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Master Programme Vs Target Programme

4 replies [Last post]
Fri, 2009-08-07 22:50
KS Wong
User offline. Last seen 13 years 34 weeks ago. Offline
Joined: 29 Sep 2007
Posts: 17
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Dear Planners,

In order to avoid being criticized for slow progress in progress meetings, main contractor would submit a Master Programme with late scheduled dates or excessive contingency time at the front of the project.

For controlling their subcontractors, a target programme with more realistic / aggressive dates will be adopted for their internal management.

I would like to seek your comments on the above arrangement. Is this a common practice to your project? Would it cause any other management problems? Thanks.

Regards,
KS
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Replies

Sat, 2009-08-08 06:57
#1
Vladimir Liberzon
User offline. Last seen 1 week 4 days ago. Offline
Joined: 5 Feb 2001
Posts: 2753
Groups: Accreditation Editors, Board of Advisors, Civil Engineering, GPCCAR Editors, Petro-Chem / Oil & Gas, Regional Representatives, Spider Project Team, TURNAROUND & SHUTDOWN (T/A & S/D)
Dear Scarlett,
the schedule shall be created taking into account the cost of the idle time of the subcontractors. If it is possible then the idle time shall be minimized. Total cost that includes indirect costs shall be used as the schedule criterion. If to do the work earlier (for an example it may be necessary for creating the workfront for other works) is profitable then contractors idle time shall be paid. If it is not necessary then this work shall be delayed until the subcontractor has sufficient workfront to work with the minimum delays.

Best Regards,
Vladimir
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Sat, 2009-08-08 05:37
#2
Scarllet Pimpernel
User offline. Last seen 13 years 33 weeks ago. Offline
Joined: 19 Jul 2009
Posts: 152
Groups: GPC Qatar, Pinoy Planning Planet Community
Dear Vladimir,

Previously, I’m naive

Now I know the reality. It is smart thing to do.

Question? What if the sub contractor will claim cost incurred because of too much optimistic schedule.

For example: In doing diaphragm wall, we schedule the specialist sub-contractor to start work due to an opening in a workfront earlier than the specialist sub-contractor can have a sustainable working duration. As a consequence, the specialist diaphragm sub-contractor incure idle time in his equipment because there are no more workfronts available for his equipment to do work.

Who will pay the cost of idle time? The planner or the specialist sub-contractor?

Thank you,
Scarlett
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Sat, 2009-08-08 03:58
#3
Vladimir Liberzon
User offline. Last seen 1 week 4 days ago. Offline
Joined: 5 Feb 2001
Posts: 2753
Groups: Accreditation Editors, Board of Advisors, Civil Engineering, GPCCAR Editors, Petro-Chem / Oil & Gas, Regional Representatives, Spider Project Team, TURNAROUND & SHUTDOWN (T/A & S/D)
General Contractor usually has three programs - optimistic (tight) that is used for subcontracting and managing its own workforce, probable - that includes contingency reserves and sets internal targets, and pessimistic with larger reserves that is used as contractual schedule.
There are at least two project budgets - one for contractual costs, another for expected expenses. And again these budgets may differ in optimistic, probable and pessimistic schedules.
Managing construction you actually manage contingency reserves trying to have something left at the project finish.
Regards,
Vladimir
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Sat, 2009-08-08 01:05
#4
Samer Zawaydeh
User offline. Last seen 5 years 51 weeks ago. Offline
Joined: 3 Aug 2008
Posts: 1664
Groups: Civil Engineering, Regional Representatives
Dear KS,

Please keep in mind that you Contractual Program of Works is the one that you submit to the Engineer. If he comments on it and you proceed with making the comments, then you will settle all your differences based on this program.

Things get tricky when problems and delays arise. If you have a strong management team, you might be able to contract both schedule. Otherwise, if things get out of Control and your late, you can only claim based on the Contractual Program.

With kind regards,

Samer
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