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Posts Tagged ‘PM Development’

Project Procurement II

June 7th, 2009 No comments

This is a continuation of the procurement article from March. Part of the project process is developing TIC estimates. In the early stages you usually use budgetary quotes. These you will get from suppliers and condition them based on your experience. Depending on your company policy, you may get the budgetary quotes or procurement can get them. They are based on  preliminary information known at the time. In the later stages you will have to get firm quotes which is a procurement function. Typically the owner will procure the engineered equipment and the contractors will procure the  bulks.

The procurement cycle starts when you prepare the Request For Proposal (RFP) and the procurement group issues it to suppliers. Once the RFP is issued, all communication with the supplier should then go through procurement. The procurement groups function is to ensure the Purchase Order (PO) covers all the items asked for and tracks any changes. If o t h e r s a r e  h a v i n g  i n d e p e n d e n t conversations with the suppliers and changing items and quantities, you will have no control over the cost. In fact your procurement agent should advise the……………… click here

Project Procurement I

June 7th, 2009 No comments

 

 

In my early days I learned that if you want to get a project done on time, you have to get the equipment / material to the contractor. Now, I’m sure most have you have been involved in a project that has gone off track because the equipment was late, holding up the contractor. Some of the causes are lack of planning for purchase of long lead items, the procurement cycle, expediting, drawing approvals and in some cases lack of vendor response. In this article, I want to talk about some of these procurement issues to help you improve on your project execution and get the material there on time.

There always seems to be confusion as to whether we are working with a Request For Proposal(RFP) or Request For Quotation (RFQ)……………….. click here


Hidden Contracts You Didn’t Know About

February 15th, 2009 No comments

We were in the process of buying the electrical equipment for a new plant when the electrical engineer came in with the bad news. They had been told by the electric utility the project would have to buy the transformer from the utility company. We could understand hooking up the transformer, but to actually have to buy the transformer was crazy, which we told him in no
uncertain terms! The transformer we needed cost $750,000 from our referred supplier, while the utility wanted $1,250,000 for basically the same thing. They put a few bells and whistles on it but the cheaper version would work just as well. Was there any way around this? Apparently not. It was the law in this jurisdiction. So just like that, POW, we were, $500,000 behind in the budget. Unfortunately this senario is all too familiar and is just one example of what I call hidden contracts. These are contracts your company has with out side suppliers / agencies / government bodies that you are not usually aware of until the bill comes in.
Utilities are just one of those hidden contracts.

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Vendor Information Requirements

January 15th, 2009 No comments

This article is the last in a series that ran in October, November, and December on a section in your bid documents t i t led ‘Performance Required by the Successful Bidder’. This is the vendor data that you require with their proposal and data required later in the project should they be the successful bidder. The document I want to discuss in this article is equally important and is called the Vendor Information Requirements Form. This form is used to find out more about the vendor and how he will perform on your project. This form can play a role in selecting the vendor.

Vendor Furnished Data
1. Drawings & Manuals
For drawings and manuals you need to know where the engineering and design office is located. This is important in case you have to travel there. You usually want an office that is readily accessibile or maybe use local people for the work. If it is overseas (off shore) this can have an affect on turnaround t ime for answering questions.
Depending on your circumstances, this could affect vendor selection. One client we work for requires us to inform them whenever we have someone who is not located in our office working on their projects.

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Vendor Data Requirements (3)

December 15th, 2008 No comments

This article is a continuation of the article I started in October, a discussion on Vendor Data Requirements and their importance to your project. This is the vendor data that you require with their proposal and data required  later in the project should they be the successful bidder. In review, this document is typically used when purchasing equipment and outlines to the vendor exactly what information you expect him to include with his quote. As I started in last months article, this is a continuation of the section on Performance Required by the Successful Bidder’ which outlines the conditions the successful bidder will be required to perform to. In this article I will complete the Performance Required by the Successful Bidder’ section.

Mechanical
If you don’t have a mechanical fabrication and installation standard / guideline then you should make up one to protect yourself. It covers items such as any base plates should be of rigid construction and have grout and vent holes to ensure the plate can be properly grouted.
One issue that happened to me …..

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OUR MISSION:

December 10th, 2008 No comments

To provide engineers and non-technical people with relevant, practical information, news, and tools to help them manage their projects efficiently and effectively. To help develop their project knowledge base with a basic understanding of the main facets of project engineering in North America.

Who is this site for?

It is for anyone involved in managing projects and wants to have better control of those projects (anyone who wants to be the master of their own destiny), those experienced at project management or just starting out in project engineering. Industry or consulting. Technical or nontechnical.

Are you an engineer or technician who has no special training, yet is given the task of overseeing a project. Nowhere to go for good practical project advice and help that you now need? No Coach? No Mentor? Then you have found the right place.


Vendor Data Requirements (cont’d)

November 15th, 2008 No comments

In October I started a discussion on Vendor Data Requirements and their
importance to your project. This is the vendor data that you require with their proposal and later in the project should they be the successful bidder. In review, this document is used when purchasing equipment and outlines to the vendor exactly what information you expect him to include with his quote. In this article I will cover additional information you should be asking for and why you need the information. Following are some  additional data items typically required from a vendor ;
6. Transport
As you have to unload project equipment you need to know how the equipment will be delivered to your site and the number of pieces. If it is coming by normal non-restricted transportation methods you can organize the proper equipment and set a time for the unloading. If the equipment is too large and has to be transported by restricted methods you want to know how it is being shipped as you will have to handle it.

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Vendor Data Requirements

October 15th, 2008 Comments off

Last month we talked about the Standard Component List and it’s importance to your project in helping make sure you get what you want and what you need. Another important document, that goes along with the Standard Component List, is the Vendor Data Requirements. This document is typically used when This document comes in a couple of formats, one as a printed document describing in detail what information you are looking for and the other as an itemized list.

Either one works as long as you outline to the vendor what information you require. The printed document is a standard one and covers every possible piece of equipement. The itemized lists can be tailored to suit what you are purchasing. As an
example, you can develop a list for rotating equipment and one for pressure vessels and use them accordingly.

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Get What You Specify, Not What you Want

September 15th, 2008 Comments off

As a consulting engineer we recently did a project where the specification
called out asbestos gaskets. Knowing that asbestos has not been used for
years in North America and the fact that the project engineer on the last
project did not want to use them, we assumed that this project engineer
would do the same. We spent some time researching what was used in the past, made up a specification deviation and sent it to the owner. To our surprise he refused the specification deviation as he liked asbestos gaskets and that was what he wanted to use.

This is not an isolated incident and is a problem that all people dealing with
owners have, is what does the owner want? As a service provider, time and
money are wasted when there is confusion and indecision on the owners’
side. People do not know what to do, so nothing gets done. You don’t know
which direction to go, so you spin your wheels. This is not a pleasant position to be in, especially when you figure out one engineers preferences and the next one has different preferences.

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Honest, Fair, Ethics

August 15th, 2008 Comments off

As I mentioned in a previous article, you have to treat every project as if it
will end up in court. If you are unfortunate enough to be there, then you want to be on the winning side. You need a reputation that can not be called into question. In your project management career you will come across all kinds of issues and it is important that you be honest, fair, and ethical in all your dealings with your team members, vendors, contractors and any other
people you come into contact with. To be a leader, you have to be honest
with everyone and in everything you do. You have to lead by example. In all
projects, mistakes happen, things change, in fact change is inevitable. If it
is your fault then say so and get on with the work. Do not blame other team
members. You should stand up for your team members. If you do not stand up for your team members, motivation will be affected, decisions will be harder to make, and they will not want to work with you again. You have to be able to respond positively to acceptable criticism and personal attacks. At all times you have to be reliable, trustworthy and discrete. If you say you
will do something, then do it, as deeds speak louder than words. We all know
someone who is all talk and no action. These people we don’t like to work with.

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