Guideline for Project Management

Guideline for Project Management

Handing over process to Operations:

Concerned Marketing Personnel shall hand over the project to the project manager along with documents of the Contract Transfer. Marketing Personnel shall ensure all back up documents including vendor offers are handed over at the time of hand over of project to PM team. Both shall also discuss and agree on points of contract transfer check-list. Both shall sign the contract transfer check-list and one copy of the signed check-list shall be kept by each of them. This process should be completed with in 7 days of award of contract / project / PO. The hand over process shall be coordinated by Marketing person responsible & ensure that hand over document is signed by both Marketing & Project manager.

The following documents to be prepared at the time of project transfer / hand over:

          I.  Contract Transfer Check list

        II.  Supporting quotations received at the time of bidding

       III.  PO / Contract / Agreements from customer

      IV.  Approved Risk Analysis Sheet

        V.  All pre bid documentation for reference purpose to Operation team.

Guidelines for Project Management:

               Project Manager shall go through the documents handed over by Marketing Personnel and check the estimate based on back-up offers from suppliers and his knowledge of costs and shall then revise the current estimate by revising the Revenue Plan

               Project Manager shall do project planning and form a project team taking resources from concerned functional teams and complete Project Organization Chart

               The Project Manager shall then conduct an internal Kick off meeting in presence of members of the Project Team for general understanding of customer requirement, check-list review, risk review, review of agreed project schedule, review of entire scope of the project including site activities. As preparation for the meeting, the Project Manager shall prepare following and freeze them after discussions during the meeting:

- Project Schedule in MS Project involving separate activities for procurement progress and erection & commissioning;

- Calculate Budget for various items to be procured and their target costs;

- Prepare Forecast for Cost, Revenue, Collection, Cash flow

- Project Progress Report format, paying particular attention to Customer’s project information needs  

- Agenda for kick-off meeting with customer;

- Any customer requirement and preparation for kick-off meeting with customer (external kick-off meeting).

A record of this internal kick-off meeting shall kept by the Project Manager.

               Project manager to coordinate, review & arrange for Technical Specifications of the equipment to be procured for the project from the Engineering team.  The final specifications to be handed over to Procurement. Procurement shall then discuss with various suppliers, place orders on them and ensure timely dispatch of material to customer’s site. Procurement to involve all concerned during the Technical discussions with respective vendors & shall ensure that Final Technical specifications are duly accepted & agreed by vendor in all respects without any deviations.  If deviations any to be taken, the consent from Project Manager & Technical Manager is to be obtained by Procurement before placement of PO.

   As and when the material and equipment are dispatched to site, Project manager shall arrange to get acknowledgement from Site for receipt of material at site (Site MRA) along with Supplier’s Invoice, Delivery Challan, and Consignee copy of LR receipt or Waybill.

   Project manager to coordinate GRN of goods supplied & delivered to site and subsequent invoicing procedure for revenue recognition with all necessary backup documentation. Within 3 days after invoicing to the customer they need to call and confirm whether all documents are in- line of there requirement.

   Project Manager shall then arrange to submit Invoice (sometimes called Running Bill) to Customer claiming payment from the Customer 2 days of Revenue recognition in SAP. After submitting the invoicing to the customer they need to call and confirm whether all documents are in- line of there requirement (Within 2 days of submitting the invoice).

        In case Customer accepts specific number of bills in a month or accepts bills only on specified dates in a month or makes payment on mile-stones, bills shall be submitted to customer accordingly. However impact of such delays in submission of Bills to Customer shall be considered in calculating Operating Cash Flow of the project and all efforts shall be made by the Project Manager and Supply Manager to have better than back-to-back payment terms with Suppliers/ Sub-Contractors so that Operational Cash Flow is always maintained positive.

   Project Manager shall make all efforts to collect payment with the help of commercial manager  / finance manager from Customer as per contractual payment terms and any delay in getting payment shall be taken-up with Customer and also informs as a open issue in the project progress reports sent to Customer.

Concerned Project Manager, team members need to review the til project closure to:

- review project schedule, revenue plan, receivable liquidation, project progress reports sent to customer, closure of punch-list, site closure;

- review costs booked, costs committed, cost to come (balance costs) in ;

- review of revenue done, revenue to be done, amendments to come from customer;

-       review current & earlier estimates  and take actions for any margin differences and cost over-runs;

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   Project manager shall review the cost of every project on monthly basis after release of Purchase orders to sub vendors, a list of project cost items shall be maintained for every project for the purpose of revenue back up.

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  After completion of supplies and significant completion of site work, Project Manager shall initiate site closure as per site closing procedure.

   Project manager with the help of commercial assistant shall keep record of all Invoices submitted to customer & maintain a list of invoices

After reconciliation of account (payments and material) with Customer, Project Manager shall raise final bill on the Customer and coordinate to collect the final payment. In case of persisting disputes, the Project Manager shall submit final bill to Customer with out waiting for reconciliation of account with customer.

   In case payment from Customer remains outstanding for more than six months after site closure, the Project Manager shall initiate legal actions for recovery of payment due.

  Finally the project Manager shall prepare a project closing report and submit it to Division Manager. The job closing report and the Job Status Report at the time of job closure shall be jointly signed by the Project manager and Finance, copies of the same shall be retained by both of them.

Guidelines for Project Reviews:

All projects have to be reviewed on 15days basis.  The project will be Review on alternative Monday.

The participants for above review meeting should be Division Manager, Division Controller, Project Coordinator and concerned project manager.

Project Manager is responsible for updating the project review template & current estimate, well within the time and made available in the network drive.  He is also responsible for presenting the information during the review

If any of review committee member not present on schedule review date, the meeting should continue with available members & members to depute their deputy for the meeting.