TURBINE
AG: CT & CTG - CHECKOUT
ZSAG95-100 AG: CT & CTG - CHECKOUT 15
AG: CT & CTG - TEST FIRE
ZSAG95-010 AG: CT & CTG - TEST FIRE 5
AJ - CONDENSATE & FEEDWATER CHEM CNTRL
AJ: CHEM INJECTION - CHECKOUT
ZSAJ95-100 AJ: CHEM INJECTION - CHECKOUT 15
AR - CONDENSER AIR REMOVAL
AR: CONDENSATE AIR REMOVAL - CHECKOUT
ZSAR95-100 AR: CONDENSATE AIR REMOVAL - CHECKOUT 15
BM - BOILER & BLOWDOWN
BM: BOILER BLOWDOWN - CHECKOUT
ZSBM95-100 BM: BOILER BLOWDOWN - CHECKOUT 15
EC - LOW VOLT MCC's
EC: MCC's - CHECKOUT
ZSEC95-100 EC: MCC's - CHECKOUT 15
ED - 125V DC
ED: 125 V DC - CHECKOUT
ZSED95-100 ED: 125 V DC - CHECKOUT 5
EH - HEAT TRACING AND FREEZE PROTECTION
EH: HEAT TRACE FRZ PROT - CHECKOUT
ZSEH95-100 EH: HEAT TRACE FRZ PROT - CHECKOUT 15
EK - LOW VOLT UNIT SUBSTATION
EK: LOAD CENTER - CHECKOUT
ZSEK95-100 EK: LOAD CENTER - CHECKOUT 15
EL - LIGHTING AND AUX POWER
EL: LIGHTING - CHECKOUT
ZSEL95-100 EL: LIGHTING - CHECKOUT 15

Plot Date 20AUG96 1240 Sheet 1 of 1 MILESTONES -----Project Schedule-----

Data Date 1JAN00 Activity Bar/Early Dates
Project Start 1JAN00 Critical Activity BECHTEL POWER HA - HAMMOCK
Date Revision Checked Approved
Progress Bar
Project Finish 6AUG01 Milestone/Flag Activity POWERLINE CC 1240 (TEMPLATE)
STARTUP BY SYSTEM (TOTAL PROJECT)
(c) Primavera Systems, Inc.

FIGURE 5-6 - EXAMPLE INTERMEDIATE STARTUP SCHEDULE BY SYSTEM

5-10 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
55210\Construction Manua\Vol-2
Working Level Planning and Scheduling Section 5

CO NS T RUC T IO N T URNO VE R S CHED ULE T O S T ART UP

P ERIOD ENDING JANUARY 25
LE G E ND : D A T UM LIN E

S CHE DULE D SY S TE M TURNOV E R

S Y STE MS T/O TO-DA TE 1ZA 1 2ZA 1

1-A A -2: (UNIT - S Y STE M - S UB S YS TE M) XW 3 2W L XW 4

1W L PG JN 2P F2

P F3-5 WR 2W C 1P F2 FG EH 1SL

EK 2FL1 1FL2 2PL2 EL 2B M JH 1ZA 2 2ZA2

ES JJ 1/2 PF1 2AD EQ 1AG 8 1BM 2BA AJ 2S L 2B S

ZB 1A G5 P F1.2 AC1 PI WD 1FL1 1W C AG 7 2AE 1B A 2AG 8 2A G6 JG AR

PW ED EU ZA 4 EC 2A G5 AG 1 XW 1 1A A XW 2 1A D 2AA 1A E AB 1A G6 1A C2 2AC2 1BS A G4

1 6 -No v 1 1 -J a n 3 0 - No v 7 - De c 1 4 - De c 2 1 - De c 2 8 - De c 4 -J a n 1 1 -J an 1 8 -J a n 2 5 -J an 1 -F eb 8 -F e b 1 5 -F eb 2 2 -F e b 1 -M a r 8 -M ar 1 5 -M ar 2 2 -M a r 2 9 -M ar

We e ke n din g Da te (T hu rs d a y) V V V V

C o m p l U1 Hyd ro s C o m p l U2 Hyd ro s U1 C T F ire (3/ 13 ) U2 C T F ire (3/ 27 )

N u m be r o f S ta rt up T u rn o v e r P a c k a g e s

1 1 1 5 2 2 0 3 3 1 2 2 5 8 7 8 6 5 4 4

T o -D a te N o . o f P a c k a ge s = 21

S Y STE M DE S CRIP TIONS :

AA HR SG AG 5 Lu b e Oil EL L igh tin g Fire Protect ion WL C ircula tin g Water

AB Ma in Stea m 6 Bala nce of Sys tem EQ C a th o dic Pro te ctio n PF1 ,2 Jo cke y/E le ct Pu m p WR R a w Wate r
AC Ste a m Turbine Ge n erator 7 Ve n ts & Blo we rs ES 4 1 60 V S witc hg e ar 1 /2P F1 C o oling To w er D elu ge XW Wa s te w a te r
1 Ma rk V C o ntro ls 8 In le t D u ct (w /AG3) EU U n in terrup tib le Pow e r PF- 2 Fire Pro te ctio n B alan ce 1 Oil/Wa ter Se p ara tor/Su m ps
2 S.T Ba la nc e AJ Ch e m ica l In jec tion FG N a tu ra l Gas Su pp ly PF3 -5 D ies e l Pm ps & Ma in s 2 C larifie r/ Filte r Pre s s
3 L. O. C o ole rs (w /WC ) AR Co n de n s a te Air Re m o va l FL S te a m Turb ine PG S ervice Gas XW 3 Eva p C oo lin g To w er
AD Co n de n s a te BA HR SG - Ga s Side 1 S T L ub e Oil PI C o m pre s s e d Gas 4 C ryta llize r/Ba la nc e
AE Fe e dw a te r BM Boiler Blow d ow n 2 C o n tro l Flu id PW P otab le Wate r ZA Ma in Ge n era tio n
AG Co m bu s tio n Turb ine BS Am m on ia In jec tion JG C EM's SL S te am Se al (Stm Tu rb in e ) 1 Ma in Ge n . Co m b in ed Tu rb in e
1 Ma rk V C o ntols EC MC C 's JJ DCS WC C los e d C oo lin g Wate r 2 Ma in Ge n . Ste a m Tu rbin e
2 Co o lin g Water (w /WC ) ED 12 5 V D C JN S ys tem Wa ter Ana lys is (In clu d es AC 3 , AG2 ) 4 Ma in Ge n , En erg iza tio n
3 Eva p . C oo lers (w/AGs ) EH He a t Trace - Fre eze Prot. WD D e m in eralize r ZB Sw itch yard
4 Wa ter Was h EK Lo a d C en te rs

FIGURE 5-7 - CONSTRUCTION TURNOVER SCHEDULE TO STARTUP

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 5-11
55210\Construction Manua\Vol-2
Section 5 Working Level Planning and Scheduling

CO NS T RUC T IO N T URNO VE R S CHE DULE T O S T ART UP

P ERIOD ENDING JANUARY 25
LE G E N D : D A T U M L IN E

S CHE DULED SY STE M TURNOV ER

S YSTEM S T/O TO-DA TE 1ZA1 2ZA1

1-AA -2: (UNIT - SYS TEM - S UBS YS TEM ) XW 3 2W L XW 4

1W L PG JN 2P F2

P F3-5 WR 2W C 1PF2 FG EH 1SL

EK 2FL1 1FL2 2PL2 EL 2B M JH 1ZA2 2ZA2

ES JJ 1/2 PF1 2AD EQ 1A G8 1B M 2BA AJ 2SL 2BS

ZB 1AG5 P F1.2 A C1 PI WD 1FL1 1W C AG7 2AE 1BA 2A G8 2AG6 JG AR

PW ED EU ZA4 EC 2AG5 A G1 XW 1 1AA XW 2 1AD 2AA 1AE AB 1A G6 1A C2 2A C2 1BS AG4

1 6 -N o v 1 1 -J an 3 0 -N o v 7 -D ec 1 4 -D ec 2 1 -D ec 2 8 -De c 4 -J a n 1 1 -J an 1 8 -J an 2 5 -J an 1 -F eb 8 -F eb 1 5 -F eb 2 2 -F eb 1 -M ar 8 -M ar 1 5 -M ar 2 2 -M ar 2 9 -M ar

We e k e n d in g D a t e (Th u rs d a y) V V V V

C o m p l U1 H yd ro s C o m p l U2 H yd ro s U1 C T F ire (3 / 1 3 ) U2 C T F ire (3 / 2 7 )

N u m b e r o f S t a rt u p T u rn o v e r P a c k a g e s

1 1 1 5 2 2 0 3 3 1 2 2 5 8 7 8 6 5 4 4

T o -D a te N o . o f P a c k a g e s = 21

S YS TEM DES CRIP TIONS :

AA H RSG AG 5 Lu be Oil EL L ig htin g Fire P rotection WL Circulating W ater

AB Main Ste am 6 Balan ce of Sys tem EQ C athodic Protection PF1,2 Jockey/Elect Pu m p WR Raw Water
AC Steam Turbine Gen erator 7 Ve nts & Blow ers ES 4 160V Switchgear 1 /2 PF1 Cooling To wer D eluge XW Wa s te water
1 Mark V Con trols 8 Inlet Du ct (w /AG3) EU U ninterruptible Power PF- 2 Fire Protection Balance 1 Oil/Water Se para to r/Sum p s
2 S.T Balance AJ C hem ical Injection FG N atura l Gas Supply PF3-5 Dies el Pm p s & Mains 2 Clarifier/ Filter Pre s s
3 L. O. C oolers (w/W C) AR C onde ns ate Air R em o val FL Steam Turbine PG Se rvice Gas XW 3 Evap Coo ling To wer
AD C onde ns ate BA H RSG - Gas Side 1 ST Lu be Oil PI Com pre s s ed Ga s 4 Cryta llizer/Balan ce
AE Fe edw ater BM Boiler Blow down 2 C ontro l Fluid PW Po ta ble Water ZA Main Generatio n
AG C om b us tion Turbine BS Am m onia Injection JG C EM's SL Stea m Seal (Stm Tu rbine) 1 Main Gen. Com bined Tu rbine
1 Mark V Con to ls EC MCC's JJ D CS WC Clos ed C ooling W ater 2 Main Gen. Stea m Turbine
2 C ooling W ater (w /WC ) ED 12 5 V DC JN Sys tem Wa te r Analys is (Inclu des AC 3, AG2) 4 Main Gen, En ergization
3 Evap. C oolers (w/AGs ) EH H eat Tra ce - Freeze Prot. WD Dem inera lizer ZB Switchya rd
4 W ater W as h EK Lo ad Ce nters

FIGURE 5-8 - STARTUP TURNOVER SCHEDULE TO OWNER

5-12 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
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Working Level Planning and Scheduling Section 5

INPUT SCHEDULE
REQUIREMENTS
INTO "BOILER
PLATE"

PROVIDE
CONTRACT
SPECIFIC DATES
INTO THE IFB

PROCUREMENT
PREPARE & ISSUE
FOR BID CONTRACT
PACKAGE

BIDS ARE RECEIVED

PROVIDE AN
EVALUATION OF
CONTRACTORS
SCHEDULE

PARTICIPATE IN
THE PRE-AWARD
MEETING

EXECUTE
CONTRACT

SUBCONTRACTOR BECHTEL TO
TO ISSUE REVIEW AND
SCHEDULES COMMENT

BECHTEL TO
SUBCONTRACTOR
MONITOR
TO PERFORM WORK
PROGRESS

FIGURE 5-9 - SUBCONTRACTOR SCHEDULE DEVELOPMENT/MAINTENANCE FLOW CHART

TYPICAL SUBCONTRACT AWARD SCHEDULE

Subcontract
Define Site Start Work
Scope Visit in Field
Prepare In-House Prepare Client Revise S/C Client Prepare S/C
Complete Review Review Approval
ITEM Approval Bid Pre-Bid Float Issue Bid Time Bid Recom- Approval S/C Approval Lead Time
Design
Package Package Package For Bids Analysis mend Package & Award

RESPONSIBILITY E E E E E E E E E SC SC
STATUS A A S S S S S S S S S S S S S S

RESPONSIBILITY STATUS
E = ENGINEERING S = SCHEDULE DATA
PC = PROJECT CONTROLS A = ACTUAL DATE
SC = PROCUREMENT F = FORECAST DATE
SUBCONTRACT
F = FIELD

FIGURE 5-10 - TYPICAL SUBCONTRACT AWARD SCHEDULE

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 5-13
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Section 5 Working Level Planning and Scheduling

The CIS is statused weekly and issued monthly and is analyzed by the field planner along with
any 3/6-Month Rolling Schedules for any significant problems that may affect the construction
work activities. This evaluation should include the status and review of manual staffing and bulk
commodity installation data. The need for supplemental special schedules for possible
workarounds should be evaluated. Changes to the CIS must be looked at closely because the
Milestone Summary Schedule may be affected. Forecast information can be added as
extensions to the statused actuals line to further clarify how work that is behind schedule is to be
addressed.

3/6-MONTH ROLLING/SPECIAL SCHEDULES (Level 3)

The 3/6-Month Rolling Scheduling process is useful in aiding the transition from intermediate level
management planning and control to detailed, work specific planning and control. Key characteristics
of the 3/6-Month Rolling Scheduling process are as follows:
1. Expands those activities shown on the CIS, and in particular the (sub)contractor’s proposal
schedules, into additional detail to the cost code, system, tag number, foundation number, etc.,
that is used as a basis for the Weekly Work Plan.
2. Converts intermediate schedule activities into measurable planned progress by week, which can
be summarized and validated against the quantity curves in the Level 2 schedule.
3. Starts with to-date progress and performance. The (sub)contractors build the schedule, working
with Project Controls to tie to the CIS and take into account current data regarding material
deliveries, engineering performance, weather, etc.
4. Facilitates determination of a recovery plan if the job has fallen behind schedule.
5. Reflects planned quantities for all major commodities. In difficult areas considered schedule
tight spots where sequencing or density is critical and where additional manual labor planning is
required, the activities should be resource loaded by the (sub)contract personnel responsible for
executing the work.
The 3/6-Month Rolling Schedule should be used on an as-needed basis. Projects may not need this
level of scheduling at all and may put more detail in the Level 2 schedules instead. Other situations
where 3/6-Month Rolling Schedule may not be used include projects containing fairly standard
facilities, those that are small in scope, or ones involving significantly less risk.

On projects where the 3/6-Month Rolling Schedule is not used, special schedules, detailing selected
difficult or multidisciplinary work operations, may be prepared where site management feels they are
necessary. Figure 5-11 provides an example portion of a 3/6-Month Rolling Schedule. Appendix B
provides guidelines for 3/6-Month Rolling Schedules, as well as for more detailed field schedules
(Weekly Work Plans). The information in this appendix is for a typical petroleum/chemical project.
However, much is applicable to heavy construction projects and therefore useful to all within Bechtel
involved in developing field schedules.
Special schedules can focus on a particular area of work in the project that is extremely involved (e.g.,
boiler areas, turbine areas, or specialized handling/treatment systems) or evaluate one or several
selected areas where interferences are a major issue. A program that has been used in a few
instances to evaluate schedule issues is 4DPlanner. The schedule is contained in a 3-D model of the
project and electronically tied to the design. This allows for evaluation of alternative sequencing of
work to minimize interferences during construction and thereby expedite the work.

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Working Level Planning and Scheduling Section 5

FIGURE 5-11 - SAMPLE 90/180 DAY SCHEDULE

WEEKLY WORK PLAN (Level 4)

It is important that the planning process at this level be performed by those responsible for supervision
of (sub)contracted workers, with support from Bechtel Field Contracts Administration/ Coordination,
Engineering, and Project Controls personnel. A Weekly Work Plan, as shown in Figure 5-12, should
be prepared by each active (sub)contractor. The planning process must identify material, construction
equipment, and manual labor resource requirements and validate their availability. At the beginning of
each new week, each responsible (sub)contractor must know exactly which activities will be worked
on, and that the material, equipment, and manual labor resources to complete the work are available.
The recommended Weekly Work Plan format is that of an activity-based planning tool. Specific,
detailed activities should be listed such as specific concrete placements, equipment tag numbers,
piping isometrics to be worked, etc.

The (sub)contractors’ planning teams, working with Bechtel’s field planner, will have the responsibility
to ensure that the activities planned for their personnel must follow the logical priorities of the 3/6-
Month Rolling Schedule and the CIS.

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 5-15
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Section 5 Working Level Planning and Scheduling

W EEKLY W ORK PLAN JOB NO. 12345

WEEK NO 1
BY JOHN DOE W ORK AREA TA NK FA RM PA GE 2 OF 2
AP PV D CES FORE M AN BILL SMITH MEETING DA TE 11- 5- 86

C LA ST WEEK 1 THIS WEEK 8 NEXT W EEK 15 WEEK A FTER NEXT 22 D M

COST SCHED R DESCRIPTION M T W T F S S WK- M T W T F S S WK- M T W T F S S WK- M T W T F S S WK- W T REMA RKS
CODE REF I LY LY LY LY G R
T QTY QTY QTY QTY S L
26.31 PG 1 EXCA V A TE FOR FDN S 3 3 3 3 3 800c y 3 3 3 3 3 800c y 3 3 3 3 3 800c y 3 3 400c y x
L #26 WA LL A 3 3 3 3 3 923cyX X X X X X X X X X X X
11- 13.11 PG 1 FA B REBA R FOR MA T S 5 5 5 5 5 11T 4 4 4 7T x x
L #27 A 5 5 5 5 5 10T X X X
11- 13.11 PG 1 INSTA LL REBA R FOR MA T S 4 4 4 4T 4 4 4 4 4 8T 4 4 4 4T x x
L #27 A X X X X X X X X X X X
11- 15.11 PG 1 POUR 50' SECTION S 5 35c y 8 70c y 5 35c y x
L #27 A X X X
11- 13.11 PG 1 START PRE- FA B WA LL S 4 4 3 4T 4 4 4T 4 4 4T x x
L #28 REBA R A X X X X X X X
11- 13.11 PG 1 START PLA CE WA LL S 4 2T 4 3 2T 4 1 2T x
L #28 REBA R A X X X X
11- 11.11 PG 1 START INST WA LL FORMS S 4 4 300s f 4 4 300s f x PENDING DEL OF FORMS
L #28 A X X X X
11- 15.11 PG 1 POUR 50' SECTION OF S 4 30c y 4 30CY x
L #28 WA LL A X X
26.31 PG 1 EXCA V A TE INTERIOR S 4 30c y 4 30CY
L #29 A X X
11- 11.11 PG 1 STRIP FORMS & CLEAN S 4
L #28 A X
S
A
S
A
S
A
S
A
LEGEND TOTA L MA NUA LS 16 ## 16 16 16 0 0 ## ## ## ## ## 4 0 ## ## ## ## ## 8 0 ## ## ## ## 8 0 0
DOZER 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
* - CRITICAL E BA CKHOE 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
S - SCHEDULE Q CHERRY PICKER 1 1 1 1 1 1 1
A - A CTUA L P TRUCK & TRACTOR 1 1 1 1 1 1 1 1 1 1 1
T

FIGURE 5-12 - WEEKLY WORK PLAN - COMPLETED EXAMPLE

Note that the following information is contained on the Weekly Work Plan:
1. The actual and scheduled quantities for last week and the scheduled quantities for this week, next
week, and the week after, for each work activity.
2. The actual (indicates the number of days work was in progress) and scheduled number of workers
for last week and the scheduled number of workers for this week, next week, and the week after,
for each work activity.
3. The construction equipment used last week and the projected needs for this week, next week, and
the week after.

4. Each activity that has drawings available; indicated by check mark (✓ ).

5. Each activity that has materials available; indicated by check mark (✓ ).

6. Each activity that is critical; indicated by asterisk (*).

7. Appropriate remarks (e.g., reasons for not completing an item of work during the past week)

5-16 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
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Working Level Planning and Scheduling Section 5

(Sub)contractors are responsible for knowing and including in the planning process the exact
installation (activities and scope), construction equipment, and manual labor resource requirements
and for validating resource availability.
(Sub)contractors need to know status of any materials and designs for which they are contractually
responsible. Field engineers supply information pertaining to available material, available designs,
work items on hold, and outstanding design changes (e.g., Field Change Requests, Field Change
Notices, etc.) from other sources (e.g., Bechtel and other [sub]contractors).
The Project Controls staff should perform an audit function to ensure that the Weekly Work Plan
details enough work to meet or beat the planned progress of the 3/6-Month Rolling Schedule and the
CIS. Project Controls may need to assist (sub)contractors on proper use of the Standard COA.

In summary, the (sub)contractors are responsible to the contracts administrator for the weekly
development of the Weekly Work Plan (4-Week Rolling Schedule), which includes the identification,
scheduling, and coordination of field construction activities to be performed during the period. This
effort is coordinated with Field Engineering and the field planner. The field planner is responsible for
compiling the various active (sub)contractors’ detailed rolling schedules into a package for a weekly
Bechtel internal review with the site manager.

In addition to the completed Weekly Work Plan shown in Figure 5-12, another example, given in
Appendix B, illustrates the handwritten approach used at many sites. Refer to Project Controls
Department Procedure 5.08 for further direction.

SCHEDULE CHANGE PROCESS

(Sub)Contract Related
Refer to the Contracts/Subcontracts Formation Manual, the Contracts/Subcontracts Management
Manual, and the Contract/Subcontract Coordination Handbook for information on the contract change
process as it applies to Bechtel (sub)contractors.

Prime Contract Related

There is always the possibility that, as work proceeds, schedule changes may affect the prime contract
schedule. For these changes, a formal system is used that ties into the prime contract scope change
process involving Schedule Change Notices (SCNs). A flow chart displaying the typical SCN process
is shown in Figure 5-13. As discussed in Project Controls Department Procedure 4.02, the process
feeds into the overall scope change process. The project planner assigns the SCN number and
coordinates with each team member potentially affected by the change. As shown in Figure 5-14, the
field planner, working with each group, identifies the before and after conditions of each schedule
change. The project planner maintains files and a log of all SCNs. A sample Schedule Change Notice
Log is shown in Figure 5-15.

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 5-17
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Section 5 Working Level Planning and Scheduling

RECYCLE AS REQUIRED

INITIATOR REVIEWS CHANGES

R.P. DETERMINES PROJECT PLANNER LOGS IN SCN
INITIATOR FILLS OUT SCHEDULE WITH THOSE IN OWN GROUP AND
COMPLETENESS OF SCN LOG AND DISTRIBUTES TREND
CHANGE NOTICE INCORPORATES COMMENTS AS
INITIATION ENGINEER
INSTRUCTED BY SUPERVISOR

REFER TO SCOPE CHANGE PURPOSE: TO DETERMINE EFFECT PURPOSE: TO INFORM ALL

CONTROL PROCEDURE FOR OF NEWLY INITIATED SCN ON PARTICIPANTS OF A NEW SCN
GUIDANCE IN DETERMINING OTHER SYSTEMS WITHIN THE
CONTRACT CHANGE ORDERS GROUP

R.P. REVIEWS INPUT, COMPLETES

D.L. OF INITIATING GROUP R.P. ROUTES COMPLETED SCN & EVALUATION INCLUDING
EACH D.L. REVIEWS CHANGE(S)
RECOMMENDS PROJECT ICS TO SUPPORTING DOCUMENTATION &
WITH OWN GROUP
MANAGER APPROVAL D.L. SIGN OFF COORDINATES WITH TREND
ENGINEER

PURPOSE: TO DETERMINE
& INFORM THE R.P. OF
THE AFFECT OF THE NEW
SCN ON THE GROUP'S
AREA OF RESPONSIBILITY

PROJECT MANAGER
PROJECT
PROJECT MANAGER MEETS WITH CLIENT TO
MANAGER DECIDES WITH
TEAM TO APPROVE/
Yes DECIDES WITH TEAM IF A Yes REVIEW SCN. CLIENT Disapprove STOP
SCOPE CHANGE DECIDES TO APPROVE OR
DISAPPROVE
DISAPPROVE SCN

No No Approve

STOP
PROJECT TEAM PROCEEDS WITH
SCOPE CHANGES PROCESSED IN
CHANGES TO INTERNAL
ACCORDANCE WITH SCOPE
SCHEDULES WITH INFO COPY TO
CHANGE CONTROL PROCEDURE
CLIENT AS NEEDED

D.L. - DISCIPLINE/DEPT LEAD

R.P. - RESPONSIBLE PLANNER
SCN - SCHEDULE CHANGE NOTICE

FIGURE 5-13 – SCHEDULE CHANGE NOTICE FLOW CHART

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Working Level Planning and Scheduling Section 5

ACTIVITY ORIG EARLY EARLY 1997 1998

ACTIVITY ID DESCRIPTION DUR START FINISH SEP OCT NOV DEC JAN FEB MAR APR

O 13111070 PREP PRELIM PFD'S- CATALYST RECOVERY 13 12NOV97 30NOV97

O 13150200 REVISE PRELIM STRM PROP TABLES-CATAL 13 12NOV97 30NOV97 BEFORE

O 13160206 PREP PRELIM EQUIP SUPPORT - CATALYST 13 12NOV97 30NOV97

O 13160106 ISSUE PROCESS DESIGN BASIS 'IFO' - C 11 14DEC97 3JAN98

O 13111076 PREP / 'IFO' PFO'S - CATALYST RECOVERY 18 7JAN98 30JAN98

O 13131070 REVISE / ISSUE PROC DATA SHT - CATALYS 18 7JAN98 30JAN98

O 13150206 PREP / 'IFO' STREM PROP TABLE - CAT R 18 7JAN98 30JAN98

O 13150207 PREP /ISSUE EQUIP SUMMARY - CATALYST 18 7JAN98 30JAN98

O 13150500 PREP / 'IFO' - UTILITY SUPPORT CATALYST 18 7JAN98 30JAN98

13111070 PREP PRELIM PFD'S- CATALYST RECOVERY 0 4SEP97 4SEP97

13150200 REVISE PRELIM STRM PROP TABLES-CATAL 0 4SEP9 4SEP9

13160206 PREP PRELIM EQUIP SUPPORT - CATALYST 0 4SEP97 4SEP97 AFTER

13160106 ISSUE PROCESS DESIGN BASIS 'IFO' - C 13 12NOV97 30NOV97

13111076 PREP / 'IFO' PFO'S - CATALYST RECOVERY 10 30NOV97 13NOV97

13131070 REVISE / ISSUE PROC DATA SHT - CATALYS 10 30NOV97 13NOV97

13150206 PREP / 'IFO' STREM PROP TABLE - CAT R 18 7JAN98 30JAN98

13150207 PREP /ISSUE EQUIP SUMMARY - CATALYST 18 7JAN98 30JAN98

13150500 PREP / 'IFO' - UTILITY SUPPORT CATALYST 18 7JAN98 30JAN98

ABC PURIF /CAT RECOV / W. W. STRIP

FIGURE 5-14 - EVALUATING BEFORE AND AFTER CONDITIONS ON SCHEDULE CHANGES

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 5-19
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Section 5 Working Level Planning and Scheduling

TEXACO CHEMICAL COMP ANY

PO /M TB E Project

Sche dule Change N otice L og

AP P R O VED /
SCN O RIG IN AT O R D AT E D ISAP P R O VED C U R R EN T ST AT U S
# IN I T I AT ED D ESC RI PT IO N * D AT E AN D IMP ACT

IB-1 Mar k T aylor/J . Flo r e s 08-N ov-90 EP O X ID AT I O N P FD 'S & P &ID 'S A 13-N ov-90 N o impact to P h ase IB D e liv e rab le s

IB-2 K. T h o mas/J . Co rr y 13-N o v -90 P ERO X ID AT IO N REACT O R SELECT IO N A 29-N o v -90 N o n -acce le r atio n o f P &I D s as a
(Bo ilin g ) re su lt o f e arly re acto r se le ctio n

IB-3 R . B. B risco e 14-N o v -90 C O LU MN M/R S "IFQ " D EFER RAL A 29-N o v -90

IB-4 C . Kr u se /J . Flo re s 19-N o v -90 MT B E/CAT ALYST REC O VERY/T BA A 29-N o v -90 Se le ctio n o f MT BE 1-Ste p as "b ase
P U R IFIC AT IO N /W AST E W AT ER ST RI PP ER case " fo r Au th o riz atio n R e q u e st

IB-5 G . Bar ta/J . Flo re s 28-N o v -90 P R O C ESS CO N T RO L D IAG R AM R EVIEW P P re limin ar y sch e d u le issu e d fo r
co mme n ts 30-N ov -90

IB-6 M. H e arn /T . R y an 30-N o v -90 P ERO X ID AT IO N BO ILIN G REAC T O R M/R A 19-D e c-90 Sh o p fab & fie ld e re ct b id p ack ag e s
C -3

IB-7 P at B ru sh /H . Sch mid t 03-D e c-90 SIT E SELEC T IO N - EN VIR O N MEN T AL A 19-D e c-90 P ro p o se d e missio n d ata 04-J an -91

IB-8 J . O . T h o mp so n /N an cy W u 10-D e c-90 P .O . VAP O R REC O VER Y AN D N EW P Me e tin g h e ld 10-D e c-90

C O MPR ESSO R

IB-9 S. Y. Ch u an g /R. B . Br isc oe 10-D e c-90 R ELI EF SYST EM LO AD D ESI G N P P ro g ram u n d e r d e v e lo p me nt

IB -10 J . O . T h o mp so n 03-D e c-90 SIT E SELEC T IO N - D IST R IB U T IO N P Awa itin g p lo t p lan fin aliz atio n
U T ILIT Y D RAW IN G S

IB -11 G . Bar ta 27-D e c-90 LO G IC N AR RAT IVES - CO N T RO LS P Sch e d u le re v ise d

IB -12 S. Y. Ch u an g /C. Kru se /J . Flo re s 02-J an -91 P R O C ESS FLO W D IAG R AMS EVO LU T IO N P U n d e r e v alu atio n
AN D R ESU LT AN T IMP AC T O N P&ID 'S

FIGURE 5-15 - SCHEDULE CHANGE NOTICE LOG

5-20 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
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Working Level Planning and Scheduling Section 5

Proposed changes to the project schedules (prime contract related) may be initiated by any assigned
project personnel. The site manager is responsible for schedule changes to construction and startup.
The project planner is responsible for ensuring the integration of engineering/procurement and
construction/startup schedule changes and coordinating with the trend engineer for identification of
cost impacts. Department leads must review and recommend approval for their portions of the
schedule. The project manager is responsible for final approval of all SCNs.

Refer to Project Controls Department Procedure 5.11 for more information on SCNs. Refer to the
Prime Contract Management Manual for more information on the contract change process as it applies
to Bechtel (sub)contractors.

RESOURCE PLANNING FOR (SUB)CONTRACT MANUAL LABOR

The project manual headcount (resource) schedule is required on many projects employing
(sub)contracts. At a minimum, it is statused on a monthly basis with actuals. Also, weekly breakdowns
of planned and actuals may be required for reporting at the weekly review meeting.
A labor distribution matrix arranged by category of work (e.g., concrete, steel, pipe, etc.) should be
developed to produce planned manpower. (Note that some [sub]contractors may have only one
category and others may have several). Actual headcount shown should reflect effective manual labor
resources, which is based on the number of jobhours spent divided by the jobhours available for work
in the period. Jobhours available should not include hours taken off by personnel.
The detailed evaluation by category of work can also be completed using Primavera. An example of
this evaluation is included in Appendix C. Note that the level of detail may be sufficient using this
approach (i.e., commodity level breakdown) without developing a craft breakdown. This is particularly
true where the craft breakdown may not have a great deal of meaning due to the work force employed
(e.g., nonunion, international). Also, it is noted that the use of multiskilling approaches will significantly
reduce craft categories.

CONSTRUCTION INTERMEDIATE SCHEDULE/3/6-MONTH ROLLING SCHEDULE REVIEW

The site manager will review the (sub)contractor’s 3/6-Month Rolling Schedules and any planned
deviations with the (sub)contractors each month. Contracts Administration/Coordination, Field
Engineering and Project Controls field personnel should be in attendance. The basis of this review
should be a recap of the 3/6-Month Rolling Schedule vs. the CIS planned quantities.

Any projected shortfall in progress or cost overruns should be highlighted for project management to
use in determining if acceleration of engineering or vendor activity would be appropriate.
Once approved, these schedules become the control tool for managing field activities. Weekly Work
Plan (Level 4) activities must reflect this plan unless unusual circumstances prevail.

The 3/6-Month Rolling Schedules are statused monthly and are analyzed along with the CIS for any
significant problems that may affect the construction work activities by the field planner. This
evaluation should include the status and review of manual staffing and bulk commodity installation
data. A requirement for supplemental special schedules may result as possible workarounds need to
be evaluated.

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 5-21
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Section 5 Working Level Planning and Scheduling

WEEKLY WORK PLANNING REVIEWS

Review Process
The schedule is reviewed with each (sub)contractor periodically, depending on the project’s needs.
Generally these meetings are held weekly. This discussion focuses on specific issues critical to the
work plan, including assessing and verifying labor resource needs, material availability, construction
equipment requirements, (sub)contractor schedule conflicts or congestion, etc. More regarding these
meetings is contained in Section 7.

After completing the review and resolving comments, the field planner uses the reviewed and adjusted
Weekly Work Plans (4-Week Rolling Schedules) to complete the schedule package. The Weekly
Work Plan package, which normally includes marked-up schedules for all (sub)contractors is then
issued for review (Bechtel internal) with the site manager. The Weekly Work Plan package is the main
agenda for this planning meeting. Action items should be assigned and recorded in this meeting to
ensure follow through to completion. An example form is shown in Figure 5-16.
The field planner should coordinate with field Engineering and the Home Office project planner to
ensure critical action items are properly documented in a CIAR issued from the Home Office. The field
engineer has the lead responsibility for field input to the CIAR, and this input should provide the
information necessary. An example input is shown in Figure 5-17.

BECHTEL CONSTRUCTION
Weekly Work Planning Review
Meeting Action Items Listing

ITEM # ACTION ITEM RESP. DUE DATE STATUS/RESOLUTION

4
The purpose of this list is to document action items
5 generated from the weekly meeting discussion. The
actions will be tracked, monitored, and statused at each
6 subsequent weekly review.

10

11

12

FIGURE 5-16 - WEEKLY WORK PLANNING REVIEW ACTION ITEMS LISTING

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Working Level Planning and Scheduling Section 5

Report No. XX
"PREPARED BY F IELD ENGINEERING" Date:
SAMP LE CRITICAL FIELD ITEM S ACTION REPORT Page of

ITEM DESCRIPTION/DRA WING NO. MR NO FLOA T IMPA CT ISSUE/COMMENTS A CTION RESPONSIBILITY DA TE STA TUS

11 Ex pedite response to FM E "HOLD" on Swepco stainles s PE CO's concurrence to HO Eng

-1159 &disposition to NCRs steel pipe remove "HOLD" requested
1120 & 1127

12 Issue Spec 8031-P303, Large num ber of F CR's are To be issued for PE CO HO Eng
Rev. 1 for use generated due to lack of com m ents 10-3 on B LP-9489
cleanliness spec

13 Ex pedite engineering to -20 A ll hydraulics placed on Letter of recomm endation HO Eng

review change from wks "HOLD" per F TF-747 to P ECO was forecast 10-31
hydraulic to m ech. FP& S
snubbers 302

14 Release sm all pipe Required for material Bill of material for hanger HO Eng
standard s upport details procurem ent critical s upports 11-15

15 Ex pedite release of -23 S tart of installation scheduled Forecast 2-1 HO Eng

rem aining hanger dwgs. wks for 2-22
in 6& 7/217 FP& S

FIGURE 5-17 - SAMPLE CRITICAL FIELD ITEMS ACTION REPORT

Schedule Analysis
Since the Weekly Work Plan (4-Week Rolling Schedule) is a daily construction work plan, problems
may arise daily. If work stoppages or delays occur for any reason, the impact on the overall project
schedule must be evaluated and a recovery plan developed as required.
The evaluation evolves by comparing the impact on the next higher level of schedule in the hierarchy.
This method of analysis puts the proper perspective on the immediate problem or restraint to
construction activities so that a timely solution is implemented by the responsible individuals.

QUANTITY CURVES
Quantity curves by major commodity are very effective control tools for selected major bulk material
items. They may be set up either weekly or monthly, depending on the length of the project. The
following techniques can be used alone or in combination as curves are developed:

1. Plan vs. actual engineering release of quantities. This curve shows the cumulative planned
release of quantities (work available for construction) vs. the cumulative actual release of
quantities.

2. Plan vs. actual installation of quantities. This curve shows the cumulative planned installation of
quantities (work completed by construction) vs. the cumulative actual installation of quantities.

When engineering and construction progress are graphed together, a valuable picture is formed that
shows how many weeks of work Construction has in backlog and how closely Construction is following

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 5-23
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Section 5 Working Level Planning and Scheduling

Engineering. To see this relationship, refer to Figure 5-18. Note that the X axis denoting time is in
percentages in this graph, since the relationships are generic. When the graphical approach is applied
to specific projects, the time is denoted by period (e.g., months), as shown in Figures 5-19 and 5-20.

RELATIONSHIP BETWEEN ENGINEERING AND CONSTRUCTION

Mechanical completion

100 100
95
90 90
85

Percent Construction Progress

80 80
Engineering Percent Complete

75
70 70
65
60 60
55
Engineering
50 50
45
40 Construction 40
35
30 Engineering lead time 30
for EPC fast track
25
20 20
15
10 10
Percent Construction Time
10 80 90 5
20 30 40 50 60 70
0
0 10 20 30 40 50 60 70 80 90
Contract
release
by owner
Percent Total Project Time

FIGURE 5-18 - RELATIONSHIP BETWEEN ENGINEERING AND CONSTRUCTION PROGRESS CURVES

FAMILY OF CURVES FOR COMMODITIES

120%

100%
Percent Complete

80%

Large Pipe
60%
Small Pipe
Tray
40% Conduit
Cable
20% Terminations
Turnovers

0%
1 2 3 4 5 6 7 8 9 10 11 12 13

Months
FIGURE 5-19 – FAMILY OF CURVES FOR COMMODITIES

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Working Level Planning and Scheduling Section 5

14-Se p -97 ... Re v. 13 P R O J E C T N AME * De notes 5 we e k month

Conc rete Releas e & Installation Curve DATA TH ROUG H M ar-97

CURRENT BUD GET 12,150 CYDS

TREND FO RECAST 13,250 CYDS
CURRENT FO RECAST (TIC) 13,250 CYDS
100%

ENG INEERIN G RELEASE (TIC)

80% SCHED ULE RELEASE 11,450 CYDS

ENG ORIG
ENG TIC
ACTU AL RELEASE 11,548 CYDS
Percent Complete

ENG ACT
CONST ORG SUSTAINED RELEASE 1,328 CY/M O
60%
CONST TIC SUSTAINED DU RATION 9 M O NTHS
CONST ACT PEAK RELEASE 1,750 CY/M O

40%
CO NSTRUC TIO N INSTALLATIO N (TIC)

20%
SCHED ULED INSTALL 8,050 CYDS
ACTU AL INSTALL 8,480 CYDS

SUSTAINED INSTALL 900 CY/M O

0%
SUSTAINED DU RATION 13 M O NTHS
Jul A ug Se p* Oct Nov Dec * Jan Feb Mar* Ap r May Jun * Jul A ug Sep* Oct No v Dec* Jan Feb
PEAK INSTALLATIO N 1,250 CY/M O

Engr Re le ase Jul Aug Se p* O ct N ov D e c* Jan Fe b M ar* Apr M ay Jun* Jul Aug Se p*
T Fcst pe riod 700 1,200 1,500 1,500 1,500 700 1,500 1,000 1,000 500 450 300 300 0 0
TIC period 750 1,350 1,500 1,450 1,750 1,000 1,650 1,150 850 500 500 500 300 0 0
Act pe riod 500 1,325 1,235 1,834 1,578 1,512 1,569 1,050 945 0 0 0 0 0 0
T Fsct cum 700 1,900 3,400 4,900 6,400 7,100 8,600 9,600 10,600 11,100 11,550 11,850 12,150 12,150 12,150
TIC cum 750 2,100 3,600 5,050 6,800 7,800 9,450 10,600 11,450 11,950 12,450 12,950 13,250 13,250 13,250
Act cum 500 1,825 3,060 4,894 6,472 7,984 9,553 10,603 11,548 11,548 11,548 11,548 11,548 11,548 11,548

Re marks:

Constr Installation Jul Aug Se p* O ct N ov D e c* Jan Fe b M ar* Apr M ay Jun* Jul Aug Se p*
T Fcst pe riod 0 500 1,100 850 950 850 830 1,160 930 750 950 880 550 500 500
TIC period 0 750 1,250 980 950 1,020 1,000 1,250 850 800 850 940 810 500 500
Act pe riod 0 534 1,350 1,046 1,250 957 968 1,345 1,030 0 0 0 0 0 0
T Fsct cum 0 500 1,600 2,450 3,400 4,250 5,080 6,240 7,170 7,920 8,870 9,750 10,300 10,800 11,300
TIC cum 0 750 2,000 2,980 3,930 4,950 5,950 7,200 8,050 8,850 9,700 10,640 11,450 11,950 12,450
Act cum 0 534 1,884 2,930 4,180 5,137 6,105 7,450 8,480 8,480 8,480 8,480 8,480 8,480 8,480

Re marks:

FIGURE 5-20 - SAMPLE QUANTITY INSTALLATION CURVE

Project Controls Department Procedure 5.09, Progress and Performance Curves, requires that a
selected minimum number of bulk installation curves be developed. This allows the field planner to
take into consideration the sequencing and timing between installations of major bulks, as
demonstrated in the family of curves shown in Figure 5-19. Work scope definitions for each of these
items are shown in Table 5-2.
Figure 5-20 shows a sample quantity installation curve. This curve displays both metrics and a
summary of TIC improvements made on the project. Curves are prepared for each major commodity
to be installed on the project. Refer to the section on Schedules contained in the Glossary for
definitions of Trend Forecast, TIC Forecast, and related terms, such as sustained rates and durations.
Appendix I includes examples of quantity installation curves for major commodities.

The (sub)contractors can be responsible only for the assigned work scope. Full scope may not
have been released, or more than one (sub)contractor may share in the scope for the same
commodities. Alternatively, each (sub)contractor is responsible for installation in different
locations. Bechtel needs to report against the total quantities, and the field planner is responsible
for pulling the information together for the installed work and coordinating with the Home Office
planner to ensure alignment with the released quantities.

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 5-25
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Section 5 Working Level Planning and Scheduling

TABLE 5-2 - PROGRESS/PERFORMANCE CURVES

INSTALLATION DEFINITIONS FOR TYPICAL BULK MATERIALS

Mass Earthwork—This includes all blast, rip, and common excavation and placement (excluding
spoilage). Measurement is in volume (cubic yards or cubic meters) and based on a neat line takeoff of
cuts and fills.

Concrete Installation—This includes all concrete on project, excluding chimney shells, concrete cooling
towers, piling, caissons, mud mats, lean concrete fill, and temporary structures. Quantities are earned
when the concrete is placed and are based on neat line takeoff (overpours are excluded). Measurement
is in cubic yards (U.S.); SI Units (EEC/UK).

Structural Steel—This includes all building, framing, and equipment/major pipe support steel.
Measurement is in erected tons (English or metric).

Large Process Pipe—This includes all building and yard process piping furnished by Bechtel or by
equipment vendor. Excluded are yard circulating water pipe, subcontractor-installed pipe, and temporary
pipe. Measurement is in lineal feet/meters along centerline of pipe, measured through fittings and valves.

Large Pipe Supports—This includes all Bechtel-designed/installed large pipe supports. Measurement is
in number of supports.

Small Process Pipe—This includes all Bechtel-installed process pipe 2 inch and under diameter, except
temporary piping. Quantities are earned when erection and alignment of piping and valves are complete.
Measurement is in lineal feet/meters along centerline of pipe, measured through fittings and valves.

Cable Tray—This includes all cable tray, including gutters. Quantities are earned when installation and
alignment of tray is complete. Measurement is in lineal feet/meters.

Metallic Conduit (Power and Control)—This includes all power and control metallic conduit.
Nonmetallic lighting, communications, and all temporary conduit installations are specifically excluded.
Quantities are earned when installation and alignment of conduit and fittings is complete. Measurement
is in lineal feet/meters.

Wire and Cable (Power and Control) - This includes installation (but not connection) of power and
control wire and cable in cable trays and conduit in accordance with approved circuit schedules.
Lighting, communication, and all temporary wire and cable are specifically excluded. Quantities are
earned when installation (pulling) of cable is complete. Measurement is in lineal feet/meters based on
connected length, with no allowance for cutoff. No consideration is given to number of conductors in the
wire and cable.

Circuits (Power and Control)—This includes all installation of power and control circuits, excluding
lighting, communication, and temporary service. The measurement is in number of circuits and lineal
feet/meters of cable.

Connections (Power and Control)—This includes connection of power and control cable in accordance
with approved connection diagrams. Quantities are earned at completion of each connection point.
Measurement is in units based upon each (single conductor) connection point.

Note: This list includes those items most typically used to monitor bulk material installation for either
power or petroleum and chemical projects. The selection will vary depending on the scope.
Exclusions from those selected may be earthwork, pipe hangers, and circuits, depending on the
circumstances. The scope may not include large amounts of concrete, pipe, tray, conduit, or
cable, and those commodities may not be deemed significant enough to track on a given project.
Also, other commodities (e.g., underground pipe, insulation, equipment, liner area) could be
added to the job requirements and tracked.

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Working Level Planning and Scheduling Section 5

Development
The first set of quantity curves for bulk commodities, design release, and installation should be
developed in conjunction with and as a result of resource (major bulk commodity) loading the
intermediate schedules. Particular attention is paid to the relative timing between installations (see
family of curves) and the installation rates between the 10th and 90th percentiles (known as the
sustained rate of installation). Historical rate information for similar projects should be compared to
measure reasonableness of rates selected for the new project.

It is important to check the timing and interrelationships of the curves and to check the percent
complete for each commodity at key project milestones. If it is decided that the interrelationships of the
curves or the percent complete at a key milestone is not acceptable or reasonable, adjustments are
made to the percentage-based curves and translated back to the commodity-specific unit of measure
installation curves and to the intermediate schedules. Then, the engineering release curves are added
to each commodity-specific unit of measure curves, again using the result of the resource-loaded
Engineering Intermediate Schedule. The durations between design release and construction
installation should be checked for each commodity to ensure that enough time is available for detailing,
fabrication, and delivery to the jobsite. Also, be sure there is enough quantity on site to support bulk
installation by area.

Some guidelines on relationships follow:

• Start of pipe installation is normally restrained by civil/structural completion and the erection of
major structures (e.g., pipe racks). It may be restrained by major equipment or heating, ventilating
and air conditioning ductwork installation.
• Usually start of small pipe is delayed until 50 percent of large pipe is completed. Instrumentation
typically follows small pipe.
• Start of cable tray installation will be governed mainly by structural completion of an area. Large
pipe may also restrain cable tray because large pipe will generally have priority.
• Exposed conduit installation can start after major equipment is set. Pipe in those areas may have
priority.
• Wire and cable pulling operations are dependent on the amount of raceway available, usually not
until 40 to 50 percent of the raceway is installed.
• Connections depend on the amount of cable pulled, to support a sustained rate of terminations.

Refer to Appendix B, Guidelines for Field Schedules, for additional information regarding comparison
of anticipated progress in selected categories (e.g., columns and vessels, piping, etc.) and the overall
construction schedule percent complete. The information in this appendix is for a typical petroleum
and chemical project. However, much is applicable to heavy construction projects in general and
therefore useful to all within Bechtel involved in developing field schedules.

In addition to the relationships for bulks from an installation perspective, it is important to check to
ensure that the design and procurement of the bulks support installations as planned. In addition to
establishing that engineering is committed to the release curves, it is necessary to look at the duration
between the bulk releases and installation to ensure that the procurement process results in proper
deliveries of materials to support the installation. There must be sufficient time to get the designs to
the fabricator to allow for timely fabrication and shipment. The fabricator may have to complete
detailed designs (e.g., reinforcing and structural steel) within this duration as well, and the duration
must allow sufficient time.

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Section 5 Working Level Planning and Scheduling

Other related bulks may also need to be checked to ensure that the installation process is supported.
A prime example of this type of interrelationship is pipe and pipe supports. Pipe hangers are needed
for pipe installation. The design of these hangers is dependent on the pipe design. The hangers, in
turn, must be fabricated and delivered in time to support the pipe installation. The planner needs to
develop network diagrams of the activities that occur in the time frame involved. This allows for better
communication with Procurement and vendors, who need to commit their support to the scheduled
durations. An example network diagram is shown in Figure 5-21.

100 35 200 21

Prep & Issue Prep & Issue

Process Data
Sheets
Mechanical
Vessel Drawing
Fundamentals of Project Scheduling
01MAY92
01MAY92
04JUN92
04JUN92
05JUN92
05JUN92
25JUN92
25JUN92 Fundamentals of Networks

300 21 800 14

Prep M/R Commercial Bid

(Technical) and Evaluation
Spec for Vessel Vessel PO
05JUN92 25JUN92 08AUG92 21AUG92
05JUN92 25JUN92 15AUG92 21AUG92

400 28 500 1 600 42 700 21 900 14 1000 1

Prep M/R Issue Vessel Receive Vessel Technical Bid Client Award Vessel
(Commercial) for M/R for Bid Vendor Bids Evaluation Recommendation and Purchase Order
Vessel PO Vessel PO Approval to Award
01MAY92 28MAY92 26JUN92 26JUN92 27JUN92 07AUG92 08AUG92 28AUG92 24AUG92 11SEP92 12SEP92 12SEP92
29MAY92 25JUN92 26JUN92 26JUN92 27JUN92 07AUG92 08AUG92 28AUG92 24AUG92 11SEP92 12SEP92 12SEP92

1700 240 1800 42

Fabricate Vessel Ship Vessel

(by Vendor) to Jobsite

13DEC92 09AUG93 10AUG93 20SEP93

13DEC92 09AUG93 10AUG93 20SEP93

1100 42 1200 14 1300 21 1400 14 1600 28 1900 14 2000 14 2100 1 2200 21 2300 2

Vendor Prep and Review Vendor Vendor Revise Review and Foundation Set Formwork Install Place Foundation Cure Concrete Set Vessel
Issue Vendor Drawings and and Resubmit Approve Vendor Design Drawings for Foundation Reinforcing Steel Concrete & Strip Forms on Foundation
Drawings Return Code 3 Drawings Drawings Code 1 “IFC” (Rebar)
13SEP92 24OCT92 25OCT92 07NOV92 08NOV92 12DEC92 29NOV92 12DEC92 13DEC92 09JAN93 10JAN93 23JAN93 24JAN93 06FEB93 07FEB93 07FEB93 08FEB93 28FEB93 21SEP93 22SEP93
13SEP92 24OCT92 25OCT92 07NOV92 08NOV92 12DEC92 29NOV92 12DEC92 05JUL93 01AUG93 02AUG93 15AUG93 16AUG93 24AUG93 30AUG93 20SEP93 31AUG93 20SEP93 21SEP93 22SEP93

1500 28

Begin Foundation
Design

25OCT92 21NOV92
07JUN93 04JUL93

FIGURE 5-21 - EXAMPLE NETWORK SCHEDULE DIAGRAM

The above process is iterative, and several iterations may be required. Reviews should be performed
at appropriate points with project team representatives from Engineering, Procurement, and
Construction to obtain their concurrence as the planned networks and curves are developed. Even
after the initial set of curves is developed, the process will be repeated (for example, either to look at
the to-go quantities during a forecast or to establish a recovery plan).

Evaluations
The initial level of evaluation is a comparison of planned vs. actual data. Unless Bechtel is tracking
installed quantities independently, the source of the actuals will be the submitted by the
(sub)contractors.
As measured and plotted, these curves represent broad categories of work and must be recognized as
less than precise measurements. However, they are reliable indicators of overall status and trends. If

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Working Level Planning and Scheduling Section 5

a curve shows that actual engineering releases are behind, then, clearly, schedule impacts could occur
to procurement and construction. However, meeting a curve does not necessarily mean construction
is being fully supported. The reason stems from the fact that construction is most efficiently performed
in a bulk mode by work area, while the designs are done by systems. Therefore, the released designs
might be in the wrong work areas or not represent all of the quantities to be installed to complete a
given work area all at one time. Under these situations, the design status may need to be tracked by
areas to confirm that releases are actually supporting construction. This will allow more definitive
priorities to be established for designs.

Another area that needs to be considered in statusing the curves for design releases is the impact of
holds on the actual quantity released. This is particularly true if computer-aided design and drafting
(CADD) system downloads are used, but it also true for items based on drawing takeoffs. In these
areas, a takeoff estimate of the quantity on hold is required. These values should be deducted from
the quantifies that are reported released.

With regard to construction installation, similar situations result with respect to the ability to turn
systems over to Startup. Again, another measure of status of installed quantities by system is required
to assess if construction is truly supporting startup.
Special care must be taken in evaluating status when delays occur to a subcategory of work, such as
delays in delivery and erection of pipe hangers or valves, or serious lag time in production welding
after erection of piping. When such circumstances occur, special notations should be made on the
curves and backup data should be cited to ensure correct interpretation.
It is clear that procurement is critical to the process, and it is to be noted that additional curves tracking
procurement progress shed additional light on the evaluation. In particular, these curves track issue of
bid specifications, contract/purchase order awards, and deliveries. Curves tracking deliveries to the
site are particularly important on projects employing (sub)contracts, because this is a critical interface
point with (sub)contractors. Lack of materials is justification for claims.
Total quantities will most likely change as the design evolves, and these changes need to be
integrated into process as early as possible to allow time to make adjustments. With only a small
number of exceptions for selected items (e.g., small pipe), responsibility for total forecasted quantities
for the project rests with Design Office Engineering. Project Controls in the Design Office needs to
work closely with Engineering on this issue. A schedule of rolling reviews of project quantities should
be established in the Project Execution Plan. This should identify control points at which the rolling
forecast is performed for the appropriate commodity and compared against the current total forecast
quantities. The field planner should be aware of the milestones that trigger these forecast checks so
that revisions to the construction plan can be facilitated.

QUANTITY REPORTING SYSTEM

The Quantity Reporting System (QRS) is maintained by Field Engineering and reconciled by Field
Project Controls.
Quantity reporting is currently being done in several different systems within Bechtel. For the most part
Bechtel relies on the (sub)contractors to accumulate installed quantity data when a (sub)contracts
execution approach to the work is employed. Bechtel Field Engineering is responsible for verifying the
reported quantities; this can be done employing different levels of evaluation, depending on the
(sub)contract type and method of payment. However, an automated program is under development
that will be electronically interfaced with other Bechtel design tracking programs to provide single-point
tracking of installed quantities. This could possibly be used by Bechtel Field Engineering on

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 5-29
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Section 5 Working Level Planning and Scheduling

(sub)contracted construction work to verify installation achieved by (sub)contractors or as the key

tracking tool to determine the billable quantities under a unit price contract. This program is described
at the end of this section, following a generic quantity reporting system description.

System Description
Quantity reporting must represent the total scope of the job. If systems unique to each commodity are
being maintained (e.g., TEAMWorks, Setroute), appropriate information must be integrated with
quantity reporting using the project cost code structure.

The project field engineer is responsible for developing a project takeoff and quantity reporting plan
that ensures that installed and to-go quantities are properly identified and reported. It is recognized
that this process is restricted to tracking quantities released by Design Office Engineering, which is
responsible for total quantities forecasted for the project.
Regardless of the detail system used, the following criteria should be met for quantity reporting
purposes on all projects:
1. Quantities should be reported against pre-loaded quantity takeoffs by drawing number, equipment
tag number, or other control number that specifically identifies the work and can be audited at a
later time. At large quantity reporting within a cost code is unacceptable.
2. At a minimum, the quantity reporting database should contain:
Cost Code Drawing Number
Description Equipment Number
Unit of Measure Item Number
Last Week Installed Quantity Takeoff Quantity
To-Date Installed Quantity
To track the (sub)contracted work, quantity information is required by contract number, bid item, pay
item, and line item. The responsible (sub)contractor submits reports on the corresponding installed
quantities in this manner, cross-referencing the appropriate cost codes and unit of measure (e.g., cubic
yards, tons, lineal feet, each), to the responsible contract representative (administrator/ coordinator).
The field engineer verifies the quantities installed.

Depending on contract type and project needs, partial quantities may be reported to allow performance
monitoring during the installation process and before completing all related work or a given commodity.
Attachment 5-1 includes guidelines for reporting partial quantities based on the reporting requirements
of Instruction F5.1 of the Field Engineering Manual. These data may be displayed in a report similar to
the one shown in Figure 5-22. Note that the level of breakdown for crediting work in Attachment 5-1 is
geared to labor broker measurement. It is important to recognize that that measurement for payment
drives the need for level of breakdown, which may vary from that displayed in the attachment,
particularly for unit price and lump-sum (sub)contracts. The tracking may be limited solely to the
completion of installation, without any credit for interim progress of work. The quantity reporting system
should be adjusted to reflect this.

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Working Level Planning and Scheduling Section 5

PROJECT TITLE
JOB NO
QUANTITY REP ORTING S YSTE M

QUANTITY STA TUS RE PORT - B Y COST CODE

MM /DD/YY

SYS QTY RES P TAKE THIS LAS T PRE V. TOTAL

COS T CODE ITEM # SRC INFO DRAW ING DESCRIPTION SIZE TY PE CODE CODE UOM CODE OFF W E EK W E EK TO DATE TO DATE
G00P 22000B L 405 38D-P -00-014--1 E LECT U/G COND: RAIL CAR PULLERS 2” P 22 LF 5000 200 0 0 143 143
*********************** ------- ------- ------- ------- ------- -------
COS T CODE TOTAL COST CODE TOTAL 200 0 0 143 13
FORE CAS T TOTA L 220 143
B UDGE T TOTA L 190 143

G00P 50000B L 406 38D-P -00-004--0 E LECT GRND:COKE UNL SHE D GRND UNIT 38 250 P 50 LF 5000 860 0 0 0 0
G00P 50000B L 407 38D-P -00-006-0 E LECT GRND:CAR PULLERS UNIT 38 4/0 P 50 LF 5000 300 120 0 170 290
G00P 50000B L 533 38D-P -XX-002--A E LECT GRND: GRND COK ER CRA NE 250 P 50 LF 5000 100 0 0 40 40
G00P 50000B L 591 39D-P -00-013--0 E LECT GRND: COKE R 250 P 50 LF 5000 120 120 0 0 120
*********************** ------- ------- ------- ------- ------- -------
COS T CODE TOTAL COST CODE TOTAL 1380 240 0 210 450
FORE CAS T TOTA L 1400 450
B UDGE T TOTA L 1300 450

G00P 51000B L 409 45D-L-01-101--3 E LECT CA TH PRT: U/G PIPING UNITS 39,45,47 1/0 P 51 EA 5000 18 0 0 4 4
G00P 51000B L 410 45D-L-01-102--6 E LECT CA TH PRT: U/G PIPE UNITS 38,39,45,47 1/0 P 51 EA 5000 26 0 0 9 9
G00P 51000B L 411 45D-L-01-103--2 E LECT CA TH PRT: U/G PIPE UNITS 38,45,47 1/0 P 51 EA 5000 3 0 0 1 1
G00P 51000B L 412 45D-L-01-104--3 E LECT CA TH PRT: U/G PIPE UNITS 38,39,45,47 1/0 P 51 EA 5000 7 1 0 0 1
G00P 51000B L 413 45D-L-01-105--4 E LECT CA TH PRT: U/G PIPE UNITS 39,44,45,47 1/0 P 51 EA 5000 26 3 0 9 12
G00P 51000B L 414 45D-L-01-106--4 E LECT CA TH PRT: U/G PIPE UNITS GA S P LANT 1/0 P 51 EA 5000 16 0 0 9 9
G00P 51000B L 415 45D-L-01-107--3 E LECT CA TH PRT:U/G PIPE PROCESS SK D A REA 1/0 P 51 EA 5000 9 2 1 3 5
G00P 51000B L 416 45D-L-01-108--4 E LECT CA TH PRT: U/G PIPE FUTURE EXP AREA 1/0 P 51 EA 5000 5 0 2 5 5
*********************** ------- ------- ------- ------- ------- -------
COS T CODE TOTAL 3300 COST CODE TOTAL 110 6 3 40 46
FORE CAS T TOTA L 130 46
B UDGE T TOTA L 100 46
NOTE: (1) Database can be s orted by any code criteria shown, i.e. cos t code, sy stem code, or quantity code.
(2) Quantity information will be integrated with performance and forecast modules.

FIGURE 5-22 - SAMPLE QUANTITY REPORT

Automation
The QRS program is a computer automation database that is currently under development. It will be
part of TEAMWorks, but will also be able to interface with other BSAPs. As shown by the system
boundary diagram in Figure 5-23, the QRS program will interface with Setroute. It also will be able to
take advantage of the interfaces to TEAMWorks as they become available. For instance, the
Computer Aided Instrument and Electrical System (CAIES) provides instrument-related information to
TEAMWorks.
Quantity-related information currently captured in TEAMWorks includes large-bore spools and small-
bore pipe, pipe welds, pipe hangers, valves, bulk nonspooled pipe, field-mounted instruments, and
structural and miscellaneous steel. Concrete, formwork, and rebar are planned to be tracked in future
versions. Quantity information contained in Setroute includes cable tray, scheduled conduit and pull
boxes, scheduled wire and cable, and scheduled terminations. Other commodities can be added
directly into the QRS program using takeoffs and tracked accordingly.

It is to be noted that there is also selected information on equipment, heat tracing, and insulation in the
ProjectWorks suite of tools. However, it is not in sufficient detail for quantity tracking.
The QRS program would allow a quantity status report to be produced periodically (e.g., weekly,
monthly) for use either to verify or to document installed quantities. In the latter case, it would become
the official basis for contractor payments and would require agreement by the (sub)contractor before
start of work.

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 5-31
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Section 5 Working Level Planning and Scheduling

Financial Reporting
Manual Quantity Input
System

Weekly Hours &

Weekly Manual Hours

Costs
Installed Quantities
TEAMWorks

Installed Quantities PCWorks - Craft

Quantity Report System Performance or Contract
Monitoring

Setroute
Installed Quantities Forecast/Budget Quantities & Project Codes

Installed Quantity Progress &

Reports Performance Reports

FIGURE 5-23 - SYSTEM BOUNDARY DIAGRAM

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Working Level Planning and Scheduling Section 5

ATTACHMENT 5-1
QUANTITY REPORTING

CONCRETE QUANTITY REPORTING

1) The field engineer typically verifies installed quantities by visual inspection. Any questions or problems should be
resolved with the appropriate superintendent before quantities are reported. The field engineer reports quantities to
Project Field Controls weekly, as outlined in the Quantity Reporting Plan. Partial installation credit may be
reported as shown in Table 5-1-1 (a) through (d).
2) Field Engineering should maintain updated reports of weekly installed quantity reports. Only quantities included in
the original takeoff should be reported as installed. Report any additional quantities to Project Field Controls as a
potential scope increase.
3) The quantity of concrete installed is normally documented on pour cards or batch tickets. The field engineer
should collect the pour cards after the placement is made to determine the actual quantity of concrete placed.
4) The actual quantity of concrete placed should be compared to the takeoff quantity to determine the amount of
overpour and waste that has occurred. This information is typically logged for all concrete placements on the
project and the overall percentage overpour and waste calculated and tracked.

TABLE 5-1-1 (a) – CONCRETE FORMWORK QUANTITY REPORTING MATRIX

Milestone Percent Complete
Offload and Install Formwork 40%
Offload, Build Templates, and Set Embeds 20%
Concrete Placement 15%
Strip Forms 15%
Clean Forms for Reuse or Ship 10%

TABLE 5-1-1 (b) – REBAR QUANTITY REPORTING MATRIX

Milestone Percent Complete
Offload and Install Rebar 40%
Tie Rebar 50%
Concrete Placement 10%

TABLE 5-1-1 (c) – EMBED QUANTITY REPORTING MATRIX

Milestone Percent Complete
Offload, Build Templates, and Set Embeds 70%
Concrete Placement and Template Removal 30%

Note: As an option, embed reporting may be combined with formwork.

TABLE 5-1-1 (d) - CONCRETE QUANTITY REPORTING MATRIX

Milestone Percent Complete
Concrete Placement 90%
Patch Concrete and Final Cleanup 10%

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Section 5 Working Level Planning and Scheduling

ATTACHMENT 5-1 (Continued)

STRUCTURAL STEEL REPORTING
1) The field engineer normally verifies installed quantities by visual inspection of the completed work. Any questions
or problems should be resolved with the appropriate superintendent before the quantity report is submitted. The
field engineer reports quantities to Project Controls weekly, as outlined in the Quantity Reporting Plan. Partial
installation credit may be reported as shown in Table 5-1-2.
2) Field Engineering should maintain both a marked-up set of drawings showing installed quantities and a log of
weekly installed quantities that have been reported.

TABLE 5-1-2 - STRUCTURAL STEEL REPORTING MATRIX

Erected and Welded or Punchlist
Offload Haul Tacked Bolted Complete
Platform, Stairs, Ladders 5% 45% 35% 15%
Grating, Checker Plate 5% 45% 35% 15%
Pipe Stanchions 5% 65% 15% 15%
Steel Structures 5% 50% 25% 20%
Handrail Systems 5% 45% 35% 15%

BUILDINGS QUANTITY REPORTING

Building installed quantities are normally reported by each discipline as outlined in each section of this commentary. If
the building is subcontracted, however, a separate report may be submitted for all disciplines in the subcontractor's
scope of work.

PIPING QUANTITY REPORTING

1) On projects with a computerized piping quantity tracking system such as Pipeline in place, installed piping
quantities are reported by the craft foreman by turning in pipe installation cards. Complete installation credit for a
particular length of pipe cannot be given until all items included in the quantity status definition are complete.
Similarly, complete installation credit for pipe routed through a valve cannot be reported unless the valve is
correctly installed according to project drawings and specifications, including valve trim, bolting, gasket
installation, and valve orientation.
2) The field engineer verifies that reported quantities are correct and that the piping is properly installed. Any
questions or problems must be resolved with the appropriate superintendent before submitting the quantity report.
The field engineer either reports quantities to Project Field Controls weekly or provides a weekly download of the
piping installation quantity system per the project Quantity Reporting Plan. Partial installation credit may be given
as shown in Table 5-1-3.
TABLE 5-1-3 - GENERAL PIPING QUANTITY REPORTING MILESTONES
MILESTONE ABOVE GROUND BELOW GROUND
(Including Rack Piping)
Receive and Offload 5% 5%
Pipe Erected, Aligned, and Tacked or Set in 25% 30%
Place
Pipe Welded or Bolted 60% 55%
Punchlist Complete and Ready to Test 10% 10%
Notes:
1) The line at this stage of progress should be sufficiently complete so that as soon as testing is complete the pipe
can be released to the painter and insulator. This does not include test blind installation.
2) Checkout includes operational checks of valve handwheels and chain operators and restraightening of small
diameter pipe. This does not include removal to test blinds and rebolting flanges after testing.
3) Field Engineering should maintain both a marked-up set of drawings and data records reflecting takeoff, material,
and installation status.

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Working Level Planning and Scheduling Section 5

ATTACHMENT 5-1 (Continued)

MECHANICAL EQUIPMENT QUANTITY REPORTING
1) The field engineer normally verifies installed quantities by visual inspection of the completed work. The complete
installation of mechanical equipment should include final alignment. Any questions or problems should be
resolved with the appropriate superintendent before the quantity report is submitted. The field engineer reports
quantities to Project Controls weekly, as outlined in the Quantity Reporting Plan.
2) Typical examples of major equipment detailed work operations reporting percentages are shown in Table 5-1-4.
TABLE 5-1-4 – MAJOR EQUIPMENT DETAILED WORK OPERATIONS
Description Percent Complete
Tanks (Shop Fabrication - Containing no internals)
Unload and Store 15%
Set in place 60%
Seal or grouted 15%
Inspect and headup 10%
Tanks (Shop Fabrication - Containing internals)
Unload and Store 5%
Set in place 25%
Seal or grouted 10%
Internal complete 50%
Inspect and headup 10%
Pumps & Drivers (Package Units)
Set in place 15%
Secure & Grouted 25%
Alignment Check - include pipe stress 30%
Bump motors, final align and couple 15%
Test & Accept 15%
Pumps & Drivers (Separate Units)
Set in place 5%
Secure & Grouted 20%
Driver secured in place 10%
Alignment Check - include pipe stress 40%
Bump motors, final align and couple 10%
Test & Accept 15%
Blowers & Fans
Set in place 20%
Secured & Grouted 25%
Alignment Checked 30%
Motors Bumped, Final Alignment Complete and Coupled 10%
Run In Complete & Accepted 10%
Maintenance 5%

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Section 5 Working Level Planning and Scheduling

ATTACHMENT 5-1 (Continued)

Package Compressors (Complete With Driver)
Set In Place 10%
Secured & Grouted 20%
Alignment Checked 35%
Lube Oil Flush Completed 20%
Testing Complete & Final Acceptance 15%
Description Percent Complete
Package Compressors (With Separate Driver)
Set In Place 5%
Secured & Grouted 20%
Driver Secured in Place 5%
Alignment Checked 35%
Lube Oil Flush Complete 20%
Testing Complete & Final Acceptance 15%
Compressors - Knocked Down
Base Set in Place 5%
Base Secured – Ready For Grout 5%
Cylinders and Top Head Complete 15%
Final Setting and Grouting Complete 10%
Driver in Place 5%
Driver Aligned, Coupled , and Secured 10%
Auxiliary Equipment Complete 20%
Flushing Complete 20%
Testing Complete & Final Acceptance 10%

ELECTRICAL QUANTITY REPORTING

1) On projects using the Setroute quantity tracking program, installed quantities are reported by the electrical craft
foreman by completing and submitting an installation card documenting the work performed. The program will
then credit the linear feet of wire and cable installed, terminations completed, or devices set. Credit for wire and
cable installation should not be taken until the circuit is in place ready to be terminated. Installation of raceway is
not complete unless all tray is secured and all supports, caps, and plugs are in place.
2) The field engineer should verify that reported quantities are correct and that cable, terminations, and equipment
are properly installed. Any questions or problems should be resolved with the appropriate superintendent before
the quantity report is submitted. The field engineer will either summarize weekly installed quantity reports from
Setroute or will manually report quantities to Field Project Controls weekly, as outlined in the Quantity Reporting
Plan.
3) Partial credit may be given for electrical equipment installation as shown in Table 5-1-5.
4) All electrical bulk quantities are reported on an as installed basis.
5) Field engineering should maintain a set of marked-up drawings showing the takeoffs performed and quantities
installed to date.
6) Reported quantities should be against takeoff quantities only. Quantities installed in excess of the original takeoff
could indicate a project scope increase and should be reported to Project Field Controls before being reported.

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Working Level Planning and Scheduling Section 5

ATTACHMENT 5-1 (Continued)

TABLE 5-1-5 – ELECTRICAL EQUIPMENT QUANTITY REPORTING MATRIX
Medium
General Voltage Low Voltage
Milestone Transformers Equipment Equipment Equipment DC Equipment
Receive and Handle 10% 10% 10% 10% 10%
Set in place, secure 20% 20% 20% 20%
Set racks in place 20%
Hookup Internals 50% 50%
Dressout Complete 50%
Complete Installation 50% 50%
Checkout/ Punchlist 10% 10% 10% 10% 10%
Complete
Testing Complete 10% 10% 10% 10% 10%

INSTRUMENTATION QUANTITY REPORTING

1) The field engineer should verify the quantities installed and that the instruments and instrument tubing are properly
installed. Any questions or problems should be resolved with the appropriate superintendent before the installed
quantity report is submitted. The field engineer will report installed quantities to Project Field Controls weekly, as
outlined in the project Quantity Reporting Plan.
2) Installed quantity credit for mounting instruments is shown in Table 5-1-6. All others items, including tubing, are
tracked on as-installed quantity basis.
3) The field engineer should maintain a set of marked-up drawings showing the takeoffs performed and installed
quantities.

TABLE 5-1-6 – INSTRUMENT MOUNTING QUANTITY REPORTING MATRIX

Panels/Integrated Packaged Instrument
Milestone Local Racks Controls Systems
Unload & Store 10% 15% 15%
Uncrate 15%
Complete Installation 10% 65% 55%
Connections Complete 25%
Checkout/ Punchlist 70% 5% 5%
Complete
Testing Complete 10%

INSULATION QUANTITY REPORTING

1) The subcontractor normally reports piping and Instrumentation insulation quantities. The field engineer should
monitor the subcontractor's work to ensure that the reported installation quantities are accurate and that the work
is satisfactory. The field engineer should also maintain a set of marked-up orthographic and isometric piping
drawings reflecting the piping insulation installed. Partial credit for installed quantities is normally reported as
shown in Table 5-1-7.
2) Mechanical equipment insulation is normally reported by the subcontractor. The field engineer should monitor the
subcontractor's work to ensure that the reported installation quantities are accurate and the work is satisfactory.
Since most mechanical equipment insulation work activities involve the use of scaffolding, the installation and
removal of scaffolds are a key factor in monitoring the progress of the insulation work. Weight factors for
scaffolding erection are normally based on the subcontractor's jobhour estimate or bid. Jobhours for scaffolding
erection and removal should be requested from the subcontractor along with the bid price.
3) Mechanical equipment insulation partial installation credit is as shown in Table 5-1-8.

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Section 5 Working Level Planning and Scheduling

ATTACHMENT 5-1 (Continued)

TABLE 5-1-7 – PIPING INSULATION QUANTITY REPORTING MATRIX
Milestone Hot Piping Cold Piping
Scaffold Erection Complete 20% 20%
Install Insulation 35% 42%
Install Jacketing 35% 28%
Remove Scaffolding 10% 10%

TABLE 5-1-8 – MECHANICAL EQUIPMENT INSULATION QUANTITY REPORTING MATRIX

Milestone Hot Equipment Cold Equipment
Scaffold Erection Complete 20% 20%
Install Insulation 35% 42%
Install Jacketing 35% 28%
Remove Scaffolding 10% 10%

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Section 6
Working Level Cost Control
The areas of working level cost control covered in this section include:
• Field-Related Accounting
• (Sub)Contract Monitoring/Materials Cost Control
• Distributable Reports

The deliverables matrix, shown in Attachment 6-1, summarizes field deliverables for field nonmanual
jobhour and cost control and for deliverables related to materials/(sub)contract control. Both Design
Office (DO) and field (F) responsibilities are noted for each category. As the project progresses, a
number of the reports listed may be transferred to the field.

FIELD-RELATED ACCOUNTING
Field-related cost control is maintained by Accounting and reconciled by Field Project Controls.
Automation
PCWorks is the primary automation tool used for cost control on most projects. The diagram in
Figure 6-1 maps the levels of information exchange between PCWorks and other standard automation
tools. Accounting, through its various automated programs, provides cost and jobhour data for
nonmanual labor, materials and subcontracts, and manual labor under direct-hire situations.

ESP Setroute TEAMWorks BPS/PTS CRS (Oracle) Infoworks Primavera

Quantity Reporting System (QRS)
Application/Function

Bechtel Services(Hrs/$)

Budget /General Info

Dollars
Jobhours

Quantities

Engineering Performance
Jobhours
Dates
Drawing Lists

CO/CO/Contracts

Commitments
Payments
Craft Performance
Actual Hours
Wages

Quantities Installed

FIGURE 6-1 - PCWorks INFORMATION EXCHANGE DIAGRAM

1998 Bechtel Corp. Principles of Construction Controls, Vol. II, (Sub)Contract Execution 6-1
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Section 6 Working Level Cost Control

For many years, nonmanual jobhours have been captured exclusively through manual input using
handwritten timesheets. In the last few years, an electronic system has been established. The goal is
to implement electronic nonmanual timekeeping throughout Bechtel over time.
The Bechtel Electronic Time Record (BETR) is the standard electronic timekeeping system for all
nonmanual employees. For projects using it that do not have adequate site communication abilities, or
where other circumstances prohibit the use of BETR, handwritten time records should be gathered by
a project administrator with access to BETR who can enter the data as proxy. Nonmanual payroll may
then be processed out of a central location. The time-related BETR information is electronically
transferred to the Controller Financial Information System (CFIS) Payroll and passed on to the CFIS
Labor System, from which it is then made available to Project Controls. Currently, this information is
available in the Controller Reporting System (CRS). In the future, it will be available directly via the
Information Exchange Layer (IEL).
For materials and (sub)contracts, the standard program that will be used in the future for accounts
payable purposes is Oracle-based, although a number of other applications are currently being used.
Other accounts payable systems in use include Timberline, Clipper, and various dBase and Access
applications.
Work is ongoing to enhance Oracle Accounts Payable. Maximizing its use greatly enhances the
efficiencies of the electronic imaging. It is the intent to have Procurement electronically feed purchase
orders and receiving reports from the Bechtel Procurement System (BPS) into the Oracle Accounts
Payable system, as well as to have vendors bill us electronically. Automatic electronic exchanges of
information between the commercial system and PCWorks through a Project Accounting Sub-ledger
(IEL) are also planned.
Gateworks and Foretime are automated programs used to monitor craft attendance and accrue craft
hours by cost code on direct-hire construction projects. Foretime is the preferred and most cost-
effective application for craft timesheets. The information from Foretime is electronically passed to the
manual labor payroll program.
Foretime could be used to collect joint venture hours. However, refinements are required to facilitate
implementation of Foretime in the international arena. Instead, the manual, hard copy system in use
for many years is still being used at most international sites.
Timberline is a commonly used manual labor payroll application. Where there are complexities of
foreign currency exchange rates, Micro Payroll is used. Other applications such as Concord have also
been used for manual labor payroll.

Some of the financial applications noted here are referred to in other sections of this handbook.
Again, it is noted that Oracle Financials will be used globally. Each region will have its own setup, but it
is anticipated that they will be somewhat similar to the one presented here.

Use of Centralized Accounting Function Approaches

As the accounting process becomes more automated through electronic information exchange
interfaces, the use of a centralized processing center will have advantages, since it allows
instantaneous access by users. Centralizing accounts payable and manual labor payroll eliminates the
need for operating bank accounts in the field.

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Working Level Cost Control Section 6

Craft Hiring Timekeeping Balance Gate Log

Foretime Manual
CHRIS
Gateworks
Manual

Gathering Earned Revenue Estimating

Collect Field Books Manual ESP

Process Payroll

Timberline Weekly Feed (Current)

Journal Entries Journal Entries General Ledger Corporate GL Operations Reports

Commitments
Manual
Oracle Oracle Oracle Oracle
Manual
JEM (Subcontracts &
PO’s)

Job Acct. Database

Commitments JADB/SIDB

Manual Controller System

(Subcontracts &
PO’s) FOCUS
Accounts Payable
Weekly
Oracle Feed Cost Control Quantity Reporting
Pipeline
Weekly Feed (Current) PC Works Setroute
Approve Invoices
QRS
Manual

Job Acct. Database MANAGEMENT

Client Billings REPORTS
JADB/SIDB
FOCUS • Budget Change Reports
• Cost & Commitment
Bi-Weekly Reports
ORACLE Feed • Voucher Reports
NM Timesheets
• Code of Account Reports
BETR Non-Manual Payroll • Contract Administration
LEGEND
Labor Distribution • Craft Performance
Project Reports LAR, MAR, SAR

Phoenix

FIGURE 6-2 - PROJECT DATA FLOW USING HIGH LEVEL OF AUTOMATION (NEAR TERM)

Figure 6-2 highlights the near-term system employed to maximize automation and defines the data
flow. The manual payroll system depicted happens to be Timberline but, as noted, others may be
used.
Further definition of each of these applications is given in Attachment 6-2.

(SUB)CONTRACT MONITORING/MATERIALS COST CONTROL

(Sub)contracts are maintained by Contracts Administration. Materials information is maintained by
Procurement. Accounts Payable information is maintained by Finance and Accounting. Reconciliation
is performed by Project Controls.

Overall (Sub)Contract and Materials Cost Control

(Sub)contracts and material purchase orders (POs) are issued from the Home Office or the field as
indicated on the Material Assignment Schedule (MAS) developed by procurement. An example MAS
is shown in Attachment 6-3. Both POs and (sub)contracts are tracked by Project Controls over the life
of the project through the cost and commitment (CO/CO) program. The CO/CO flow diagram shown in
Figure 6-3 summarizes the sequence of events that occur during the CO/CO reporting cycle. An
example Commitment Authorization is shown in Figure 6-4. It is noted that, as the project moves into
the main construction phase, the CO/CO report may be transferred to the field.

The project should establish a procedure for committing costs. It should provide clear definition of the
process, including the monetary value below which items are committed-as-paid.

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Section 6 Working Level Cost Control

PURCHASE ORDER COMMITMENT HOME OFFICE COST DOWNLOAD SENT TO

SUBCONTRACT AUTHORIZATION AUTHORIZATION ACCOUNTING
AWARDED DOCUMENT PREPARED DOCUMENT PREPARED (MONTHLY)

ACCOUNTING PROJECT CONTROLS

ACCOUNTING PAYS
DOWNLOADS COSTS COST ENGINEER LOADS
AGAINST PURCHASE
AND SENDS TO DATA AND ISSUES COST
ORDERS/
PROJECT CONTROLS & COMMITMENT REPORT
SUBCONTRACTS
(MONTHLY) (MONTHLY)

Note: This chart references a PC based system. The above could be accomplished manually if job size requires.

FIGURE 6-3 - COST AND COMMITMENT FLOW DIAGRAM

Procurement is responsible for all purchasing, expediting, and inspection functions in the Home Office,
in the field, and in vendor shops. Engineering issues the specification/material requisitions and is
responsible for the technical evaluation of the bids. Procurement evaluates the commercial sections of
the bids. Construction is responsible for receiving, warehousing, handling, and field inspections.
Procurement and Construction share the responsibility of closing out POs and (sub)contracts.
Accounting produces the monthly Accounts Payable General Ledger, which provides cost-to-date
information for materials and (sub)contracts. Much of this system was covered earlier in this section.
Project Controls is responsible for establishing the budgets for all goods and services to be purchased.
Project Controls also reviews procurement documents to ensure conformity with the project budget
requirements. Project Controls is responsible for coordination with Engineering, Procurement, and
Construction to establish and monitor budgets. Significant deviations from the budget are reported
through the Trend Program to facilitate any necessary corrective action.

Detailed Control of (Sub)Contracts

A pre-construction meeting is held before the (sub)contractor’s mobilization. In addition to those items
cited in Section 5, the following controls-related topics should be on the agenda:
• Contract change procedures
• Progress payment schedules
• Progress measurement and approval invoicing procedures (invoices, certificates of payment,
and supporting submittals)
• Force accounts (used to track [sub]contractor’s costs until disposition through change notice
negotiations, backcharges, or completion of task)
• Backcharges
• Project schedule reviews and coordination meetings

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Working Level Cost Control Section 6

Commitment Authorization
JOB NO. PROJECT NAME / CUSTOMER DATE APPROVED

DOCUMENT NUMBER (P.O., S.C., CONTRACT) REVISION / AMENDMENT NO. (INSERT N.A. IF NONE) COMMITMENT AUTHORIZATION NO. (SEE NOTE 1)

DESCRIPTION OF WORK TO BE AUTHORIZED BY THIS COMMITMENT (CONTINUE UNDER REMARKS IF ADDITIONAL SPACE REQUIRED)

RECOMMENDED SUPPLIER / CONTRACTOR OR PRESENT SUPPLIER / CONTRACTOR PROPOSAL (BID) PRICE

(SEE NOTE 2)

A. $
OTHER BIDDERS (IF ORIGINAL COMMITMENT)
B. $
C. $
D. $
E. $
F. $
G. $
$ $ $ $
VALUE OF ORIGINAL COMMITMENT + TOTAL OF PREVIOUS + THIS COMMITMENT = TOTAL COMMITMENT
COMMITMENTS (EXCEPT ORIGINAL AND OTHER (INCLUDING THIS COMMITMENT)
(EXCEPT ORIGINAL) PREVIOUS COMMITMENTS)

A REVISION / AMENDMENT TO DOCUMENT [ ] WILL BE ISSUED [ ] WILL NOT BE ISSUED

CURRENT SCHEDULE REQUIREMENTS DATES PROPOSED SCHEDULE CONTRACTUAL DATES TYPE OF PAYMENT HAS A CREDIT CHECK
START: COMPL: START: COMPL: FOR THIS COMMITMENT AUTHORIZATION BEEN MADE?
[ ]UNIT PRICE [ ]LUMP SUM [ ]YES
[ ]T&M [ ]OTHER [ ]NO
CURRENT BUDGET CURRENT ESTIMATE THIS COMMITMENT SUBJECT TO ESCALATION? ADVANCE PAYMENTS THIS PROGRESS PAYMENTS
COMMITMENT? THIS COMMITMENT?
MAT: LAB:

[ ]YES [ ]YES [ ]YES (IF REQUIRED, ATTACH [ ]YES

[ ]NO [ ]NO [ ]NO COPY OF APPROVAL [ ]NO
DOCUMENT)
EXCEPTIONS TO SPECIFICATIONS OR GENERAL CONDITIONS (USE ADDITIONAL SHEET IF REQUIRED)

REMARKS - FOR AMPLIFICATION / CLARIFICATION OF ANY ABOVE STATEMENTS (USE ADDITIONAL SHEET IF NECESSARY)

I. COMMITMENT AUTHORITY (BUSINESS LINE) II. EXECUTION AUTHORITY

RECOMMENDED:

(TYPE / PRINT AND SIGN NAME) DATE

APPROVED: APPROVED:

(TYPE / PRINT AND SIGN NAME) DATE (TYPE / PRINT AND SIGN NAME) DATE
NOTE 1: COMMITMENT AUTHORIZATION NUMBERS ARE SEQUENTIAL FOR EACH DOCUMENT BEGINNING WITH NO. 1 FOR ORIGINAL COMMITMENT.
NOTE 2: INDICATE L.S. (LUMP SUM) OR EST. (ESTIMATED). IF TOTAL EVALUATED COST IS DIFFERENT FROM “PROPOSAL (BID) PRICE” SHOW TO LEFT OF
PROPOSAL (BID) PRICE UNDER HEADING “TOTAL EVALUATED COST.”
 1993 Bechtel Corporation - All Rights Reserved FORM 2.15.4-A (12/93)

C-CA.FRM/Dec93/Rev1

FIGURE 6-4 - COMMITMENT AUTHORIZATION FORM

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Section 6 Working Level Cost Control

• In the field, the field cost engineer should review the scope of pay items and cost code them
to applicable accounts. It may be necessary to temporarily cost code into suspense accounts
until the detailed breakdown, as outlined in the contract and/or required by the Project COA, is
obtained.

In case the awarded (sub)contract price is different from that originally budgeted or previously
forecasted, this information, plus allowances for anticipated changes, is entered into the field trend
program after appropriate review with the field contracts administrator (or contracts coordinator as
applicable) and the site manager.

Throughout the life of a (sub)contract, the field contracts administrator may receive requests from a
(sub)contractor to amend the scope, cost, or schedule aspects of a particular (sub)contract. Such
request may be prompted by a change in scope that was initiated by the client, Bechtel, or the
(sub)contractor or by changing conditions at the site or in the general market. Based on the nature of
these proposed changes, the field contracts administrator may request that the field controls manager
supply information for preparing an appropriate analysis. This information may be in the form of an
engineer’s estimate, an independent manpower loading, etc. Based on the scope of the work outlined
by the field contracts administrator, the field controls manager performs the study and gives it to the
field contracts administrator in a format that allows comparison with the (sub)contractor’s proposal.
Specific guidelines on the field contracts administrator/field controls manager interface must be
developed for each project. Figure 6-5 provides a flow chart of the field (sub)contract change
management process.

CLIENT (1) APPROVAL

PROJECT
(1) APPROVAL
MANAGEMENT

HOME OFFICE ISSUE DESIGN

ENGINEERING CHANGE NOTICE

UPDATE COST
FORECAST

PROJECT
CONTROLS
PREPARE COST UPDATE EXTRA
ESTIMATE WORK ORDER LOG

OBTAIN ISSUE
PREPARE EXTRA
FIELD CONTRACTS PROPOSALS/
WORK ORDER
(SUB)CONTRACT
REGISTER CHANGE CHANGE

REVIEW DESIGN
CHANGE NOTICE

FIELD
ENGINEERING
EVALUATE/ISSUE
FIELD CHANGE
NOTICE

REQUEST FIELD
FIELD SUPERVISION CHANGE

(SUB)CONTRACTOR
(SUB)CONTRACTOR REQUEST, DEMAND, (1) COMMITMENT AUTHORIZATION REQUEST PROCEDURE
OR PROPOSAL

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Working Level Cost Control Section 6

FIGURE 6-5 – FIELD (SUB)CONTRACT CHANGE MANAGEMENT PROCESS

As with the initial review of all (sub)contracts, the field controls manager ensures that the effects of
approved change orders are reported in the field trend program, CO/CO ledgers, cash flow analysis,
forecast, schedule analysis, and CISs. It cannot be overemphasized how important it is for Project
Controls and Contracts to establish a communications link early in the proposal process and maintain
close coordination throughout to ensure an effective and efficient (sub)contract process. The proposal
stage is key, and Project Controls and Contracts need to identify the data/information requirements for
the (sub)contract then so that they are included in the RFP and in the (sub)contract before signing.
Afterward, every additional request most likely means a price increase; therefore, requests need to be
minimized. Even changes in format can result in extra work requests.
In many instances, Bechtel has vendors supply materials, equipment, or services (e.g., detailed
design) that are provided to (sub)contractors to complete their work. These items may be incomplete,
unsatisfactorily completed, or damaged/lost in transit, or the vendor may request that certain work for
which it is responsible be completed on site. The extra work completed by the (sub)contractor should
be backcharged to the vendors.

Also, work performed by Bechtel personnel at the request of a (sub)contractor or that was within the
scope of a (sub)contractor’s contracted scope of work should be backcharged to that (sub)contractor.
The field contracts administrator acts as a backcharge originator for all (sub)contractor
backcharges and is assisted by the field controls manager.
For each (sub)contract, a Division of Responsibility Matrix is completed before award (see Appendix D
for example format). In the matrix, the appropriate contract representatives are assigned the
responsibilities to:
• Identify the scope and prepare a summary
• Prepare Notices of Backcharge
• Obtain (sub)contractor approval
• Summarize daily data and reports for backcharges
It is always preferable, for warranty, resource, and pricing purposes, to have rework or other corrective
action performed by the responsible party. If the vendor or (sub)contractor is unable or unwilling to
perform the work, the Bechtel assigned (sub)contracts representative issues and logs a Notice of
Backcharge Work To Be Performed. If agreement or acceptance cannot be obtained, the
(sub)contracts representative may establish an account by cost code to accumulate charges. Daily
Summaries of Backcharge Work should be prepared, and (sub)contractor concurrence should also be
sought daily. Concurrence is usually easier to obtain when the (sub)contractor is working on items to
be backcharged to a vendor, as opposed to Bechtel personnel completing the work for backcharge to
the (sub)contractor, unless it was at the (sub)contractor’s request.

The Daily Summary of Backcharge Work or the signed timesheets serve as the basis for auditing and
determining that all direct charges are recorded in the backcharge account. The charges are reviewed
and, if approved, are billed to the (sub)contractor. Accounting prepares invoices for backcharges,
including applicable indirect costs, as soon as the work is completed; or, if the work is of a continuing
nature, monthly invoices may be prepared. A consolidated billing request is sent for collection or is
offset against amounts otherwise due. Accounting periodically issues a backcharge report, but related
costs are also tracked in the Project Controls reporting system.

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Section 6 Working Level Cost Control

If the vendor/(sub)contractor disputes the backcharges, then selected project personnel are assigned
to settle these disputes. The Division of Responsibility Matrix identifies these people.

Progress payment verification and approvals are the responsibility of Field Contracts Administration,
Field Accounting, and the project accounting manager. The field contracts administrator is responsible
for verifying the basis of payment, whether it is installed quantities, percent complete against individual
bid items, or any other method developed to monitor progress. To avoid disputes, it is recommended
that percent complete and/or quantities be reconciled with the (sub)contractor before the
(sub)contractor submits the invoice. It is often advantageous to develop detailed, contract-specific
procedures for progress measurement. (Note: The Quantity Reporting System program is a possible
mechanism for monitoring subcontracts; see the QRS discussion in Section 5 for further information,
including the role of the field project engineer). The project accounting manager is responsible for
verifying the arithmetical accuracy of all invoices and conformance with the terms, conditions, and
rates stated in the (sub)contract. The field controls manager is responsible for cost coding
(sub)contract invoices, when necessary, and reviewing the current commitments. Figure 6-6 provides a
flow chart of the (sub)contract invoice payment approval process.

REVIEW AND
CLIENT APPROVE/REJECT
CONCUR MAKE PAYMENT

REVIEW AND
SITE MANAGER APPROVE/REJECT
REJECT

RECONCILE REVIEW INVOICE FOR:

PERCENT § COMMERCIAL COMPLIANCE
COMPLETE AND/OR
QUANTITIES AND
§ PROGRESS RECONCILIATION
ADJUST PAYMENT § CERTIFICATION OF PAYMENT
FIELD CONTRACTS SCHEDULE AS § RECONCILIATION OF
ADMINISTRATION REQUIRED BACKCHARGE AND RETENTION
OFFSETS
REJECT/AUTHORIZE EITHER
TOTAL OR PARTIAL PAYMENT

ACCOUNTING
MANAGER/ FIELD REVIEW AND CHECK
APPROVED MAKE PAYMENT RECORD PAYMENT
ACCOUNTING MATH

REVIEW COST AND

PROVIDE COST COMMITMENT AND
PROJECT CODES FOR MAKE
CONTROLS INVOICE REJECTED ADJUSTMENTS/
TRENDS AS
REQUIRED

PROVIDE PERCENT
COMPLETE AND/OR
QUANTITIES CORRECT AND
(SUB)CONTRACTOR BEFORE
SUBMIT INVOICE
RESUBMIT INVOICE
SUBMITTING
INVOICE

FIGURE 6-6 - FIELD (SUB)CONTRACT PAYMENT APPROVAL PROCESS

Internationally, the (sub)contracts may well involve payment in other currencies. The cost engineer
needs to adjust cost in accordance with the current exchange rates so that summary reports bringing
together all field-related costs in the prime contract’s base currency are accurately portrayed. Hedging
programs may be in place, and good documentation, particularly of any devaluation of the prime
contract base currency, is essential. Even if these variations are not covered, it very important that the
impacts be clearly and accurately presented, because this directly affects the job’s profitability.

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Working Level Cost Control Section 6

The Subcontract Forecast Worksheet, shown in Figure 6-7, is developed and maintained jointly by the
field cost engineer and the appropriate contracts administrator/coordinator for each contract package.
Note that the Contracts/Subcontracts Management Manual requires that a Change Notice Log be
maintained for each (sub)contract by the (sub)contractor. Each Change Notice prepared by Bechtel
will be sequentially numbered and entered into the log.

C O N T R A C T F O R E C A S T W O R KS H E E T

D AT E : 0 5 -A p r -9 1

CP # : 01
D E S C R IP T IO N : S T E AM G E N E R AT O R
CO N T R ACT O R : C O M B U S T IO N E N G IN E E R IN G

******************************** C O S T S U M M A R Y *******************************
(in $ 1 ,0 0 0 s )

A . B U D G E T /P R O J E C T F O R E C A S T BU D G E T "F O R E C A S T # 1

O R IG IN A L $ 1 8 ,3 2 0 .0 $ 1 9 ,3 1 0 .0

T R AN S F E R S $ 1 1 0 .0 $ 1 2 5 .0
AP P R O VE D S CO P E CH AN G E S $ 1 0 9 .0
---- --- --- ----
CU R R E N T $ 1 8 ,5 3 9 .0 $ 1 9 ,4 3 5 .0
----- ----- ------ ----- ------ ----- ------ -
B . C O M M IT M E N T S

O R IG IN A L C O M M IT M E N T ................. $ 1 7 ,9 5 0 .0
C H AN G E O R D E R S P R O C E S S E D ................. $ 6 8 5 .0
--- ----
C U R R E N T C O M M IT M E N T . . . . . . . . . . . . . . . . . $ 1 8 ,6 3 5 .0

C H A N G E O R D E R S IN P R O C E S S . . . . . . . . . . . . . . . . . $ 0 .0
U N R E S O LV E D C H A N G E S . . . . . . . . . . . . . . . . . $ 0 .0
P O T E N T IA L C H A N G E S . . . . . . . . . . . . . . . . . $ 4 7 0 .0
G R O W T H A LLO W A N C E (fo r a b o v e ) . . . . . . . . . . . . . . . . . $ 2 0 0 .0
U N A W A R D E D /U N C M T 'D S C O P E . . . . . . . . . . . . . . . . . $ 0 .0
--- ----
T O G O C O M M IT M E N T ................. $ 6 7 0 .0
== =====
CU R R E N T FO R E CAS T ................. $ 1 9 ,3 0 5 .0
----- ----- ------ ----- ------ ----- ------ -
C . C U R R E N T F O R E C A S T -T O -B U D G E T C O M P A R IS O N
CU R R E N T FO R E CAS T (+ = O V E R R U N ; ( ) = U N D E R R U N )

VS . CU R R E N T BU D G E T : $ 7 6 6 .0
VS . FO R E CAS T #1: ($ 1 3 0 .0 )
----- ----- ------ ----- ------ ----- ------ -
D . C O N T R A C T C O S T T O -D A T E $ 1 0 ,5 2 8 .0
----- ----- ------ ----- ------ ----- ------ -
E . R E M A R KS

1 ) C O ' s # 1 -4
2 ) W E LD IN G , S T L M O D S , P C C H A R G E S , A F G IS
3 ) IN C L. 1 5 4 K F O R F W O , 1 9 6 F O R O T & S H IF T W O R K
2 0 K F O R 5 - 1 B O IL O U T , 1 0 0 K F O R 7 - 7 F U LL LO A D
4 ) S E E T R A N S F E R LO G

FIGURE 6-7 - CONTRACT FORECAST WORKSHEET

Changes are to be differentiated from amendments. Simply, amendments are formal modifications for
work outside the scope of the contract. Changes are for work within the scope of the contract, and
they may directed. A directed change is one in which the (sub)contractor is directed to proceed with
the work independently of resolution of the commercial impact (if any) arising from the change.

Changes in the form of unsolicited proposals are submitted by (sub)contractors as well, but it is
important to note that only those that are disputed by Bechtel are termed claims.

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Section 6 Working Level Cost Control

All proposals submitted by (sub)contractors (in response to Change Notices, unsolicited proposals,
and claims) are provided a unique tracking identifier by Bechtel and placed into a Contractor
Proposals/Claims Log kept for each (sub)contract.
Once a (sub)contractor proposal is negotiated and adjustments are agreed upon, it is incorporated into
the (sub)contract by either a Change Order or an Amendment (each has its own form). Each is
sequentially numbered and placed in the Change Order/Amendment Change Notice Log. Before work
can proceed, a commitment authorization must be obtained in accordance with Policy 230 of the
Corporate Manual. Policy 230 specifies that anyone signing a Change Order or Amendment must
have authority delegated from the Contracts Organization. This policy ensures that authority for
signing and approving the Change Order/Amendment/Change Notice will come from separate
organizations, i.e., authority for signing comes from Contracts, while authority for approving comes
from the regional manager responsible for the work. It is the responsibility of the individual who
executes the change to ensure that the commitment is entered into the automated Commitment
Collection System—either the Procurement Tracking System (PTS) or the Bechtel Commitment
Register System.

Refer to the Contracts/Subcontracts Management Manual and related Subcontract Forms for more in-
depth discussion (including guidance for price adjustments for lump-sum, fixed unit price, cost-
reimbursable and time-and-materials work) and for copies of the forms referred to above. From all of
this information, the Change Notice Summary Report (shown in Figure 6-8) is developed. The
information is reviewed periodically by the field contracts and cost engineering personnel to identify to-
go activities and update the worksheets.

CHANGE NOTICE SUM MARY

THIS TO DATE
THRU PERIOD THR U
NUMBER OF 12/91 03/92 03/9 2

CHANGE NOTIC ES ISSUED 5 23 9 532

CHANGE NOTIC ES SETTLED 4 07 50 480

CHANGE NOTIC ES PEND IN G 1 16 52

VALUE OF NEGOTIATED CHANGE NOTICES SETTLED TO DATE

INITIAL CONTRACTOR CLAIMS "$1,54 0,45 9.00

FINAL SETTLEMEN T VALUE "$ 829,470.00

SAVINGS "$ 710,989.00

FIGURE 6-8 - CHANGE NOTICE SUMMARY

The site manager reviews the worksheets monthly. These worksheet reports are the primary tool used
to monitor projected contract costs, with emphasis being placed on estimated to-go costs and review
of allowance for growth in scope. Deviations from the previous month’s report are trended to the
Home Office to be incorporated into the project Trend Report.

As mentioned above, the Change Notice Log is developed to assist in statusing the active
(sub)contracts to identify outstanding changes. Field Project Controls provides support to Field

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Working Level Cost Control Section 6

Contracts Administration for other (sub)contract monitoring reports, including the Subcontract Data
Report shown in Figure 6-9. The Subcontract Analysis Report shown in Appendix E allows for
evaluation of (sub)contract unit rate performance on cost code, area, or facility basis. More detailed
tracking of (sub)contracts may be done on a bid item or pay item basis in the Contract Monitoring
submodule within PCWorks. A sample report Contract Monitoring Report is shown in Figure 6-10.

CONT RACT E XP ENDIT URE M O NIT O RING

Bec htel Con s truc tion Corp. Ex planations of Des c riptions :

XY Z Projec t - Job No. 12345 Current Contrac t V alue = Contrac t A w ard V alue + Total A mendmen ts V alue
SUBCONTRA CT DA TA REPORT Es timated Final S/C V alue = Current Contrac t V alue + Potential Changes V alue
Updated thro ugh February , 1 997 Gros s Paid V alue = Inv oic e V alue (Cos t to Projec t f or w ork perf ormed) C = CONTRA CT DA TE
REPORT NO. 2 Current Contrac t Budget V alue = Original Budget V alue + Sc ope Changes V alue F = FORECA ST DA TE
Current Contrac t Forec as t V alue = Current Budget V alue + Sc ope Changes V alue + A pprov ed Trends Thru Trend Report No. 6 A = A CTUA L DA TE
CONTRACT IDENTIFICATION COS T S UM M ARY PROGRES S A ND COST INFORM A TION
CONTRACT CONTRA CT CURRENT CONTRA CT E S TIMA TE D GROSS PA ID SCHE DULE INFO. CURRENT CURRENT
CONTRACT CONTRA CT DE SCRIP TION CONTRACTOR A W A RDED A ME ND/AUTH CONTRACT P OTE NTIA L FINA L S /C TO-DATE PROGRE SS S TA RT: C OR A CONTRA CT CONTRA CT
NO. TYP E A MOUNT AM OUNT V ALUE CHANGES V ALUE $ COMP L: B UDGE T FORECA ST
$ $ $ (E STIM ATED) $ (RETENTION) COMP L: F O R A $ $
LS : X Temporary Co ns tr. Collins Elec tric $47,850 $54,200 $102,050 $0 $102,050 $100,698 PMT: 100% Start: 11-SEP- 91 A $85 ,070 $85,070
FS C-001 UP : Pow er PROG: 100% Compl: 17-JA N-92 C
TM : $0 Compl: 17-JA N-92 A
LS : CA NCELED $0 $0 $0 $0 $0 $0 PMT: 0% Start: $0 $0
FS C-002 UP : PROG: 0% Compl:
TM : N/A Compl:
LS : X Site Preparatio n, Major J.H. Max y millian, Inc . $433,452 $384,559 $818,011 $0 $818,011 $818,011 PMT: 100% Start: 22-OCT- 91 A $835,392 $835,392
FS C-003 UP : Fnd Ex c av atio n, Sheet PROG: 100% Compl: 24-JA N-92 C
TM : Piling $0 Compl: 24-JA N-92 A
LS : Labor f or Elec tric al Collins Elec tric $50,000 $37,350 $87,350 $0 $87,350 $30,042 PMT: 34% Start: 09-DEC-91 A $87 ,350 $87,350
FS C-004 UP : X Ins tallation PROG: 81% Compl: 01-A PR- 92 C
TM : $0 Compl: 01-A PR- 92 F
LS : X Hook up w ater - D & M Mec hanic al $2,621 $0 $2,621 $0 $2,621 $2,621 PMT: 100% Start: 18-DEC-91 A $ 3,000 $2,621
FS C-005 UP : Temp. Of f ic e Contrac tor PROG: 100% Compl: 20-DEC-91 C
TM : N/A Compl: 20-DEC-91 A
LS : Guard Serv ic e Pinker ton $60,000 $0 $60,000 $100,000 $160,000 $8,635 PMT: 5% Start: 02-DEC-91 A $310,400 $160,400
FS C-006 UP : X PROG: 5% Compl: 16-JUL-93 C
TM : N/A Compl: 16-JUL-93 F
LS : X Railroad Spur New England Rail - $55,950 $0 $55,950 $0 $35,950 $0 PMT: 0% Start: 23-MA R-92 A $73 ,100 $73,100
FS C-007 UP : road Cons truc tion Co. PROG: 0% Compl: 17-A PR- 92 C
TM : N/A Compl: 27-MA R-92 F
LS : Plumbing Ins ta llation Henry Grods ky & Co. $60,000 $0 $60,000 $0 $60,000 $35,240 PMT: 59% Start: 02-JA N-92 A $60 ,000 $60,000
FS C-008 UP : X PROG: 59% Compl: 01-A PR-92 C
TM : $0 Compl: 01-A PR-92 F
LS : X Temporary Fenc ing Glidden Fenc e, Inc . $9,358 $0 $9,358 $0 $9,358 $9,358 PMT: 100% Start: 13-JA N-92 A $10 ,000 $10,000
FS C-009 UP : PROG: 100% Compl: 18-JA N-92 C
TM : N/A Compl: 18-JA N-92 A
LS : X Heav y Hauling Shaug hnes s y & A hern $609,500 $0 $609,500 $0 $609,500 $0 PMT: 0% Start: 20-A PR-92 C $288,000 $673,000
FS C-010 UP : PROG: 0% Compl: 01-OCT-92 C
TM : $0 Compl: 01-OCT-92 F
LS : X Underground Utilities J.H. Max y millian, Inc . $407,996 $0 $407,996 $0 $407,996 $0 PMT: 0% Start: 16-MA R-92 A $396,700 $396,700
FS C-011 UP : PROG: 0% Compl: 12-JUN-92 C
TM : $0 Compl: 12-JUN-92 F
LS : X Condens ate Pump J.H. Max y millian, Inc . $9,470 $650 $10,120 $0 $10,120 $10,120 PMT: 100% Start: 24-FEB-92 A $0 $0
FS C-012 UP : Cas ing PROG: 100% Compl: 28-FEB-92 C
TM : $0 Compl: 27-FEB-92 A
LS : X Railroad Subgrade Jos ep h Ros ati, Inc . $9,250 $0 $9,250 $0 $9,250 $0 PMT: 0% Start: 16-MA R-92 A $0 $0
FS C-013 UP : Preparation PROG: 100% Compl: 23-MA R-92 C
TM : $0 Compl: 20-MA R-92 A
LS : Site Elec tric al Work Collins Elec tric $2,000,000 $0 $2,000,000 $0 $2,000,000 $0 PMT: 0% Start: 06-A PR-92 C $2,210,000 $2,210,000
FS C-014 UP : PROG: 0% Compl: 19-JUL- 93 C
TM : X $0 Compl: 19-JUL- 93 F

FIGURE 6-9 - SUBCONTRACT DATA REPORT

Cost and Commitment Automation

The values for budgets, commitments, current estimates, etc., are the basis for input to the CO/CO
program and other associated reports. The CO/CO program covers materials as well as
(sub)contracts. In the initial phase of the project when contracts are being awarded, this program is
run in the Home Office, but it may be transferred to the field during the execution phase. PCWorks
contains a Cost and Commitment module that handles the cost control reporting of all commitment and
actual cost to-date information for all (sub)contracts and materials.
On a monthly basis, the Controller department updates the cost to-date information from the accounts
payable records. During (sub)contract execution, Project Controls reviews the cost to-date totals with

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 6-11
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Section 6 Working Level Cost Control

Accounting and verifies the correctness of commitment totals for materials with Field Procurement and
for (sub)contracts with the field contract administrator.

Contract Monitoring Report

PC Works Run Date: 19-June-97
Project Name Job Number: XXXXX-XXX
Location:
Contract Monitoring Detail Report
Contract: XXXXX
Sitework Subcontract
Quantities Jobhours Progress % P.F.
Line Allocated This To Allocated This To This To This To
Item Rev Line Item Description UOM Budget Contract Forecast Period Date Budget Contract Forecast Period Date Period Date Period Date

Bid Item 2.0

Pay Item 2.1
01 0 Structural Excavation - Power Block m3 10,000 10,000 10,000 500 3,000 3,000 3,000 3,000 125 825 5.0% 30.0% 0.83 0.92
02 0 Structural Excavation - Cooling Tower m3 5,000 5,000 5,000 200 500 1,500 1,500 1,500 55 125 4.0% 10.0% 0.92 0.83
03 0 Structural Excavation m3 27,760 27,760 27,760 0 0 7,130 7,130 7,130 0 0 0.0% 0.0% 0.00 0.00

Subtotalt Pay Item 2.1 42,760 42,760 42,760 700 3,500 11,630 11,630 11,630 180 950 1.6% 8.2% 0.86 0.90

Subtotal Bid Item 2.0 11,630 11,630 11,630 180 950 1.6% 8.2% 0.86 0.90

Bid Item 3.0

Pay Item 3.3
01 0 Fencing - Switchyard m 1,000 1,000 1,000 350 750 250 250 250 115 355 35.0% 75.0% 1.31 1.89
02 0 Fencing - Cooling Tower m 700 700 700 0 0 200 200 200 0 0 0.0% 0.0% 0.00 0.00

Subtotalt Pay Item 3.3 1,700 1,700 1,700 350 750 450 450 450 115 355 20.6% 44.1% 1.31 1.89

Subtotal Bid Item 3.0 450 450 450 115 355 20.6% 44.1% 1.31 1.89

Total for Contract: XXXXX 12,080 12,080 12,080 295 1,305 2.3% 9.5% 0.99 1.05

FIGURE 6-10 - CONTRACT MONITORING REPORT

The purpose of a CO/CO report is to visually display and compare committed values vs. budgeted and
forecasted values so that discrepancies and/or inappropriate relationships between the values can be
identified, investigated, and resolved. Refer to the Glossary of Terms included in Appendix A for
additional information.

Figure 6-11 shows a typical CO/CO report for variances (same as the Materials Analysis Report
format). Additional CO/CO report formats are included in Appendix E, Section 7. Shown in columns 1
through 4 of Figure 6-11 are the Current Budget (allocated), the Current Forecast (to be committed),
to-date (TD) commitments, and TD paid (i.e., actual cost). Important variances or deltas are calculated
by comparing:
• The TD commitments minus actual cost paid (Commitments To Pay - Column 5)
• The total forecasted cost minus the TD committed cost (Forecast To Be Committed - Column 6)
• The POs and (sub)contracts for which commitments exceed the forecast (Committed Over
Forecast - Column 7)
• The current budget allocated minus the current forecast (Column 8)
If either of the first two deltas results in a negative variance, then the variance should be reduced to
zero, employing the appropriate adjustments, after making a thorough investigation. The third delta

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Working Level Cost Control Section 6

requires adjustments to be made if the delta is positive. Finally, the last delta may be either positive or
negative. If negative, then the forecast exceeds the budget due to overruns.

Number: XXXXX PROJECT NAME Run Date:

Client's Name: Run Time
Location: Cost and Commitment Report Report Date:

Summary By PO / Contract - Through MARCH 1997

Variances
(1) (2) (3) (4) (5) =(3) - (4) (6) = (2) - (3) (7) (8) = (1) - (2)
Current Current To-Date To-Date Commitments Forecast Committed Budget
Budget Forecast ( (TD) ( (TD) To To Be Over minus
PO/CONTRACT (Allocated) (TBC) Commitments Paid Pay Committed Forecast Forecast

ZZ54.52 FIELD ENTERTAIMENT 156,409 156,409 172 172 0 156,237 0 0

ZZ54.54 FIELD COMMUNITY RELATIONS 50,000 50,000 151 151 0 49,849 0 0

ZZ54.57 FIELD FNM TRAINING 142,861 142,861 3,691 3,691 0 139,170 0 0

ZZ54.58 FIELD GENERAL EXPENSES / PETTY CASH 250,000 250,000 13,397 13,397 0 236,603 0 0

ZZ54.61 FIELD TELEPHONE & FAX SERVICE 100,000 100,000 6,558 6,558 0 93,442 0 0

ZZ54.62 FIELD TELEPHONE SERVICE 300,000 300,000 5,105 5,105 0 294,895 0 0

ZZ54.63 FIELD POSTAGE / DHL 353,740 353,740 361 361 0 353,379 0 0

ZZ54.64 FIELD COURIER SERVICE 120,000 120,000 361 361 0 119,639 0 0

ZZ54.71 FIELD COMPUTER HARDWARE / SOFTWARE 400,000 400,000 112,261 112,261 0 287,739 0 0

ZZ54.72 FIELD OFFICE FURNITURE / EQUIPMENT 500,000 500,000 60,310 60,310 0 439,690 0 0

ZZ54.8 FIELD OFFFICE SUPPLIES 745,353 745,353 32,745 32,745 0 712,608 0 0

ZZ61.2 FIELD CAMP BULIDING FACILITIES 25,000 25,000 38,810 38,810 0 -13,810 13,810 0

ZZ61.41 FIELD UTILITIES 1,605,658 1,605,658 9,787 9,787 0 1,595,871 0 0

ZZ61.5 FIELD SECURITY 0 0 22,684 22,684 0 -22,684 22,684 0

ZZ61.6 FIELD PIONEER CAMP 0 0 166,940 166,940 0 -166,940 166,940 0

ZZ63.1 FIELD LOCAL EXPENSES 20,000 20,000 184 184 0 19,816 0 0

(GOVERNMENT)
ZZ64.1 FIELD LOCAL PERSONNEL 30,000 30,000 13,243 13,243 0 16,757 0 0
RECRUITING
ZZ71.42 HO CONSULTANTS 357,788 357,788 14,771 14,771 0 343,017 0 0

ZZ71.51 HO BUSINESS TRAVEL 810,250 810,250 187,670 187,670 0 622,580 0 0

ZZ71.53 HO ENTERAINMENT 300,000 300,000 2,678 2,678 0 297,322 0 0

ZZ72.12 HO FACILITY OPERATING EXPENSE 256,993 256,993 31,724 31,724 0 225,269 0 0

FIGURE 6-11 - COST AND COMMITMENT REPORT

The variances report is the first produced by the cost engineer and serves to flag any problems that
need resolution before the formal report is issued. The report is developed in accordance with the cost
codes and is one of the more detailed CO/CO reports produced. An example of a CO/CO
management report is shown in Figure 6-12. Other CO/CO summaries and detailed report options by
PO/contract and by cost code are displayed in Appendix E. Also refer to Project Controls Department
Procedure 4.07 for additional information.

DISTRIBUTABLE REPORTS
Under (sub)contract execution, significant distributables are normally covered by the (sub)contractors
as part of their costs. Items such as fabrication shops, heavy haul facilities, temporary power
distribution systems, temporary lighting systems, area cleanup, scaffolding, materials handling, small
tools (supply and maintenance), consumables, temporary utilities, and construction equipment (supply
and maintenance) are the most common.

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Section 6 Working Level Cost Control

Bechtel may support the (sub)contractor in some of the areas mentioned above (e.g., supply of
selected construction equipment) and usually provides items such as site security (including site fence)
and possibly warehouses, laydown areas, and parking.

Run dat e:
Data date: Cos t Com m itm ent M anagem ent Report
RM CT: 1.3 B y Category
(P re-Com m itted and Com m it ted-A s -P aid)

C <----------------- CO M M ITM E NT---- ---------------------> <----------------------- TO -DA TE CO S T ---------------------> <------------------------- THIS P E RIO D COS T --------------------->
A DE S CRIP TION P .O. S UB CO NTRA CT TOTA L P .O . SUB CO NTRA CT TO TA L P .O . S UB CONTRA CT TO TA L
= == === == == === == === == === == == == == == === == === == == === == = === == === == === == == === == == === == === == == === == === = == === == === == == = == === == === == = = == === == == ==
0 OW NE R CO S TS 0.00 10600.00 10600.00 0.00 10600.00 10600.00 0. 00 0. 00 0.00
1 CONCRE TE 974993.58 0.00 974993.58 974993.58 0.00 974993.58 0. 00 0. 00 0.00
2 S TE E L 2113749.96 2876645.86 4990395.82 212171.96 747862.61 960034.57 0. 00 0. 00 0.00
3 HRSG 13279604.14 0.00 13279604.14 3970018.84 0.00 3970018.84 0. 00 0. 00 0.00
4 M E CHA NICA L E Q UIP M E NT 47315014.41 1187533.00 48502547.41 26819699.37 0.00 26819699.37 0. 00 0. 00 0.00
5 P IP E 2604903.85 0.00 2604903.85 390206.42 0.00 390206.42 0. 00 0. 00 0.00
6 CONTROL/INS TRUM E NTA TIO N 1535680.00 0.00 1535680.00 82500.80 0.00 82500.80 0. 00 0. 00 0.00
7 E LE CTRICA L E QUIP M E NT 4544073.51 0.00 4544073.51 16966.31 0.00 16966.31 0. 00 0. 00 0.00
8 E LE CTRICA L B ULK S 312175.65 3169123.00 3481298.65 196371.65 0.00 196371.65 0. 00 0. 00 0.00
9 DIS TRIB S 2315604.88 94256.84 2409861.72 2315604.88 136595.62 2452200.50 0. 00 0. 00 0.00
S S A LE S TA X 134840.32 0.00 134840.32 134840.32 0.00 134840.32 0. 00 0. 00 0.00

== === == TOTA L P RO JE CT == == === 75130640.30 7338158.70 82468799.00 35113374.13 895058.23 36008432.36 0. 00 0. 00 0.00

FIGURE 6-12 – COST COMMITMENT MANAGEMENT REPORT

At remote jobsites, Bechtel may provide camp facilities, transportation facilities (e.g., airstrips,
construction docks), local transportation equipment (e.g., buses), communication facilities (e.g.,
satellite service) and other support facilities (e.g., concrete batch plant).
Tax and insurance requirements vary considerably from country to country. Taxes affecting a project
include value added tax (VAT), import/export tax, income tax, and sales tax. The cost engineer needs
to work closely with Accounting to understand the tax laws of the country and the applicable rates.
Insurance categories include general liability, builders risk, marine cargo, inland cargo, risk-related
insurance (e.g., liquidated damages for schedule and performance), and other. The insurance
recovery process usually results in significant effort on site to prepare estimates and to coordinate with
insurance adjusters to settle insurance claims.
If Bechtel’s responsibilities for distributables are minimized, related costs can be fairly inexpensive
compared to other costs. However, on certain jobs, particularly at remote sites, the cost can be quite
high when items such as air transportation and camp facilities are required and covered by Bechtel.
The need for control varies and reports are noted to be optional in Attachment 6-1.
Distributables control tools, which should be set up for monthly statusing on fully (sub)contracted
construction sites, consist of:
• Bechtel distributable material and subcontract expenditure curves for all major distributable
accounts (i.e., 51, 52, 53), showing budget, forecast, and cost to-date

• Bechtel remote and offshore expenditure curves for all major accounts (e.g., 61, 62, 65, and 66)
showing budget, forecast, and cost-to-date

• Field nonmanual organization chart

• Field nonmanual bar chart schedule showing budget, forecast, and actual durations by position
and recording actual start dates and release dates

Figure 6-13 summarizes a typical informational flow for distributable material and subcontracts. Most
distributable costs are committed-as-paid since they are variable, incremental, and relatively small.

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Working Level Cost Control Section 6

However if items such as camp facilities and catering are (sub)contracted, these are significant enough
to commit upon award. Projects should set limits (e.g., $5,000 to $10,000) below which items are not
committed in advance.

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Section 6 Working Level Cost Control

FIELD MATERIAL REQUISITION (FMR)

Field Engineer / Superintendents:

- Review work operation
- Initiate

REVIEW
Project Superintendent:

- Review for completeness against

Execution Plan
- Signature

REVIEW
Cost Engineer:

- Check Budget / Forecast

- Assign Cost Code
- Identify for possible trend

PROCESS
Field Procurement Manager:

- Issue Purchase Order

PROCESS
Field Accounting Manager:

- Pay Invoice per Cost Code

Product Output:
- Accounts Payable Log (APL)

PROCESS
Field Cost Engineer:
- Input into Cost Control Program
Product Output:
- Cost and Commitment Report
- Construction and Tools Report

ANALYSIS REVIEW

Cost Engineer:
- Construction Equipment Schedules
- Construction Equipment and Tools Report
- Identify Trend TREND PROGRAM
Cost / Schedule Engineer:

CORRECTIVE ACTION See Section 106.0 Trending / Forecasting

Construction Manager:

- Changes to work operation

(equipment, material,
quantity, and/or
changes in personnel)

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Working Level Cost Control Section 6

FIGURE 6-13 – DISTRIBUTABLE MATERIAL/SUBCONTRACT COST CONTROL INFORMATION FLOW CHART

Field Material Requisitions (MRs) (as shown in Figure 6-14) are initiated by the field engineers or
superintendents. Field MRs are typically approved by the site manager or the project field
engineer on exclusively (sub)contracted jobs. Field MRs are reviewed by the field cost engineer
for cost coding and analysis for deviations against the budget/forecast for the identification of a
possible trend. Field Procurement purchases the material or services using the field MR during
the bid, evaluation, and award process.

REG. No. PO NO. 16

FIELD MATERIAL REQUISITION
MRI No. SUPPLIER 17
Job No. Date Date of Order
TERMS 18
Date Material Req’d. Prepared by:
F.O.B. 19
Notify Deliver to:

Approved by 2. 3. VIA 20
1.
5. 6. SHIP DATE 21
4.

Item Quantity Stock Code - DESCRIPTION - Full Detail cost code unit cost total cost unit cost total cost unit cost total cost
12 13 14 15 22

MRR No Date Rec’d. P/L No, Totals 23

27 28 29
Shipper Origin Carrier Quoted 24
30 by
F/B No. PPD 34 Delivery is: Complete 25
33 Collect 35 Partial Date
Received by: Prepared By: Date 26
36 37 38 Buyer

FIGURE 6-14 - FIELD MATERIAL REQUISITION

Invoices reviewed by accounting are paid referencing the field MRs for proper project cost code
distribution on the Accounts Payable ledger. The Accounts Payable ledger is the source document
that provides actual cost information to the field cost engineer on distributable material and subcontract
cost. Also, the CO/CO Report is another source of this information.
Typically, field MRs are written, approved, and cost coded daily. Field Procurement purchases the
material or services to meet the delivery dates on the field MRs. The field accounting manager issues
the Accounts Payable ledger on the seventh working day of the month. The Field Distributables
Report is normally issued by the twentieth day of the month.

The Field Distributables Report compares the accrued actuals by account for material and/or
(sub)contract costs and may include jobhour actuals against budget, forecast, or target. These are
typically compared to a planned value, as shown in Figure 6-15, and presented graphically for major
distributable accounts, as shown in Figures 6-16, 6-17, 6-18 and 6-19. This summarization allows the

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 6-17
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Section 6 Working Level Cost Control

project to monitor cost against the plan, which can be used for forecasting, cash flow, and other control
programs.

D IS T R IBU T ABLE MAT E R IALS AND S U BCON T R ACT S CO S T S UMMAR Y

TO -D ATE CU R R E NT
CU R R E NT CUR R E NT P LANNE D TO -D ATE @ CO MP LE TION
BU D G E T F O R E CAS T E XP E ND ITUR E ACTU ALS F O R E CAS T

TE MP O R A R Y C O NS TR U C TIO N F AC ILITIE S

51 .1 TE MP BLD G MATE R IALS 2 19 .3 22 0 .9 19 8 .9 26 1 .9 27 0 .0

51 .2 TE MP R O ADS /F E NCE S /LAYD OW N 1 10 .6 10 5 .3 10 4 .3 9 5 .3 10 5 .3
5 1.4 1 TE MP AIR , W ATE R , G AS ,S E WE R 2 18 .4 22 0 .0 21 0 .7 18 5 .9 20 0 .0
5 1.4 2 TE MP P O WE R , LIG HT, CO MMU N 2 15 .9 25 8 .8 23 8 .4 41 0 .3 42 0 .0
51 .5 MIS C TE MP CO NS T 1 00 .5 9 0 .0 8 3 .0 4 8 .8 5 0 .0
S UBTO TAL TE MP CO NS TR U CTION 8 64 .7 89 5 .0 83 5 .3 1 00 2 .2 1 04 5 .3

MIS C E LLA N E O U S C O N S TR U C TIO N S E R V ICE S

51 .1 CLE ANU P 29 .8 3 0 .0 2 9 .3 5 6 .1 6 5 .0
52 .2 S CAF F O LDING 1 09 .2 9 0 .0 8 8 .0 11 5 .9 12 5 .0
52 .5 MAINT O F TOO LS AND E Q UIP ME NT 1 19 .1 12 0 .0 11 7 .2 7 0 .8 8 0 .0
5 2.6 1 WE LD E R TE S TING 9 .9 1 0 .0 9 .7 6 .2 7 .0
5 2.6 5 DR U G & ALCOH OL TE S TING 35 .7 3 6 .0 3 5 .2 3 4 .4 3 7 .9
5 2.6 6 S P E CIAL R E CR UITING 0 .0 4 0 .0 4 0 .0 7 .1 7 .1
5 2.8 1 S UR VE Y MATE R IALS 99 .3 9 0 .0 8 9 .0 2 0 .3 2 1 .0
5 2.8 2 G U AR D S E R VICE 1 48 .9 15 0 .0 13 4 .2 11 4 .4 12 5 .0
52 .9 WE ATH E R /S TOR M R E LATE D 49 .5 4 0 .0 3 8 .0 1 0 .1 1 5 .0
S UBTO TAL CONS T S E R VICE S 6 01 .3 60 6 .0 58 0 .6 43 5 .3 48 3 .0

C O N S TR U C TIO N E Q U IP ME N T /TO O L/S U P P LIE S

5 3.1 1 CONS TR UCTIO N E Q UIP ME NT - R E NTAL 1 8 49 .5 1 86 1 .1 1 84 8 .2 1 90 0 .7 2 00 0 .0

5 3.1 3 CONS TR UCTIO N E Q UIP ME NT - O &M 5 80 .7 58 5 .0 55 9 .0 25 4 .2 30 0 .0
53 .2 S MALL TOO LS 5 14 .6 52 1 .0 50 9 .0 53 4 .1 55 0 .0
5 3.4 1 F U E LS & LU BR ICANTS 82 .3 7 8 .8 7 4 .8 9 0 .3 9 5 .0
5 3.4 2 OTH E R CONS U MABLE S 2 63 .5 24 9 .6 24 3 .8 44 8 .8 46 0 .0
5 3.4 3 S AF E TY R E LATE D 39 .7 4 0 .0 3 9 .1 15 4 .3 16 0 .0
53 .5 P U R CH AS E D U TILITIE S 2 48 .1 25 0 .0 23 7 .3 7 0 .1 8 0 .0
S UBTO TAL CONS T E Q UIP /TO OLS 3 5 78 .4 3 58 5 .5 3 51 1 .2 3 45 2 .5 3 64 5 .0

TO TAL MAN U A L D IS TR IB S 5 0 44 .4 5 08 6 .5 4 92 7 .1 4 89 0 .0 5 17 3 .3

FIGURE 6-15 - DISTRIBUTABLE MATERIALS AND SUBCONTRACTS COST SUMMARY

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Working Level Cost Control Section 6

DIST RIBUT ABLE MAT ERIAL & S/C CO ST S

Construction Facilities (51 Accts)

500 $1,500

M onthly Costs ($1,000s)

Cum ulative Costs($1,000s)

400 $1,200

300 $900

200 $600

100 $300

0 $-
Jul-96
Budget S ep-96
Monthly Nov-96
D istrib Matl Jan-97 Mar-97 Fcst
May-97
Monthly DJul-97
istrib MatlSep-97 Nov-97 Jan-98 Actual Monthly D istrib Mat

Budget C um D istrib Matl Fcst C um D istrib Matl Actual C um D istrib Matl

Dis trib Ma te rial Jul-96 Aug-96 Se p-96 Oc t-96 Nov-96 De c-96 J an-97 Fe b-97 Ma r-97 Apr-97 Ma y-97 J un-97 Jul-97 Aug-97 Se p-97 Oct-97 Nov-97 De c -97 J a n-98 Fe b-98
Monthly Budge t $0 $25 $76 $181 $69 $36 $31 $31 $34 $34 $42 $37 $35 $35 $34 $33 $34 $32 $28 $32
Dis trib Fcs t $27 $32 $79 $28 $24 $30 $25 $15
Ma tl Ac tua l $0 $0 $138 $125 $246 $35 $52 $42 $29 $18 $24 $20

Dis trib Ma te rial Jul-96 Aug-96 Se p-96 Oc t-96 Nov-96 Dec -96 Ja n-97 Fe b-97 Mar-97 Apr-97 Ma y-97 J un-97 Jul-97 Aug-97 S ep-97 Oc t-97 Nov-97 De c -97 Ja n-98 Fe b-98
Cum Budge t $0 $25 $101 $282 $351 $387 $418 $449 $483 $517 $559 $596 $631 $666 $700 $733 $767 $799 $827 $859
Dis trib Fcs t $729 $756 $788 $867 $895 $919 $949 $974 $989
Ma tl Ac tua l $0 $0 $138 $263 $509 $544 $596 $638 $667 $685 $709 $729

FIGURE 6-16 - DISTRIBUTABLE MATERIAL AND SUBCONTRACT COSTS - CONSTRUCTION FACILITIES

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Section 6 Working Level Cost Control

DIST RIBUT ABLE MAT ERIAL & S/C COST S

Construction Services (52 Accts)

200 $800

M onthly Costs ($1,000s)

Cumu lative Costs($1,000s)

160
$600

120

$400

80

$200
40

0 $-

Jul-96 Sep-96 Nov-96 Jan-97 Mar-97 May-97 Jul-97 Sep-97 Nov-97 Jan-98
Budget Monthly Dis trib Matl Fc s t Monthly Dis trib Matl Actual Monthly Distrib Matl

Budget Cum Dis trib Matl Fc s t Cum Dis trib Matl Actual Cum Distrib Matl

Distrib Ma te ria l Jul-96 Aug-96 Se p-96 Oc t-96 Nov-96 De c -96 Ja n-97 Fe b-97 Ma r-97 Apr-97 Ma y-97 Jun-97 Jul-97 Aug-97 Se p-97 Oc t-97 Nov-97 De c -97 Ja n-98 Fe b-98
Monthly Budge t $0 $4 $16 $22 $29 $39 $44 $48 $44 $46 $43 $46 $46 $45 $34 $30 $23 $19 $13 $12
Distrib Fc st $27 $38 $45 $36 $28 $30 $10 $5
Ma tl Ac tua l $0 $0 $7 $13 $48 $24 $57 $39 $47 $41 $21 $34

Distrib Ma te ria l Jul-96 Aug-96 S e p-96 Oc t-96 Nov-96 De c -96 Ja n-97 Fe b-97 Ma r-97 Apr-97 Ma y-97 Jun-97 Jul-97 Aug-97 S e p-97 Oc t-97 Nov-97 De c -97 Ja n-98 Fe b-98
Cum Budge t $0 $4 $20 $41 $70 $109 $153 $201 $245 $291 $334 $380 $426 $471 $505 $535 $558 $577 $591 $603
Distrib Fc st $330 $357 $395 $440 $475 $504 $534 $544 $549
Ma tl Ac tua l $0 $0 $7 $20 $68 $92 $149 $188 $235 $275 $296 $330

FIGURE 6-17 - DISTRIBUTABLE MATERIAL AND SUBCONTRACT COSTS - CONSTRUCTION SERVICES

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Working Level Cost Control Section 6

D IST R IBU T ABLE MAT ER IA L & S/C C O ST S

C ons truction Eqpt/T ools (53 Acc ts)

1,000 $4, 000

Monthly C osts ($1,000s)

800

Cu mu lative Costs($1,000s)
$3, 000

600

$2, 000

400

$1, 000
200

0 $-
Jul-96 Sep-96 Nov-96 Jan-97 Mar-97 May-97 Jul-97 S ep-97 Nov-97 Jan-98

B udget Monthly D is trib Matl Fc s t Monthly D is trib Matl Ac tual Monthly D is trib Matl

B udget C um D is trib Matl Fc s t C um D istrib Matl Ac tual C um D is trib Matl

Distrib Material Jul-96 Au g -9 6 S ep -9 6 Oc t-9 6 No v-96 De c-9 6 Jan -97 Fe b-97 Ma r-9 7 Apr-97 Ma y-97 J un -9 7 J ul-97 Au g-9 7 S ep -9 7 Oc t-9 7 No v-97 De c-9 7 J an -98 Fe b-98
Mo n th ly Bu dg et $2 $ 48 $ 96 $ 20 3 $ 32 1 $ 35 4 $3 09 $2 46 $2 34 $ 22 4 $ 22 1 $ 21 4 $1 95 $1 60 $1 74 $ 10 6 $7 8 $5 8 $ 49 $ 25
Distrib Fcs t $1 20 $1 91 $1 96 $1 5 $ 16 0 $ 11 0 $ 50 $ 20
Ma tl Ac tu al $0 $0 $ 47 $ 12 5 $ 32 8 $ 29 1 $2 47 $2 09 $2 34 $ 22 0 $ 18 9 $ 21 1

Distrib Material Ju l-9 6 Au g-9 6 Se p-9 6 Oc t-9 6 Nov -96 Dec -96 Jan -97 Fe b-97 Mar-97 Apr-97 May-9 7 J un -9 7 Ju l-9 7 Au g-97 Se p-9 7 Oc t-9 7 Nov -9 7 Dec -97 J an -98 Feb -98
Cu m Bu dg et $2 $ 50 $1 46 $ 34 9 $ 67 0 $ 1,02 4 $ 1,3 33 $ 1 ,5 79 $1 ,8 13 $2 ,03 7 $2 ,25 8 $ 2,47 2 $ 2,6 67 $ 2,8 27 $3 ,0 01 $3 ,10 7 $3 ,18 5 $ 3,24 3 $ 3,2 92 $ 3,3 17
Distrib Fcs t $ 2,10 1 $ 2,2 21 $ 2,4 12 $2 ,6 08 $2 ,62 3 $2 ,78 3 $ 2,89 3 $ 2,9 43 $ 2,9 63
Ma tl Ac tu al $0 $0 $ 47 $ 17 2 $ 50 0 $ 79 1 $ 1,0 38 $ 1 ,2 47 $1 ,4 81 $1 ,70 1 $1 ,89 0 $ 2,10 1

FIGURE 6-18 - DISTRIBUTABLE MATERIAL AND (SUB)CONTRACT COSTS – CONSTRUCTION TOOLS AND
EQUIPMENT

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 6-21
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Section 6 Working Level Cost Control

REMO T E & OFF SHO RE EXPENSES MAT ERIAL & S/C COST S
Cam p Facilities (61 Accts)
500 $5,0

400 $4,0
Monthly Costs ($1,000s)

300 $3,0

200 $2,0

100 $1,0

0 $-
Jul-96 Aug-96 Sep-96 O ct-96 Nov-96 Dec-96 Jan-97 Feb-97 Mar-97 Apr-97 May-97 Jun-97 Jul-97 Aug-97 Sep-97 O ct-97 Nov-97 Dec-97 Jan-98 2/28/98

Budge t Monthly D istrib Ma tl Fcs t Monthly D istrib Ma tl Actual Monthly Distrib Matl
Budge t Cum Distrib Ma tl Fcs t Cum Distrib Matl Actual Cum Distrib Ma tl

Distrib Ma te ria l J ul-96 Aug-96 Se p-96 Oc t-96 Nov-96 De c -96 Ja n-97 Feb-97 Ma r-97 Apr-97 Ma y-97 J un-97 J ul-97 Aug-97 Se p-97 Oc t-97 Nov-97 De c -97 Ja n-98 Fe b-98
Monthly Budget $325 $350 $250 $70 $72 $75 $75 $85 $95 $95 $90 $72 $72 $71 $70 $68 $68 $65 $63 $120
Distrib Fc st $66 $65 $64 $65 $65 $60 $55 $120
Ma tl Actua l $387 $300 $275 $65 $63 $75 $72 $74 $98 $98 $87 $69

Distrib Ma te ria l J ul-96 Aug-96 Se p-96 Oct-96 Nov-96 De c-96 J an-97 Feb-97 Ma r-97 Apr-97 Ma y-97 Jun-97 J ul-97 Aug-97 Se p-97 Oct-97 Nov-97 Dec -97 Ja n-98 Fe b-98
Cum Budget $325 $675 $925 $995 $1,067 $1,142 $1,217 $1,302 $1,397 $1,492 $1,582 $1,654 $1,726 $1,797 $1,867 $1,935 $2,003 $2,068 $2,131 $2,251
Distrib Fc st $1,663 $1,729 $1,794 $1,858 $1,923 $1,988 $2,048 $2,103 $2,223
Ma tl Actua l $387 $687 $962 $1,027 $1,090 $1,165 $1,237 $1,311 $1,409 $1,507 $1,594 $1,663

FIGURE 6-19 - REMOTE AND OFFSHORE EXPENSES, MATERIALS AND SUBCONTRACT COST

Detailed information for distributable materials and (sub)contracts is tracked in the project CO/CO
report, which is covered earlier in this section. Examples of summary presentations for distributable
materials are included in Section 4. Refer to Project Controls Department Procedure 4.07 (Part D) for
additional information on distributable materials and (sub)contracts.

The key planning tool for developing the field nonmanual plan is the bar chart, shown in Figure 6-20,
which displays the staffing requirements, types of assignments, durations, and grades for each
position. Construction prepares the chart either during the proposal stage or at time of award. The
site manager has overall responsibility for controlling project nonmanual jobhours. Individual functional
area field supervisory personnel are responsible for controlling staffing within their groups. The field
nonmanual bar chart is updated monthly.
Once the field nonmanual bar chart has been developed, the field nonmanual labor analysis, as
shown in Figure 6-21, can be prepared. For positions for which candidates have not been identified,
the field cost engineer should use average rates for an identified grade. The wage rate input for each
position should be the bare wage without payroll adds. Payroll adds and escalation are bottom line
adjustments. The analysis is statused and revised monthly.

6-22 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
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Working Level Cost Control Section 6

S E MAS S - W AS TE TO E NE R G Y E XPANS ION FLD NON-MANUAL B AR C HAR T

91 92 93 94
TO T S /T O/T O /T TO TAL
P O S ITION NAME A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J MAN HO UR S % HO U R S HO UR S
MTH 16 1
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34

NO TIC E TO FIR S T SET SET E NE R G IZE S TM TUR B TR ANS F E R

P R OC E E D CO NC D R U MS T/G HYD R O B LO W R O LL DATE
V V V V V V V V V

P R OJ E CT S U PT. L G R E G G , J . 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 27 4 35 5 0% 0 43 5 5
P R OJ S E C R E TARL LAR S ON, R . 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 25 4 03 3 5% 2 02 42 3 5

F IE LD S U PT. P S H OU R IE , S . 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 20 3 22 6 5% 1 61 33 8 7
E LE C S U P T. P LE WIS , J . 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 15 2 42 0 5% 1 21 25 4 1
C IVIL S U P T. T MAR KLE , R . 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 19 3 06 5 5% 1 53 32 1 8
P IP ING S UP T. P 1 1 1 1 1 1 1 1 1 1 1 1 1 13 2 09 7 5% 1 05 22 0 2
ME CH S U PT. T 1 1 1 1 1 1 1 1 1 1 10 1 61 3 5% 81 16 9 4

C O S T/S C H S U PVP E R VIN, R . 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 24 3 87 1 5% 1 94 40 6 5

S C H C NTR L E NGP VO YTE LL, K. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 21 3 38 7 5% 1 69 35 5 6
C O S T/CNTR L E N T C O CH R AN, P . 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 23 3 71 0 5% 1 86 38 9 6

P R OJ FLD E NG . P S H E LTO N, M. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 23 3 71 0 5% 1 86 38 9 6
LD CIVIL E NG . L F R ITZ , R . 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 16 2 58 1 5% 1 29 27 1 0
C IVIL E NG . T P AULE Y, L. 1 1 1 1 1 1 1 1 1 9 1 45 2 5% 73 15 2 5
C IVIL S U R VE Y T 1 1 1 1 1 1 1 1 1 9 1 45 2 5% 73 15 2 5
LD PIP E E NG . P W ILLIAMS , G . 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 18 2 90 3 5% 1 45 30 4 8
S M P IP E E NG /HNP WEBE R, S . 1 1 1 1 1 1 1 1 1 1 1 1 1 13 2 09 7 5% 1 05 22 0 2
ME CH E NG . L F R E E MAN, R . 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 16 2 58 1 5% 1 29 27 1 0
INS TR E NG . T 1 1 1 1 1 1 1 1 1 1 1 11 1 77 4 5% 89 18 6 3
LD E LE C E NG . P VAN B US KIR K, R . 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 19 3 06 5 5% 1 53 32 1 8
E LE C E NG . P 1 1 1 1 1 1 1 1 1 1 1 1 1 1 14 2 25 8 5% 1 13 23 7 1
S E T R OU TE E NGT 1 1 1 1 1 1 1 1 1 9 1 45 2 5% 73 15 2 5
D O CU ME NT C NTL Mc CAULE Y, M. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 20 3 22 6 5% 1 61 33 8 7

C O NTR ADMIN. T MUR D OC K, S . 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 19 3 06 5 5% 1 53 32 1 8

S U BC ONTR C OOT 1 1 1 1 1 1 1 1 1 1 10 1 61 3 5% 81 16 9 4

P R OC . S U PV. P TE R R ILL, R . 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 19 3 06 5 5% 1 53 32 1 8
S E NIO R B UYE R P MAR TINO , J . 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 19 3 06 5 5% 1 53 32 1 8
MATLS S U PV. L NO ONAN, J . 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 16 2 58 1 5% 1 29 27 1 0

F LD ACC TG . S U PP Mc CO Y, B . 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 19 3 06 5 5% 1 53 32 1 8
P AYR OLL P S TR IP LING , J . 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 18 2 90 3 5% 1 45 30 4 8
TIME KE E P E R L ALLE N, K. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 17 2 74 2 5% 1 37 28 7 9
F &A/P R O C S E CTL 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 18 2 90 3 5% 1 45 30 4 8

S AFE TY /S E C URP D e ME IO, P. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 20 3 22 6 5% 1 61 33 8 7

NU R S E L F O R Z IATI, M. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 15 2 42 0 5% 1 21 25 4 1

N/S E NG . T 1 1 1 1 4 64 5 5% 32 677

TO TAL NO N-MANUALS 1 4 8 14 18 23 24 25 27 29 30 30 32 32 32 31 31 30 30 30 28 23 17 9 6 2 2 0 0 0 0 0 0 0 0 568 9 1 62 1 5% 4 3 64 9 59 8 5

ACTU ALS 0 0 7 10 17 21 21 23 23

NOTE: S HADING INDICATES ACTUALS

4 .7 6%

FIGURE 6-20 - FIELD NON-MANUAL BAR CHART

The Field Nonmanual Cost Report, including graphs, serves as the overall summary for field
nonmanual jobhours and costs. The report is issued monthly with updated actuals as soon as
practical after the Bechtel accounting cut-off date. Scheduled and forecast expenditures are reviewed
and updated quarterly. In lieu of issuing a separate document, this report is often included as part of
the Field Distributables Report shown in Figure 6-22. Note that distributable manual labor is tracked
here as well. The field cost engineer compares actual cost to budgets and forecasts, analyzes, and
identifies potential impacts. The field planner must evaluate staffing for consistency with the schedule.
Examples of related nonmanual summary graphs are included in Section 4 under Field Progress and
Resource Curves. Refer to Project Controls Department Procedure 4.05 for more information. The
overall work process flow chart for nonmanual cost control is shown in Figure 6-23.

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 6-23
55210\Construction Manua\Vol-2
Section 6 Working Level Cost Control

S AMP LE P ROJ ECT FIE LD NON-MANUAL WAGE RATE ANALYS IS

S .T. O.T. TOTAL

TO-GO S .T. O.T. TOTAL WAGE WAGE S.T. O.T. TO-GO
POS ITION P/T/L NAME MONTHS HOURSHOURSHOURS RATE R ATE GRADE WAGES WAGES WAGES

PROJECT S UPT. L GR EGG, J . 18 2,826 0 2,826

PROJ SECRETARY L LAR SON, R . 18 2,826 141 2,967

FIELD SUP T. P SHOUR IE, S . 14 2,198 110 2,308

ELEC S UPT. P LEWIS , J . 15 2,355 118 2,473
CIVIL SUP T. T MARKLE, R. 11 1,727 86 1,813
PIPING SUP T. P 13 2,041 102 2,143
MECH S UP T. T 10 1,570 79 1,649

COS T/SCH S UPV. P ER VIN, R. 16 2,512 126 2,638

SCH CNTR L ENG. P VOYTELL, K. 14 2,198 110 2,308
COS T/CNTRL ENG. T COCHR AN, P . 16 2,512 126 2,638

PROJ FLD ENG. P SHELTON, M. 16 2,512 126 2,638

LD CIVIL ENG. L FRITZ, R . 8 1,256 63 1,319
CIVIL ENG. T PAULEY, L. 6 942 47 989
CIVIL SUR VEY T 3 471 24 495
LD P IP E ENG. P WILLIAMS, G. 14 2,198 110 2,308
SM PIPE ENG/HNGRS P WEBER, S . 12 1,884 94 1,978
MECH ENG. L FREEMAN, R. 12 1,884 94 1,978
INS TR ENG. T 11 1,727 86 1,813
LD ELEC ENG. P VAN BUS KIRK, R. 15 2,355 118 2,473
ELEC ENG. P 13 2,041 102 2,143
SET R OUTE ENG. T 9 1,413 71 1,484
DOCUMENT CNTRL. L McCAULEY, M. 15 2,355 118 2,473

CONTR ADMIN. T MUR DOCK, S . 14 2,198 110 2,308

SUBCONTR COORD. T 10 1,570 79 1,649

PROC. SUPV. P TERRILL, R . 13 2,041 102 2,143

SENIOR BUYER P MARTINO, J . 13 2,041 102 2,143
MATLS S UPV. L NOONAN, J . 12 1,884 94 1,978

FLD ACCTG. SUP V. P McCOY, B. 14 2,198 110 2,308

PAYROLL P STRIPLING, J . 12 1,884 94 1,978
TIMEKEEPER L ALLEN, K. 12 1,884 94 1,978
F&A/P ROC S ECTY. L 14 2,198 110 2,308

SAFETY /S ECURITY P De MEIO, P . 14 2,198 110 2,308

NURS E L FORZIATI, M. 13 2,041 102 2,143

N/S ENG. T 4 628 31 659

TOTALS 424 66,568 3,187 69,755 1,930,472 111,549 2,042,021

TOTAL TO-GO WAGES : 2,042,021

ESCALATION: 81,681

P AYROLL ADDS: 898,489

TOTAL TO-GO HOURS : 69,755
TOTAL TO-GO DOLLARS : 3,022,190
TOTAL TO-DATE HOURS : 19,154
TOTAL TO-DATE DOLLARS : 561,021
CURRENT F/C HOURS : 88,909
CURRENT F/C DOLLARS : 3,583,211
ORIGINAL BUDGET HOURS : 90,000
ORIGINAL BUDGET DOLLARS: 3,350,000
AP P R S COP E CHANGE HOURS : 2,500
APP ROVED S COP E CHANGES : 150,000
CURRENT BUDG HOURS : 92,500
CURRENT BUDGET DOLLARS : 3,500,000
ANTICIP ATED OVERRUN(+)/UNDERR (3,591)
ANTICIP ATED OVERRUN(+)/UNDERR 83,211

COST ANALYSIS HOURS ANALYSIS

FIGURE 6-21 - FIELD NON-MANUAL WAGE RATE ANALYSIS

6-24 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
55210\Construction Manua\Vol-2
Working Level Cost Control Section 6

DI S TRI B' S B UDGE T v s ACT UAL AS OF _ _ _ _ _ _

<- - - - - - - - - - - $ MATERI ALS - - - - - - - - - - - > < - - - - - - - - - - - - - - HOURS - - - - - - - - - - - - - - >

DES CRI P TI ON BUDGET S CHEDULED ACTUAL BUDGET S CHEDULED ACTUAL

F I ELD OF F I CE 10 0 , 0 00 1 9, 048 4 3 , 9 75 500 240 171

WAREHOUS ES 40, 3 00 6, 300 9 , 6 44 500 110 160
CHANGE HOUS E 32, 0 00 6, 000 1 8 , 9 90 200 91 58
F ABRI CATI ON S HOP 10, 0 00 2, 000 0 0 0 0
BRAS S ALLEY 4, 2 00 1, 000 1 , 5 72 100 56 54
F I RS T AI D OFF I CE 40, 0 00 1 3, 500 9 , 0 68 200 121 5
WAREHOUS E, OF F S I TE 16 4 , 0 00 2 1, 600 0 0 0 0
ACCES S ROAD DEVELOP MENT 50, 0 00 1 0, 000 0 200 59 8
TEMP ORARY P ARKI NG & LAYDOWN AREA 82, 0 00 3 8, 800 3 0 , 8 84 600 114 135
TEMP ORARY F ENCI NG 12, 0 00 4, 000 9 30 0 0 0
CONS TRUCTI ON WATER 3, 5 00 3, 500 2 , 3 53 400 241 21
CONS TRUCTI ON S EWER 90, 0 00 3 8, 000 2 6 , 0 92 200 113 86
CONS TRUCTI ON P OWER 14 8 , 0 00 1 0 7, 091 7 1 , 4 65 3, 0 0 0 452 367
MI S C. TEMP ORARY CONS T. ( I NCL S AF ETY) 35, 0 00 4, 200 2 6 , 8 18 4, 0 0 0 592 1, 129

TOTAL CONS TRUCTI ON FACI LI TI ES 81 1 , 0 00 2 7 5, 0 3 9 24 1 , 7 91 9, 9 0 0 2, 188 2, 194

CLEAN UP 2 5 , 0 00 6, 0 3 0 5 , 3 12 1 0, 000 922 664

S CAF F OLD ( GENERAL P URP OS E) 2 5 , 0 00 5, 5 0 0 1 4 , 8 09 2, 000 147 195
MATERI AL HANDLI NG ( I NCL DUNNAGE) 7 , 5 00 1, 8 0 0 2 , 3 15 1 0, 000 1, 528 1, 965
WAREHOUS I NG 0 0 0 3, 000 423 435
MAI NTENANCE OF TOOLS & EQUI P. 10 0 , 0 00 1 8, 0 0 0 3 , 0 43 3, 000 532 177
WELDER TES TI NG 1 2 , 5 00 2, 0 0 0 1 , 2 43 1, 000 121 186
UNALLOCATED 80 4 , 3 40 2 2 6, 5 0 5 0 2, 000 0 683
UNALLOCATED - CCI 0 0 0 0 0 46
S URVEYOR S ERVI CES 5 0 , 0 00 2 3, 7 0 0 1 6 , 2 18 6, 000 1, 544 1, 834
GUARD SERVI CES 5 0 , 0 00 7, 5 0 0 4 , 2 15 0 0 0
S HOWUP & VOTI NG TI ME 0 0 0 3, 000 1, 140 911
ON- OF F EQUI PMENT 0 0 0 2, 000 833 290
OTHER SERVI CES 6 , 0 00 1, 2 0 0 0 0 0 0
MAI NT OF P ERMANENT P LANT EQUI P MENT 0 0 23 1, 000 97 0
WEATHER P ROTECTI ON 10 0 , 0 00 7 5, 0 0 0 12 9 , 1 76 4, 000 1, 499 2, 152
WEATHER RELATED REP AI R 9 , 0 00 2, 0 0 0 7 94 1, 200 346 687

TOTAL CONS TRUCTI ON SERVI CES 1 , 18 9 , 3 40 3 6 9, 2 3 5 17 7 , 1 48 4 8, 2 0 0 9, 131 10, 225

CONS TRUCTI ON EQUI P MENT 81 9 , 0 00 2 1 4, 400 21 3 , 6 67

S MALL TOOLS 20 0 , 0 00 5 7, 000 12 8 , 9 56
F REI GHT ON TOOLS & EQUI P MENT 10, 0 00 3, 900 1, 3 10
F UELS & LUBRI CANTS 50, 0 00 1 3, 100 6, 0 42
CONS UMABLES 35 0 , 0 00 4 9, 000 87, 2 72

TOTAL EQUI P MENT, TOOLS & S UP P LI E 1 , 42 9 , 0 00 3 3 7, 4 0 0 43 7 , 2 46 0 0 0

DI S TR. MANUAL 3 , 42 9 , 3 40 9 8 1, 6 7 4 85 6 , 1 86 5 8, 1 0 0 11 , 3 1 9 12, 419

S TARTUP MANUAL 1 , 06 8 , 0 08 0 0 1 9, 9 2 9 0 8

TOTAL MANUAL 4 , 49 7 , 3 48 9 8 1, 6 7 4 85 6 , 1 86 7 8, 0 2 9 11 , 3 1 9 12, 427

NON- MANUAL LABOR 9 5, 9 8 5 25 , 1 4 5 19, 457

RELOCATI ONS 61 3 , 3 76 2 5 6, 159 11 6 , 4 78
TDY' S 24 6 , 0 00 5 8, 000 41, 6 10
BUS I NESS TRI P S 77, 7 00 2 3, 100 21, 0 84
OFF I CE F URNI TURE 11, 5 00 9, 875 15, 0 08
OFF I CE EQUI PMENT 62, 2 00 4 4, 441 58, 1 65
OFF I CE S UP P LI ES 73, 0 00 1 6, 500 17, 3 46
TELEP HONE 67, 5 00 1 1, 700 16, 3 42
S UBCONTRACTS 0 0 2, 7 19
MI S CELLANEOUS 2 4 , 4 40 6, 8 2 2 1, 2 19
TOTAL F I ELD NON- MANUAL 1 , 17 5 , 7 16 4 2 6, 5 9 7 28 9 , 9 70 9 5, 9 8 5 25 , 1 4 5 19, 457

S TARTUP NON- MANUAL 21 6 , 8 38 0 0 1 3, 3 8 6 0 0

TOTAL F I ELD & S TARTUP NON- MANUAL 1 , 39 2 , 5 54 4 2 6, 5 9 7 28 9 , 9 70 1 0 9, 3 7 1 25 , 1 4 5 19, 457

I NS URANCE 0 0 2 , 7 70
P ERMI TS & LI CENS ES 0 0 1 0 , 3 06
TOTAL I NSURANCE & P ERMI TS 0 0 1 3 , 0 76

FIGURE 6-22 - CONSTRUCTION DISTRIBUTABLE BUDGET SUMMARY

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 6-25
55210\Construction Manua\Vol-2
Section 6 Working Level Cost Control

AWARDED CONTRACT,
APPROVED SCOPE CHANGES &
FIELD DEPARTMENT INPUT

TO-GO MANMONTHS

NON-MANUAL BAR CHART

TO DATE JOBHOURS,
SALARIES, ADDS

F&A

TO DATE / TO-GO JOBHOURS,

SALARIES, PAYROLL ADDS

WAGE RATE ANALYSIS

TO DATE COSTS
BY CATEGORY

F&A

COST
REPORTS

HISTORICAL BECHTEL PROJECT

COST SERVICES FINANCIAL
REPORT REPORT STATUS
REPORT

FIGURE 6-23 - FIELD NON-MANUAL JOBHOUR/COST CONTROL FLOW CHART

6-26 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
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Working Level Cost Control Section 6

ATTACHMENT 6-1
PROJECT CONTROLS DELIVERABLES MATRIX - COST CONTROL
SYSTEM/ DESCRIPTION/ RESPONSIBLE TIMING OF FREQ. REF.
DELIVERABLE FUNCTION LOC. PERSON TOOL IMPLEMENT. ISSUED PROCED.
(SEE NOTE BELOW )
FIELD NONMANUAL JOBHOUR AND COST CONTROL
Field Nonmanual Schedule of planned Field Cost Engineering Excel 1 Monthly 4.05
Bar Chart field nonmanual
Schedule staffing, including wage
rates and total
estimated payroll cost
by classification and
individual; also displays
status, actual, and
forecast
Field Nonmanual Graphical displays of Field Cost Engineering Excel 1 Monthly with 4.05
Staffing/Jobhour planned vs. actual field Field
Graphs nonmanual personnel Nonmanual
staffing levels and Report
cumulative jobhour
expenditures
Field Nonmanual Status of field Field Cost Engineering Excel 1 Monthly 4.05
Cost Report nonmanual labor and
materials cost to-date
vs. scheduled to-date
and total budget by
detail cost code
Field Nonmanual Graphical display of Field Cost Engineering Excel 1 Monthly 4.05
Payroll/Material planned vs. actual
Cost Graphs manual staffing levels
MATERIAL/(SUB)CONTRACT CONTROL
Bid Evaluations Detailed cost evaluations Design Trend Excel As Required As 4.07
of vendor bids on a Office/ Engineering with Required
limited as-required basis Field Field Support
(particularly complex unit
price bids such as shop-
fabricated pipe)
Purchase Order Cost and schedule Design Trend Excel As Required As 4.07
Subcontract evaluations of purchase Office/ Engineering with Required
Changes and order and (sub)contract Field field support
Claims changes or claims
Evaluations
Cost and Detailed recording of Design Cost Engineering PCWorks 2 through 3 Monthly 4.07
Commitment project cost and Office/ Cost and
Report commitments by PO/ Field Commitment
(sub)contract and
project code of accounts
with reference to budget;
used to forecast
material/(sub)contract
cost; generates
summary reports by
(sub)contract and stem
accounts
NOTE: Implementation timing reflects the number of months from Notice To Proceed for items with Design Office responsibility or
the number of months from jobsite mobilization for Field responsibility

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 6-27
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Section 6 Working Level Cost Control

ATTACHMENT 6-1 (Continued)

Distributable Status of distributable Field Cost Engineering PCWorks 2 Monthly 4.07
Material Cost material and (sub)- Cost and
Report contract costs to-date Commitment/
vs. scheduled to-date Excel
and total budget by
detail cost code.
Construction Schedule of anticipated Field Cost Engineering Excel 2 Monthly 4.07
Equipment equipment needs,
Schedule including monthly rate
and total estimated cost
Bechtel Supplied by equipment piece;
Only – Optional if also displays status,
Small actual, and forecast.
Distributable Graphical display of Field Cost Engineering Excel 2 Monthly 4.07
Material Cost planned vs. actual
Graph cumulative distributable
material expenditures
Bechtel only –
Optional if Small
Summary Report A control log of all Field Field Accounting Excel As Identified Monthly 4.07
of Backcharges backcharges, including
costs to-date
Subcontractor Graphical display of Field Cost Engineering Excel 2 Monthly 4.07
Field planned vs. actual
Staffing/Jobhour subcontractor jobsite
Graphs staffing levels and
cumulative jobhour
expenditures
(Sub)Contract A report showing Field Field Contracts PCWorks 2 through 3 Monthly 4.07
Monitoring contractor performance Administrator Cost and
by bid/pay item Commitment
(quantities, hours, Excel
progress)
NOTE: Implementation timing reflects the number of months from Notice To Proceed for items with Design Office responsibility or
the number of months from jobsite mobilization for Field responsibility

6-28 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
55210\Construction Manua\Vol-2
Working Level Cost Control Section 6

ATTACHMENT 6-2
DEFINITION OF SYSTEM APPLICATIONS
1. CRAFT RESOURCE MANAGEMENT – CHRIS (Not used internationally)
Data base of craft employee personal information (master file)
Basic personal information (name, address, SSAN, etc.)
Benefits, insurance, and union affiliation
Craft classification, rate of pay, etc.
Hire and termination dates
Manual data collection and source for information related to construction employees
(Manual - Becon and BCCO)
Maintains employment-related historical information
2. TIMEKEEPING (Note: Foretime and Gateworks are currently being selectively introduced to international sites)
FORETIME: Electronic craft timesheets completed by foreman or general foreman
Collects hours by individual by cost code (labor distribution)
Feeds craft payroll system
GateWorks: Electronic gate system
Records time in and time out; reports attendance and total hours on site
Used to validate Foretime detail
3. CRAFT PAYROLL – Timberline (Note: Domestic application only – Micro Payroll used internationally)
Craft payroll module
Processes at a cost code level
Receives Foretime file for importing daily hours-cost code by person
Receives CHRIS file for importing payroll-related information
Produces downloads of labor cost distribution for PCWorks
Produces craft payroll checks
Provides corporate tax and general ledger data
4. JEM (Journal Entry Module)
Front-end batch loader into Oracle General Ledger for entries not processed through other Oracle financial
modules
Developed in-house with Oracle
5. JADB (Job Accounting Data Base)
Provides rules/structure for Bechtel's financial systems
Facilitates autocoding of financial transactions (reimbursable/nonreimbursable unit rate/lump sum)
Cost transfers
Contains information provided on the Accounting Release
Validates coding in JEM, Oracle Accounts Payable, and Nonmanual (N/M) Payroll
6. Nonmanual Time Gathering - BETR (Bechtel Electronic Time Record)
(Note: Currently being introduced at selective international Execution Units)
Electronic time records for upload into N/M Payroll system
Provides audit tracking, online approval capabilities, and systematic edits/validations

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 6-29
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Section 6 Working Level Cost Control

ATTACHMENT 6-2 (Continued)

7. GATHERING
Import process for gathering Field General Ledger data from stand alone-field systems (JGA, Oracle, Timberline)
Uploads summary level financial data into Corporate General Ledgers
Applicable to nonstandard jobs and pre-existing projects with field ledgers
8. GENERAL LEDGER (LCA)
Local Chart of Accounts (LCA); detail maintained at transaction level
Office ledgers (1A,1W,1H, etc.)
9. CORPORATE GENERAL LEDGER (UCA)
Uniform Chart of Accounts (UCA); detail maintained at a summary level
Consolidated information; includes Corporate and Field Office ledgers
10. CONTROLLER REPORTING SYSTEM (CRS)
Reporting structures of financial data
Used for standard reporting and extracts
Receives detail from Oracle General Ledgers (LCA and UCA) and Nonmanual labor distribution
11. CLIENT BILLING SYSTEM
Facilitates client billings – provides abstracts and schedules
Tracks and monitors billing history; maintains current and historical cost/revenue data
Provides tracking of unbilled and prebilled costs
Produces interoffice and intracompany invoices
Obtains data from CRS
12. PROCARD – PARIS
Corporate Purchasing Card - MasterCard
Online user interface
Allows user allocations and coding before downloading into financial ledgers
13. Accounts Payable
Financial module for processing payments to vendors, employees, consultants, and contractors
Tracks payments against commitments
Provides audit support and systematic checks and balances
Allows matching of commitment detail with receiving/approval documents and invoices
14. Nonmanual Payroll and Labor Distribution
Domestic Payroll
Receives employee detail from BETR
Interfaces with Nonmanual Human Resource Information System (HRIS)
15. Operations Reporting System (ORS)
Actual and forecast database
Earned Revenue Calculations
Financial adjustments to actual data
Executive Summary and Financial Statements
16. Estimating Programs
Total Installed Cost Estimate Program
Interfaces with Historical and MPA databases for pricing and comparative data

6-30 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
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Working Level Cost Control Section 6

ATTACHMENT 6-2 (Continued)

17. Cost Control System - PCWorks
Management reporting system; incorporates actual costs, budgets, trends, schedules, etc.
Provides cost and commitment tracking and reporting
Provides progress and performance reporting
18. Commitments: Subcontracts and Purchase Orders - Manual
Commitments not initiated/maintained within Procurement Systems
Typically includes subcontracts
19. Commitments: Subcontracts and Purchase Orders – Procurement Tracking System /Bechtel Procurement
System
Commitments: purchase orders, field material requisitions, subcontracts, etc.
Contains line item detail: description, quantity, price, and coding
Provides payment terms and conditions
Tracks and reports material receipt and acceptance
20. Quantity Reporting System
Field engineers earned value reporting system
Interfaces with and supports PCWorks
Tracks tag items and bulk

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 6-31
55210\Construction Manua\Vol-2
Working Level Cost Control Section 6

ATTACHMENT 6-3
MATERIAL ASSIGNMENT SCHEDULE FOR GENERIC FOSSIL PROJECT

MATE R IAL AS S IGN ME N T S C H E D U LE for GE N E R IC FOS S IL P R OJE C T

LE GE N D

FOB Type Loca tion De sign Ba sis

US.....................(U) Pur chas e................(P) Home Of f ice - MPA G......( M) Spec ....................( S)
Other..................( O) S/C.....................(S) Home Of f ice - Pr ojec t...(P) Purchase Memorandum.....(M)
Field...................(F) Draw ing Note............(N)
Other ...................( O) FMR.....................( F)

S ource of M a te ria l Furnishe d By? S upplie r Qua lity S hop Ex pe diting

MPA "of f the Shelf ".....(S) Bec htel.................( B) Shop Inspec tion Req'd...( Y ) Y es.....................( Y )
MPA "w / Pr oj Reqt's "....( R) Contr ac tor..............(C)
BEA .....................( B) Ow ner...................(O)

LD's Insta lle d By?

Y es .....................(Y ) Bechtel.................(B)
Contr ac tor..............(C)
Ow ner...................(O)

P R OP OS AL D E V E LOP ME N T TE AM

BUS INES S DEV ELOP M ENT M ANAGER CONS TRUCTION

E x t. E xt.

P ROP OS AL COORDINATOR LEGAL

E x t. E xt.

P ROJECT M ANAGER S TARTUP

E x t. E xt.

P ROJECT ENGINEER P ROCUREM ENT

E x t. E xt.

P ROJECT CONTROLS OTHER

E x t. E xt.

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 6-33
55210\Construction Manua\Vol-2
Section 6 Working Level Cost Control

ATTACHMENT 6-3 (Continued)

CMDY PROJECT MR/FMR/ DESCRIPTION THIS FOB TYPE LOC. DES. MATL FURN SUPL. SHOP LD'S INSTL COMMENTS
CODE SPEC. SUB NO. PROJ. BAS. SRCE BY? QUAL EXP BY?
CIVIL/STRUCTURAL/ARCHITECTURAL

CIVIL/STRUCTURAL

CE01 3PS-CE- Earthwork, Grading and

G01 Structural Backfill
CE02 3PS-CE- Excavation, Backfill &
G02 Compaction Of
Trenches/Pipe & Elev.
Duct
CE50 3PS-CE- Excavation-Pond and
G50 Reservoir (Including
Lining)
CG00 3PS-CG- Grading and Site Prep
G00
CM00 3PS-CM- Marine
G00
CP00 3PS-CP- Piles and Caissons
G00
CP01 3PS-CP- Piers, Drilled
G01
CR01 3PS-CR- Railroad Tracks,
G01 Furnish and Construct
CS01 3PS-CS- Paving, Bituminous,
G01 Roads and Parking
Areas
CY01 3PS-CY- Pipe, Circulating Water,
G01 Welded Steel (Includes
cement-lined)
CY02 3PS-CY- Pipe, Prestressed
G02 Concrete Cylinder,
Circulating Water
CY05 3PS-CY- Geotechnical Investiga-
G05 tion/Engineering
CY07 3PS-CY- Surveying, Aerial
G07 Mapping and Photo
CY10 3PS-CY- Fencing, Furnishing
G10 and Installing
MB09 3PS-MB- Steel Stack
G09
MS05 3PS-MS- Sewage Treatment
G05 Plant
MT01 3PS-MT- Tanks (API-650), Either MT01 or
G01 Atmospheric Press, MT09
Welded,Field Erected
MT09 3PS-MT- Tanks: AWWA Either MT01 or
G09 MT10
SC01 3PS-SC- Ready-Mix Concrete,
G01 Furnish Only
SC02 3PS-SC- Concrete Works
G02
SC50 3PS-SC- Batch Plant-Asphalt,
G50 Concrete
SC51 3PS-SC- Chimney Construction-
G51 Reinforced Concrete
SG01 3PS-SG- Reinforcing Steel,
G01 Furnish Only
SS01 3PS-SS- Structural Steel, Misc.
G01 Steel, Joists, Furnishing
SS02 3PS-SS- Structural Steel, Misc.
G02 Steel, Joists, Erection
SS03 3PS-SS- Steel Structures,
G03 Switchyard, Furnish
SS51 3PS-SS- Steel Structures,
G51 Switchyard, Install
SS04 3PS-SS- Steel Fuel Silos and
G04 Bunkers
Fuel Storage Dome
(Concrete)
SS05 3PS-SS- Misc Steel Silo
G05 (Ash/Lime)
SY01 3PS-SY- Concrete and
G01 Earthwork, Material
Testing Service

6-34 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
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Working Level Cost Control Section 6

ATTACHMENT 6-3 (Continued)

CMDY PROJECT MR/FMR/ DESCRIPTION THIS FOB TYPE LOC. DES. MATL FURN SUPL. SHOP LD'S INSTL COMMENTS
CODE SPEC. SUB NO. PROJ. BAS. SRCE BY? QUAL EXP BY?
ARCHITECTURAL

? Siding/Louvers L = Louvers Only

AC00 Elevator

AD01 Steel Doors

AD31 Roll-Up Doors

AK01 Pre-Engineered
Buildings
AM01 Concrete Masonry Unit

AQ00 Interior Finishes

AT44 Roofing

WX00 Field-Applied Coatings

and Painting
PIPING AND VALVES

PIPING DOCUMENTS & COMMODITIES

PB01 N/A MR-PB01- Pipe and Fittings - Bulk

00001 (CS, SS, and Alloy)
PX01 N/A MR-PX01- Pipe and Fittings - Cast
00001 Iron (Includes Cement
Lined)
PX05 N/A MR-PX05- Pipe and Fittings -
00001 Ductile Iron (Includes
Cement Lined)
PX07 N/A MR-PX07- Pipe and Fittings –
00001 Fiber Glass
PX09 N/A MR-PX09- Pipe and Fittings -
00001 HDPE
PX12 N/A MR-PX12- Pipe and Fittings - PVC
00001
PS02 3PS- N/A Piping - Field
PS02- Fabrication and
G0003 Installation
PS02 3PS- MR-PS02- Piping - Shop
PS02- 00002 Fabricated (All Other
G0002 Piping)
PS02 3PS- MR-PS02- Piping - Shop
PS02- 00001 Fabricated (Critical
G0001 Piping)
PIPE SUPPORT DOCUMENTS AND COMMODITIES

PH06 3PS- N/A Pipe Supports - Shop

PH06- Fabrication and
G0001 Materials
PH06 3PS- N/A Pipe Supports - Field
PH06- Design, Fabrication,
G0002 and Installation
VALVE DOCUMENTS AND COMMODITIES
PV04 N/A MR-PV04- Valves - Ball (Bronze -
00002 Soft Seated)
PV03 N/A MR-PV03- Valves - Ball (Steel -
00001 Metal Seated)
PV04 N/A MR-PV04- Valves - Ball (Steel -
00001 Soft Seated)
PV25 N/A MR-PV25- Valves - Butterfly (High
00001 Performance)
PV09 N/A MR-PV09- Valves - Butterfly (Large
00002 Circulating Water)
PV08 N/A MR-PV08- Valves - Butterfly
00001 (Resilient Seated,
Utilities)
PV09 N/A MR-PV09- Valves - Butterfly
00001 (Rotary Type)
PV35 N/A MR-PV35- Valves - Check,
00001 Vacuum/Air Release
PV14 N/A MR-PV14- Valves - Check, Wafer
00001
PV19 N/A MR-PV19- Valves - Diaphragm
00001
PV16 N/A MR-PV16- Valves - Gate, Globe,
00001 Check (Bronze)

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 6-35
55210\Construction Manua\Vol-2
Section 6 Working Level Cost Control

ATTACHMENT 6-3 (Continued)

CMDY PROJECT MR/FMR/ DESCRIPTION THIS FOB TYPE LOC. DES. MATL FURN SUPL. SHOP LD'S INSTL COMMENTS
CODE SPEC. SUB NO. PROJ. BAS. SRCE BY? QUAL EXP BY?
PV37 N/A MR-PV37- Valves - Gate, Globe,
00001 Check (Cast or Ductile)
PV01 N/A MR-PV01- Valves - Gate, Globe,
00001 Check (Steel - 2" and
Smaller)
PV02 N/A MR-PV02- Valves - Gate, Globe,
00001 Check (Steel - 2-1/2"
and Larger)
PV17 N/A MR - Valves - Gate, Knife
PV17-
00001
PV36 N/A MR-PV36- Valves - Globe, Hydrop
00001 Blowdown Angle
PV11 N/A MR-PV11- Valves - Plug (Lined)
00001
PV18 N/A MR-PV18- Valves - Plug
00001 (Lubricated)
PV27 N/A MR-PV27- Valves - Plug
00001 (Nonlubricated)
MISCELLANEOUS DOCUMENTS AND COMMODITIES
FB01 N/A MR-FB01- Bolting and Fasteners
00001
PY27 N/A MR-PY27- Expansion Joints -
00001 Metal
PY05 N/A MR-PY05- Expansion Joints -
00001 Rubber
PG01 N/A MR-PG01- Gaskets and Gasket
00001 Materials
PY01 N/A MR-PY01- Hoses - Flexible Metal
00001
PY08 N/A MR-PY08- Hoses - Rubber
00001
PY01 N/A MR-PY01- Spectacle Blinds and
00002 Spacers
PY11 N/A MR-PY11- Strainer - "Y" Type
00001
PY02 N/A MR-PY02- Strainer - Conical,
00001 Basket, and/or Flat
PY09 N/A MR-PY09- Trap - Auto Air
00001 Vents/Drain
PY09 N/A MR-PY09- Trap - Steam, Air
00001
MISCELLANEOUS SPECIFICATIONS
WN01 3PS- N/A Insulation - Piping Only
WN01-
G0001
WN01 3PS- N/A Insulation - Equipment
WN01- Only
G0002
PS02 3PS- N/A Pressure Testing of
PS02- Piping Systems
G0005
PS02 3PS- N/A External Treatment of
PS02- Underground Piping
G0004
MACHINERY

ROTATING EQUIPMENT
MA01 3PS-MA- MR- ID Fans
B01 MA01-
00001
MC01 3PS-MC- MR- Fuel Gas Compressor
B01 MC01-
00001
MC09 3PS-MC- MR- Air Compressors
B09 MC09-
00001
MC12 3PS-MC- MR- Vacuum Pumps
B12 MC12-
00001
MG01 3PS-MG- MR- Standby Diesel
B01 MG01- Generator
00001
MP01 3PS-MP- MR- Centrifugal API Pumps

6-36 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
55210\Construction Manua\Vol-2
Working Level Cost Control Section 6

ATTACHMENT 6-3 (Continued)

CMDY PROJECT MR/FMR/ DESCRIPTION THIS FOB TYPE LOC. DES. MATL FURN SUPL. SHOP LD'S INSTL COMMENTS
CODE SPEC. SUB NO. PROJ. BAS. SRCE BY? QUAL EXP BY?
B01 MP01-
00001
MP02 3PS-MP- MR- Condensate Pumps
B02 MP02-
00001
MP03 3PS-MP- MR- Circulating Water
B03 MP03- Pumps
00001
MP06 3PS-MP- MR- Boiler Feed Pumps
B06 MP06-
00001
MP07 3PS-MP- MR- Boiler Feed Booster
B07 MP07- Pumps
00001
MP09 3PS-MP- MR- Heater Drain Pumps
B09 MP09-
00001
MP12 3PS-MP- MR- Fire Pumps/Jockey
B12 MP12- Pumps
00001
MP14 3PS-MP- MR- General Purpose
B14 MP14- Pumps (Water)
00001
MP16 3PS-MP- MR- Sump Pumps
B16 MP16-
00001
MP18 3PS-MP- MR- Sewage Pumps
B18 MP18-
00001
MP24 3PS-MP- MR- Vertical Turbine Pumps
B24 MP24-
00001
MP32 3PS-MP- MR- Rotary Pumps
B32 MP32-
00001
HEAT TRANSFER AND VESSELS

THERMAL EQUIPMENT/TANKS
JV14 3PS-JV- MR-JV14- Relief Valves
B14 00001
MB06 3PS-MB- MR- Auxiliary Boilers
B06 MB06-
00001
MB07 3PS-MB- MR- Steam Reboiler
B07 MB07-
00001
ME03 3PS-ME- MR- Air Cooled Heat
B03 ME03- Exchangers
00001
ME04 3PS-ME- MR- Plate Heat Exchangers
B04 ME04-
00001
ME09 3PS-ME- MR- Condenser
B09 ME09-
00001
ME11 3PS-ME- MR- Cooling Tower
B11 ME11-
00001
ME14 3PS-ME- MR- Shell and Tube Heat
B14 ME14- Exchangers
00001
ME15 3PS-ME- MR- Air-Cooled Condenser
B15 ME15-
00001
ME16 3PS-ME- MR- Feedwater Heaters w/ Integral
B16 ME16- Deaerator
00001
ME17 3PS-ME- MR- Deaerator
B17 ME17-
00001
ME26 3PS-ME- MR- Dump Condenser
B26 ME26-
00001
MS11 3PS-MS- MR- Instrument Air Dryer
B11 MS11-
00001

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 6-37
55210\Construction Manua\Vol-2
Section 6 Working Level Cost Control

ATTACHMENT 6-3 (Continued)

CMDY PROJECT MR/FMR/ DESCRIPTION THIS FOB TYPE LOC. DES. MATL FURN SUPL. SHOP LD'S INSTL COMMENTS
CODE SPEC. SUB NO. PROJ. BAS. SRCE BY? QUAL EXP BY?
MT02 3PS-MT- MR-MT02- Shop Fabricated
B02 00001 Tanks/Vessels
MT10 3PS-MT- MR-MT10- Nonmetallic Tanks Typically with
B10 00001 MT02
MY09 3PS-MY- MR-MY09- Vent/Exhaust Silencer
B09 00001
MY10 3PS-MY- MR-MY10- Steam Blow Silencer
B10 00001
WATER TREATMENT/PACKAGED SYSTEMS
MS03 3PS-MS- MR- Chemical Feed System
B03 MS03-
00001
MS04 3PS-MS- MR- Fuel Oil Conditioning
B04 MS04- System
00001
MS05 3PS-MS- MR- Packaged Sewage
B05 MS05- Treatment
00001
MS09 3PS-MS- MR- Raw Water
B09 MS09- Pretreatment System
00001
MS16 3PS-MS- MR- Potable Water System
B16 MS16-
00001
MS18 3PS-MS- MR- Desalination Plant
B18 MS18-
00001
MS19 3PS-MS- MR- Fuel Gas
B19 MS19- Filter/Separator
00001
MS32 3PS-MS- MR- Condensate Polishers
B32 MS32-
00001
MS37 3PS-MS- MR- Bulk Gas Storage
B37 MS37- System
00001
MS38 3PS-MS- MR- Sewage Lift Station
B38 MS38-
00001
MS39 3PS-MS- MR- Reverse Osmosis
B39 MS39- System
00001
MV06 3PS-MV- MR- Cartridge Filters
B06 MV06-
00001
MV13 3PS-MV- MR- OIl Water Separators
B13 MV13-
00001
MW13 3PS-MW- MR- Lube Oil Conditioning
B13 MW13- System
00001
MY15 3PS-MY- MR-MY15- Makeup Demineralizer
B15 00001 System
MZ01 3PS-MZ- MR-MZ01- Condenser Tube
B01 00001 Cleaning System
MATERIAL HANDLING
MH12 3PS-MH- MR- Electric Hoists
B12 MH12- (Pulverizer)
00001
MH25 3PS-MH- MR- Bridge/Gantry Crane
B25 MH25-
00001
MH69 3PS-MH- MR- Miscellaneous Hoists
B69 MH69-
00001
MY01 3PS-MY- MR-MY01- Traveling Screens
B01 00001
MY17 3PS-MY- MR-MY17- Oil Loading Arms,
B17 00001 Truck/Rail
MY23 3PS-MY- MR-MY23- Oil Loading Arms,
B23 00001 Marine
HVAC/FIRE PROTECTION
MA12 3PS-MA- MR- Ventilation Fans
B12 MA12-

6-38 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
55210\Construction Manua\Vol-2
Working Level Cost Control Section 6

ATTACHMENT 6-3 (Continued)

CMDY PROJECT MR/FMR/ DESCRIPTION THIS FOB TYPE LOC. DES. MATL FURN SUPL. SHOP LD'S INSTL COMMENTS
CODE SPEC. SUB NO. PROJ. BAS. SRCE BY? QUAL EXP BY?
00001

MA14 3PS-MA- MR- Packaged A/C Units

B14 MA14-
00001
MA16 3PS-MA- MR- HVAC Package
B16 MA16-
00001
ME22 3PS-ME- MR- Unit Heaters
B22 ME22-
00001
MS24 3PS-MS- MR- Water Chillers
B24 MS24-
00001
MS40 3PS-MS- MR- Fire Protection System
B40 MS40-
00001
POWER GENERATION
MB01 3SS-MB- HRSG and Stacks
G01
MB02 3SS-ME- Boiler
001
MG02 N/A Combustion Turbine
Generator
MG03 3SS-MU- Steam Turbine
G01 Generator
MH01 3SS- Fly Ash Handling
MH00-001 System
MH02 3SS- Bottom Ash Handling
MH00-002 System
MH04 3SS- Lime Handling
MH00-005
MH05 LATER Fuel Handling System

MH06 3SS- Bulk Ship Unloading w/MH05

MH00-006 System
MK01 3SS-MK- Baghouse
G01
MK06 3SS-MK- Electrostatic
G06 Precipitator
MK07 3SS-MK- Wet Scrubber FGD
G07 System
MK08 3SS-MK- Spray Dryer FGD
G08 System
MS01 3SS- Stacker/Reclaimer
MH00-007
MS07 Dust Collection w/MH01,02,04,05
Systems
MUSS LATER Auxiliary Steam Turbine
Drives
ELECTRICAL

ELECTRICAL COMMODITIES
EB01 3PS-EB- MR-EB01- Isophase Bus and
505 00001 Accessories
EB04 3PS-EB- MR-EB04- Nonsegregated Bus
515 00001
EC01 3PS-EC- MR-EC01- High Voltage Motor
901 00001 Control Centers
EC02 3PS-EC- MR-EC02- 480 V Motor Control w/EY09
518 00001 Centers
EC02 3PS-EC- MR-EC02- Low Voltage Motor
902 00001 Control Centers
EH01 MR-EH01- Electric Heat Tracing
00001
EK01 3PS-EK- MR-EK01- 400 V Load Center Unit w/EY09
502 00001 Subs.
EK02 3PS-ES- MR-EK02- Low Voltage
902 00001 Switchgear
ES01 3PS-ES- MR-ES01- Medium Voltage Metal- w/EY09
503 00001 Clad Switchgear
ES01 3PS-ES- MR-ES01- High Voltage
901 00001 Switchgear
ET01 3PS-ET- MR-ET01- Power Transformers

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 6-39
55210\Construction Manua\Vol-2
Section 6 Working Level Cost Control

ATTACHMENT 6-3 (Continued)

CMDY PROJECT MR/FMR/ DESCRIPTION THIS FOB TYPE LOC. DES. MATL FURN SUPL. SHOP LD'S INSTL COMMENTS
CODE SPEC. SUB NO. PROJ. BAS. SRCE BY? QUAL EXP BY?
503 00001

ET04 3PS-ET- MR-ET04- Unit Auxiliary

504 00001 Transformers
EU01 3PS-ED- MR-EU01- 125 V dc Battery w/EY09
505 00001 Charger, Inverter, and
UPS
EU01 3PS-ED- MR-EU01- Batteries and Battery
901 00001 Chargers
EU01 3PS-EU- MR-EU01- Uninterruptible Power
901 00001 Supplies
EW00 3PS-EW- MR- Communication Wire
502 EW00- and Cable
00001
EW01 3PS-EW- MR- Medium Voltage Power
529 EW01- Cable
00001
EW02 3PS-EW- MR- Power and Control
901 EW02- Cable
00001
EW03 3PS-EW- MR- Instrumentation Cable
557 EW03- (Low Voltage and
00001 Thermocouple Ext.)
EW05 3PS-EW- MR- Instrumentation Cable
504 EW05- (Fiber Optic)
00001
EY01 3PS-EY- MR-EY01- Protective Relay Panels w/EY09
501 00001
EY02 3PS-EY- MR-EY02- Generator Breakers (up
502 00001 to 100 MVA)
EY02 3PS-EY- MR-EY02- Generator Breakers
503 00001 (Larger than 100 MVA)
EY09 3PS-E66- MR-EY09- Elect Equip Module/
501 00001 Powerhouse
EZ00 3PS-EZ- MR-EZ00- Swyd/Substation Also Spec 103-
102 00001 Electrical Materials 109
EZ01 3PS-EZ- MR-EZ01- High Voltage
101 00001 Switchgear (Swyd)
EZ01 High Voltage Breakers
(Swyd – AIS)
EZ01 High Voltage GIS
Switchyard
EZ02 HV Swyd Disconnect
Switches (AIS)
EZ03 HV Swyd Instr/metering
Xformers (AIS)
EZ09 HV XLPE / Direct-
buried Cable
EZ0X HV Swyd Misc
Electrical Devices (AIS)
EZ0X HV Swyd Misc
Electrical Hardware
(AIS)
ELECTRICAL BULKS

EF00 MR-EF00- Communication Also EF-501 to

00001 503
EG03 MR-EG03- Lightning Protection
00001
EG04 MR-EG04- Station Grounding Also 502
00001 Equipment
EG04 3PS-EG- MR-EG04- Neutral Earthing
901 00001 Resistors
EL00 MR-EL00 Lighting Also 502, 503
-00001
EP01 MR-EP01- Local Control Devices
00001
EQ01 MR-EQ01- Cathodic Protection
00001
ER01 MR-ER01- Cable Tray Also 504
00001
ER02 MR-ER02- Conduit and Fittings, Also 503
00001 Duct Bank
EW08 MR- Grounding Cable
EW08-

6-40 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
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Working Level Cost Control Section 6

ATTACHMENT 6-3 (Continued)

CMDY PROJECT MR/FMR/ DESCRIPTION THIS FOB TYPE LOC. DES. MATL FURN SUPL. SHOP LD'S INSTL COMMENTS
CODE SPEC. SUB NO. PROJ. BAS. SRCE BY? QUAL EXP BY?
00001

CONTROL SYSTEMS

JA03 3PS-JA- MR-JA03- CEMS

003 00001
JA14 MR-JA14- Residual Chlorine
00001
JA15 MR-JA15- pH/ORP Analyzer
00001
JA25 MR-JA25- Conductivity Analyzer w/Boiler Vendor
00001
JA34 MR-JA34- Steam/Water Analysis
00001 System
JC02 MR-JC02- Auxiliary Control Panel w/DCS
00001
JC07 MR-JC07- Panel-mounted Ind.,
00001 Electrical
JD01 3PS-JD01 MR-JD01- DCS/MCS
00001
JF02 MR-JF02- Pitot Tube
00001
JF03 MR-JF03- Nozzles
00001
JF04 MR-JF04- Orifice
00001
JF07 MR-JF07- Venturies
00001
JF08 MR-JF08- Magnetic Flow Meters
00001
JF12 MR-JF12- Vortex Flow Meters
00001
JF16 MR-JF16- Variable Area Flow
00001 Meters/Switches
JF17 MR-JF17- Positive Displacement
00001 Meters
JI00 MR-JI00- Vibration Instruments
00001
JL00 MR-JL00- Displacer Level
00001 Instruments
JL01 MR-JL01- Level Gauge/Glass
00001
JL06 MR-JL06- Level Transmitter
00001
JL11 MR-JL11- Ultrasonic Level
00001 Instruments
JL14 MR-JL14- Displacer Level
00001 Switches
JP01 MR-JP01- Pressure and
00001 Differential Gauges
JP03 MR-JP03- Pressure and
00001 Differential Switches
JQ01 MR-JQ01- Electronic Field
00001 Instruments
JQ03 MR-JQ03- Pneumatic Field
00001 Instruments
JT01 MR-JT01- RTDs
00001
JT03 MR-JT03- Thermocouple
00001 Assembly, Multipoint
JT04 MR-JT04- Dial/Bimettalic
00001 Thermometers
JT08 MR-JT08- Thermowell
00001
JT09 MR-JT09- Temperature Switches
00001
JV01 3PS-JV01 MR-JV01- General Service Control
00001 Valves and Regulators
JV03 MR-JV03- Solenoid Valves
00001
JV07 3PS-JV07 MR-JV07- Pressure Reducer and w/HRSG Vendor
00001 Desuperheater Valves
JV13 3PS-JV13 MR-JV13- Severe Service Control
00001 Valves

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 6-41
55210\Construction Manua\Vol-2
Section 6 Working Level Cost Control

ATTACHMENT 6-3 (Continued)

CMDY PROJECT MR/FMR/ DESCRIPTION THIS FOB TYPE LOC. DES. MATL FURN SUPL. SHOP LD'S INSTL COMMENTS
CODE SPEC. SUB NO. PROJ. BAS. SRCE BY? QUAL EXP BY?
JX01 MR-JX01- Racks and Supports
00001
JX02 MR-JX02- Manifold Valves
00001
JX03 MR-JX03- Instrument Valves
00001
JX04 MR-JX04- Instrument Fittings/
00001 Tubing
JX08 MR-JX08- Instrument Enclosures
00001
CONSTRUCTION MATERIALS
FA01 BG-FA01- Concrete Anchoring
F01 Systems
GC01 FMR- Construction
GC01- Equipment, Job Owned
00001
GC02 FMR- Construction
GC02- Equipment,
00001 Leased/Rented
GC60 FMR- Camp Services
GC60-
00001
SF00 BGB- Formwork, Temporary
SF01-001 (Purchase)
SF00 BGA- Formwork, Temporary
SF01-001 (Rental)
SY51 BGA- Scaffolding, Furnish
SC01-F01 (Purchase)
SY51 BGB- Scaffolding, Furnish
SC01-F01 (Rental)
TA00 BGA- Small Tools (Gulf
TA01-F01 States)
TA00 BGB- Small Tools (Other than
TA01-F01 Gulf States)
TS00 BGA-FS- Safety Equipment and
001 Supplies

6-42 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
55210\Construction Manua\Vol-2
Section 7
(Sub)Contract Progress and Coordination Reviews
DAILY REPORTS
Daily Reports are a historical record that describes Bechtel’s observations of the (sub)contractor’s day-
to-day operations. Preparation of the Daily Report is the primary responsibility of the Bechtel
representative who is monitoring the physical work (e.g., field engineer, contract coordinator, contract
supervisor). It most important that Bechtel personnel complete this report and that it not be delegated
to the (sub)contractor. Bechtel is at risk, particularly when there are disputes, and needs to have the
Bechtel-documented record.

The daily report should include:

• Shift starting and ending times
• Numbers of workers (reference [sub]contractor daily force report if used)
• Equipment status – number, noting on/offs (reference [sub]contractor equipment report if used)
• Progress made relative to plan
• Major material status (received/removed/installed)
• (Sub)contractor’s work stoppages, interruptions, and delays (noting potential reasons/causes)
• Weather impacts
• Unusual field conditions
• Test/inspections performed
• Unsatisfactory work notifications/(sub)contractor actions taken
• Accident, injury, and safety
• (Sub)contractor requests for assistance
• Bechtel requests (e.g., engineering request feedback)
• Directions/instructions given to (sub)contractor/actions taken
• Conflicts

Figure 7-1 provides an example Daily Report showing the format in which the information is recorded.
Items of significance should be discussed in the next progress review meeting or coordination Meeting
as appropriate. Refer to Section 5.1 of the Contracts/Subcontracts Management Manual for more
direction on the Daily Report.
REVIEW MEETINGS
Progress review meetings are held between Bechtel and a (sub)contractor to evaluate a
(sub)contractor’s progress; review schedules; discuss past, current, and potential problems; and
resolve restraints.

1998 Bechtel Corp. Principles of Construction Controls, Vol. II, (Sub)Contract Execution 7-1
55210\Construction Manua\Vol-2
Section 7 (Sub)Contract Progress and Coordination Reviews

Daily Report
CONTRACT NO.: BECHTEL:
COMPANY
CONTRACTOR: PROJECT:

CONTRACTOR REP.: REPORT NO.

PAGE of

SHIFT DATE WEATHER

MANUAL NON-MANUAL
CONTRACT FORCES NO OH NO OH LIST OF MAJOR EQUIPMENT HRS.

DESCRIPTION OF WORK PERFORMED TODAY:

SPECIAL COMMENTS:

WORKED PERFORMED TODAY ON CHANGE NOTICES:

MANUAL NON-MANUAL
CN NO. CONTRACT FORCES NO OH NO OH EQUIPMENT

REVIEWED BY: DATE REPORTED BY: DATE

FIGURE 7-1 - EXAMPLE DAILY REPORT

7-2 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
55210\Construction Manua\Vol-2
(Sub)Contract Progress and Coordination Reviews Section 7

Review meetings:
• Provide an opportunity to review the 3- or 4-Week Rolling Schedule (Weekly Work Plan) and
status specific activities (e.g., deliveries of note, as well as work on site)
• Provide for review of progress (actual vs. planned) and performance
• Provide a forum for Bechtel and the (sub)contractor to meet on a continuing basis to discuss
and resolve problems and come to common understandings of work progress
• Allow a way to identify, track, and resolve action items
Records of these meetings provide an invaluable resource in after-the-fact settlement of disputes
and claims.
Check the Contracts Division of Responsibility Matrix (See example format in Appendix D) to
determine who is responsible for conducting the review meetings.

An agenda is prepared for each week's meeting. The weekly meeting covers technical and
schedule issues. Commercial aspects are usually addressed once a month. The commercial
discussions may take place in an extension of the weekly review where attendance is restricted or
at a separate meeting, which may be held off site.
Each agenda should address the following major topics:
• Safety/environment
• Security
• Quality
• Schedules
• Submittals
• Request for information status
• Proposal status
• Other items
• Correspondence
These topics do not change from week to week (see sample agenda).
The meetings are numbered sequentially from the Notice To Proceed date. For furnish-and-erect
contracts, where administration is performed in a regional office for a long period before
construction starts in the field, the meetings can be sequenced from the required start-of-work
date on the site. Refer to Section 5.2 of the Contracts/Subcontracts Management Manual for more
direction on the progress review meetings.
The meeting participants:
• Discuss outstanding action items from the previous meeting and their status and resolution
• Evaluate the (sub)contractor’s progress since the last meeting and compare it to scheduled
progress
• Agree on status of work and mark up a schedule for progress to date

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 7-3
55210\Construction Manua\Vol-2
Section 7 (Sub)Contract Progress and Coordination Reviews

• Discuss the schedule and the proposed plans and progress for the next schedule period
• Discuss interfaces, critical items, and current and potential problems
• Determine action items and assign responsibility
• Cover staffing projections, quantity installation, design and vendor drawing submittals, and
equipment deliveries
A Bechtel participant summarizes the results of the meeting, distributes minutes to the
participants, and provides the contractor with a list of action items and any agreements or
understandings reached.
The cash flow, Change Notices and Proposals/Claims Log, and potential and pending claims are
reviewed in a separate meeting

Sample Agenda
A. Action Items from Last Meeting
B. Update of Rolling Schedules (include discussion of the critical items list and any potential
delays)
C. Quantity Progress by Areas or Activity
D. Staffing by Major Commodity Group and/or Craft
E. Equipment by Task/Crew
F. Staffing Availability
G. Material Availability (Overages, Shortages, Rework, Rejects, and Warranty Items)
H. Request for Information
I. Technical Data Submittals
J. Change Notices
K. Change Orders/Amendments
L. Correspondence Pending (both ways)
M. Invoice and Payment Status
N. New Action Items with Target Closure Dates

Note how well a 4-Week Rolling Schedule (Weekly Work Plan), as described in Section 5, covers
a significant portion of the agenda. If the schedule is completed to the same level of detail as
shown in Section 5, items B through G are covered. However, some of the information (e.g., bulk
quantities, staffing) may need to be summarized at higher levels to add perspective to the overall
progress being achieved.
Many of the other items (H through M) are covered in report forms being tracked by contracts
administrators/coordinators. Also note that items J, K, and M are commercial and are normally
covered once a month, either as an extension to the weekly meeting or at a separate meeting.
Refer to the BecWeb Contracts home page to obtain the most up-to-date formats for these report
forms.

7-4 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
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(Sub)Contract Progress and Coordination Reviews Section 7

COORDINATION MEETINGS
The coordination meetings provide a forum for Bechtel and other (two or more) (sub)contractors
to discuss overall coordination and interfacing of the project work. They are conducted to
schedule work area accessibility and equipment/schedule coordination among the
(sub)contractors and Bechtel. Coordination meetings are held at least weekly or more often as
work schedules require (e.g., an as-need basis).

The meeting participants:

• Discuss outstanding action items from previous meetings and their status and resolution
• Discuss foreseeable interfaces and potential conflicts between (sub)contractors
• Address foreseeable constraints to the flow of work, including constraints caused by other
parties (e.g., Bechtel, the [sub]contractors, customer, government authorities)
• Determine action items and assign responsibility
A Bechtel participant summarizes the result of the meeting, distributes minutes to the participants,
and provides each (sub)contractor with a list of action items and any agreements or
understandings reached.
Note that commercial issues are not discussed at the coordination meetings, because more than
one (sub)contractor is in attendance. The discussions concentrate on the technical and schedule
issues. Refer to Section 5.2 of the Contracts/Subcontracts Management Manual for more direction
on the coordination meetings.

CONTRACT COORDINATOR'S ROLE

The Contracts/Subcontracts Management Manual, in its Division of Responsibilities Matrix,
provides a means to define roles regarding progress review meetings and coordination meetings
(also refer to Appendix D). The contracts administrator, contracts coordinator, and other project
personnel may have key roles regarding these meetings. The Division of Responsibility should
identify the persons assigned these responsibilities. Refer to the Contracts/Subcontracts
Coordination Handbook for more on the coordinator’s role.

COST AND SCHEDULE SUPPORT

The field planner, in conjunction with the project planner, can properly evaluate schedules and
related progress by reviewing the (sub)contractor’s periodic report updates, which provide
progress against the current approved plan. Impacts to contract milestones or completion dates
may be assessed based on critical path analysis. Planners can also assist in developing higher
level summaries of bulk quantities (design, delivered, and installed) and overall assessment of
schedule needs. Refer to Section 5 for further explanations of schedule impact evaluations.
The primary cost support data required is a to-date status of invoices and their payments. This
information is available in accounting reports. However, with the centralization of accounting
functions, it is to be noted that this voucher information may be carried in the PCWorks
submodule for Cost and Commitment. Depending on the overall approach on the project, this
may be the most easily accessible point to obtain timely updates in the field. The source should
be established in the detailed Project Execution Plan developed at the start of the project.

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 7-5
55210\Construction Manua\Vol-2
Section 7 (Sub)Contract Progress and Coordination Reviews

Finally, Project Controls personnel may be of assistance in summarizing the impacts of changes
in the (sub)contracts. Refer to Section 6 for examples of the reports and further explanations of
cost evaluation support provided.

7-6 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
55210\Construction Manua\Vol-2
Section 8
Trending and Forecasting
The field trend program is a system for monitoring changes to cost and schedule during the project
construction stages. Properly used, it warns of changes in cost and/or schedule and provides Bechtel
and client management with the basis for evaluating the necessity of the changes. (Note that this
section deals primarily with the prime contracts interface and that the Prime Contracts Management
Manual is an excellent reference for additional insight.) The trend program operates continuously
over the life of the project, but added emphasis is given during the design phase, while there is still
ample opportunity to enact changes to reduce costs effectively.

Forecasts are periodic reassessments of a project’s scope, cost, and schedule. Because trends are
always based on the latest forecast information, the trend program provides a reconciliation between
forecasts. Both trending and forecasting are covered in this section. The deliverables matrix shown in
Table 8-1 provides a summary description of the topics covered.

TABLE 8-1 - PROJECT CONTROLS DELIVERABLES MATRIX – TRENDING/FORECASTING

RESPONSIBLE TIMING OF FREQ. REFERENCE
SYSTEM/DELIVERABLE DESCRIPTION/ FUNCTION LOC. PERSON TOOL IMPLEMENTATION ISSUED PROCED.
(SEE NOTE BELOW)
TRENDING/FORECASTING

Trend Report A summary report of trend activity for Design Trend Excel 2 Monthly 4.08
the report month. Attachments include Office/ Engineer with
a one page combination graphical and Field Field Support
tabular summary of cost and revenue
trends, the Trend register, and the
Contingency Evaluation Worksheet.
Trend Register A list of resolved trends for the Design Trend Excel 2 Monthly 4.08
report month, plus all outstanding Office/ Engineer with PCWorks
unresolved trends, including status, Field Field Support
the estimated cost, revenue, and
schedule impact. A summary of
previously resolved trends is also
provided.
Contingency Evaluation An evaluation of recommended Design Trend Excel 2 Monthly 4.08
Worksheet minimum, maximum, and most Office/ Engineer with
probable percentages, and dollar Field Field Support
levels of project contingency by
major cost category.
Project Forecast A re-evaluation of the to-go cost and Design Project Excel/ 3 Annually or As 4.09
duration, culminating in a forecast Office/ Manager with PCWorks/ Required
presentation document to Bechtel Field Project Word
management and a new baseline for Controls
project monitoring and control. Support
NOTE : The timing of implemetation reflects the number of months from Notice To Proceed for items with Design Office responsibility, or the number of
months from jobsite mobilization for Field responsibilty.

TREND PROGRAM AND CHANGE CONTROL

Trend Program
Specifically, the trend program allows the project team to:
• Optimize plant design
• Consider cost-saving alternatives
• Identify changes in the scope, plant quality, and services
• Take corrective action before design deviations are irrevocably included in the project

1998 Bechtel Corp. Principles of Construction Controls, Vol. II, (Sub)Contract Execution 8-1
55210\Construction Manua\Vol-2
Section 8 Trending and Forecasting

The team concept is most important to the success of a trend program. All management/supervisory/
functional leads must be proactive in their approach and cooperative in evaluating trends.

In the current market many projects are fast-track, with significant engineering, procurement,
construction, and commissioning overlaps. Concepts such as just-in-time deliveries may be employed,
and field personnel will be quite busy. In this setting it is important that the trend program be
comprehensive so that forecast efforts are not as disruptive to the work. However, some well-timed
forecast are inevitable. The trend program supports, but is not a substitute for, project forecasting, the
scope change program, or financial status reporting. One possibility is to use Home Office assistance
when the forecast occurs during periods of intense construction in the field.
On fixed price (lump-sum) projects, the emphasis is on control of Bechtel cost. Communications/
notifications to the client are through the scope change program. Other trends that may affect Bechtel
profitability are to be treated as confidential. A flow chart outlining the trend control program on lump-
sum projects is shown in Figure 8-1.
On cost-reimbursable projects, all trends affect cost to the client; hence, the cost control focus is on
Bechtel revenue (i.e., the total cost to the client). Client communication and notification of cost trends
items, in terms of revenue, are requirements of the trend program. A flow chart outlining the trend
control program on reimbursable projects is shown in Figure 8-2.
The field project controls supervisor is responsible for implementing of the field trend program and
providing input to the overall project trend program conducted in the Home Office under direct control
of the trend engineer. If the trend engineer is the senior cost engineer on project, he/she is also
responsible for coordinating project cost functions such as budgeting, estimates, and forecast reviews.
The senior cost engineer may be assisted by a less senior individual when required by project work
load.
On small projects or in the latter stages of major projects where a full-time trend engineer is no longer
warranted, the responsibilities of the trend engineer may be consolidated with other project cost
engineering responsibilities. In the latter design phase, when construction activities are at significant
levels, the primary responsibility shifts to field office, with the Home Office retaining responsibility for
overall coordination and issuance of the trend report.
The trend program cannot start without establishing a base for identifying budget variations and
deviations as the project evolves. The trend base allows the project team to examine differences and
take corrective action before it is too late. Refer to Project Controls Department Procedure
(PCDP) 4.01 for information on the development of the project budget and the trend base. The trend
base is developed as quickly as possible after award, and trend meetings are held monthly to review
trends and issue the monthly report. In the beginning the trend base and the Original Budget are one
and the same. As the project progresses and new forecasts are performed, new bases may be
established. This is particularly true on cost reimbursable jobs.

The trend report format varies, depending on whether the project is fixed price or cost reimbursable.
For fixed price projects, the emphasis is on control of cost; while on cost-reimbursable projects, the
emphasis is on changes in revenue. In both instances the report has a one-page summary followed
by the detailed trend register. Figures 8-3 through 8-6 show example detailed cost trend registers and
trend reports for fixed price and cost reimbursable projects. These reports are available as Excel
templates. Instruction for use and application of the Excel forms may be found in Appendices F and
G. An example of the PCWorks Project Cost Module trend register is also included in Appendix E.

8-2 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
55210\Construction Manua\Vol-2
Trending and Forecasting Section 8

RECYCLE AS REQUIRED

INITIATOR OBTAINS REVIEW

TREND ENGINEER ASSIGNS
INITIATOR FILLS OUT OF CHANGES FROM THOSE
TREND ENGINEER DUE DATE, LOGS IN TN LOG
TREND NOTICE (TN) OF HIS OWN GROUP AND
DETERMINES COMPLETENESS AND DISTRIBUTES TO EGS'S
TO INITIATE TRENDS INCORPORATES COMMENTS
OF TREND INITIATION AND SERVICE GROUP
AS INSTRUCTED BY HIS
SUPERVISORS
SUPERVISOR

REFER TO SCOPE CHANGE PURPOSE: TO DETERMINE PURPOSE: TO INFORM

CONTROL PROCEDURE FOR EFFECT OF NEWLY INITIATED ALL PARTICIPANTS OF
GUIDANCE IN DETERMINING TREND ON OTHER SYSTEMS A NEW TREND
CONTRACT CHANGE ORDERS WITHIN THE GROUP

RECYLCE AS REQUIRED

EACH ENGINEERING GROUP

TREND ENGINEER STUDIES
SUPERVISOR (EGS) &
AND ESTIMATES TRENDS TREND ENGINEER FOLLOWS
SERVICE GROUP
OR OBTAINS ESTIMATE OF PROJECT ENGINEER (PE) UP & COLLECTS ALL TN'S
SUPERVISOR OBTAINS
TREND FROM RESPONSIBLE REVIEWS TN BY REVIEW DATE
REVIEW OF CHANGE(S)
ESTIMATOR, AS REQUIRED
WITH HIS OWN GROUP

PURPOSE: TO DETERMINE
& INFORM THE TREND
ENGINEER OF THE EFFECT
OF THE NEW TREND ON
THE GROUP'S AREA OF
RESPONSIBILITY

TREND ENGINEER ASSIGNS TREND MEETING TO REVIEW

CONSTRUCTION COST
TREND NUMBER TO & DISCUSS TRENDS, &
TRENDS PREPARED IN
TRENDS, LOGS IN TREND IDENTIFY RESPONSIBILITIES/
FIELD & FORWARDED TO
REGISTER, & DISTRIBUTES ACTIONS & ANY SCOPE
HOME OFFICE
DRAFT TO PROJECT TEAM CHANGES

ENGINEERING DEVELOPS STUDY PROJECT MANAGER TREND ENGINEER REVISES

DEFINITION FOR REQUIRED DECIDES TO APPROVE, REGISTER AS REQUIRED,
ESTIMATING & ESTIMATING CANCEL OR REQUEST & PREPARES TREND
PREPARES STUDY FURTHER STUDY ON EACH SUMMARY & TRANSMITTAL
ESTIMATE TREND MEMO

PROJECT MANAGER SCOPE CHANGES

PROJECT MANAGER
ADVISES ENGINEERING & PROCESSED IN ACCORD-
FORWARDS TRENDS TO
OTHER DEPARTMENTS TO ANCE WITH SCOPE CHANGE
BECHTEL MANAGEMENT
PROCEED CONTROL PROCEDURE

FIGURE 8-1 – TREND PROGRAM FLOW CHART FOR LUMP-SUM PROJECTS

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 8-3
55210\Construction Manua\Vol-2
Section 8 Trending and Forecasting

RECYCLE AS REQUIRED

INITIATOR OBTAINS REVIEW

TREND ENGINEER ASSIGNS
INITIATOR FILLS OUT OF CHANGES FROM THOSE
TREND ENGINEER DUE DATE, LOGS IN TN LOG
TREND NOTICE (TN) OF HIS OWN GROUP AND
DETERMINES COMPLETENESS AND DISTRIBUTES TO EGS'S
TO INITIATE TRENDS INCORPORATES COMMENTS
OF TREND INITIATION AND SERVICE GROUP
AS INSTRUCTED BY HIS
SUPERVISORS
SUPERVISOR

REFER TO SCOPE CHANGE PURPOSE: TO DETERMINE PURPOSE: TO INFORM

CONTROL PROCEDURE FOR EFFECT OF NEWLY INITIATED ALL PARTICIPANTS OF
GUIDANCE IN DETERMINING TREND ON OTHER SYSTEMS A NEW TREND
CONTRACT CHANGE ORDERS WITHIN THE GROUP

RECYCLE AS REQUIRED

EACH ENGINEERING GROUP

TREND ENGINEER STUDIES
SUPERVISOR (EGS) &
AND ESTIMATES TRENDS TREND ENGINEER FOLLOWS
SERVICE GROUP
OR OBTAINS ESTIMATE OF PROJECT ENGINEER (PE) UP & COLLECTS ALL TN'S
SUPERVISOR OBTAINS
TREND FROM RESPONSIBLE REVIEWS TN BY REVIEW DATE
REVIEW OF CHANGE(S)
ESTIMATOR, AS REQUIRED
WITH HIS OWN GROUP

PURPOSE: TO DETERMINE
& INFORM THE TREND
ENGINEER OF THE EFFECT
OF THE NEW TREND ON
THE GROUP'S AREA OF
RESPONSIBILITY

TREND ENGINEER ASSIGNS TREND MEETING TO REVIEW TREND ENGINEER REVISES

CONSTRUCTION COST
TREND NUMBER TO & DISCUSS TRENDS, & REGISTER AS REQUIRED,
TRENDS PREPARED IN
TRENDS, LOGS IN TREND IDENTIFY RESPONSIBILITIES/ & PREPARES TREND
FIELD & FORWARDED TO
REGISTER, & DISTRIBUTES ACTIONS & ANY SCOPE SUMMARY & TRANSMITTAL
HOME OFFICE
DRAFT TO PROJECT TEAM CHANGES LETTER

PROJECT MANAGER MEETS

ENGINEERING DEVELOPS STUDY WITH CLIENT TO REVIEW
PROJECT MANAGER
DEFINITION FOR REQUIRED STATUS OF UNRESOLVED
FORWARDS TRENDS TO
ESTIMATING & ESTIMATING TRENDS. CLIENT DECIDES
TO APPROVE, CANCEL OR CLIENT & TO BECHTEL
PREPARES STUDY
REQUEST FURTHER STUDY MANAGEMENT
ESTIMATE
ON EACH TREND

SCOPE CHANGES
PROJECT MANAGER
PROCESSED IN ACCORD-
ADVISES ENGINEERING &
ANCE WITH SCOPE CHANGE
OTHER DEPARTMENTS TO
CONTROL PROCEDURE
PROCEED

FIGURE 8-2 - TREND PROGRAM FLOW CHART FOR REIMBURSABLE PROJECTS

8-4 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
55210\Construction Manua\Vol-2
Trending and Forecasting Section 8

L U M P S U M P R O JE C T - JO B N O . X X X X X
TR E N D R E P O R T NO . 2 C O S T T R E N D R E G IS T E R / W O R K S H E E T
J u n -9 7

C O S T (in $ 1 ,0 0 0 ' s )
S COPE R E V EN U E S CHEDULE
T R EN D TREND C H A N GE D E S C R IP T IO N / R E A S O N ( in SCOPE IN C L U D E D OTHER IN C L U D E D IM P A C T
DATE NO . NO. (in c l. r e fe r e n c e s ) $ ,1 0 0 0 ' s ) C H A N GES CO NT. TRENDS CO NT. (Y/N )
R E S O L V E D T R E N D S - T H IS R E P O R T
6 /9 7 0 04 P IL E S , B E A R I N G ( 2 , 7 6 8 .0 ) N
C h a n g e s r e s u lt e d d u e to s o il b e a r in g
a n a l ys is ( 1 4 " p il e s w / m o b , d e m o b , t e s t in g ,
a d d i ti o n a l e x c a v a t io n & b a c k f il l)
6 /9 7 0 07 B O IL E R F E E D P U M P 1 , 0 7 2 .0 N
B u d g e t p r i c i n g w a s a p p a r e n t ly b a s e d o n a
3 5 0 0 H P p u m p /m o to r d e s ig n , w h e r e a s c u r r e n t
s p e c re q u i re s a 5 0 0 0 H P p u m p /m o to r. Al s o
t h e o r i g i n a l p r ic i n g w a s lo w f o r th e 3 5 0 0
H P pu m p s .
6 /9 7 0 15 S T A C K -C O N C R E T E L IN E R ( 1 , 0 2 2 .9 ) N
R e c e i ve d b id s w e r e s u b s t a n t ia ll y lo w e r
t h a n t h e o r i g i n a l b u d g e t.
6 /9 7 0 16 P A V IN G - R O U T E 1 3 0 , P E N N S V I L L E & L A C E Y G A T E S , ( 3 8 4 .2 ) N
P L A N T R O A D S & P A R K IN G A R E A S
R e c e i ve d b id s w e r e s u b s t a n t ia ll y lo w e r
t h a n t h e o r i g i n a l b u d g e t.
6 /9 7 0 18 G IS S W IT C H Y A R D , 2 3 0 K V W IT H B U IL D IN G ( 9 6 2 .6 ) N
C o n t r a c t a w a r d , A F G IS a l lo w a n c e is 9 % .
6 /9 7 0 19 IN S U R A N C E 2 4 5 .3 N
* M a r in e :
$ 2 4 5 k w a s n o t in c lu d e d i n th e o r ig in a l
e s ti m a te . T h is c o s t w a s id e n t if ie d b e f o r e
c l o s i n g ; h o w e v e r it w a s n e ve r in c lu d e d i n
t h e e s ti m a t e .
* B u i ld e r s R i s k : 9 8 .4
D e lt a in p r e m i u m .
* E f f ic i e n c y: ( 4 2 5 .0 )
D e lt a in p r e m i u m i s b a s e d o n $ 6 0 ,0 0 0 , 0 0 0
p o li c y w i th $ 7 ,5 0 0 ,0 0 0 d e d u c t ib le .
6 /9 7 0 20 00 6 R E R O U T E P IP E B R ID G E 3 ,8 0 9 .0 3 ,7 0 9 .0 1 5 0 .0 N
R e r o u te p ip e b r id g e to a c c o m m o d a t e c h a n g e s
i n D u p o n t s it e c o n d it io n s . D u p o n t h a s
r o u te d a n a b o v e g r o u n d w a s t e w a te r li n e
a lo n g th e s a m e r o u t e th e o f f s i te s te a m
l in e s w e r e t o b e r o u te d . T h e r e is n o t
e n o u g h c l e a r a n c e t o r o u t e th e s te a m li n e
w i th o u t m a k i n g t h e c o s t p r o h ib it iv e l y
e x p e n s iv e . A n a l te r n a t e r o u t e w a s lo c a te d
a n d a g r e e d t o w i th D u p o n t w h ic h i s l o n g e r .
6 /9 7 0 24 D E M IN E R A L IZ E R S Y S T E M ( 3 tr a i n s ) 3 2 1 .0 N
T h e e s ti m a t e p r i c e d a 9 0 0 G P M
d e m i n e r a l i ze r s ys te m w h e n t h e s c o p e b o o k
re q u ire d 1 1 0 0 G P M .
6 /9 7 0 25 C O N T I N G E N C Y E V A L U A T IO N
S e e a tt a c h e d c o n ti n g e n c y a n a l ys is f o r d a t a . 2 , 0 0 0 .0 2 ,0 0 0 . 0 N

T O T A L R E S O L V E D T R E N D S , T H IS R E P O R T 3 ,8 0 9 .0 3 ,7 0 9 .0 1 5 0 .0 ( 1 , 8 2 6 .0 ) 2 ,0 0 0 . 0

U N R E S O L VE D T R E N D S
5 /9 7 0 01 00 1 R E M O T E T E R M IN A L U N IT ( R T U ) 6 2 .0 6 0 .0 1 .0 N
I n s t a l la ti o n & w ir i n g o f a n R T U , a s
r e q u e s t e d b y A tl a n t ic E le c tr i c d u r in g t h e
m e e t in g o f M a r c h 1 9 , 1 9 9 1 . ( S t u d y # 0 2 7 )
5 /9 7 0 02 00 2 T E L E M E T R Y E Q U IP M E N T 8 9 .6 8 6 .1 2 .5 N
N . J . r e q u i r e m e n t f o r d a t a tr a n s m it ta l t o
t h e D e p a r tm e n t o f A ir Q u a l it y C o n tr o l .
5 /9 7 0 03 00 3 T R AIL E R R E N T AL 4 4 .0 4 2 .0 N
C C L P h a s r e q u e s te d t h e e q u i va le n t s p a c e o f
1 /2 a tr a il e r f o r p e r s o n n e l a t th e jo b s i te
( 1 7 m o n th s r e n t a l w / d e l iv e r y, d e c k , s e tu p ,
s k i r ti n g , fo u n d a t io n s , p e r m it s , k n o c k

5 /9 7 0 05 S T A F F I N G P L A N R E V IS IO N 2 , 9 0 4 .0 N
D e ta il s ta ff i n g p la n s w e r e d e v e l o p e d b y
e a c h o f t h e d e p a r tm e n t s to s u p p o r t t h e
s c o p e o f w o r k a s i t i s c u r r e n tl y k n o w n .
T h e E n g & O H O h o u r s w e r e in c r e a s e d b y
3 5 ,5 9 7 , a n d f ie ld h o u r s w e r e in c r e a s e d b y
2 2 ,8 2 9 .
5 /9 7 0 08 ID F A N - P R IC I N G ( 4 3 2 .0 ) N
P r e l im in a r y b u d g e t p r i c in g a r e
s u b s ta n t ia l ly l o w e r t h a n th e o r ig in a l
b u d g e t . T h e ID f a n s w il l b e is s u e d f o r
b id th is m o n t h .
6 /9 7 0 17 AS H H A N D L IN G 1 , 6 1 3 .0 N
I n c r e a s e i n p r ic e d u e to l a r g e r s ys te m
c a p a c i ty . C h a n g e t o w h a t w a s p r ic e d o u t
i n t h e o r ig in a l e s ti m a t e fr o m 6 0 T n /H r to
8 0 T n / H r p e r b o il e r .
6 /9 7 0 21 00 4 G IS S W IT C H Y A R D 1 2 0 .0 1 1 5 .0 5 .0
A tl a n t ic E le c t r ic C o m p a n y r e q u e s t e d
c h a n g e s t o G IS s w i tc h ya r d i n m e e t in g o n
5 /2 9 /9 1 .
6 /9 7 0 22 F IR E W AL L , 2 H O U R R A T IN G 1 7 0 .0
A d d 1 0 0 f t h ig h fi r e w a ll b e t w e e n tu r b in e
b u il d i n g & b o i le r b u il d i n g s . A ll
p e n e tr a ti o n s t h r o u g h w a l l to h a ve 2 h o u r
f ir e s e a l s .
6 /9 7 0 23 F E N C IN G ( 5 0 .0 )
P r ic i n g

TO TAL U N R E S O L VE D T R E N D S 3 1 5 .6 3 0 3 .1 8 .5 4 , 2 0 5 .0

P R E V IO U S L Y R E S O L V E D T R E N D S
MAY 1 99 1
5 /9 7 0 06 1 1 k V O V E R H E A D L IN E S - E S T IM A T E vs B U D G E T 8 1 6 .0 N
5 /9 7 0 09 B O IL E R AF G IS ( 2 , 0 0 0 .0 ) N
5 /9 7 0 10 D I T C H F IL L - I N 8 7 .0 N
5 /9 7 0 11 F IR E L O O P P IP E - C O N V E R S IO N T O P L A S T IC ( 1 0 8 .0 ) N
5 /9 7 0 12 J O Y P A Y M E N T S C H E D U L E : C o s t o f C a p i ta l S a v i n g s ( 1 , 2 0 8 .0 ) N
5 /9 7 0 13 C R IT IC A L P IP E 1 , 3 3 4 .0 N
5 /9 7 0 14 C O AL H A N D L IN G B U Y O U T & P A YM E N T T E R M S ( 8 9 0 .0 ) N

T O T A L P R E VIO U S L Y R E S O L VE D T R E N D S 0 .0 0 .0 ( 1 , 9 6 9 .0 )

S U MM AR Y O F T R E N D S
R E S O L VE D T R E N D S , T H IS R E P O R T 3 ,8 0 9 .0 3 ,7 0 9 .0 1 5 0 .0 ( 1 , 8 2 6 .0 ) 2 ,0 0 0 . 0
P R E V IO U S L Y R E S O L V E D T R E N D S 0 .0 0 .0 0 .0 ( 1 , 9 6 9 .0 ) 0 .0
TO TAL R E S O L VE D TR E N D S 3 ,8 0 9 .0 3 ,7 0 9 .0 1 5 0 .0 ( 3 , 7 9 5 .0 ) 2 ,0 0 0 . 0
TO TAL U N R E S O L VE D T R E N D S 3 1 5 .6 3 0 3 .1 8 .5 4 , 2 0 5 .0 0 .0

TO TAL AL L T R E N D S 4 ,1 2 4 .6 4 ,0 1 2 .1 1 5 8 .5 4 1 0 .0 2 ,0 0 0 . 0

FIGURE 8-3 - EXAMPLE COST TREND REGISTER - REIMBURSABLE PROJECT

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 8-5
55210\Construction Manua\Vol-2
Section 8 Trending and Forecasting

COMPANY CONFIDENTIAL SAMPLE FIXED PRICE PROJECT TREND REPORT NO. 1

BECHTEL JOB NO. XXXXX May-91
(In $000s)

REVENUE COST (EXCL. CONTINGENCY)

10,000 10,000
9,000 ORIGINAL $360,000 9,000 ORIGINAL $331,820
8,000 CURRENT $363,809 8,000 CURRENT $329,584
7,000 7,000
6,000 6,000
5,000 5,000
4,000 $3,809 4,000
3,000 3,000
2,000 2,000
1,000 1,000
0 0
-1,000 -1,000
-2,000 -2,000 -2236
-3,000 -3,000
-4,000 -4,000
-5,000 -5,000
Apr91 May91 Jun91 Jul91 Aug91 Sep91 Oct91 Nov91 Apr91 May91 Jun91 Jul91 Aug91 Sep91 Oct91 Nov91

GROSS MARGIN CONTINGENCY

10,000 10,000
9,000 ORIGINAL $20,000 9,000 ORIGINAL $8,180
8,000 CURRENT $23,895 8,000 CURRENT $10,330
7,000 7,000
6,000 6,000
5,000 5,000
4,000 $3,895 4,000
3,000 3,000
2,000 2,000 $2,150
1,000 1,000
0 0
-1,000 -1,000
-2,000 -2,000
-3,000 -3,000
-4,000 -4,000
-5,000 -5,000
Apr91 May91 Jun91 Jul91 Aug91 Sep91 Oct91 Nov91 Apr91 May91 Jun91 Jul91 Aug91 Sep91 Oct91 Nov91
RESOLVED TRENDS
REVENUE COST (EXCL. CONTINGENCY)
FINANCIAL TRENDS THROUGH THIS THROUGH THROUGH THIS THROUGH
Apr-91 REPORT May-91 Apr-91 REPORT May-91
RESOLVED TRENDS
> SCOPE CHANGES 0.0 3,809.0 3,809.0 0.0 3,559.0 3,559.0
> OTHER TRENDS N/A N/A N/A (1,969.0) (3,826.0) (5,795.0)
TOTAL RESOLVED TRENDS 0.0 3,809.0 3,809.0 (1,969.0) (267.0) (2,236.0)

UNRESOLVED TRENDS *
> SCOPE CHANGES 195.6 315.6 315.6 188.1 294.6 294.6
> OTHER TRENDS N/A N/A N/A (1,368.0) 4,205.0 4,205.0
TOTAL UNRESOLVED TRENDS 195.6 315.6 315.6 (1,179.9) 4,499.6 4,499.6

TOTAL ALL TRENDS 195.6 4,124.6 4,124.6 (3,148.9) 4,232.6 2,263.6

* UNRESOLVED TRENDS ARE NOT ADDITIVE FROM ONE REPORT TO THE NEXT
SCHEDULE TRENDS TREND BASE ACTUAL/ CHANGE (IN WEEKS)
(MAJOR MILESTONES) SCHEDULE FORECAST TODATE THIS REPORT NOTES

1. NOTICE TO PROCEED 30-Apr-91 30-Apr-91 A 0.0

2. START CONSTRUCTION 30-Nov-91 03-Jul-91 A -21.4 -1.7
3. FIRST CONCRETE 04-Feb-92 09-Dec-91 F -8.1
4. SET DRUM #1 30-Aug-92 30-Jun-92 F -8.7
5. BOILER HYDRO 30-Jul-93 30-Jun-93 F -4.3
6. PLANT ENERGIZATION 30-May-93 01-Apr-93 F -8.4
7. TURBINE ROLL 30-Dec-93 29-Nov-93 F -4.4
8. 0.0
9. GUARANTEED COMPLETION 29-Jun-94 27-Feb-94 F -17.4

FIGURE 8-4 - EXAMPLE TREND REPORT – LUMP-SUM PROJECT

8-6 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
55210\Construction Manua\Vol-2
Trending and Forecasting Section 8

R E IM B U R S E A B L E P R O J E C T - J O B N O . X X X X X
TR E N D R E P O R T N O . 2 C O S T T R E N D R E G I S TE R / W O R K S H E E T C O M P A N Y C O N F ID E N T I A L
J u n -9 7
C O S T ( i n $ 1 , 0 0 0 's )

SCOPE S C H ED U L E
TR END T R EN D CHANGE D E S C R IP T I O N / R E A S O N SCOPE IM P A C T A CT IO N S / N O T ES R ES P . D UE
D AT E NO. NO. ( i n c l . r e f e r e n c e s) C H A NG E OTHER TO T AL (Y / N ) (i n c l . r e f e r e n c e s ) PER SO NN EL DATE
R E S O L V E D T R E N D S - T H IS R E P O R T
6/97 004 P I L E S , B E A R IN G (2 , 7 68 . 0 ) (2 , 7 6 8 . 0 ) N
C h a n g e s re s u l t e d d u e t o s o il b e a ri n g
a n a l y s is ( 1 4 " p ile s w / m o b , d e m o b , t e s t i n g ,
a d d i t i o n a l e x c a va t io n & b a c k fi ll)
6/97 007 B O IL E R F E E D P U M P 1 ,0 7 2 . 0 1 , 0 7 2 .0 N
B u d g e t p r ic i n g w a s a p p a r e n t ly b a s e d o n a
3 5 0 0 H P p u m p / m o t o r d e s ig n , w h e r e a s c u r r e n t
s p e c r e q u ir e s a 5 0 0 0 H P p u m p / m o t o r . A ls o
t h e o ri g in a l p ri c in g w a s lo w fo r t h e 3 5 0 0
H P pum ps.
6/97 015 S T A C K - C O N C R E T E L IN E R (1 , 0 22 . 9 ) (1 , 0 2 2 . 9 ) N
R e c e iv e d b id s w e re s u b s t a n t ia l ly lo w e r
t h a n t h e o r ig in a l b u d g e t .
6/97 016 P A V IN G - R O U T E 1 3 0 , P E N N S V I L L E & L A C E Y G A T E S , (38 4 . 2 ) (3 8 4 . 2 ) N
P L A N T R O A D S & P A R K IN G A R E A S
R e c e iv e d b id s w e re s u b s t a n t ia l ly lo w e r
t h a n t h e o r ig in a l b u d g e t .
6/97 018 G IS S W IT C H Y A R D , 2 3 0 K V W IT H B U I L D I N G (96 2 . 6 ) (9 6 2 . 6 ) N
C o n t r a c t a w a rd , A F G IS a llo w a n c e is 9 % .
6/97 019 IN S U R A N C E 2 4 5 .3 2 4 5 .3 N
* M a rin e :
$ 2 4 5 k w a s n o t in c lu d e d in t h e o ri g in a l
e s t im a t e . T h is c o s t w a s id e n t ifi e d b e f o r e
c l o s in g ; h o w e ve r i t w a s n e ve r in c lu d e d in
t h e e s ti m a t e .
* B u ild e r s R i s k : 98.4 9 8 .4
D e l t a in p re m iu m .
* E ffi c i e n c y : (42 5 . 0 ) (4 2 5 . 0 )
D e l t a in p re m iu m is b a s e d o n $ 6 0 , 0 0 0 , 0 0 0
p o l ic y w i t h $ 7 , 5 0 0 , 0 0 0 d e d u c t ib l e .
6/97 024 D E M IN E R A L I Z E R S Y S T E M ( 3 t r a in s ) 3 2 1 .0 3 2 1 .0 N
T h e e s t im a t e p ri c e d a 9 0 0 G P M
d e m in e r a liz e r s y s te m w h e n t h e s c o p e b o o k
r e q u ir e d 1 1 0 0 GPM .

T O T A L R E S O L V E D T R E N D S , T H IS R E P O R T 5 6 6 .3 (4 , 3 92 . 3 ) (3 , 8 2 6 . 0 )

UN R E S O L V E D TR E N D S
5/97 001 001 R E M O T E T E R M IN A L U N IT (R T U ) 6 2 .0 6 2 .0 N C C L P a p p ro va l o f s c o p e c h a n g e . OW NER 6/91
I n s t a l la t i o n & w ir in g o f a n R T U , a s
r e q u e s t e d b y A t l a n t ic E le c t ri c d u r in g t h e
m e e t in g o f M a r c h 1 9 , 1 9 9 1 . (S t u d y # 0 2 7 )
5/97 002 002 T E L E M E T R Y E Q U IP M E N T 8 9 .6 8 9 .6 N C C L P a p p ro va l o f s c o p e c h a n g e . OW NER 7/91
N . J . r e q u i re m e n t f o r d a t a t r a n s m it t a l t o
t h e D e p a r t m e n t o f A i r Q u a l it y C o n t ro l.
5/97 003 003 T R A IL E R R E N T A L 4 4 .0 4 4 .0 N C C L P a p p ro va l o f s c o p e c h a n g e . OW NER 7/91
C C L P h a s r e q u e s t e d t h e e q u iva l e n t s p a c e o f
1 / 2 a t r a ile r fo r p e r s o n n e l a t t h e jo b s i t e
( 1 7 m o n t h s re n t a l w / d e liv e ry , d e c k , s e t u p ,
s k i rt in g , fo u n d a t i o n s , p e rm it s , k n o c k
d o w n & r e t u rn ) . ( S t u d y # 0 3 4 )

5/97 005 S T A F F IN G P L A N R E V I S I O N 2 ,9 0 4 . 0 0 2 , 9 0 4 .0 N M a n a g e m e n t a p p r o v a l. JP H 7/91

D e t a il s t a ffi n g p la n s w e re d e ve lo p e d b y
e a c h o f t h e d e p a rtm e n t s t o s u pp o rt t h e
s c o p e o f w o rk a s it is c u r re n t ly k n o w n .
T h e E n g & O H O h o u rs w e r e in c r e a s e d b y
3 5 , 5 9 7 , a n d fie l d h o u r s w e r e in c re a s e d b y
22,829.
5/97 008 ID F A N - P R IC IN G (43 2 . 0 ) (4 3 2 . 0 ) N R e c e i p t o f b id s . PROC. 9/91
P r e lim in a r y b u d g e t p ri c in g a r e
s u b s t a n t ia lly lo w e r t h a n t h e o r ig in a l
b u d g e t . T h e ID f a n s w ill b e is s u e d fo r
b i d t h is m o n t h .
6/97 017 A S H H A N D L IN G 1 ,6 1 3 . 0 1 , 6 1 3 .0 N E n g i n e e r in g e va lu a t io n . DV D 8/91
I n c re a s e in p ri c e d u e t o la r g e r s y s t e m R e c e i p t o f b id s . PROC. 9/91
c a p a c i t y . C h a n g e t o w h a t w a s p r ic e d o u t
i n t h e o ri g in a l e s t i m a t e f ro m 6 0 T n / H r t o
8 0 T n / H r p e r b o il e r.
6/97 020 006 R E R O U T E P IP E B R ID G E 3 , 8 0 9 .0 3 , 8 0 9 .0 N Is s u e C h a n g e O r d e r . JA LaP 7/91
R e r o u t e p ip e b r id g e t o a c c o m m o d a t e c h a n g e s
i n D u p o n t s i t e c o n d it io n s . D u p o n t h a s
r o u t e d a n a b o ve g ro u n d w a s t e w a t e r lin e
a l o n g t h e s a m e ro u t e t h e o ffs i t e s t e a m
l in e s w e r e t o b e ro u t e d . T h e re is n o t
e n o u g h c le a r a n c e t o ro u t e t h e s t e a m lin e
w i t h o u t m a k in g t h e c o s t p r o h ib it iv e ly
e x p e n s iv e . A n a lt e r n a t e r o u t e w a s lo c a t e d
a n d a g r e e d t o w i t h D u p o n t w h ic h is l o n g e r.
6/97 021 004 G IS S W IT C H Y A R D 1 2 0 .0 1 2 0 .0 P e r fo r m e s t im a t e a n d is s u e C h a n g JA LaP 7/91
A t la n t ic E le c t r ic C o m p a n y r e q u e s t e d O rde r.
c h a n g e s t o G I S s w it c h y a rd in m e e t in g o n
5/29/91.
6/97 022 F IR E W A L L , 2 H O U R R A T IN G 170.0 1 7 0 .0 P e r fo r m e s t im a t e . JK 7/91
A d d 1 0 0 ft h ig h fir e w a ll b e t w e e n t u r b in e
b u i ld in g & b o il e r b u ild i n g s . A l l
p e n e t r a t i o n s t h ro u g h w a ll t o h a ve 2 h o u r
f ir e s e a ls .
6/97 023 F E N C IN G (50 . 0 ) (5 0 . 0 ) R e c e i p t o f fin a l b id s in c lu d i n g t h e PROC. 8/91
P r ic in g g ro u n d in g r e q u i re m e n t .

T O T A L U N R E S O L V E D TR E N D S 4 , 1 2 4 .6 4 ,2 0 5 . 0 8 , 3 2 9 .6

P R E V IO U S L Y R E S O L V E D T R E N D S

M A Y1997

5/97 006 1 1 k V O V E R H E A D L I N E S - E S T IM A T E vs B U D G E T 8 1 6 .0 8 1 6 .0 N
5/97 009 B O IL E R A F G IS (2 , 0 0 0 . 0 ) (2 , 0 0 0 . 0 ) N
5/97 010 D I T C H F I L L -IN 8 7 .0 8 7 .0 N
5/97 011 F IR E L O O P P I P E - C O N V E R S I O N T O P L A S T I C (10 8 . 0 ) (1 0 8 . 0 ) N
5/97 012 J O Y P A Y M E N T S C H E D U L E : C o s t o f C a p it a l S a vi n g s (1 , 2 08 . 0 ) (1 , 2 0 8 . 0 ) N
5/97 013 C R I TI C A L P IP E 1 ,3 3 4 . 0 1 , 3 3 4 .0 N
5/97 014 C O A L H A N D L IN G B U Y O U T & P A Y M E N T T E R M S (89 0 . 0 ) (8 9 0 . 0 ) N

T O T A L P R E V IO U S LY R E S O L V E D T R E N D S (1 , 0 9 7 . 0 ) (87 2 . 0 ) (1 , 9 6 9 . 0 )

S U M M A R Y O F TR E N D S
R E S O L V E D T R E N D S , T H IS R E P O R T 5 6 6 .3 (4 , 3 92 . 3 ) (3 , 8 2 6 . 0 )
P R E V IO U S L Y R E S O L V E D T R E N D S (1 , 0 9 7 . 0 ) (87 2 . 0 ) (1 , 9 6 9 . 0 )
TO TA L R E S O L V E D TR E N D S (5 3 0 . 7 ) (5 , 2 64 . 3 ) (5 , 7 9 5 . 0 )
T O T A L U N R E S O L V E D TR E N D S 4 , 1 2 4 .6 4 ,2 0 5 . 0 8 , 3 2 9 .6

TO TA L A L L TRE N D S 3 , 5 9 3 .9 (1 , 0 59 . 3 ) 2 , 5 3 4 .6

FIGURE 8-5 - EXAMPLE COST TREND REGISTER - REIMBURSABLE PROJECT

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 8-7
55210\Construction Manua\Vol-2
Section 8 Trending and Forecasting

COMPANY CONFIDENTIAL SAMPLE REIMBURSABLE PROJECT TREND REPORT NO. 1

BECHTEL JOB NO. XXXXX May-91
(In $000s)

PROJECT COST
175,000

170,000

165,000

160,000

155,000

150,000

145,000

140,000

135,000

130,000 TREND BASE + ALL TRENDS = $153,922

TREND BASE + RESOLVED TRENDS = $149,414
TREND BASE = $150,000
125,000
Apr91 May91 Jun91 Jul91 Aug91 Sep91 Oct91 Nov91
TREND BASE RESOLVED TRENDS ALL TRENDS

FINANCIAL TRENDS THROUGH THIS THROUGH

Apr-91 REPORT May-91 NOTES
TREND BASE 150,000.0 0.0 150,000.0

RESOLVED TRENDS
> SCOPE CHANGES 0.0 3,709.0 3,709.0
> OTHER TRENDS (2,469.0) (1,826.0) (4,295.0)
TOTAL RESOLVED TRENDS (2,469.0) 1,883.0 (586.0)

TREND BASE + RESOLVED TRENDS 147,531.0 1,883.0 149,414.0

UNRESOLVED TRENDS *
> SCOPE CHANGES 0.0 303.1 303.1
> OTHER TRENDS 0.0 4,205.0 4,205.0
TOTAL UNRESOLVED TRENDS 0.0 4,508.1 4,508.1

TOTAL ALL TRENDS 147,531.0 6,391.1 153,922.1

* UNRESOLVED TRENDS ARE NOT ADDITIVE FROM ONE REPORT TO THE NEXT
SCHEDULE TRENDS TREND BASE ACTUAL/ CHANGE (IN WEEKS)
(MAJOR MILESTONES) SCHEDULE FORECAST TODATE THIS REPORT NOTES

1. NOTICE TO PROCEED 30-Apr-91 30-Apr-91 A 0.0

2. START CONSTRUCTION 30-Nov-91 03-Jul-91 A -21.4
3. FIRST CONCRETE 04-Feb-92 09-Dec-91 F -8.1
4. SET DRUM #1 30-Aug-92 30-Jun-92 F -8.7
5. BOILER HYDRO 30-Jul-93 30-Jun-93 F -4.3
6. PLANT ENERGIZATION 30-May-93 01-Apr-93 F -8.4
7. TURBINE ROLL 30-Dec-93 29-Nov-93 F -4.4
8. 0.0
9. GUARANTEED COMPLETION 29-Jun-94 27-Feb-94 F -17.4

FIGURE 8-6 - EXAMPLE TREND REPORT - REIMBURSABLE PROJECT

8-8 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
55210\Construction Manua\Vol-2
Trending and Forecasting Section 8

The trend program is implemented in the field at the start of construction for the purpose of detecting
field trends. The field controls manager is responsible for the program’s implementation. As noted the
trend program depends on the project team to identify trends. When a variation or change is observed,
a Field Trend Notice, similar to the one shown in Figure 8-7, is initiated, approved by the immediate
supervisor, and transmitted to the field cost engineer. The monthly construction trend report is
reviewed by the field controls manager, approved by the site manager, and transmitted in time to
support the overall trend program. The field provides an updated report monthly to the (on-) project
controls manager.
Trends must be documented immediately. Each trend is assigned a register number by the trend
engineer and classified as either a Scope Change Trend or an Other Trend. With the emphasis being
on project control and quick corrective action, the trend program should not be overly concerned with
the preciseness of the estimate or with the quantitative back-up. Often, trends are reevaluated or
canceled, and the process requires timely reporting for project decision making and problem solving to
work effectively.
Factors may be used go approximate the cost of bulk materials. Overall rates and pricing parameters
should be developed for the project. Generally, these yardsticks and percentages are based on
relationships in the control budget.
Trend evaluations should be inclusive of the entire scope of work, covering all engineering disciplines
and construction trades, as well as an assessment of items such as field distributables, engineering,
other home office, etc., if applicable.
Construction trends should include changes associated with:
• Quantities
• Subcontract claims
• Material and subcontract prices, pricing levels, and terms
• Strikes, overtime, shiftwork
• Construction schedule
• Labor broker manual staff effectiveness/productivity, if applicable
• Late equipment and material deliveries
• Design modifications
• Bechtel manual labor effectiveness and wage rates
• Distributable construction costs, including changes in nonmanual labor staffing, construction
equipment usage, (Bechtel supplied), temporary construction facilities, etc.
• Labor laws
• Local tax changes
The evaluation of these potential trends must be dillegent and thorough, and particular attention must
be to the regulations of the country where the site is located. For instance, labor law changes affecting
the (sub)contractor are usually legitimately passed-on to Bechtel.

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 8-9
55210\Construction Manua\Vol-2
Section 8 Trending and Forecasting

FIE LD TRE ND NOTICE

JOB NO.
T R E N D N O .:
S C OP E C H A N GE N O .

1 TITLE*: O .O .M . E S T .

IN IT IA T O R :
2 REFERENCE, SOURCE OR A UTHORITY **:
S UP E R VIS O R :

G R O UP :
3 REA SON FOR CHA NGE: DA TE

4 DESCRIPTION OF A NTICIPA TED TREND:

(USE A TTA CHMENTS A S NECESSA RY )

SCHEDULE IMPA CT(IF A NY ):

* P R O VID E B R IE F S T A T E M E NT OF T R E N D C O N T E NT
** IND IC A T E LE T T E R , M E M O, M E E T ING M IN UT E S , C LIE N T R E P R E S E N T A T IVE , E T C . B Y WH IC H C HA N G E WA S R E Q UE S T E D

FIGURE 8-7 - FIELD TREND NOTICE FORM

8-10 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
55210\Construction Manua\Vol-2
Trending and Forecasting Section 8

Special attention should be given to hidden construction costs when preparing estimates for trends
and change orders. Cumulative impacts of drawing and material delivery schedule slippages and the
impact on (sub)contracted manual labor productivity for breaks in continuity are frequently
underestimated and should be mentioned as suitable criteria for initiating trends. The (sub)contractors
typically note these impacts and submit extra work orders.
Trend meetings are held to enable the project team to review current changes and future actions with
the project manager. Major representatives for engineering, procurement, and field construction
should be in attendance right from the start. Since the trend meeting should drive the project, it is
critical that management/supervisory leads attend and that use of designees be avoided. Contingency
analysis is periodically reviewed in this meeting to ensure that there is appropriate coverage. An
example project contingency evaluation is shown in Figure 8-8.

After the start of construction, a construction trend meeting should be held monthly in the field office.
The meeting is chaired by the field cost engineer. Key field personnel attend this meeting, including,
as minimum, the site manager, project field engineer, contracts administrators/coordinators, field
controls manager, and field planner.
Each new trend, including preliminary information, should be carefully reviewed during the trend
meetings. The scope may initially consist of only verbal data. Trends are quite often first identified
through discussions of other trends at the trend meeting. A monetary value must be assigned to all
new trends. A rough order of magnitude estimate indicates the priority for necessary corrective action.

Refer to Project Controls Department Procedure 4.08 for more on the implementation of trend
programs.
Scope Changes
Many trends are changes in scope of work and as such, affect the project budget. Therefore,
administration of scope changes must be clearly understood by the client no matter whether the
project is fixed or reimbursable. Note that this section relates to the prime contract interface.
Procedures should be established early in the project to provide the proper documentation for both
Bechtel and the client. By design, the trend program is a project controls system involving
approximations and must be supported by a formal scope change procedure. A flow chart outlining
the scope change work process related to prime contracts is shown in Figure 8-9. Refer to Project
Controls Department Procedure 4.02 for more information on scope change control procedures.
The project manager is responsible for implementing the overall scope change program. The
(on-)project controls manager is responsible for coordinating, evaluating, submitting, and
administrating the scope change program. The identification and initiation of scope changes are the
responsibility of all project personnel. A log (register) is maintained in the Home Office by the
(on-)project controls manager to track changes. An example form is shown in Figure 8-10. Note that
the cost of preparation is separated so that if the client rejects the change, this portion may be
reimbursed. Approval status is to be noted in the Scope Change Register.

Any member of the project team may identify a potential scope change. Once identified, it is brought
to the attention of the cognizant team member ( e.g., [on-]project engineering manager or site
manager as applicable), who then reviews it for validity and discusses it with project team members.

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 8-11
55210\Construction Manua\Vol-2
Section 8 Trending and Forecasting

XY Z P ROJE CT
S A MP LE CONTINGE NCY E V A LUA TION

CONTINGE NCY % MOS T

BASE M IN P ROB MAX M IN P ROB MAX
($ in M illions ) ($ in M illions)
M A TE RIA LS

DIRE CT M A TE RIA LS
- Low Ris k $30,003 0 1 2 $0 $300 $600
- M edium Risk $10,216 3 4 5 $306 $409 $511
- High Ris k $3,500 5 6 8 $175 $210 $280
$43,719 $481 $919 $1,391

S UB CONTRA CTS
- Low Ris k $8,300 0 1 2 $0 $83 $166
- M edium Risk $6,810 3 4 5 $204 $272 $341
-High Ris k $2,500 5 6 8 $125 $150 $200
$17,610 $329 $505 $707

DIS TRIB M A TE RIA LS $2,989 4 6 9 $120 $179 $269

S /T M A TE RIA LS $64,318 $930 $1,603 $2,366

LA B OR

M A NUA L LA B OR
- Low Ris k $1,271 0 0 0 $0 $0 $0
- High Ris k $11,765 5 6 8 $588 $706 $941
$13,036 $588 $703 $941

FIE LD NONMA NUA L $4,334 5 7 10 $217 $303 $433

FIE LD S TA RTUP $2,026 5 7 10 $101 $142 $203

HOM E OFFICE $8,206 3 4 5 $246 $328 $410

S /T LA B OR $27,602 $1,152 $1,479 $1,988

OTHE R

INS URA NCE $1,143 0 3 6 $0 $34 $69

COS T OF CA P ITA L $156 5 6 10 $8 $9 $16

TA XE S $1,700 0 0 0 $0 $0 $0
S /T OTHE R $2,999 $8 $44 $84

TOTA L $94,919 $2,091 $3,126 $4,438

FIGURE 8-8 - EXAMPLE PROJECT CONTINGENCY EVALUATION

8-12 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
55210\Construction Manua\Vol-2
Trending and Forecasting Section 8

PROJECT PROJECTCONTROLS
BECHTEL *
CLIENT MANAGEMENT ENGINEERING PROCUREMENT CONSTRUCTION MANAGEMENT
PROJECT ESTIMATING

IDENTIFY IDENTIFY IDENTIFY IDENTIFY IDENTIFY IDENTIFY

CHANGE CHANGE CHANGE CHANGE CHANGE CHANGE

IS IT A NO
CHANGE? STOP

NO YES
NOTIFY CLIENT,
AGREE? IFREQ'D

YES AUTHORIZE DEFINE CHANGE

SCPREP SCOPE

YES INITIATE BID INITIATE FLD

EST. PROCESS INVESTIGAT'NS
SUPPORT
REQ'D?
DEVL. TECH. NO
DATA
INITIATE INITIATE
ESTIMATE ESTIMATE
NO PEM YES
RVW - OK?

ADDTO SC OBTAIN COMPLETE FLD

REGISTER BIDS INVESTIGAT'NS

NO INFO
COMPLETE?

YES

COMPLETE COMPLETE
ESTIMATE ESTIMATE

PREPARE
SCOPE CHANGE
NO
PM
RVW - OK?

YES NO
MGT
RVW- OK?

NO YES
CLIENT
APPROVAL?

YES UPDATE SC
REGISTER

REV PAYMENT
SCHEDULE

INVOICE

PAY

* MANAGEMENTWILL ESTABLISHREVIEWANDAPPROVAL
REQUIREMENTS BASED UPON VALUEOF CHANGE; LEGAL
REVIEWMAY BE REQUIRED

FIGURE 8-9 - SCOPE CHANGE FLOW CHART – PRIME CONTRACT

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution 8-13
55210\Construction Manua\Vol-2
Section 8 Trending and Forecasting

S C O P E C H A N G E R E G IS T E R
S A M P L E P R O JE C T

S cope D a te C lien t Tot a l To ta l S c he d ule

C h a ng e P rep / Date Tran s m it te d D is p os it ion R e ve n ue R e ve nu e Im p ac t s
No. P erf D es c rip t ion In it iat e d t o C lie nt S t at u s D a te P e nd in g A pp roved (da y s ) R e m a rk s

16 P re p P la nt In te g ra t ion S tu d y 1 0/ 9 /9 6 N /A N/A 0 P re pa rat io n c os t in c lud e d in

P re f 1 1 /2 2 /9 6 A p pro ve d 1 1/ 2 7/ 9 7 1 3 5, 3 00 0 P h a s e B - S c o p e C h an g e 1 0

17 P re p S t ea m C o il C on d en s at e R e c ove ry 2 /2 4 /9 7 3 /1 4 /9 7 A p pro ve d 4/ 1 2/ 9 7 3, 8 00 In c lud e s t ra n s fe r o f job h ou rs

P re f 3 /1 4 /9 7 A p pro ve d 4/ 1 2/ 9 7 1 0 6, 6 00 fro m S /J 0 06 to S /J 0 05

18 P re p S e rvic e W at e r a nd C om po n en t C oo lin g 3/ 3 /9 7 3 /1 4 /9 7 A p pro ve d 2, 8 00

P re f S y s t e m s R evis io n s 3 /3 1 /9 7 A p pro ve d 6 0, 1 00

19 P re p P rovid e Thre e - G a te E nt ran c e t o 3 /2 1 /9 7 N /A N/A N/A 0

P re f C o k e H a ul R o ad 3 /2 7 /9 7 A p pro ve d 4 / 1/ 9 7 7, 1 00

20 P re p M o d ify F ou n da t ion an d B rid ge fo r 3 /2 8 /9 7 4/ 7 /9 7 A p pro ve d 4/ 1 4/ 9 7 2 00

P re f E x po rt S t e am L in e 4/ 7 /9 7 A p pro ve d 4/ 1 4/ 9 7 6, 5 00

21 P re p R e de s ig n o f D ra ina g e S y s t e m a t S W 3 /2 8 /9 7 4/ 7 /9 7 A p pro ve d 4/ 1 4/ 9 7 5 00
P re f S e c t io n o f P ow e r B lo c k 4/ 7 /9 7 A p pro ve d 4/ 1 4/ 9 7 2 1, 5 00

22 P re p In c re a s e S iz e of C o k S t ora ge 3 /2 8 /9 7 4/ 7 /9 7 A p pro ve d 4/ 1 4/ 9 7 3 00
P re f B u ildi ng 4/ 7 /9 7 A p pro ve d 4/ 1 4/ 9 7 9, 9 00

23 P re p D e s ig n P iers fo r L im e s to n e Tak e -up 3 /2 8 /9 7 4/ 7 /9 7 A p pro ve d 4/ 1 4/ 9 7 2 00

P re f a nd S t ora ge B uild in g 4/ 7 /9 7 A p pro ve d 4/ 1 4/ 9 7 1 3, 9 00

24 P re p P ile s a n d F o u nd a tio n R e d es ig n a t 3 /2 8 /9 7 4/ 7 /9 7 A p pro ve d 2 00

P re f A ir H e a t er A re a s 4/ 7 /9 7 A p pro ve d 4/ 1 4/ 9 7 4, 5 00
4/ 1 4/ 9 7
25 P re p R e s e a rc h G u lf S ta t es U tilit ie s 4/ 4 /9 7 4/ 7 /9 7 A p pro ve d 4/ 1 4/ 9 7 2 00
P re f D raw i ng F ile s 4/ 7 /9 7 A p pro ve d 4/ 1 4/ 9 7 3, 4 00

26 P re p D ik e a n d W all fo r N o . 2 F ue l O il 3 /2 8 /9 7 4 /1 4 /9 7 A p pro ve d 4/ 1 7/ 9 7 3 00
P re f Tan k 4 /1 4 /9 7 A p pro ve d 4/ 1 7/ 9 7 2 3, 9 00

27 P re p C o m p res s ed A ir In te rc o n ne c tio n to 4 /1 4 /9 7 4 /1 4 /9 7 A p pro ve d 4/ 1 7/ 9 7 2 00

P re f E x is t in g F ac ilit y (D ele t e) 4 /1 4 /9 7 A p pro ve d 4/ 1 7/ 9 7 (6 1 ,2 0 0)

TB D P re p R e de s ig n P ilin g F o u nd a tio n fo r A s h 4 /1 1 /1 4 S c o pe C ha n ge be in g p re p a re d
P re f S ilo S up p ort S t ruc t ure b y B e c ht e l

TB D P re p E x pe d it ing S ervic e s B y B e c ht e l 3 /3 1 /9 7 S c o pe c h a ng e b e ing pre pa re d

P re f B y B ec h te l

CURRENT BUDGET: $0 $ 34 0 ,2 0 0

FIGURE 8-10 - SCOPE CHANGE CONTROL REGISTER – PRIME CONTRACT

For the scope change management process to work well, the project manager and the (on-)project
controls manager need to be intimately knowledgeable of the prime contract. If a scope change is
required, the project manager documents in writing to the client Bechtel’s intention to submit a scope
change, and the appropriate team member initiates it. The (on-)project controls manager assigns an
identification number to the impending scope change and logs the number into the Scope Change
Register (shown in Figure 8-10).
The scope change notification form shown in Figure 8-11 may be used to document scope changes.
The (on-)project engineering manager, the site manager, and the procurement manager are
responsible for reviewing and approving the scope description and the estimate of resources for
Engineering, Construction, and Procurement, respectively, before the scope change is submitted to
the (on-)project controls manager.
The (on-)project controls manager is responsible for estimating the budget requirements of groups
other than Engineering, Construction, and Procurement; reviewing the proposed estimate of resources
for consistency; evaluating the cost and schedule impacts; and coordinating and processing all
paperwork for submittal to the project manager.

8-14 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
55210\Construction Manua\Vol-2
Trending and Forecasting Section 8

NO T IC E OF C H ANG E IN DESIGN , SCH ED., OR SCO PE OF SERVIC ES

S CO P E C HANG E NUM BE R
XYZ PROJECT
T REND NUM B ER
JOB NUMBER: 12345 D ate & Initial

1. D escription of change: Initiator

G roup Supv. PRO C EED CANC EL
Proj. Eng. PRO C EED CANC EL
2. R eason for C hange/R equired by R eferences:
JO B HO URS
ENG INEERING O N PRO JECT STAFF AND
3. C AUSE: D esign C lient R egulatory C onstruction review TO P RE P . E S T. TO D O D E S IG N O FF PR O J.
Evolution Preference C hanges R equirem ent order
Architectural
O ther
C ivil
4. Effects on O ther D isciplines:
C ontrols

5. Effects on: Aux. Load Electrical

O utput
Heat R ate Mechanical
Availability
Noise Levels Plant D esign
Perm it R eq.
O ther Project Engr.

6. Effects on Schedule, Engineering/Procurem ent/C onstruction O ther

SUBTO TAL

Adm inistration

T O T AL ENG .
7. Effect on C ost: UP D OW N NEEDS EVALUATIO N
O T HER HO M E O FFIC E
C onstruction
Project C ontrols
8. Actions / C om m ents: Procurem ent
Startup
O ther

T O T AL O HO

G RAND T O T AL

FIGURE 8-11 - SCOPE CHANGE NOTICE FORM

The (on-)project controls manager is responsible for evaluating the effects of the change on:
• Target or penalties (if applicable)
• Fee
• Engineering and other design office jobhours
• Field nonmanual jobhours (by field)
• Field material and equipment (by field)
• (Sub)contracted manual labor(by field)
• Distributables (by field)
• Schedule
• Contingency
• Quality of work/work continuity
• Operations and maintenance
• Payment schedule
• Cost of working capital

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Section 8 Trending and Forecasting

The value of the change should be developed using contractual (prime) requirements for terms of
compensation. The value of the cost to the client (Bechtel Revenue) is then placed in the scope
change register. An example evaluation package is shown in Attachment 8-1.
The project manager is responsible for reviewing and approving or rejecting the proposed scope
change and must develop and maintain a good work relationship with the client. To this end, the
project manager must ensure that the proposed change conforms to the terms of the contract and that
it has a justified basis. Depending on the value of the scope change, additional approvals from the
manager of projects and the Regional Industrial Unit manager may be required before the scope
change is submitted to the client. The project manager is responsible for submitting the scope change
to the client, conducting any required negotiations, and expediting the client approval. The project
manager ensures that required documentation supporting the proposed scope change is included with
the client submittal. Finally, the project manager must foster an environment that encourages
identification of changes and must require a prompt evaluation process.

The site manager is responsible for ensuring that no work is performed on a new scope change until
client approval has been received. Exceptions to allow work to proceed before approval may be
authorized by the project manager if the work is deemed critical to safety or schedule and there is a
substantial likelihood of the client approval.
To enhance the identification of changes, the following steps should be taken :
• Distribution and/or easy access to the Technical Scope Document, Services Scope Document,
Project Procedures Manual, and Contract Compliance Matrix
• Distribution of project budgets and forecasts to project team members
• Distribution of bulk commodity curves
• Periodical query of staff by project manager and other team members on potential changes
• Designation of a proactive scope change coordinator (trend engineer, if assigned)
• Ensuring that the newly assigned staff become acquainted with the program
The following forums should be used to foster the discussion of potential changes:
• Presentation of the scope change program to project personnel
• Daily or weekly project meetings
• Weekly Critical Items Action meetings or telecons involving design and field personnel
• Weekly Short-Term Work Plan meetings (Home Office) and Weekly planning reviews (field)
• Weekly (sub)contract progress reveiws
• (Sub)contract coordination meetings
• Trend meetings
• Client communications and meetings
Some examples of scope changes are:
• Client-directed changes to any previous client-approved documents issued to Design or
Construction
• Additions or deletions of equipment or any material quantities resulting from client direction

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• Client-imposed restrictions to cash flow or Bechtel’s staffing levels or construction equipment

utilization
• Inadequate client-furnished utilities, such as telephone lines that do not support data transmission
• Client-imposed restrictions of electronic data transmission data (e.g., government intelligence or
military projects)
• Project schedule delays resulting from client’s action or lack of action
• Client-directed schedule acceleration
• Client-directed cessation or limitation of construction activities in support of local labor negotiations,
client priority operations, or security situations
• Client-requested changes in the scope of services to be furnished by Bechtel
• Deferred exercise of contract options by client
• Client-requested changes in the scope of services to be furnished by licensers
• Changes resulting from unknown site conditions, either subsurface or above surface
• Additional work resulting from force majeure
• Late contract awards by client to vendors and (sub)contractors
• Significant engineering changes required by client’s suppliers of equipment, materials, or services
• Extensive alternative design studies required by client
• Changes or delays resulting from client-provided data
• Reperformance of properly performed Bechtel services at the client’s request
• Limitations to qualified bidders list and/or preferential contract awards prescribed by the client
• Additional work required by regulatory agencies
• Abnormally frequent meetings and reports prescribed by the client
• Cumulative impact of many scope changes on engineering or construction, including deterioration
in productivity, increased nonmanual-to-(sub)contracted manual ratio, extended lead times or
higher prices resulting from increased volume, increased training requirements/increased difficulty
in certifications due to shortage of qualified crafts, etc.

Construction Work Orders

A Construction Work Order (CWO) or Extra Work Order (EWO) is issued in response to requests from
the client for work that is in addition to the scope of construction work to be performed and that does
not require Engineering or other Design Office support services and does not influence the project
turnover date. Note that this section deals with the prime contract interface and that Section 6 covers
the EWO as it relates to the (sub)contractor interface.

Cost for this work is charged to individual CWO numbers. Consecutively numbered CWOs are
prepared by the appropriate Bechtel project personnel, incorporating those items or areas of additional
work. In turn, the CWOs are forwarded along to the client’s initiating field organization representative.
CWOs include an estimated cost of performance, and all pending and approved CWOs are tracked in
a log by the field cost engineer.

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Over time, the CWOs are accumulated and periodically placed in a scope change to provide proper
documentation. If Engineering or other design support is needed or the work does influence the
project turnover date, a scope change is processed directly on an individual basis.

FORECASTS
Overview
A Project Forecast is a periodic reassessment of a project’s scope, cost, and schedule. The objectives
of a Project Forecast are to:
• Evaluate current status of project cost and schedule
• Determine critical items for management review and action
• Provide a sound basis for future project control

At the outset of a project, the (on-)project controls manager prepares the project controls plan,
including a tentative schedule for future Project Forecasts, for the project manager’s review and
approval. Forecasts are to reflect meaningful progress rather than a rigid timetable.
The major activities of a typical Project Forecast include:
• Forecast work plan and division of responsibility matrix development
• Engineering productivity and performance analysis
• Scope change analysis
• Quantity development
• Material pricing review
• (Sub)contract pricing review
• Manual labor productivity analysis (if cost reimbursable)
• Manual labor pricing review (if cost reimbursable)
• Construction equipment utilization analysis (Bechtel supplied)
• Construction equipment operation and maintenance (Bechtel supplied)
• Distributable material cost analysis
• Nonmanual labor field office cost analysis
• Design office cost analysis
• Escalation analysis
• Contingency analysis
• Gross margin analysis
• Working capital analysis
• Nonreimbursable analysis
• Reconciliation
• Schedule analysis

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• Presentation and review

The (on-)project controls manager establishes the overall approach to the forecast, including defining
the areas to be emphasized, well in advance of the actual forecast activities. These areas of
emphasis should be established after a review of project progress, past trend activity, critical action
items, and scope change activity and discussions with appropriate project personnel to determine
potential issues that could affect project cost and schedule. The project team concurs with the
forecast approach. On construction-only or construction-management-only projects, the forecast
should be prepared by jobsite personnel.
The (on-)project controls manager is responsible for assembling the complete forecast, incorporating
all input developed by others in the field or the design office, and reconciling all the differences from
prior forecasts. The (on-)project controls manager assists in the formal forecast presentation to
Bechtel management and the client, as required by project management. The (on-)project controls
manager is assisted in these efforts by the field controls manager, field cost engineer, and/or field
planner. The (on-)project controls manager is also assisted by the project cost engineer and/or project
planner, as needed.

The project manager reviews the completed forecast, makes any necessary corrections, and presents
the forecast to Bechtel management and, if required, the client. The (on-)project controls manager
and other participating project team members assist as necessary, to elaborate on critical issues.
The site manager is responsible for reviewing and approving the field portion of the forecast, including
the detailed labor, plant equipment, bulk materials, (sub)contracts, field distributable costs, and CIS.
The site manager, assisted by the field controls manager and the contracts
administrators/coordinators, is responsible for providing the following data:

• A detailed schedule of nonmanual personnel, by position and name (if available) or grade (if name
is not available), required to complete the project
• A subcontract plan update
• A detailed plan of construction equipment utilization and availability over time
• A forecast of to-complete unit productivity factors by commodity (if cost reimbursable)
• A forecast of total (sub)contracted manual labor staffing levels, with a schedule of anticipated
premium overtime or shift time (includes labor hours to complete, by cost code)

The project field engineer is responsible for providing Project Controls with the following information:
• Quantities installed to-date, by cost code
• Verification of quantity development for all commodities and equipment

• A list of pending vendor extra charges due to design changes, to be coordinated with
Procurement’s overall list

The field accounting manager is responsible for providing field Project Controls with the following
information:
• Total to-date commitment and cost incurred by cost code for all materials, (sub)contracts, and
distributable materials and services. (The integrity of the CO/CO register, including the cost coding
of commitments and expenditures, and the overall CO/CO program are the responsibility of Cost
Engineering. The responsibility for posting, maintenance, and reconciliation of the CO/CO register

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is established on a project-by-project basis and may be assigned to either the field cost engineer or
the field accounting manager.)
• The total Inception-To-Date and This Month field financial statement by accounting cost code
• Anticipated payroll taxes and insurance percentages, plus project insurance rates (including
notification of potential rate changes and coverages) (Payroll information is required on cost-
reimbursable projects only and is generally not a direct impact on fully [sub]contracted unit price or
lump-sum project. Other project insurance is an important forecast issue on all projects.)
• Anticipated changes in craft wages and fringe benefits (cost-reimbursable projects only)
• The total Inception-To-Date and This Month jobhours charged by cost code by craft (cost-
reimbursable projects only)
• The total Inception-To-Date manual labor cost by craft, including straight time and overtime (cost-
reimbursable projects only)
• A forecast of anticipated field office costs
• An updated Backcharge Log, including a description, cost or cost basis, name of supplies/
(sub)contractor backcharged, date of transmittal, and approval status of each backcharge
Field Procurement is responsible for providing Project Controls with the following information:
• A copy of the Field Purchase Order Register
• Copies of all field (sub)contracts, POs, and amendments as they are issued
• A list, including description and cost, of pending vendor extra charges
• A list of surplus direct materials, including description, quantity, and salvage value
• A list of pending field requisitions and revisions to field requisitions, including description and cost,
that have not been issued or posted in the CO/CO register
• Delivery status of long-lead items, including interim milestones attained
• Progress of shop fabrication and status of delivery dates
• Pending and potential claims

Quantity Development
At the time of the Project Forecast, reported installed quantities should be verified by the project field
engineer to assure the accuracy of the data. The total of quantities received at the jobsite should be
reviewed. A physical check of all materials on hand should be made. The total of the quantities
installed, including waste, and the quantities on hand for each commodity should reconcile to the
quantities received.

An accurate record of installed quantities is important particularly on cost-reimbursable projects. To-

date data on labor performance are based on the quantities installed and hours expended. Incorrect
installed quantities produce incorrect to-date performance and progress evaluations, affecting
subsequent to-complete cost and schedule analyses. The to-complete forecast of (sub)contracted
manual labor, for example, is the product of to-complete quantities times the unit rates adjusted for the
forecast labor performance factors and the applicable wage rates.

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(Sub)contracts are affected by quantity growth unless they are lump sum. It is most important to have
a good understanding of the forecasted total quantities.

Engineering (primarily Home Office, but also field on selected items) is responsible for the forecast of
total quantities. Because of the critical nature of quantity reporting in the forecast process, the
quantities should be thoroughly reviewed by the (on-)project controls manager and agreement reached
on the forecasted quantities with the (on-)project engineering manager and project field Engineering.

Material Analysis

The primary tool for preparing the material forecast is the CO/CO program. It is important to be
sure that all POs have been posted properly and are complete, including actual or estimated cost
of freight, sales tax, duties, escalation, discounts, vendor representatives, etc.
The forecast of bulk commodity materials should be developed based on the forecasted quantities and
average unit rates for each commodity. The development of average unit prices is facilitated by
maintaining reasonably detailed suspense accounts and analyzing them at each forecast.
The materials on hand and the waste are asessed as part of the information gathered for quantity
evaluation. At remote sites, surplus materials need to be tracked closely, because there is a tendency
to order ahead so that shortages do not result. The situation should be evaluated to see in which
categories restraint is advised to avoid end-of-project overages.

(Sub)Contract Analysis
The type of evaluation required is determined by the type of (sub)contract involved:

• Lump Sum: The emphasis here should be on the potential changes and extra work orders that are
possible to existing (sub)contracts and the possibilities for work to be awarded either to existing
(sub)contracts or new ones.

• Unit Price: The contracts administrator and the (on-)project engineering manager/project field
engineer should provide estimates of (sub)contracts still to be awarded, as well as anticipated
revisions to awarded (sub)contracts. The to-go quantity for each of these (sub)contracts should be
extracted from the quantity forecast, with either the agreed to or projected unit rates being applied
to the to-go quantities for awarded (sub)contract and to-be awarded (sub)contracts, respectively.

• Labor Broker/Cost Reimbursable: Each contracts coordinator should work with Project Controls to
estimate updated to-complete productivity factors and should provide an overall estimate of
staffing needs by craft or major commodity group over time. From these submitted productivity
factors and the already determined quantities to-be-installed, Project Controls can develop a
revised jobhour forecast. Also, labor costs are projected using the incurred wage rates by work
category, adjusted for escalation. The resultant labor forecast should be compared with the prior
forecast and any differences reconciled.

• Time and Materials: Appropriate project personnel should develop a revised jobhour forecast by
work item to-go. Labor costs are projected using the incurred wage rates by work category,
adjusted for escalation. The resultant labor forecast should be compared with the prior forecast
and any differences reconciled. Estimate the to-go materials and add the projected materials to-go
cost to the overall projected cost for each portion of to-go (sub)contracted work.

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A significant amount of work is involved in this portion of the Project Forecast, and a team approach is
required. Starting with the updated (sub)contract plan, the site manager should assemble key
members of the site team and establish a detailed plan identifying responsibilities and due dates to
complete this portion of the forecast. The goal is to develop an updated (sub)contracts register
showing the status of all (sub)contracts awarded to-date, highlighting the dollars and hours expended,
committed, and forecast to-go, including impact of pending claims, and the dollar and hour projections
for any additional (sub)contracts required to complete the work.

Distributable Service Support (Sub)Contracts Analysis (Bechtel Related)

The forecast of distributable (sub)contract support services should be developed from an analysis of
expenditures curves maintained for each major distributable service (sub)contract. In this way,
monthly expenditures can be forecast for the remainder of the job based on to-date experience and
modified as required for anticipated changes. This can be supplemented by other analyses such as
relating distributable service support hours to direct account (sub)contract manual hours or by crewing
up some distributable accounts where no to-date project experience exists. Forecast of temporary
facilities can be developed using square footage quantities. Unit rates may be estimated based on the
to-date experience and applied to the to-go quantities in each distibutable category, taking into
account anticipated escalation.

Distributable Materials Cost Analysis

An expenditure curve should be maintained for each major distributable account such as minor
temporary construction, site utilities, security, and scaffolding. These curves assist Project Controls to
identify deviations from budgeted or previously forecast expenditure rates and provide the basis for the
distributable forecast. In forecasting the to-go costs, escalation must be included in each detailed
account.
Each distributable material account must reflect the project construction completion date on which the
forecast is based. Temporary facility accounts should be forecast by developing quantities and prices
in a manner similar to that used for direct accounts. Other distributable accounts could be forecast by
developing relationships to other costs or quantities. Small tools, for example may be related to
manual labor; construction fuel and spare parts could be related to construction equipment work hours;
and ocean freight could be related to the tonnage of material shipped.

Construction Equipment Analysis (Bechtel Supplied)

Depending on the execution plan, construction equipment may be the (sub)contractor’s responsibility
or may be furnished by Bechtel. When the equipment is supplied by the (sub)contractor, the
evaluation becomes part of the overall (sub)contract evaluation because the cost for construction
equipment may be buried as part of the unit rates. When the equipment is furnished by Bechtel, a
separate evaluation should be part of the forecast. The evaluation depth will vary depending on the
extent of Bechtel’s responsibilities. At one extreme would be the situation where Bechtel is responsible
for two or three pieces of construction equipment. If the equipment is readily available and its need
readily predictable, the evaluation is minor. However, at the other extreme is the case where Bechtel is
responsible for a complete set of construction equipment for work at a remote location (e.g., inside the
Arctic Circle). Here an in-depth evaluation, as noted below, is required.

During the pre-construction phase, the project should have developed a Construction Execution Plan,
a Construction Equipment List, and an Equipment Utilization Schedule compatible with the overall
construction schedule. The Construction Execution Plan details how each phase of construction is to

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be undertaken. The Construction Equipment Lists details all Bechtel-supplied equipment required for
each construction operation in accordance with the Construction Execution Plan. This list should
identify type, size, description, manufacturer, and number of units of each piece of construction
equipment purchased, rented, client owned, or third-party supplied. The Equipment Utilization
Schedule is a bar chart that identifies the time frame and duration required for each piece of
equipment listed on the Construction Equipment List.

Generally, the construction equipment forecast should be based on this Equipment Utilization
Schedule. The forecast of to-go equipment requirements contained in this schedule should be
reviewed and updated by the appropriate assigned construction personnel and provided to Project
Controls. The field cost engineer should apply appropriate to-complete rental rates to all scheduled
construction equipment to determine the to-go equipment costs for forecasting purposes. Salvage
credit should be applied as applicable to purchased items.

Field Nonmanual Labor and Field Office Cost Analysis

The forecast of nonmanual personnel months to-go is developed by the field cost engineer with input
from the site manager and project field engineer. The field cost engineer completes the nonmanual
labor forecast by extending the personnel months against the expected projected salaries and payroll
additives for each individual by nonmanual category (Procurement, Contracts, field Engineering, etc.).
Expected salaries come from the use of Bechtel’s published Average by Grade report for a given
position or from an extension of current rates if position is filled. They should include an allowance for
future escalation/anticipated salary increase.
The field accounting manager should provide a forecast of to-go field office costs to the field cost
engineer, broken down by the project COA (e.g., office supplies, office equipment, communications,
etc.). The field controls manager is responsible for reviewing the estimate for completeness and for
compatibility with the to-date incurred cost. The field cost engineer incorporates the field accounting
manager’s projected costs into the formal forecast.
A general forecast information flow chart is shown in Figure 8-12. A recommended table of contents
for the forecast report is included in Attachment 8-2. A typical forecast review activity schedule is
shown in Figure 8-13 for the design office, and a typical activity schedule for field forecasting for
(sub)contract execution is shown in Figure 8-14. Refer to Project Controls Department Procedure
(PCDP) 4.09 for additional information, including example displays of the items listed in the table of
contents.

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Section 8 Trending and Forecasting

GENERALIZED FORECAST INFORMATION FLOW CHART

OTHER (ON-)PROJECT QUANTITY (ON-)PROJECT FIELD PROJECT FIELD FIELD PROJECT
DESIGN OFFICE PROCUREMENT ENGRG MGR TRACKING CONTROLS CONTROLS RENGINEE ADMINISTRATION MANAGER
MANAGER MANAGER
PROJECT COST FIELD COST
DESIGN ENGINEER ENGINEER
SPECIFICATIONS
TREND COST AND
ENGINEER COMMITMENTS

PURCHASE MATERIAL TO QUANTITY FIELD

ORDER BE PURCHASED MONITORING QUANTITIES

REVIEW, REVIEW,
RECONCILE RECONCILE
AND TRANSMIT AND TRANSMIT
QUANTITIES QUANTITIES

FORECAST

CUT-OFF DATE COST AND JOBHOURS,

LABOR, FIELD TO DATE
COMMITMENT
SUBCONTRACTS, INFORMATION
LEDGER/ DISTRIBUTABLE
REPORT MATERIAL

FIELD
FORECAST
MATERIAL
REVIEW
FORECAST

JOBHOUR JOBHOUR JOBHOUR LABOR

FORECAST FORECAST FORECAST FORECAST
DISTRIBUTABLES
FORECAST

DESIGN
OFFICE
FORECAST

PROJECT
SCHEDULE
ANALYSIS

PROJECT TEAM/
FORECAST
PRESENTATION MANAGEMENT
REVIEWS

FIGURE 8-12 - GENERALIZED FORECAST INFORMATION FLOW CHART

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Trending and Forecasting Section 8

TYPICAL DESIGN OFFICE AND PROJECT FORECASTING ACTIVITY SCHEDULE

WEEK 7 WEEK 6 WEEK 5 WEEK 4 WEEK 3 WEEK 2 WEEK 1 WEEK 0

SCOPE
PREPARATION

DESIGN OFFICE
SCHEDULE
E/P PORTION
PROJECT TEAM MATERIAL TO
* MATERIAL REVIEW FORECAST CONSOLIDATION
REVIEW BE PURCHASED
DESIGN AND
SPECIFICATION
COST &
COMMITMENT
LEDGER PRESENTATION PREPARATION
QUANTITY
MONITORING CONTINGENCY

DESIGN OFFICE PROJECT BECHTEL

FORECAST CONTROLS MANAGEMENT
REVIEW REVIEW REVIEW

COMPLETE PROJECT CLIENT

GROSS BACK-UP TEAM REVIEW
MARGIN REVIEW
STUDY

ENGINEERING INTERNAL PROJECT CONTROLS

TECHNICAL REVIEW IF NECESSARY

HOME OFFICE COST/

PROCUREMENT JOBHOUR REVIEW

OTHER DESIGN
OFFICE
SERVICES
* BY DESIGN OFFICE UNTIL DESIGN IS SUBSTANTIALLY
COMPLETE, THEN RESPONSIBILITY SHIFTED TO FIELD.

FIELD FORECAST
REVIEW

FIGURE 8-13 - FORECAST REVIEW ACTIVITY SCHEDULE

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Section 8 Trending and Forecasting

TYPICAL FIELD FORECASTING ACTIVITY SCHEDULE - (SUB)CONTRACT EXECUTION

WEEK 6 WEEK 5 WEEK 4 WEEK 3

FORECAST QUANTITIES*

PROJECT (SUB)CONTRACTS
TO-GO QUANTITY PROJECT (SUB)CONTRACTS FORECAST FORECAST TEAM REVIEW

SITE MGR
(SUB)CONTRACT
REVIEW
MATERIALS
INSTALLED QUANTITIES EVALUATION

SITE MGR
SCHEDULE COMPLETE
REVIEW BACKUP
PROJECT SCHEDULE
FIELD ENGINEERING ANAYLSIS
(SUB)CONTRACT INPUT
FIELD
FORECAST
REVIEW

NONMNANUAL MANPOWER SCHEDULE

* BY HOME OFFICE UNTIL

DESIGN IS SUBSTANTIALLY TO-DATE WAGES & EMPL.CONDITIONS
COMPLETE BY THAT
DISCIPLINE
TO-GO NONMANUAL WAGES & NONMANUAL FORECAST SITE MGR
EMPLOYMENT CONDITIONS DISTRIB
REVIEW

CONSTRUCTION EQUIPMENT FORECAST

CAMP, CATERING & TRANSPORTION

PROJECT INSURANCE, FREIGHT

& FIELD OFFICE COST
DISTRIB MATERIAL &
SERVICES FORECAST
SERVICES FORECAST

TEMPOARY FACILITIES

FIGURE 8-14 - TYPICAL FIELD FORECASTING ACTIVITY SCHEDULE FOR (SUB)CONTRACT EXECUTION

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ATTACHMENT 8-1
ASSESSMENT OF SCOPE CHANGE

Bechtel Scope Change No.: Date:

Originator: Approved:
Change Initiated by:

Reference:

Description and Why Necessary:

OWNER
APPROVAL/COMMENTS
WORK REQUEST CONTRACT ADJUSTMENT (OR DISAPPROVAL
To prepare estimated cost of Cost:
Scope Change

To proceed with Scope Cost: Fixed Price***

Change*

TOTAL CHANGE

Cost:

Impact on Milestone
Schedule:

Impact on Performance
Guarantee:
_______________________________________________________________________
Distribution
(Date Approval Required)
_____________________________

Owner Acknowledged
Date

*Scope of Change attached

1 of 2

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Section 8 Trending and Forecasting

ATTACHMENT 8-1 (CONTINUED)

NO.
Page 2
SCOPE OF CHANGE

2 of 2

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ATTACHMENT 8-2

SAMPLE FORECAST PRESENTATION

JOB NO. XXXXX

PROJECT TITLE
FORECAST NO. ##

CUTOFF DATE

Presentation Date

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Section 8 Trending and Forecasting

ATTACHMENT 8-2 (CONTINUED)

JOB NO. XXXXX

PROJECT TITLE

FORECAST NO. ##
CUTOFF DATE

TABLE OF CONTENTS

I. JOB DATA

II. GRAPHICAL ANALYSIS

1. Total Project Progress
2. Manual and Nonmanual Staffing
3. Engineering Progress
4. Construction Progress
5. Commitment Curve
6. Expenditure Curve

III. BASIS OF FORECAST

1. Qualifications
2. Exclusions
3. Design Services
4. Other Design Office
5. Material
6. Contract/Subcontract
7. Labor
8. Nonmanual Staffing
9. Schedule Analysis
10. Escalation Summary
11. Escalation
12. Contingency Analysis
13. Contingency
14. Late Adjustments

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ATTACHMENT 8-2 (CONTINUED)

JOB NO. XXXXX

PROJECT TITLE

FORECAST NO. ##

CUTOFF DATE
TABLE OF CONTENTS

IV. SUMMARY

1. Project Milestones
2. Budget, Cost, and Forecast Summary

3. Design Engineering Summary

4. Design Office Summary
5. Field Nonmanual Summary

6. Summary Reconciliation
7. Critical Items/Action Summary
8. Gross Margin Analysis
9. Project Milestone Schedule

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Appendix A
Glossary of Terms
The following are definitions of selected terms most important to field controls. They are defined for
use in reading this handbook. Note that potential legal ramifications and issues of application in the
international arena for such definitions as scope change or change orders need to be considered.

Refer to the Bechtel Group Incorporated (BGI) Project Control Procedures Glossary, Appendix A
(Project Controls Department Procedure [PCDP] OOC.A) for a more complete list of terms.
The definitions are segregated into four categories - GENERAL, COST/PERFORMANCE,
SCHEDULES/QUANTITY CURVES, and TRENDS/CHANGES.

GENERAL
Contract
A contract is a legally enforceable promise. The law recognizes the duty to perform the promise and
provides a remedy (e.g., damages) to injured parties to the contract or allows the contract to be
rescinded.
A contract defines the rights and responsibilities of the parties and defines the terms and conditions
under which the specified scope of work is performed. Refer to Contracts/Subcontracts Formation
Manual, Section 3, Contract Fundamentals for additional information.
Prime Contract
The term prime contract refers to those contracts between Bechtel and its clients to perform a
specified scope of work at the client’s request.

(Sub)Contract
The term (sub)contract refers to those contracts between Bechtel and others who are responsible for
performing a specified scope of work at Bechtel’s request.

Contract Representative
Bechtel personnel assigned specific responsibilities in the development and execution oversight of a
contract (either prime or [sub]contract). Two key representatives referred to in this handbook are
contract administrators and contract coordinators. Refer to Section 3 of this handbook for a
description of their respective execution oversight responsibilities.

Project Procedures Manual

The document prepared at the outset of the project that defines the procedures to be followed in
carrying out the project.

Scope of Work
That part of the project for which Bechtel is responsible under the contract, including services provided
directly by Bechtel and those provided by vendors and (sub)contractors under Bechtel management.

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Appendix A Glossary of Terms

Technical Scope Document

A detailed description, prepared under the direction of the (on-)project engineering manager, of the
physical plant work; prepared at the outset of the project and updated periodically. It includes
equipment lists, flow diagrams or charts, single lines, layout drawings, and other data and criteria
necessary to provide a basis for clear definition of the technical extent of the project.

Scope of Services Document

A detailed description of the nature and extent of engineering, procurement, construction,
management, and other services to be provided by Bechtel under terms of the contract.

COST/PERFORMANCE
Original Budget
A budget is the amount of quantity, cost, and hours approved for a specified scope of work, arranged
in such away as to facilitate direct comparisons of forecast with actual expenditures so performance
can be measured. The Original Budget is the original control schedule and code of accounts for the
following items, before any change orders (revisions) or budget adjustments:

• Schedule
• Quantities
• Jobhour unit rates
• Jobhours
• Wage rates
• Labor cost
• Material cost
• Subcontract cost

Current Budget
The Current Budget is the Original Budget plus all client-"approved" change orders and budget
adjustments (e.g., transfers).

Current Forecast
The Current Forecast reflects the current "approved" forecast. "Approved" means that it has been
reviewed and accepted by Execution Unit (EU)/Regional Industry Unit (RIU)/Construction Management
and is reflected in current Project Financial Status Reports. The Current Forecast is the result of a
periodic (usually bi-monthly) review of all quantities, jobhours, and costs and also includes schedule
updates and revisions to forecast planned progress curves.
The forecast value equals the original budget plus all resolved trends and transfers.

Commitment
An obligation to spend money for materials or services documented by a purchase order,
(sub)contract, or other prime contract. For material control purposes, it may equal final value of “open
order” agreements that define unit prices for materials.

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Glossary of Terms Appendix A

Authorized Commitment Amount

The actual authorized amount indicated on the latest revision of the commitment authorization form.

Committed-As-Paid (CAP)
Relatively small field procurement orders, which, by their size, do not warrant standard commitment
procedures. Such transactions are commonly recorded as commitment at the time payment is made.

Forecast Quantity
The current estimated total quantities for the project, including client-approved contract change orders,
budget adjustments, and other resolved trends.

To-Date Quantities
The quantities reported installed to date (certain items, such as formwork, are entered based on partial
quantities installed).

Current Budget Jobhours

The original budget jobhours updated by client-approved change orders and budget adjustment.

Trend Forecast Jobhours

The calculated forecast of jobhours at completion based on to-date performance by account, adjusted
for the anticipated performance taken from the applicable Trend Curve at the account’s current percent
complete.

Target Jobhours = Current Forecast Quantity x Current Budget Unit Rates

Earned Jobhours = Installed Quantities x Jobhour Unit Rates

Performance Factor (PF) = Actual Spent Jobhours/Earned Jobhours (BUR)

Note: Standard Performance (PF) Curves use earned jobhours based on
Budget Unit Rates.

Percent Complete = Earned Jobhours (BUR)/Target Jobhours

Note: Percent Complete calculations use earned jobhours based on
Budget Unit Rates.

Standard Unit Jobhours

A set of arbitrary construction labor accounts and jobhours required per unit of work. The standards
act as a yardstick, similar to a base price list, against which actual or estimated jobhours per unit of
work can be compared. The arbitrary jobhours per unit of work (unit jobhours) can be based on a
specific job or a composite of a number of jobs, or can be set as a hypothetical level of labor
productivity attainable under ideal conditions.

Note: In the past, each industrial unit within Bechtel had its own set of standard unit rates. Many of
the rates were similar in hours as well as description of operation. However, a fair amount of
ambiguity and difference existed that made it difficult for various offices to share data. To allow
for better sharing of our construction ability worldwide and gauging of our performance without
a need to interpret rates provided, Bechtel has developed a Global Unit Index.

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Appendix A Glossary of Terms

Craft Mix
The specific combination of different crafts of manual labor to perform a particular operation or an
entire project. These calculations are used to estimate manual labor expenditures.

Crew Mix
The combination of apprentices, journeymen, foremen, and general foremen for a particular craft that
make up a crew for a particular operation or an average crew for a total project. These calculations
are used to estimate manual labor expenditures.

Manual Labor Wage Rate

The manual labor wage rate, which is a composite unit rate for each account (commodity), includes the
craft mix, crew makeup, spot (unscheduled) overtime pay, fringe benefits, and payroll additives (payroll
taxes, insurance and holiday/vacation if applicable), etc. The cost of showup time (rainout), welding
tests, craft training, travel time, voting, and other time off are incorporated in the field distributables
cost.

Additives (Payroll)
A rate generally expressed in percentage terms to recover the Bechtel portion of payroll expenses,
including payroll taxes and insurance, allowance for paid absences, and social and retirement benefits.

Field Costs
Materials, manual and nonmanual labor, construction, services, (sub)contract, and equipment costs.
Includes all costs at the site of construction and the cost of materials and equipment purchased in
permanent and/or project offices. Field costs may be direct and/or distributable.

Distributable Costs
Material and labor costs that cannot be identified with specific direct labor operations in the
construction of a plant and are either supporting services by nature or apply in such a way to several
direct operations that a logic allocation to each separate operation cannot be readily made. The cost
of construction equipment and the cost of materials and labor to construct temporary facilities and
perform supporting services relating to the construction of a facility are included in distributables.

Backcharge
A charge billed back to a vendor or (sub)contractor or an adjustment to vendor or (sub)contractor
invoice for work performed by Bechtel within the vendor/(sub)contractor scope or to correct a
deficiency.

Cash Flow
The cumulative value of receipt of revenues and recorded cost over time. The projected costs
represent the plan of expenditures consistent with the current schedule.

Cash Position
The difference between to-date revenue received and to-date recorded costs.

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Progress and Performance Curves

Represent a quantified, time-scaled summary of the detail schedules for engineering, procurement,
construction, and for the project as a whole. They are used for summary verification so that major
project elements are coordinated, reflect overall installation and production rates vs. time, and illustrate
graphically the project progress and performance against the approved plan. Further, they indicate the
need for corrective actions or replanning.

Pay Item
A work item in a (sub)contract that defines the unit of measure (UOM) and price per unit. The pay item
and the measurement or payment provisions are used as the basis for payments to the
(sub)contractor.

Normal Nonreimbursable Costs (NNR)

NNR job costs are those nonreimbursable job costs that are normally reimbursed as indirect costs
under standard cost-reimbursable contract terms. NNR costs include:

• The payroll/related costs of the following personnel who are not job assigned:

à Senior vice presidents and above

à Functional or department managers (see Attachment B to C1 No. 500.01)

à Service/support personnel (see Attachment C to C1 No. 500.01)

• Other costs such as entertainment, technical development, education, organization dues, and
contributions (see Attachment A to C1 No. 500.01)

SCHEDULES/QUANTITY CURVES
Critical Item
An item or activity that directly or indirectly affects a project milestone schedule based on the approved
schedule. The criticality (float) of engineering and procurement is measured relative to supporting the
scheduled start or completion of major construction activities. The criticality of construction activities is
measured against system completion requirements in support of plant startup.

Milestone
An activity that represents a significant point in time and that has no duration. Milestones can indicate
the start or end of a series of related activities or an accomplishment in the course of the project.

Predecessor
An activity that must logically occur before another activity and that controls the start or finish of its
successor(s). An activity can have many predecessors, each with a different relationship to the current
activity.

Resource Leveling
The process of determining how resource availability affects the project. Resource leveling resolves
resource conflicts by rescheduling activities when enough resources are available.

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Successor
An activity that must logically occur after another activity. An activity can have many successors, each
with a different relationship to the current activity.

Trend Forecast
The summation of the current budget quantity and the management-approved trended quantity.
These data are plotted. The total trend forecast quantity is automatically entered in the summary table
from another cell. The trend forecast is revised when a significant change occurs and the project team
makes that determination.

Total Installed Cost (TIC) Forecast

The summation of the trend forecast plus (or minus) the latest trend based on the latest design. These
data are tabulated but not plotted, are automatically entered from another cell, and are revised
monthly.

Sustained Duration
The duration in months between the 10th and 90th percentile spread of the trend forecast quantity.
This can be a fraction of a month. It is manually obtained by interpolation from the trend forecast curve.

Sustained Release/Installation Rate

The rate per month at which the commodity is scheduled to be released or installed between the 10th
and 90th percentiles of the trend forecast curves. It is computed by dividing 80 percent of the trend
forecast quantity by the sustained duration. It is automatically calculated in the Bulk Curve Template.

Peak Rate
The maximum quantity scheduled to be released or installed in a month in the trend forecast spread. It
is automatically calculated in the Bulk Curve Template.

TRENDS/CHANGES
Trends, Trend Program
Trends and the Trend Program are used to identify changes to the project scope, cost, and schedule.
The trend base is a current estimate or forecast from which changes are identified. Trends are
normally estimated on an order-of-magnitude basis. In the project construction phase, trends are
generally used to identify and record changes between forecasts. In the forecast cycle, the impact of
all trends is considered and included in the new forecast.

Trend Base
The project estimate or forecast recognized by the client (on reimbursable projects), Bechtel
management, and the project team as the base for identifying variances and deviations as the project
evolves.

Trend
An item of change to the project scope, pricing, unit rates, schedule, or intended plant quality that
causes an addition or reduction to the trend base estimate, including correction for scope/estimate
omissions.

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Trends are classified as either Scope Change Trends or Other Trends.

Scope Change Trends

These items of change to the trend base are either requested by the client, recommended by Bechtel,
or required by regulatory agencies and are subsequently documented to the client by the project’s
scope change program.

Other Trends
These items of change to the trend base cannot be classified as scope changes, but are attributable to
project evolution (pricing, quantity fluctuations, design evolution, labor productivity variances, etc.) and
other developments within the defined scope of the project.

Trend Status
The status of trends is categorized as “resolved” or “unresolved.”

Resolved Trends
Resolved trends include those items that have been approved for inclusion in the project. A resolved
trend may be revised or canceled later by subsequent decision or actions. Agreement with the client
on the value or effect of a trend is not necessary for a trend to be considered resolved.

Unresolved Trends
Unresolved trends are items that have not yet been approved for inclusion in the project and require
further action in order to be resolved or canceled.

Trend Forecast Jobhours

Trend Forecast Jobhours is a computer-calculated forecast of jobhours based on to-date performance
factor by account, percent complete for the account, and theoretical Trend Curves (see below) that
reflect historical Performance Factors (PFs) vs. Percent Complete.

Trend Curve
Trend curves are used to calculate Trend Forecast Jobhours. They reflect the change in expected
Performance Factors (PFs) as a given account goes from 0 to 100 percent complete.

Change Orders (Scope Changes)

Change Orders are changes to the project scope. They result in increases or decreases to quantities,
jobhours, costs, and schedules. When approved by the client, they are added to the Current Budget.
On lump-sum projects they result in changes to contract revenue.

Change Orders reflect variations in intent or objective involving the limits of work; the functional criteria
or capabilities of the plant and its individual systems or components; or the nature and extent of
services provided by Bechtel, vendors, or (sub)contractors. The basis for identifying a scope change is
defined and established in the prime contract, the Project Procedures Manual, the Technical Scope
Document, and the Scope of Services Document. A scope change may include revision, addition, or
deletion of work. A scope change includes the work required to evaluate potential revisions, additions,
or deletions of work before proceeding with the actual change. A scope change may be justification
for a change in the fee and may require a contract amendment.

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Appendix A Glossary of Terms

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Appendix B
Field Scheduling Guidebook, (Sub)Contract Execution
Introduction
Detailed Field Schedules include the 3/6-Month (i.e., 90/180-Day) Rolling Schedules and the
more detailed Weekly Work Plan (i.e., 3/4-Week Rolling Schedules). On projects in which field
work is performed by (sub)contractors, it will be their responsibility to plan the detailed schedules.
The following addresses and promotes effective detailed planning through the (sub)contract
scheduling process.

Although the information in this guidebook is for a typical petroleum/chemical project, much is
applicable to heavy construction projects in general.

Making the Field Schedules

Important things for the field planner to think about:
1. What can I do?
2. What do I need to do?
3. What do I need to do it with to perform the work safely?
4. What about the weather?
5. What about holidays?
6. What about (sub)contractors?
7. What about construction equipment?
8. What about drawings?
9. What about materials?
10. What about cost?
11. What about beating the schedule?
12. What about indirects/distributables?
13. What about (sub)contractor supervision?
14. What about field engineering?
15. What about other people’s needs?

Important things for the field planner to do:

1. List everything you have to do.
2. List when the materials and design will be available.
3. Review list against project goals.
4. Add items to the project critical items list that will currently not support goals.
5. Expand detail of items in the Construction Intermediate Schedule and the (sub)contractors’
Critical Path Method or Bar Chart Schedules to be worked, say, for the next 90 to 180 days

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Appendix B Field Scheduling Guidebook

and develop a more detailed sequence of activities. Highlight relationships among

(sub)contractors.
6. Use information developed in item 5 to coordinate with (sub)contractors on the proposed
breakdown to be monitored in their detailed schedules.
7. Check methods of (sub)contractors’ installation, recognizing what safety issues are involved.
8. Check the planned installed quantities, progress (percent complete), jobhours, and
performance (if labor broker) against the project progress and performance goals.
9. Use additional (sub)contractor information as available that assigns worker crews, materials,
tools, and equipment.
10. Review plan with project planner and get feedback that verifies that the field plan beats the
project schedule and supports milestones, the critical path, and the schedule logic.

11. Set personal goals, use your planning effort to realize them:
a. Achieve zero accidents
b. Achieve zero punchlist items
c. Beat the schedule
d. Achieve a performance below 1.00 (if labor broker)
e. Minimize overtime
f. Avoid starting a night shift
g. Have a reputation as a team player

Material Required for Field Schedule Evaluation

1. Statement of Project Goals.
2. (Sub)contractor-submitted control tools for installed quantity and expended jobhours and unit
rates. Detail quantity and jobhour estimates/budgets and forecast quantity from the Design
Office are helpful.
3. Quantity takeoffs and installation status from field engineering quantity tracking systems
(e.g., Teamworks) for detail quantities in cost codes by area, elevation, material type, etc.

4. Material status reports (Procurement Tracking System) for delivery information, material
available to work.

5. Construction Intermediate Schedule or Project Integrated Intermediate Schedule with

engineering and procurement deliverable dates for project milestones, required start and
finish dates for activities, and design/material availability. The schedule must show the
project’s critical path activities.

6. (Sub)contractor Critical Path Method or Bar Chart Schedules with site installation timing and
material/equipment delivery dates (in accordance with [sub]contract assigned scope
responsibilities).
7. Daily force reports from (sub)contractors denoting existing manual labor worker availability.

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Field Scheduling Guidebook Appendix B

8. Construction equipment plan and list for existing equipment availability ([sub]contractors’ and
Bechtel’s as appropriate).

9. Quantity installation curves by commodity for quantity required to be installed to support

project progress.

10. Engineering deliverable status for detail information on when deliverables will be Issued for
Construction. (Sub)contractor percent complete curves required to support project progress.
11. (Sub)contractor percent complete curves required to support project progress.

12. Manual labor headcount curves for (sub)contractors for manual labor required to support
project progress (optional).

13. Plot plan of project; preferably one that shows temporary facility locations, including
warehouse and laydown.

14. Establish a Weekly Work Plan program with the (sub)contractors to provide detailed
planning/scheduling of activities. An example of a Weekly Work Plan is given in Figure B-1.

FIGURE B-1 - SAMPLE WEEKLY WORK PLAN

Useful Field Planning References

1. Site Managers Manual, Instruction S4.1, Project Planning (Provides a basic checklist to assist
the site manager in project planning)

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Appendix B Field Scheduling Guidebook

2. Field Superintendent Handbook, Section 7, Construction Planning and Methods (Provides a

listing of project front-end and construction execution planning needs)

3. Field Superintendent Handbook, Section 10, Construction Work Execution Planning

(Discusses development of the construction execution plan and provides a checklist for prime
contract obligations)

4. Field Superintendent Handbook, Section 12, Cost and Schedule (Provides guidelines for
control of project cost and schedule)

5. Field Superintendents Handbook, Section 16, Construction Execution (Provides several

checklists to plan and manage construction work at the site, including a detailed job planning
checklist)

Typical Petroleum/Chemical Project Planning Metrics

The following charts and graphs show typical planning metrics:

• Figure B-2: Job Duration and Job Completion vs. Construction Schedule Percentage

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Field Scheduling Guidebook Appendix B

J OB D UR ATION & JOB COMP LE TION

V S . C ON S TR U C TION S C H E D ULE P E R CE N TAGE
S tart Of
Construction
Job D uration Pe rce nt
Job P reparation 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100
123
This Tim e For M obiliz ation P iling
A nd M ove-On S ite 0 7.5
S ite Developm ent
0 17
E x cavation Final Clean-Up
0 50 80 100
Foundations
2.5 55
B ackfill
7.5 57.5
Underground
15 55
P aving & M is cellaneous Footings, E tc.
30 Last M ajor Item Last Item 100
E quipm ent - Deliveries
7.5 60 72.5
E quipm ent - S et
10 77.5
E quipment - Field E rec tion
7.5 70
S teel S tructure
20 70
Underground P iping A bove Ground P iping
12 30 97
A bove Ground P iping Com pletion P ercentage
0 3 8 14 20 27 35 44 54 65 75 85 92 97 ##
B uildings
20 64
Instruments
40 100
Underground E lec trical A bove Ground E lectrical
14 32 100
Fireproofing
40 75
P ainting
45 100
Insulation
50 100

0 1 2 4 6 10 14 18 23 28 35 43 51 60 70 79 87 92 96 98 100

Job Com ple tion P e rce n t

FIGURE B- 2 - BAR CHART SCHEDULE COMPARISON

• Figure B-3: Engineering and Construction Relationship

• Figure B-4: Commodity Progress vs. Construction Time

• Figure B-5: Worker Density vs. Productivity Loss

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Appendix B Field Scheduling Guidebook

RELATIONSHIP BETWEEN ENGINEERING AND CONSTRUCTION

FOR A TYPICAL PETROCHEMICAL PROJECT

Mechanical completion

100 100

95
Last spool
90 90
erected
85
Engineering completion to allow
80 80
reasonable lump-sum bidding by
outside constructors. 75

70 Latest start 70
of testing

Percent Construction Progress

65
Engineering Percent Complete

60 60

55
Engineering
50 Last major piece of 50
equipment set (last
45
Start pipe spool major piece set approx.
40 erection 6-8 months prior to 40
Construction
Start rack mechanical completion 35
Engineering lead time piping dependent upon size
30 30
for EPC fast track and complexity)
25
Start piping
20 20
(Fab)
15

10 10
Percent Construction Time
5
10 30 40 50 60 70 80 90
20
0
0 10 20 30 40 50 60 70 80 90
Contract
release
NOTE: Percent Total Project Time
by owner

If EPC bid is joint effort and lump sum, start of Construction Progress: First 20% of progress normally
construction at 35% of duration and 45% engineering requires approximately 35% of the construction
will furnish a more reasonable project total cost. This duration. The last 17-18% of progress requires
will eliminate engineering over time cost and need for approximately 25% of the construction time.
premium payments to ensure early delivery of critical
long-lead time equipment.

P:\DAILY\0797078\GRAPH.CDR

FIGURE B-3 - ENGINEERING AND CONSTRUCTION RELATIONSHIP

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Field Scheduling Guidebook Appendix B

Category % Work Percent of Construction Time

Letter Description Complete 0 10 20 30 40 50 60 70 80 90 100

C Columns & Incremental 0 2 3 5 12 18 18 16 14 8 4

Vessels Cumulative 0 2 5 10 22 40 58 74 88 96 100

D Tanks Incremental 0 0 0 2 6 14 22 24 16 12 4
Cumulative 0 0 0 2 8 22 44 68 84 96 100

E Exchangers Incremental 0 0 1 3 6 18 22 24 15 9 2
Cumulative 0 0 1 4 10 28 50 74 89 98 100

F Fired Incremental 0 0 1 1 2 11 19 24 22 14 6
Heaters Cumulative 0 0 1 2 4 15 34 58 80 94 100

G Pumps Incremental 0 1 1 2 5 11 20 20 18 14 8
Cumulative 0 1 2 4 9 20 40 60 78 92 100

J Instruments Incremental 0 0 0 1 1 2 12 20 26 22 16
Cumulative 0 0 0 1 2 4 16 36 62 84 100

K Compressors Incremental 0 0 2 6 12 16 24 16 14 6 4
Cumulative 0 0 2 8 20 36 60 76 90 96 100

L Piping Incremental 0 0 1 1 4 8 16 18 20 18 14
Cumulative 0 0 1 2 6 14 30 48 68 86 100

M Structural Incremental 0 0 2 5 10 17 22 16 16 7 5
Steel Cumulative 0 0 2 7 17 34 56 72 88 95 100

N Fireproofing Incremental 0 1 2 7 16 22 22 18 6 5 1
Insulation Cumulative 0 1 3 10 26 48 70 88 94 99 100

P Electrical Incremental 0 0 1 3 8 14 18 20 16 12 8
Cumulative 0 0 1 4 12 26 44 64 80 92 100

Q Concrete Incremental 0 4 10 14 22 20 16 8 3 2 1
Cumulative 0 4 14 28 50 70 86 94 97 99 100

R Buildings Incremental 0 0 0 2 10 18 20 18 16 10 6
Cumulative 0 0 0 2 12 30 50 68 84 94 100

S Site Incremental 0 0 1 15 30 20 16 10 4 2 2
Improvement Cumulative 0 0 1 16 46 66 82 92 96 98 100

X Painting Incremental 0 0 0 0 0 14 18 22 18 16 12
Cumulative 0 0 0 0 0 14 32 54 72 88 100

FIGURE B-4 - COMMODITY PROGRESS VS CONSTRUCTION TIME

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Appendix B Field Scheduling Guidebook

Worker Dens ity: Relationships

worker/1000 sf

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0
102 100 98 96 94 92 90 88 86 84 82 80

Productivity (%)

FIGURE B-5 - RELATIONSHIPS, WORKER DENSITY

Checklist
One of the responsibilities of a construction team is to prepare plans and the use of schedules
outlining the sequence of work activities required to complete a project. Normally, a Milestone
Summary Schedule is established indicating the start dates and completion dates of the various
units or activities in a plant. From this, a Project Integrated Intermediate Schedule is developed.
Construction is responsible for its portion – the Construction Intermediate Schedule. The
(sub)contractors will develop Critical Path Method or Bar Chart schedules shortly after award.
These area construction schedules should become the backbone for the manual labor staffing,
progress curves, and 3/6-Month Rolling (if required) and Weekly Work Plan (detailed day-by-day
activity) schedules. Detailed schedules from the (sub)contractors are required per the
(sub)contract. It is normal practice to develop detailed schedules for each major area listing all
the scoped activities and their interrelationships.

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Field Scheduling Guidebook Appendix B

This checklist is intended to provide a list of activities that should be considered by the
construction team when coordinating with (sub)contractors as they develop their detailed
schedules. Not all items listed apply to every project, but many will. The items are grouped by
major commodity/activity (i.e., civil, rigging, equipment, etc.). The list must be reviewed along with
the project contracts (prime and [sub]contracts), specifications, drawings, etc., to make it
completely useful.

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Appendix B Field Scheduling Guidebook

SECTION I - CIVIL/STRUCTURAL

1. Schedule the foundations to match the rigging requirements, the delivery of equipment, and common
excavations.
2. Check the underground (U/G) utility drawings to coordinate the excavation/foundation schedule.
3. Show all major (deep) foundations, sumps, pits, etc.; include the method for shoring the excavation
(sheet piling?) and dewatering the hole (wellpoints?). Schedule the removal of the shoring and
dewatering systems. Show other activities that are restrained until the excavation is backfilled.
4. Do a detailed schedule on the construction of all buildings. This activity should start as early as
possible. Include all architectural items on the schedule and the heating, ventilation, and air
conditioning (HVAC) systems.
5. For elevated concrete slabs, roof decks, compressor pedestals, etc., be sure to include:
a) Time to install shoring to support the formwork for the concrete deck (Note: Indicate the type of
shoring to be used.)
b) Cure time after the slab has been placed before the shoring can be removed
6. For projects that are doing the testing of concrete and soil on site, show the delivery and setup of the
soils/concrete lab equipment before the start of permanent plant construction. (Note: Be sure plenty of
spares for the equipment are available.)
7. Some tanks have an asphalt pad or asphalt-sand cushion as a part of the foundation. Schedule this
item to be installed before tank erection. Also schedule the delivery of the necessary construction
equipment to do this operation.
8. Schedule the completion of the foundations for the various pipe-racks and the erection of pipe-rack
steel as early as possible.
9. Check the drawings for any fireproofing requirements for structural steel. Schedule this operation after
the inspection and sign-off of the steel. Show the method used to fireproof the steel (i.e., precasting,
gunnite, cost in situ, or mastic).
10. Check the structural steel drawings for the foundations to miscellaneous platforms, structures, or free-
standing pipe supports. Sometimes these foundations are only shown on the structural drawings and
not on the foundation drawings. Also check the pipe support drawings for any foundations that do not
appear on the foundation drawings. Schedule the completion of these foundations prior to area paving.
11. Schedule anchor bolts, sleeves, and embedded fabricated metal to arrive before foundation pouring.
12. Schedule all cathodic protection installations to be completed before area or road paving.

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SECTION II - RIGGING

1. Schedule the delivery of heavy lift vessels on a separate rigging schedule, as well as on the area
schedules.
2. Schedule the arrival of the heavy lift construction equipment (i.e., transport dollies, slings, spreader
bars, gin poles, heavy lift cranes, etc.) to match the arrival of the heavy lift vessels. Because of the
cost of heavy lift equipment, strong efforts should be made to schedule the delivery of the heavy lift
vessels within a limited time envelope. This is particularly true if the heavy lift equipment is rented.
3. Indicate on the area schedules the zones that are sterilized by a heavy lift (i.e., foundations that must
be left out for access, U/G utilities that cannot be installed, steel or vessel that cannot be set, etc.).
Note: Check the route the vessel will travel through the plant for U/G utilities that may not be able to
take the wheel load of the dollies and for height, width, and turning radius clearances.
4. Schedule the pouring of foundations for gin poles or deadmen early enough to ensure that the concrete
is up to strength before the lift is made.
5. Schedule the erection and removal of all temporary installations required for a major lift.

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SECTION III - EQUIPMENT

1. Coordinate the U/G, foundation, and rigging schedules when determining the sequence of vessel
setting. Where possible, limit the number of setups the rigging group has to do in an area.
2. Schedule the installation of vessel internals (i.e., trays, pall rings, ballast rings, screens, catalyst
support beds, chemicals, etc.). Schedule the issuing of the procedures to load the vessels with
chemicals or pall rings. (Note: Field-check all quantities to be sure surplus material has been ordered.)
3. After system testing, schedule the cleaning, inspection, installation or checking of de-misters, factory-
installed trays, and final flange-up and sign-off of the vessels.
Note: Shell-and-tube exchangers and reboilers are usually not field-inspected.
4. After columns and drums have been set and grouted, schedule the fireproofing of the vessel skirts, if
this is required. Fireproofing should be done before insulation. (Note: In cryogenic service, check for
any special insulation requirements on the vessel skirt.)
5. After the vessels have been set and grouted, the platforms and ladders installed, and the
piping/instrument trim installed on the vessel, schedule the insulation of the vessels.
Note: In cryogenic service, be sure enough clearance has been allowed between the vessel and
vertical attachments for insulation contraction joints (i.e., 2.2x insulation thickness).
6. On heavy wall, field-erected vessels or when aluminum welding is required, schedule the delivery of
any special X-ray source.
7. Schedule the delivery of all special welding equipment, heat treating equipment, and testing equipment
and the arrival or training of special qualified welders for the erection of heavy wall vessels or any other
specialized welding process. This is very important on overseas jobs.
8. After power-on in an area, show the run-in of all motors. For fin-fan exchangers, show balancing of the
fin-fan blades. Also, if required, show the installation of field-run lube oil tubing to the fin-fan motors.
9. For all turbines, either steam or gas-driven:
a) After the piping systems have been tested and the steam or gas is available, schedule the blowing
of these lines clean before the running of the turbine. In high pressure service, this is a major
operation. Show the design, fabrication, and installation of any additional steam/gas blow spool.
This design should be done early to allow for the purchase of any additional piping materials. For
gas turbines, the area becomes “hot” once gas is introduced in the area, with the subsequent
consequences.
Note: Often this operation cannot be done during regular work hours for noise/safety reasons;
therefore, as the time approaches to do this operation, it should be scheduled very
carefully. Also, depending on the piping configurations involved, this operation can take
3 to 4 weeks.
b) Schedule all instrumentation to be checked out before testing the turbine.
Note: Permanent and instrument power must be available.
c) Check the piping and instrumentation drawings (P&IDs) for the required utilities to run the turbine
and schedule utilities to be available before the turbine is rolled.
10. For motor run-in, check the P&IDs for utilities to the motor (i.e., cooling water, lube oil, etc.) and
schedule these utilities, as well as power on for motor run-in. Also, schedule all instrumentation to the
motor to be installed, calibrated, loop checked, etc., before running in the motor.
11. For pumps, compressors, or similar equipment, once the driver has been run-in:
a) Schedule the final alignment of the equipment to the driver without the piping attached to the
equipment

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b) Schedule the final alignment of the piping equipment

c) Schedule the final couple-up of the driver to the equipment
d) Check the P&IDs for the required utilities to the compressor and schedule these. The required
utilities should include any buffer gas requirements, as well as cooling water, instrument air,
nitrogen, etc.
Note: On grassroots plants, be sure the utility plants and systems are completed early enough in
the project so that they are available when the major equipment is run.
12. Before running any rotating equipment, the lube oil system is usually flushed clean after all the piping,
both vendor and Bechtel, is installed. This is a major operation taking from 4 to 6 weeks and should be
started as soon as possible. If pickling of the lube oil system is required, schedule the letting of the
subcontract for this operation. Include in the frame for pickling the lube oil piping and the disassembly
and reassembly of the lube oil system.
Note: For lube oil flushes, be sure enough lube oil, gaskets, filters, screen, etc., have been ordered for
the flush. Check to see if the flushing oil has to be replaced with new oil before final acceptance
of the system.
13. For large diameter, field-erected tanks, schedule the availability of water for hydrotesting after the tank
has been erected. If low chloride or demineralized water is required for this operation, show that on the
schedule.
Note: Show the quantity of water required and whether the water is to be used to test another tank or
system after the test is completed. If a settlement test is required for the tank, show this on the
schedule. Allow time in the schedule for the tank to be cleaned after the hydrotest. Indicate
who (Bechtel or the [sub]contractor) cleans the tank. Determine when piping erection can begin
on the tank, and show this on the schedule.
14. On tanks, pits, or sumps that are field-lined, show this activity after testing of the tank.
15. Schedule the final cleanout and inspection of pits or sumps. Also, if required, schedule the installation
and testing of sealed/air-tight cover plates on pits or sumps.
16. On projects where construction power is different from permanent power and/or permanent power will
not be available in a unit until after a lube oil system is ready for flushing, then the lube oil flush can be
started before permanent power is available by either:
a) Installing a temporary transformer to switch construction power to the proper voltage for the lube
oil motor, or
b) Substituting for the permanent motor a temporary motor that can run on construction power
17. On lube oil flushes, it is often desirable to heat the oil to a higher temperature than the factory-supplied
heaters are capable of; therefore, it is necessary to purchase temporary immersion heaters. If this is
desired, then show the delivery of these temporary heaters on the schedule.
18. If a project requirement, schedule a drain-down test for seal oil systems on rotating equipment.
19. Show on the schedule any special requirements for testing pumps or compressors; for example,
running a propane compressor on air.
Note: Manufacturer’s instructions and concurrence must be issued for an operation like this.
20. Determine if hot or optical alignment of rotating equipment is required. If so, schedule this operation,
including the letting of the subcontract to cover this work and the delivery of the necessary optical
equipment.
21. Schedule the approval of the grouting procedures for each type of equipment. Then, schedule the
arrival of the necessary materials and tools to grout the equipment.
22. Schedule slide plates that go under the legs of exchangers or reboilers to arrive before the equipment
is set.

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23. Some tanks have a cathodic protection mat underneath the tank bottom. If this is required, schedule
the delivery and installation of this equipment to occur before the tank is erected. Also schedule the
installation of anodes on seawater-cooled heat exchangers, if required.
24. For boilers or field-erected heat exchangers, show the number of tubes to be rolled and/or seal-welded
on the schedule. Also schedule the arrival of the necessary tools to roll the tubes.

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SECTION IV - PIPING

1. For large diameter cooling water lines or any lined pipe:

a) Show patching of field welds, if required, or the field lining procedure.
b) Show manual cleaning and inspection of a system before initial operation.
c) If the lines are U/G, show:
i) Excavation of trenches
ii) Special bed preparation, if required, or anchor blocks
iii) Any shoring or dewatering requirements
iv) Patching of the external wrapping, fieldwelds, and final jeeping of the pipe’s wrapping
v) Any testing required
vi) Final backfilling
Note: This applies to most U/G lines.
2. Show drawing preparation and the installation of pump, turbine, compressor, and vessel small bore
piping trim.
3. For piping system testing:
a) Schedule preparation of the test P&IDs, including the MTO for test blinds, flanges, etc.
b) Schedule the preparation of the actual test packages.
c) If pneumatic testing is a requirement, schedule the purchase and delivery of pneumatic test
compressor.
Note: These compressors are long-delivery items and expensive. Check that plenty of spare
parts are purchased.
d) If stainless steel piping is to be hydrotested, schedule the availability of low-chloride water.
e) Show the delivery of hydrotest equipment (i.e., test pumps, calibrated gauges, high pressure test
hoses, gaskets, etc.).
4. Show completion of pipe testing as a restraint on the completion of piping installation and, depending
on the project specifications, painting.
Note: Some specifications do not allow the welds to be painted before testing.
5. If the plant has cold or cryogenic insulation, show completion of the pipe supports after the completion
of the cold insulation.
Note: In cold and cryogenic insulation systems, high density insulation material is often used at pipe
supports that are external to the insulation - Bechtel standard S4 shoe. This high density
insulation and the S4 shoe can be installed before system testing if the high density insulation
does not cover a weld. Doing this is particularly useful for pipe runs in pipe racks along
sleeperways. This will eliminate the need for temporary supports. Also, because of the design
characteristics and cost of cold insulation, it is not advisable to insulate between the welds as is
sometimes done with hot insulation.
6. Show the final setting of spring hangers.
7. Indicate the erection, testing, and, sometimes, painting of field-erected tanks as restraints on installing
the piping and instrumentation on the tank.
Note: On large diameter tanks, check to see if a settlement test is required and if so, schedule this
time period.

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8. If a Bechtel responsibility, schedule the:

a) Flushing, blowing, or cleaning of all lines after system testing
b) Installation of orifice plates after item 8a
c) Pulling, calibrating, and reinstalling all safety valves approximately 3 to 4 weeks before plant
completion
d) Changeout of the valve packing, gaskets, or seals before startup
e) Lubricating of all valves
9. Schedule the delivery of the stress relieving equipment to match the beginning of pipe fabrication or
erection. Schedule the start of stress relieving right after the start of pipe fabrication or erection.
Stress relieving of a system must be completed prior to system testing.
Note: Check to be sure that plenty of heater strips and blankets have been ordered, because these
items are consumables.
10. Schedule the installation of steam/heat tracing before the start of piping insulation. Also, on vessels in
cold service, some instruments require steam/heat tracing; schedule this to be done before the release
of the vessels for insulation.
11. If a utility system such as nitrogen, water, steam, etc., retains its parent unit/plant number within a
major process area, clearly identify this system on the process area schedule as part of that area’s
responsibilities.
12. Show the installation of vendor-supplied piping system, particularly fire sprinkler system. Check the
takeoff and schedule the time accordingly. Order spare materials, especially odd-size pipe and fittings.
13. Schedule the delivery of any special welding equipment, welding rods, or special qualified welders for
an activity. This is required if aluminum welding or some other specialized welding must be done on a
project.
14. If extensive epoxy lining or fiber-glass-reinforced piping is being used in a hot weather region, schedule
the preparation/construction of a refrigerated storage area for the various epoxy ingredients. This is
necessary to extend the shelf life of the material.
15. Schedule the final cleaning of all sewer systems and manholes before turnover to the client.
16. For large diameter, carbon-steel suction lines, schedule the sand blasting or manual cleaning of these
lines to be done before erection of the spools. Schedule the final inspection of all compressor suction
lines for cleanliness to be done before system startup. Also schedule checking the discharge lines of
compressors for cleanliness to prevent dirt from getting into the recycle valves.
17. Schedule and closely monitor any aluminum or other specialized pipe spools that are fabricated off
site.
18. Schedule the qualification of specialized welders (i.e., aluminum, heavy wall, chrome-moly, etc.).
19. If in Bechtel’s scope, schedule final leak testing of entire systems to be done before startup. If the
system is in cold service, the flanges and valves will be insulated after the system is leak tested, not
after cooldown.
20. Schedule the loading of pipe racks within a unit separately from the erection of spool piping.
21. If scheduling the erection of the piping on a spool piece basis, be sure to include field-run pipe in the
piece count (i.e., a field-run downcomer from a tower should be handled just like a spool).
22. Schedule the final P&ID checks after moaning and testing of a system but before system turnover.
23. When preparing a pipe testing schedule:
a) Have the precommissioning/startup group identify its priorities on P&IDs

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b) Compare this to the test P&IDs to determine the necessary testing sequence to meet these
priorities, and schedule accordingly
24. When using pneumatic testing, schedule the tests so that the high pressure air can be cascaded from
one test to another.
25. If cathodic protection is being used on U/G piping systems, schedule the installation of the necessary
anodes, test posts, insulating flanges, etc., along with the installation of the U/G piping.
Note: Insulating flanges are generally very sensitive. They must be tested and wrapped with
insulating tape immediately after installation or a short will develop across the face of the flange
from dirt or water ingress.
26. On area schedules, distinguish between carbon steel, stainless steel, and alloy piping systems.

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SECTION V - ELECTRICAL

1. Treat the erection of generators as mechanical equipment.

2. On grassroots projects:
a) Often the utilities run from the black start generator are those required to bring the main
generators on stream; therefore, schedule the completion of the black start generators and
associated electrical switchgear/substations early enough to allow time for the startup of the utility
systems required to run the main generators.
b) If construction power and permanent power distribution systems have different voltages, schedule
the purchase and installation of the necessary transformers and switchgear to make the two
systems compatible. This is necessary to:
i) Provide sufficient load to run and test the permanent generators
ii) Provide backup to the permanent generators during the initial startup of the plant
iii) Eliminate the cost of construction power earlier
iv) Provide additional capacity to the black start generator
3. Schedule the erection and energizing of all substations within an area as well as the primary
substations. This should be well-coordinated with the needs of the areas.
4. When direct-burial cable is being used on a project, schedule all cable in trenches to arrive before the
start of cable pulling because it is very difficult to open a trench a second time once it has been
backfilled or to keep trenches open waiting for the arrival of cable.
5. Check the actual spacing of parallel power and instrumentation direct-burial cable trenches.
Sometimes these trenches are too long to make it practical to dig two trenches; therefore, one trench
must be used and the cables properly spaced. When this occurs, schedule the excavation of the cable
trenches to match the arrival of all the instrumentation and power cables in them.
6. If direct-burial cable is being used, schedule the purchase/precasting of the cable tiles to cover the
cable if the cover is not being poured into place.
7. Schedule the delivery of red oxide powder for the concrete used in precast tiles or electrical/instrument
ductbanks. (Note: Be sure plenty is ordered because it is always used.)
8. Within a unit, schedule the installation of high voltage, low voltage, lighting, and instrument cable
separately.
9. Schedule delivery, installation, checkout, and startup of any instrument power system. This will be a
restraint on the start of loop checking.
Note: Instrument power is dependent on permanent power.
10. Schedule the delivery, installation, checkout, and startup of any back-up battery systems.
11. Schedule the delivery, installation, termination, and checkout of specialized relay/control boards.
12. Schedule the start of cable meggering and checkout to be done before energizing a system. (Note:
Check that the necessary testing gear has been ordered.)
13. Schedule the setting, termination, checkout, and energizing of all major electrical
equipment/substations within a unit.
14. Show on the schedule the means to be used to load test the generators. Remember:
a) Many generators cannot run under low load conditions.
b) Diesel drivers will foul under long-term, low-load conditions.

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c) Secondary substations or the equipment to be run from the substations may not be ready when it
is time to test the generators. Therefore, this item must be given due consideration early in the
project.
15. Schedule and monitor closely the delivery of all motor control center (MCC) units and switchgear.
16. Coordinate the installation of U/G ductbanks/cable trenches with the other U/G facilities and
foundations.
17. Schedule the U/G grounding within a unit to be done before the completion of area paving. If U/G
electrical cable runs that go under concrete paving are to be marked with factory-purchased markers,
schedule the delivery of these markers.
18. Schedule the installation of light fixtures behind the erection of structures or platforms on vessels.
Order spare reflectors and bulbs to cover construction damage.

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SECTION VI - INSTRUMENTATION

1. Schedule, review, and monitor closely the delivery of all instruments, control valves, relay boards,
control panels, etc. Flag these items as soon as any problems arise.
2. Schedule all civil and architectural items in the control room to be completed before the arrival of the
control panels on site.
3. Schedule the delivery of any interconnecting diagrams or drawings being supplied by the control panel
vendor that the field requires to install the panels.
4. Schedule permanent power and instrument power to be available at/or immediately after the setting of
the control panels in the control room.
5. Show on the schedule the testing of instrument tubing, level gauge assemblies, strong backs, etc., if
this is a project requirement.
6. If a project requirement, schedule the meggering of all instrument cables.
7. Schedule the delivery of any calibration gases for analyzers, gas/smoke detectors, etc.
8. Schedule instrument wire installation and continuity (point-to-point) checks as separate activities.
These items lag behind the installation of field instruments but precede loop checking.
9. For local or main control panels, show on the schedule:
a) Pulling of the cable to the panel
b) Setting of the panels
c) Termination of cable at the panel
d) Continuity checks
e) Availability of instrument power or air
f) Final loop checking
10. Schedule instrument stands and local instruments to be installed after the completion of the majority of
the piping in an area.
11. Schedule the fabrication and installation of instrument strong backs or “Christmas trees” that are
installed on vessels to be completed before the installation of instruments on the vessels.
12. Schedule the installation of instruments by major and minor categories.
13. Sometimes minor instruments such as pressure or temperature gauges are not installed until 2 to 3
weeks before turnover of the unit. Discuss, evaluate, and schedule this accordingly.
14. Schedule the final calibration and loop checking of all instruments to start shortly after pipe testing has
started and instrument power is available, but to be completed prior to system turnover.
Note: Before any equipment is tested, all instrumentation to that item must be installed, calibrated,
loop checked, etc.
15. On overseas projects, schedule the delivery and set up of the instrument test bench/calibration
equipment shortly after the beginning of permanent plant construction.
16. Since control valves and instruments are routinely checked in the instrument shop before being issued
to the field, there is no need to schedule this activity.
17. Where possible, develop a loop check schedule showing on a priority basis the systems that are
needed and the number of loops to be checked per system.
18. Schedule client or the responsible government agency approval of all test procedures and forms to be
obtained before testing instruments or safety valves. The same holds true for loop checking.

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SECTION VII - MISCELLANEOUS

1. When scheduling piping or vessel insulation, distinguish between hot and cold insulation systems.
2. Schedule the letting of (sub)contracts with enough lead time for the (sub)contractor to purchase the
necessary materials, mobilize, and do the work within the limits of the project/area schedules. Be sure
the contract documents require a detailed schedule from the (sub)contractor.
3. If a (sub)contractor is performing a work operation that depends on Bechtel to release this work in
stages (i.e., painting and insulation), then never give the (sub)contractor a schedule of specific items to
be released to him. Only commit a specific quantity of work to be released to the (sub)contractor each
week/month. This quantity should be sufficient for the (sub)contractor to complete its work within the
limits of the area/project schedule.
4. Area schedules should show when the initial and final field takeoffs of all quantities are to be done.
5. On grassroots projects, establish target completion dates for all portions and phases of the project. Pay
close attention to the completion of utilities and offsite areas early in the project to allow for
downstream activities to occur early enough for the process units to be started up on schedule. Often
all the attention is concentrated on the process units, and the other units take second priority. This, in
fact, is backward to what is required.
6. Schedule the early awarding of all POs or (sub)contracts for HVAC equipment. These are long-delivery
systems that are often ordered too late in the project. The delivery of this equipment can easily extend
to 6 months ex-works if it is to be installed in a Class I electrical area.
7. When scheduling overseas projects, always allow sufficient delivery time for shipping and customs.
This can vary from 2 to 4 months. Place strong emphasis on ordering all materials as early as possible
and on always ordering more than is expected to be required, because it will be used.
8. On all area schedules, show the required arrival date of all vendor representatives. Determine the
required lead time to get a vendor representative to site, and schedule when the notice of invitation
should be sent out. On overseas projects, allow plenty of time for obtaining passports, visas, letters of
invitations from the host country/client, etc. This is extremely important and should be monitored
closely.
9. On grassroots or overseas projects, schedule the initial and final schemes for supplying raw water to
the project. Water often becomes critical to construction, testing, and plant operation.
10. For LNG storage tanks or similar vessels that require long-duration purging with nitrogen, show this
activity after completion of testing but before the introduction of gas.
11. For grassroots projects, schedule all temporary/construction utilities that may be required for the initial
startup of the plant. This may include the fire water system for cooling water, construction air
compressors or generators, nitrogen bottles, etc.
12. Although painting is a relatively minor item in the construction of a plant, give this item adequate
attention on projects that are fabricating their own piping or structural steel. Make plans from the
beginning of a project as to how this item should be handled. Early attention will save many jobhours
later in the project. Always remember that it is easier to sandblast and paint piping and steel in the
laydown yard than in-place.
13. Review the project contract documents, particularly the section covering turnover of the plant to the
client, and clearly identify on the various schedules all items that are Bechtel’s responsibility.
14. About 8 to 10 weeks before turnover of a plant to the client, prepare a turnover schedule of items that
must be done to complete on schedule. This schedule should include:
a) Remaining testing to be done
b) Remaining moan items
c) Cleaning of sewers and manholes

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d) Preparation of the necessary documentation that must accompany the turnover package
e) All final work items
f) The delivery of outstanding materials
g) Special items required by the contract
15. If cable tray fireproofing is required, schedule the completion of cable pulling in open cable trays early
enough to allow for the installation of cable tray fireproofing. This should be completed before plant
turnover.
16. Maintain a master schedule index on all projects. This index should list:
a) Schedule numbers
b) Schedule titles
c) Date last updated and issued
d) Date to be updated and reissued
e) Distribution, include those copies posted in offices, conference rooms, and sent to the client
17. Schedule the arrival of the necessary surveying equipment and spare parts early in the project. Also
schedule the establishment of the survey controls monuments.
18. Indicate the bulk quantities to be installed on the schedule.
19. On grassroots or overseas projects, develop detailed schedules for the construction of all temporary
utilities and facilities, since the construction of the permanent plant depends solely on these items.
20. On all schedules, indicate the actual date an activity started and finished. This will become valuable
historical information.
21. If an activity is behind schedule, indicate the reason on the schedule and what is being done to correct
the problem.
22. For all activities (structural, civil, site, electrical, etc.), schedule the start and completion of all final
inspections and moans. This activity should start early enough to allow for a clean turnover package to
the client.

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Appendix C
Example Resource-Loaded Schedule Analysis
Introduction
This appendix includes example resource-loaded schedules that were produced using Primavera.

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Appendix D
Contract Division of Responsibility Matrix
Introduction
This appendix includes an example format for the (Sub)Contract Division of Responsibility Matrix.
One is developed for each (sub)contract to be employed in the execution of work.

CONTRACT NO.:
CONTRACTOR:

DIVISION OF RESPONSIBILITY MATRIX *

Contract Input to Development of Coordinate Input to pricing Prepare Identify Bechtel Develop and Review bids,
Formation - Material proforma package and proposal Material or customer provide provide input to
Regional Office Assignment document and development, section Requisition furnished schedule bid evaluation
Issued Schedule determination of pre-bid meeting (MR), technical utilities, facilities requirements criteria, bid
Contracts mandatory and scope, and services and cost evaluation and
prime contract bidding/award of specifications estimates for bid clarification
flowdowns contract and drawings contract meeting
package

Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

Pre-bid Meeting Develop Chair and Review change Review quality Cover site Describe cost Explain Safety
agenda; bidding conduct management, control, field operational and schedule and Health
procedure; meeting; cover insurance, engineering requirements, reporting Plan, and
commercial project scope, progress requirements labor relations, requirements project
aspects; work rules, reporting and contractor requirements
prepare meeting general payment interface and
minutes conditions; documentation coordination
ethics and code
of conduct

Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

Division of Initial Updates Historical file

Responsibility assignments
Matrix (DOR) (by name)

Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

✶
For contracts that Bechtel is managing on behalf of a customer, the Division of Responsibility should be modified to include customer
representative interfaces.

Notes:
1. The Bechtel project manager or site manager, in conjunction with the contracts manager, is responsible for assigning the functions listed
in this matrix. All tasks must be assigned and the responsible employee trained and familiar with the task.
2. If the nature of the contract or available project resources dictate that a task will not be assigned and performed, indicate "Not
Performed" in the "Assigned To" box.
3. All employees are responsible for providing the necessary support to an employee assigned responsibility for a given task or function.

1998 Bechtel Corp. Principles of Construction Controls, Vol. II, (Sub)Contract Execution D-1
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Appendix D Contract Division of Responsibility Matrix

DIVISION OF RESPONSIBILITY MATRIX (continued)

Contract Review Compose Monitor and Establish
Package turnover punchlist of status punchlist responsibility
Turnover from package for missing items for resolution of
Regional Office completeness in turnover open items
to Field package
Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

Pre- Define Bechtel Prepare Discuss Cover Labor Cover Safety Cover schedule Cover contract Review ethics
construction Authorized agenda, construction Relations and Health and progress administrative and code of
Meeting Representative conduct operations requirements requirements reporting requirements conduct
meeting requirements requirements including
such as submittals and
facilities, invoicing
equipment,
coordination

Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

Pre- Prepare Monitor and

construction meeting status
Meeting minutes and action/open
(continued) action/open items
items list

Lead: Assigned to: _________ Assigned to: _________

_________

Labor Relations Administer Coordinate Receive Record nature,

Project Labor labor issues contractor's duration and
Agreement, if with contractor notices of impact of work
applicable actual/potential stoppages
labor disputes

Lead: Assigned to: Labor Assigned to: _________ Assigned to: _________ Assigned to: _________
_________ Relations Dept.

Correspondenc Designate Log Assign actions Report and Prepare Review outgoing Review and sign Archiving and
e and Notices recipient for all correspondence ALL follow up open outgoing correspondence all outgoing permanent
Lead contract and maintain action items correspondence for compliance correspondence storage
correspondenc files log and monitor with contract
e (except as open items and procedures
noted below)

Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

Requests for Designate Log RFI's, Assign action Report and Review and sign Review RFI's
Information recipient maintain Files follow-up open outgoing "after the fact"
(RFI's) Lead action items responses for commercial
impact

Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

File/Route Contract files Drawings Technical Schedule Payment files Expediting Inspection Progress photos
Miscellaneous documents submittals reports reports
Documents (other than
Lead drawings)

Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

File/Route Safety /
Miscellaneous Security files
Documents
(Cont'd)

Lead: Assigned to: _________

_________

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Contract Division of Responsibility Matrix Appendix D

DIVISION OF RESPONSIBILITY MATRIX (continued)

Insurance and Obtain and re- Verify validity of Verify insurance Maintain tickler
Bonds Lead view Insurance Insurance and bonding system for
Certificates and Certificates and companies are policy
bond commit- letters on Bechtel's expirations
ment letters for approved list
contract
compliance

Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

Contractor Develop list of Receive and log Assign action Conduct or Conduct or Approve Monitor closure
Technical contractor contractor items and coordinate coordinate cost contractor of contractor
Submittals Lead submittals submittals monitor status technical and schedule submittals submittal
of open items reviews reviews of requirements
technical
submittals

Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

Contract Set Milestone Obtain initial Verify schedule Coordinate sub- Approve Monitor Obtain/review Review claimed
Schedule Lead: dates contractor submittal meets mitted schedule schedule progress periodic impacts affecting
schedule contract with project submittal against schedule critical path/
requirements schedule approved updates from milestones
contract contractor
schedule

Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

Contract Process Evaluate Issue Change Issue notices if Direct Direct

Schedule Bechtel or 3rd whether Order to confirm contract acceleration to acceleration to
(Cont'd) Party contract justified and milestone dates recover advance
backcharges milestone date agreed upon are in jeopardy schedule milestone dates
arising from changes are changes to relative to
late schedule justified contract contract dates
performance schedule

Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

Progress Obtain, review Establish Review, Approve

Payment for compliance method and compare to quantity
Schedules Lead with contract verify quantity or contract progress
work schedule and calculations
measurement develop cash
methods flow curve

Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

Invoices and Check invoices Verify billed Verify contract Verify proper Approve
Payments Lead for accuracy work agrees requirements deductions payments
and that pricing with approved are met before made for
is according to progress payments retention,
contract issued backcharges or
other offsets

Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

Technical Receive copies Sign Change Assemble and

Transmittals of transmittals, Notices prepare
from Engineer prepare transmittals to
Lead Change contractor
Notices

Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution D-3
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Appendix D Contract Division of Responsibility Matrix

DIVISION OF RESPONSIBILITY MATRIX (continued)

Contract Initiate Review Prepare Change Sign Change Issue, control Track costs for Negotiate
Changes Lead requests for requests for Notices, Notices and monitor all changes changes
changes changes Change Orders Change Notices pending
and negotiated
Amendments settle-ments

Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

Contractor Receive and Evaluate Evaluate Evaluate Prepare Authorize Plan and Approve final
Proposals Lead log contractor technical merit schedule merit commercial responses to negotiation conduct settlements
proposals merit contractor limits negotiations

Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

Contractor Prepare cost

Proposals and
(continued) commitment
changes and
obtain
approvals

Lead: Assigned to: _________

_________

Daily Reports Observe, Review Daily Review Daily Log and retain
Lead assemble and Reports for Reports for Daily Reports
report commercial Project
significant significance significance
information
(Prepare Daily
Reports)

Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

Contractor's Obtain reports Review and Log and retain

Force, analyze reports reports
Equipment
Utilization and
Material Usage
Reports Lead

Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

Contractor Obtain copy of Analyze, review Resolve open

Quality program and approve action items
Program Lead:

Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

Quality Inspect work in Inspect off- Verify inspec- Determine Review Determine best Monitor close-
Surveillance progress and site/shop tions comply acceptance or contractor's remedial action out of open
Lead coordinate with fabrications with contract rejection of work proposed and direct quality issues
contractor requirements remedial contractor
actions

Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

Daily Report of Obtain reports Summarize data Approve reports Retain originals
Force Account from contractor and report with contractor
Lead invoices

Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

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Contract Division of Responsibility Matrix Appendix D

DIVISION OF RESPONSIBILITY MATRIX (continued)

Backcharges Identify scope Determine if Prepare notices Obtain Establish Summarize Approve
Lead of backcharge work is of backcharge contractor unique cost daily data and backcharge
work; prepare backchargeable approvals code for reports settlements
summary backcharge
work and verify
work is properly
coded

Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

Safety and Obtain copy of Monitor Obtain name of Identify and Prepare notices Sign/approve Transmit Verify contractor
Health Lead Contractor's contractor designated evaluate to contractor violation notices notices, corrective
Safety and comp-liance contractor violations maintain log actions
Health Program with Safety and employee for and monitor
Health Program safety & health status of
violation notices

Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

Environmental Identify project Obtain copy of Prepare a Review Identify Facilitate the Monitor the Prepare a
Lead: agencies. contractor's permitting plan contractor environmental preparation and progress of Construction
environmental written or matrix permit design criteria review process permit Environmental
regulations and Environmental requirements and incorporate of the acquisition Control Plan
constraints Compliance and monitor into design Environmental (CECP)
Program (ECP), compliance basis Impact
if required and Assessment, if
obtain name of required
designated
contractor
employee for
ECP

Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

Environmental Obtain Review Determine Monitor written Develop and

(continued) Hazardous contractor whether notice to EPA or implement an
Materials and proposed use of contractor state designated environmental
Waste List hazardous needs asbestos agency 10 days training plan
from contractor mater-ials and inspection if prior to
and, as monitor work includes demolition or
appropriate, hazardous demolition or renovation as
Material Safety materials and renovation required
Data Sheets waste storage
(MSDS) and removal
Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

Monthly Provide data or Summarize and Approve and

Progress other assemble data issue monthly
Reports Lead information and information report

Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

Contract Chair meetings Prepare Obtain periodic Review most Evaluate near Coordinate Resolve Approve updated
Progress agenda, updates of recent as-built term (3 week/4 contractor's schedule contractor
Review/ meeting contractor's schedule data week) look plan with other conflicts working
Coordination minutes and working ahead contractors' schedules and
Meetings Lead monitor action schedules schedules plans and any changes to
items Bechtel's Plan working
schedules

Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution D-5
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Appendix D Contract Division of Responsibility Matrix

DIVISION OF RESPONSIBILITY MATRIX (continued)

Coordination Chair meetings Prepare Resolve
Meetings for agenda, coordination
Contractors Lead meeting conflicts
minutes, and
monitor action
items

Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

Liquidated Identify Monitor Collect/deduct

Damages Lead triggering performance liquidated
requirements damages
(e.g.
submittals,
milestones,
etc.)

Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

Claims or Monitor and Receive and log Monitor labor, Conduct fact Evaluate Evaluate Evaluate Prepare
Disputes Lead mitigate contractor equipment and finding technical merit schedule merit commercial response to
potential claim claims material usage merit contractor
situations on a daily basis.

Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

Claims or Authorize Plan and Prepare cost Approve final Prepare Issue Contract
Disputes negotiation and conduct and settlement Contract Change Order
(continued) set limits negotiation commitment Change Order or Amendment
changes and or Amendment and obtain
obtain approvals (if required) signatures

Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

Final Inspection Prepare final Assemble, Coordinate and Prepare Coordinate

and acceptance status punch list perform final Contract completion of
Acceptance Lead package walk down, Closeout Contract
recommend Checklist Closeout
final acceptance Checklist

Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

Release of Lien Obtain Issue final

and Final contractor's check to
Payment Lead certificate that contractor
all
subcontractors
and suppliers
have been paid

Lead: Assigned to: _________ Assigned to: _________

_________

Warranty Prepare Notify contractor Monitor timely Evaluate Monitor Inspect/accept

Claims Lead warranty claim response proposed completion of remedial action
remedial action remedial action
and direct best
solution

Lead: Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________ Assigned to: _________
_________

D-6 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
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Appendix E
PCWorks Project Cost Module Reports (PDF)
Introduction
This appendix includes examples of PCWorks Project Cost Module reports. The contents
represents a standard set of reports adopted by the Houston Office (Revision 0, August 5,1997).
It is to be noted that some reports may vary in use and format in other offices. Some examples of
these differences are:

• Selected reports (e.g., Labor Analysis Report [LAR], Subcontract Analysis Report [SAR]) may
not be used.

• Trend logs may be maintained in optional ways (e.g., see templates in Appendices F and G).

• Selected information may not be cited (e.g., Trend Forecast may not be included in Budget
Summary Reports).

However, the information included provides an extensive view of the reports available and their
formats, and overall many items are universal to the Bechtel project controls reporting process.
Copies are electronically available in PDF format, which may be viewed using Acrobat Reader.

1998 Bechtel Corp. Principles of Construction Controls, Vol. II, (Sub)Contract Execution E-1
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Appendix F
Trend Report Template for Lump-Sum Projects
This appendix covers the Trend Report Template for Lump-Sum Projects (using Microsoft Excel).
An electronic copy of the template is provided on the attached disc (file name: trnds_ls.xls).

Initial Setup (New Project)

1. Copy the template TRNDS_LS.XLS to the default Excel drive/(sub)directory for easy access.

2. Select the Buttons worksheet and, using the appropriate macro buttons, print a copy of the
register and summary page for future reference.
3. Initialize the Trend Register:

a. Open the template TRNDS_LS.XLS and select the REGISTER worksheet. The register
can be scrubbed of the sample data. An easy way to do this is to select the rows with
text in blue (10 through 42, 50 through 77, and 84 through 100) and then select Clear
Contents from the shortcut menu (accessed by pressing the right mouse button).

b. Excess rows in the first two major sections of the register, Resolved Trends This Report
and Unresolved Trends, may also be deleted. Select the rows to be deleted and then
select Delete from the shortcut menu. Be careful not to delete any rows with section
headings or subtotals. The template has two pages for each of these sections.

c. Go to cell address A1. Edit the text in this cell to reflect the project's title and job number.

4. Initialize the trend graph data:

a. Select the GraphData worksheet. Go to range name mth1 and edit the date formula to
reflect the year and month corresponding to the first month for which a Trend Report will
be issued. Leave the day set to the 14th.

b. Go to range name origRev. Edit the value in this cell to reflect the project revenue value
in $1,000s. Likewise, edit the values in range names origCont and origCost for the
project's original budgeted contingency and cost excluding contingency, respectively.
The original GM value is calculated from the other three values you entered.

5. Modify the trend graph Y-scale lower and upper limits:

a. The trend graphs plot the impact (i.e., the delta), of trends on project revenue, gross
margin, cost (excluding contingency), and contingency. The absolute values are not
plotted but are annotated on the graphs. This should be kept in mind when setting the Y-
scale limits.

b. Select the Buttons worksheet. Select the Revise Y-Scale Limits button. Respond to the
prompts (in $1,000s), making appropriate allowances for your project. One set of Y-scale
limits is used for all four graphs, i.e., revenue, gross margin, cost (excluding contingency),
and contingency.

1998 Bechtel Corp. Principles of Construction Controls, Vol. II, (Sub)Contract Execution F-1
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Appendix F Trend Report Template for Lump Sum Projects

6. Initialize the trend summary tabular data and schedule milestones:

a. Select the Summary worksheet. Go to cell I1. Edit the text in this cell for your project's
name. Then go to cell I2 and edit the text for your project's job number.

b. Now go to range name prevUnrRev. Enter the value zero in this cell. Next go to range
name prevUnrCost. Enter the value zero in both cells of this range also.

c. Scroll down until you come to the schedule milestones section of the summary page.
Edit the information in the columns labeled MAJOR MILESTONES, TREND BASE
SCHEDULE (project target dates), ACTUAL/FORECAST (current forecast), and NOTES
(if required) to reflect key project milestones/dates (ref. PCDP 40P 00C 408 - Trend
Program). Then run the InitDates macro by selecting Tools from the Command Line
menu, Macro, Macro Name InitDates and then Run.

7. Select the Register worksheet and enter your trends for the first report. Follow the format
depicted in the sample data, which you printed in step 2.

8. Select the Buttons worksheet and, using the appropriate macro buttons, print the summary
and register pages.

Normal Update Cycle

1. Create a backup before updating. A backup can be created in several ways. One easy way
is to copy to a filename that includes the month/year of the previous report, e.g.,
TRND0995.XLS, using File Manager.
In general it is not necessary to retain more than one month of backup. Additional months
may be retained at the project's discretion, however.
2. Select the Buttons worksheet and then the Close-Out Old/Initialize New Period button to roll
over the previous report data and initialize a new period. This macro performs the following
specific functions:

• The formulas used to establish the current month's resolved trends graph plot points and
data labels are rolled forward a month.

• The previous report's resolved trend values used in plotting the trend graphs are
converted from formulas to values and are therefore retained as history for that period.

• The previous report's milestone schedule actual/forecast dates are rolled over from the
current date column to a hidden previous date column for calculating Change This Report.

• The unresolved trend values on the Trend Summary are rolled over from the This Report
column to the Through Prior Month column.

• You are prompted to provide the new trend report number.

• You are prompted to provide the new trend report month. You should revise the month
number and, if appropriate, the year number. The month and year should reflect the
month in which the trends have been developed, and not necessarily the month in which
the report is finally issued. The day number should be left at 15.

F-2 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
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Trend Report Template for Lump Sum Projects Appendix F

3. Update the Trend Register:

a. Select the Register worksheet. Using Excel's cut-and-paste functionality, move the first
line of each trend item from the Resolved Trends - This Report section to the Previously
Resolved Trends section. The trend items that contain the trend date, trend number,
trend title, revenue (if a scope change), and cost and schedule impact should be grouped
under a month/year header similar to that shown in the sample report for May 1991.

b. The remaining trend detail in the Resolved Trends - This Report section should be
erased. This can be easily done by selecting the appropriate range of rows and then
selecting Clear Contents from the shortcut menu. The Trend Register is now ready for a
new monthly update.

c. As new trends are identified, they are entered into either the Unresolved Trends or
Resolved Trends - This Report section, as appropriate. New rows are inserted as
necessary using the Excel row insertion functionality. As unresolved trends become
resolved, they are cut and pasted into the Resolved Trends - This Report section. If an
unresolved trend is canceled, then it is simply erased using Clear Contents or Delete
(row) functionality.

d. Using basic Excel functionality, insert page breaks as/where desired.

4. Print the Trend Register

Select the Buttons worksheet and, using the appropriate macro button, print a copy of the
register. This macro temporarily hides the two columns relating to contingency so that hey do
not print. The data in these two columns are required to maintain the graphs.
5. Update the Graphs
a. Since each graph on the Summary Page displays only an 8-month period, it will become
necessary, as the project progresses, to roll the graph calendars forward by one month.
To do so, select the Buttons worksheet and the Roll Graph Forward macro button. If you
roll the graph forward too many months and decide that you need to roll it back a month,
then select the Roll Graph Back macro button on the Buttons worksheet.

b. If it becomes necessary to modify the Y-scale lower and/or upper limits on the trend
graphs, select the Revise Y-Scale Limits button on the Buttons worksheet and then
respond to the prompt (in $1,000s) as appropriate for your project.

6. Revise the Project Schedule Milestone Dates

Before printing the Trend Summary, you can revise the schedule milestones and any related
notes if needed. To do so, select the Summary worksheet and scroll down to the Milestones
section of the Trend Summary. Revised actual/forecast dates and notes can be entered as
necessary.

7. Print the Trend Summary

Having revised the Trend Register, trend graphs, and milestone dates, print the Trend
Summary by selecting the Print Summary button on the Buttons worksheet.

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution F-3
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Appendix F Trend Report Template for Lump Sum Projects

If subsequent iterations are required as a result of revised trends, the update cycle should be
picked up at Step 3. Never repeat Step 2 during a report period.

F-4 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
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Appendix G
Trend Report Template for Reimbursable Projects
This appendix covers the Trend Report Template for Reimbursable Projects (using Microsoft
Excel). An electronic copy of the template is provided on the attached disc (file name:
trnds_re.xls).

Initial Setup (New Project)

1. Copy the template TRNDS_RE.XLS to the default Excel drive/(sub)directory for easy access.

2. Select the Trend Report Template for Reimbursable Projects worksheet and, using the
appropriate macro buttons, print a copy of the register and summary page for future
reference.
3. Initialize the Trend Register:

a. Open the template TRNDS_RE.XLS and select the REGISTER worksheet. The register
can be scrubbed of the sample data. An easy way to do this is to select the rows with
text in blue (10 through 42, 50 through 77, and 84 through 100) and then select Clear
Contents from the shortcut menu (accessed by pressing the right mouse button).

b. Excess rows in the first two major sections of the register, Resolved Trends This Report
and Unresolved Trends, may also be deleted. Select the rows to be deleted and then
select Delete from the shortcut menu. Be careful not to delete any rows with section
headings or subtotals.

c. Go to cell address A1. Edit the text in this cell to reflect the project's title and job number.

4. Initialize the trend graph data:

a. Select the GraphData worksheet. Go to range name mth1 and edit the date formula to
reflect the year and month corresponding to the first month for which a Trend Report will
be issued. Leave the day set to the 14th.

b. Go to range name TrendBase. Edit the value in this cell to reflect the project’s trend base
value in $1,000s.

5. Modify the trend graph Y-scale lower and upper limits:

Select the Buttons worksheet. Select the Revise Y-Scale Limits button. Respond to the
prompts (in $1,000s), making appropriate allowances for your project. The Y-scale limits may
be adjusted this way at any time.
6. Initialize the trend summary tabular data and schedule milestones:

a. Select the Summary worksheet. Go to cell I1. Edit the text in this cell for the your
project's name. Then go to cell I2 and edit the text for your project's job number.

b. Now go to range name prevUnrRev. Enter the value zero in both cells of this range.

1998 Bechtel Corp. Principles of Construction Controls, Vol. II, (Sub)Contract Execution G-1
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Appendix G Trend Report Template for Reimbursable Projects

c. Scroll down until you come to the schedule milestones section of the summary page.
Edit the information in the columns labeled MAJOR MILESTONES, TREND BASE
SCHEDULE (project target dates), ACTUAL/FORECAST (current forecast), and NOTES
(if required) to reflect key project milestones/dates (reference PCDP 40P 00C 408 - Trend
Program). Then run the InitDates macro by selecting Tools from the Command Line
menu, Macro, Macro Name InitDates and then Run.

7. Select the Register worksheet and enter your trends for the first report. Follow the format
depicted in the sample data, which you printed in step 2.

8. Select the Trend Report Template for Reimbursable Projects worksheet and, using the
appropriate macro buttons, print the summary and register pages.

Normal Update Cycle

1. Create a backup before updating. A backup can be created in several ways. One easy way
is to copy/paste to a filename that includes the month/year of the previous report
(e.g., TRND0995.XLS) using Windows Explorer or File Manager.

In general it is not necessary to retain more than one month of backup. Additional months
may be retained at the project's discretion, however.
2. Select the Trend Report Template for Reimbursable Projects worksheet and then the
Close-Out Old/Initialize New Period button to roll over the previous report data and initialize a
new period. This macro performs the following specific functions:

• The formulas used to establish the current month's graph plot points are rolled forward a
month.

• The previous report's resolved trend values used in plotting the trend graphs are
converted from formulas to values and are therefore retained as history for that period.

• The previous report's milestone schedule actual/forecast dates are rolled over from the
current date column to a hidden previous date column for calculating Change This Report.

• The unresolved trend values on the Trend Summary are rolled over from the This Report
column to the Through Prior Month column.

• You are prompted to provide the new trend report number.

• You are prompted to provide the new trend report month. You should revise the month
number and, if appropriate, the year number. The month and year should reflect the
month in which the trends have been developed, and not necessarily the month in which
the report is finally issued. The day number should be left at 15.
3. Update the Trend Register:

a. Select the Register worksheet. Using Excel's cut-and-paste functionality, move the first
line of each trend item from the Resolved Trends - This Report section to the Previously
Resolved Trends section. The trend items that contain the trend date, trend number,
trend title, and cost and schedule impact should be grouped under a month/year header
similar to that shown in the sample report for May 1991.

G-2 Principles of Construction Controls, Vol. II, (Sub)Contract Execution 1998 Edition
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Trend Report Template for Reimbursable Projects Appendix G

b. The remaining trend detail in the Resolved Trends - This Report section should be
erased. This can be easily done by selecting the appropriate range of rows and then
selecting Clear Contents from the shortcut menu. The Trend Register is now ready for a
new monthly update.

c. As new trends are identified, they are entered into either the Unresolved Trends or
Resolved Trends - This Report section, as appropriate. New rows are inserted as
necessary using the Excel row insertion function. As unresolved trends become
resolved, they are cut and pasted into the Resolved Trends - This Report section. If an
unresolved trend is canceled, then it is simply erased using Clear Contents or Delete
(row) function.

d. Using basic Excel functionality, insert page breaks as/where desired.

4. Print the Trend Register

Select the Trend Report Template for Reimbursable Projects worksheet and, using the
appropriate macro button, print a copy of the register.
5. Update the Graphs
a. Since the graph on the Summary Page displays only an 8-month period, it will become
necessary, as the project progresses, to roll the graph calendar forward by one month.
To do so, select the Trend Report Template for Reimbursable Projects worksheet and the
Roll Graph Forward macro button. If you roll the graph forward too many months and
decide that you need to roll it back a month, then select the Roll Graph Back macro
button on the Trend Report Template for Reimbursable Projects worksheet.

b. If it becomes necessary to modify the Y-scale lower and/or upper limits on the trend
graph, select the Revise Y-Scale Limits button on the Trend Report Template for
Reimbursable Projects worksheet and then respond to the prompt (in $1,000s) as
appropriate for your project.

6. Revise the Project Schedule Milestone Dates

Before printing the Trend Summary, you can revise the schedule milestones and any related
notes if needed. To do so, select the Summary worksheet and scroll down to the milestones
section of the Trend Summary. Revised actual/forecast dates and notes can be entered as
necessary.

7. Print the Trend Summary

Having revised the Trend Register, trend graph, and milestone dates, print the Trend
Summary by selecting the Print Summary button on the Trend Report Template for
Reimbursable Projects worksheet.
If subsequent iterations are required as a result of revised trends, the update cycle should be
picked up at Step 3. Never repeat Step 2 during a report period.

1998 Edition Principles of Construction Controls, Vol. II, (Sub)Contract Execution G-3
55210\Construction Manua\Vol-2
Appendix H
Bulk Commodity Curve Templates

Introduction
This appendix includes a set of Bulk Commodity Curves using Microsoft Excel.

The templates are provided electronically on the attached disc (file name: qty_cuv.xls).

DISC TO BE INCLUDED IN FINAL VERSION

1998 Bechtel Corp. Principles of Construction Controls, Vol. II, (Sub)Contract Execution H-1
55210\Construction Manua\Vol-2
Appendix I
Progress, Performance, and Resource Curves/Reports
Introduction
This appendix includes an electronic set of progress, performance, and resource curves and
related field reporting spreadsheets using Microsoft Excel.

The Excel worksheets, including graphical presentations, are provided electronically on the
attached disc (file name: rppcuv1.xls).

DISC TO BE INCLUDED IN FINAL VERSION

1998 Bechtel Corp. Principles of Construction Controls, Vol. II, (Sub)Contract Execution I-1
55210\Construction Manua\Vol-2