Cost Control Budget Procedure

Code du document : DOP3000-PRC-007-0-03

B&R-C

Date :2 August 2003

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Mots cls: Cost Control, Budget

Cost Control Budget

Procedure
Evolution du document :
Date
03.11.03

Indice
0

Objet de la modification
Cration

Rdige par : F.Holloway

Vrifie par: N.Benhalla
Approuve par: T.Mokrane

NB/ La procdure signe est disponible au niveau de la Direction Qualit.

Le prsent document est la proprit exclusive de B&R-C.

Cost Control Budget Procedure

B&R-C
1.

Code du document : DOP3000-PRC-007-0-03

Date :2 August 2003

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PURPOSE

The purpose of this procedure is to produce an accurate budget for the project and reconcile the
manpower plans with the project estimate.
The process starts with a contract award and the receipt of the "as-bid" estimate.
The process finishes with sign off by the Project Manager and the reconciliation of the budget
with the as-bid" sum and any authorised adjustments.
2.

APPLICABILTY

These processes shall be incorporated on all BRC Projects.

3.

DEFINITIONS

EPC - Engineer Procure Construct

CM - Construction Management
CBS - Cost Breakdown Structure
PVN - Project Variation Notice
WBS - Work Breakdown Structure

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Code du document : DOP3000-PRC-007-0-03

B&R-C

Date :2 August 2003

Legend

HSE HSE Alert

X X

Meeting (plus attendees)

RISK Business Risk

Process Measure

Local/Project Variation

END End

Activity Steps
1.0

Client

Additional Note

Decision

Procurement

Involved in Activity

Planning

Start

Construction Management

ST

Cost Control

Accountable for Activity

Estimating

Engineering Management

Responsible and
Accountable for Activity

Project Management

Responsible
for Activity

ST

DEVELOP CONTROL BUDGET AND

COST AND REVENUE PLANS

1.1 Receive the As-Bid project estimate

from Estimating, review and modify for
conversion to control budget.
1.2
1.2

Analyse and re-sort in accordance with

the approved WBS

WORK BREAKDOWN
STRUCTURE
DOP3000-PRC-005-0-03

1.3 Identify potential changes since

estimate preparation and raise PVN if
necessary

CHANGE CONTROL
DOP3000-PRC-013-0-03

1.4 Enter Cost and Revenue Budgets in

Cost Control System in accordance with
CBS. Phase Cost and Revenue for
each Workpack manually or import
dates from Planning System
1.5
1.5

Prepare manpower plans showing all

project posts by grade, post number,
planned start and finish dates.
Reconcile the projection of the
manpower plans with the control
estimate.

Go to
1.2

1.6 Approve Cost Plans

No
Yes

2.0 PROJECT BASELINE REVIEW

2.1 Issue the project cost baseline with
back-up and qualifications to the project
team
2.2 Give presentation to the project team as
part of the project control / forecasting /
variance process review. Emphasise
the need for control and show how it will
be implemented

END

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Cost Control Budget Procedure

B&R-C

Code du document : DOP3000-PRC-007-0-03

Date :2 August 2003

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NOTES
Note 1.2

This estimate will have been prepared in general accordance with the standard
CBS and the planning WBS procedure but is likely to be balanced towards a
procurement view - a reflection of input from suppliers and subcontractors. The
estimate figures now need to be resorted and analysed, if necessary, to reflect the
actual method of control that will be adopted on the project
For instance it may be decided to control a project on a location basis rather than
the sub-contractor by sub-contractor basis likely for the estimate.

Note 1.5

The manpower plans are prepared for project management, engineering,

procurement, construction, commissioning and associated personnel included in
the overall project estimate. Reconciliations will identify deviations between the
projected plans and what is included in the control estimate. These must be
discussed with the relevant project discipline leads and resolved. Results may
affect the project forecast and may involve the raising of a PVN. (See DOP3000PRC-013-0-03).

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Cost Control Budget Procedure

B&R-C

Code du document : DOP3000-PRC-007-0-03

Date :2 August 2003

Indice de revision: 0
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Appendix A - Typical CBS Structure Infrastructure Projects

DOP3000-PRC-007-1-03

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Cost Control Budget Procedure

B&R-C

Code du document : DOP3000-PRC-007-0-03

Date :2 August 2003

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Appendix B - Typical CBS Structure Hydrocarbon Projects

DOP3000-PRC-007-2-03

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