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Engineering vs. Construction progress

6 replies [Last post]
Tue, 2009-10-13 02:45
John Drokovic
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What is the difference when you are doing/updating progress for engineering and construction, respectively? I mean, your progress is based on what for each one? (assuming you are working for the company that is doing the design and construction management of a project)
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Wed, 2009-10-14 12:23
#1
John Drokovic
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Thanks for the answers. I have started a career in planning and scheduling so I will continue posting very basic questions. I appreciate your patience with this junior guy.
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Wed, 2009-10-14 04:27
#2
Gary Whitehead
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Progress on Procurement activities is typically calculated in a similar way to Design activities, except the Procurement schedule is used instead of the DDR, and the weighting is usually by estimated price of the procured item rather than manhours.

There are some disputes around this, though. I have seen many different interpretations of when a contractor should be able to claim a large chunk of prgress relating to a single big & expensive piece of kit -Can they claim most of the money when the PO is let? when it has been manufactured? delivered to site? Installed? Commissioned? The issue arises because the client sees no material progress until the item is at least on site, but the contractor has to pay the manufacturer much earlier than this, and doesn’t want a negative cashflow.
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Wed, 2009-10-14 01:23
#3
Anoon Iimos
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"so how do you do your progress update on this portion?"

I supposed your question is discussed in each and every coordination meeting of all projects anywhere or in any place where and when construction or projects ever exist.

In this case everything is different, but for me, the best technique is only common sense.

like for example: never buy anything (or place P.O.)if your information is only based from "Basic Engineering" when your responsibility (as per contract) is to develop "Detailed Design and to do Procurement".
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Tue, 2009-10-13 13:53
#4
John Drokovic
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Thanks for the answers. Yes, I think design and construction management companies execute large scale projects by work packages. Also, I think forgot to mention the procurement portion; so how do you do your progress update on this portion?
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Tue, 2009-10-13 03:12
#5
Anoon Iimos
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"assuming you are working for the company that is doing the design and construction management of a project"

let me try an answer,

1. The difference when doing it respectively? - For me, it is 100% whether you do it by packages or as a whole.

2. By the way, you did not mention Procurement - If you are doing Engineering by packages, consequently, the same packages will go thru your Procurement.

3. You are asking about the difference between Engineering and Construction, right?

4. I’m taking back my answer in # 1. I really mean 200% is the difference!

So never do Construction when you have approximated that your Engineering is only 10%.


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Tue, 2009-10-13 03:05
#6
Gary Whitehead
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For Engineering, your progress is typicaly based on your DDR (Design Documents Register), or equivalent. Each document is given a weighting (typically based on manhour estimates to deliver), and assigned a number of pre-agreed milestones tied to a given %age complete. e.g. Document started might be 10%, Issued for internal rweview might be 50%, etc.

For construction, each construction activity is typically given a weighting (based on manpower or cost), and %age complete is physicaly measured / estimated on site rather than using the milestone approach.

Cheers,

G
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