EFFICIENT COST MANAGEMENT FOR INDUSTRIAL PROJECT

Every project has minimum two basic requirement. The project should finish in time limit within approved Budget with best output. Success of project mainly depends on these parameters and they are interconnected and dependent on each other. If the tender process is not well defined and as per project’s requirement or Contractor chosen is not appropriate, ultimately the project and client will suffer in terms of timeline and cost, which leads the project to failure.

With 50+ years of experience in Institutional, Commercial, Cricket Stadium, large scale Industrial projects and specialized structures we have developed a well-defined strategy and stages from starting of project to completion which can help client to find out best financial engineering solution and best output with minimum required time. As VMS understands that Cost and Time management is essence for every project.

Procurement and Cost management services department helps to do time management with cost effective solutions as per requirement of project and client, which includes following process.

Selection of type of structure like RCC structure/ PEB structure/PEB+RCC structure etc., based on various factors like oil stabilization, budget, availability of resources, use of building etc.

The process includes different types of estimates at different stages of work like Block Estimate, Budgetary Estimate, Preliminary Estimate/Tender Estimate and Detailed Estimate etc. as per requirement.

We have fine-tuned pre-qualification criteria based on our experience to appoint most suitable contractor for particular project. The bidder has to pass through a financial as well as technical evaluation process for each and every tender package.

To ensure quality work throughout construction process VMS has developed tender process which includes following documents, which contractor has to follow.

  • NIT-Notice Inviting Tender: NIT provides basic information regarding tender.
  • General Conditions of Contract: Based on different type of building and infrastructure tendering experiences our experts has derived a set of general conditions which are very useful for client in the process of execution.
  • Scope of works: This document includes scope of contractor for the particular work/project to eliminate any further dispute or misunderstanding regarding execution.
  • Bill of Quantity: It includes detailed measurement sheet and rates.
  • Detailed Specifications: This document is a very important part of tender, which gives all kind of material specification which are going to be used in particular tender. It also includes detailing about workmanship, execution methodology, standards and codes which are mandatory for contractor to follow, Unit of item measurement, etc.
  • Drawings: Set of drawing is part of tender.

Bidder has to read all tender documents and understand the requirement of project and client before take part in bidding process.

Once all bid received from bidder, crucial bid checking has been done by our experts, which includes Commercial as well as Technical Evaluation before selecting the contractor for each tender package.

In commercial evaluation we go through the financial background of contractor and evaluate the bidder on the basis of all documents submitted by bidder.

Technical evaluation is based on various factors like type of project, amount of project, completed previous project in given timeline, etc.

Above all this, VMS has also a team of expert to check and certify the bills of contractor after a proper method of checking and monitoring of the work. At every stage of work our team is always in touch with client to give assistance regarding project.

                                                                                                                                                                                                                                                                                                                                                                                                           Neha Makwana                                                                                                                                                                        Sr. Quantity Surveyor                                                                                                                                                                                                                                                                                                                                                         

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