What specific contents are included in the equipment and material management of general contracting projects? The following Zhongda Consulting Bidding Teacher will answer your questions for your reference.
1. The role and status of equipment and material management in EPC general contracting projects
Equipment and materials are the material basis for the construction of EPC general contracting projects. They directly affect the construction cycle and quality of the project. and fees. In EPC projects, equipment and material management is one of the important management contents of the general contractor's project management.
EPC general contracting project equipment and material management includes the procurement of equipment and materials, inspection of manufacturing plants, unpacking inspection and inspection of goods arriving at the site, on-site warehousing and maintenance, tracking of equipment and material construction, and reporting of completed installation of equipment and materials. inspection, to the return management of remaining materials and waste materials.
From the perspective of cost, equipment and materials account for nearly 80% of the total contracting cost; from the perspective of project quality, equipment and materials are the core of the success or failure of a construction project; excess quality will lead to an increase in costs, and insufficient quality will It will lead to the failure of the construction project; from a progress perspective, any untimely arrival of equipment and materials will affect the progress of the construction project. A gasket may also cause the construction project not to be put into operation on time; equipment and material management is not only always Along with and longer than the life of a construction project, problems such as the disposal of leftover materials after the completion of a construction project continue. Therefore, we must raise awareness of the importance of equipment and material management, strengthen leadership in equipment and material management, conscientiously implement equipment and material management requirements and specifications, and effectively track the procurement, installation, and inspection of equipment and materials. It will have a positive impact on EPC general contracting projects. The smooth implementation plays a decisive role and should also occupy an important position in general contracting project management.
2. Equipment and materials management of EPC general contracting projects
In EPC general contracting projects, equipment and materials management starts from the design and issuance of purchase requisitions to the end of device acceptance. It accompanies the project The entire life cycle is a dynamic control process.
The basic process of equipment and material management is: purchase requisition documents - selection of qualified manufacturers - signing of contracts - expediting delivery - intermediate inspection - factory inspection - transportation - arrival on-site inspection - warehousing - out of warehouse - return to warehouse Wait for work order. The management of equipment and materials has also become complicated because it also involves project management departments such as design, procurement, construction and control of project management, which requires energy and meticulous work to ensure the realization of management goals.
Each company has different management methods for equipment and material management and the organization of responsible agencies. This description assigns the responsible department for material management to the purchasing department, which is conducive to systematic management from purchase to delivery. Management; warehouse management is also responsible for the purchasing department, mainly for the management of goods after they arrive at the site. Although our company's projects, in response to actual problems, in order to effectively control the inventory and warehouse storage of equipment, materials and warehouse storage for general contracting projects, we have strengthened the management of purchase requisition documents, that is, adopting standardized system management and based on specific project resources and The project scope prepares regulations suitable for the characteristics of project management. The specific work content is:
1. The interface relationship between various project departments:
After the EPC general contracting contract is signed, the procurement will be immediately carried out in the project With the participation of the control department, we coordinate with the design and construction planning procurement scope, coordinate to determine the submission time of requisition documents and confirm the earliest delivery time of the goods, clarify the interface conditions with design and construction, and plan a measurable interface evaluation system.
In the early stages of the project, the procurement department closely cooperates with the project design department to purchase equipment and bulk materials in a planned manner and deliver them to the site in a timely manner to ensure the smooth implementation of the project and urge the design department to follow the procurement schedule requirements Complete the application, approval and issuance of purchase requisitions. During the project construction stage, the procurement department closely cooperates with the project construction department to complete the issuance and management of goods, and actively communicates with the design department to complete replenishment in a timely manner, strengthens dynamic tracking management and control of inventory and procurement, and ensures that the inventory is within a reasonable level. . Neither can the project be delayed due to untimely supply of equipment and bulk materials, nor can it be blindly purchased, causing backlogs, bulging inventories, and occupying more funds.
1.1. The design department is responsible for preparing the purchase equipment list and technical specifications, and prepares equipment purchase documents accordingly, and submits the equipment purchase plan to the purchasing department through the control department. The design department is responsible for preparing the bulk material list (including technical requirements) for each design discipline, which is summarized by the project material control engineer. Based on this, the project's bulk material purchase document is prepared and submitted to the procurement department. The purchasing department will compile these information and corresponding business documents into a complete inquiry document and issue an inquiry to the supplier.
1.2. The design department is responsible for providing review opinions on the technical parts of the supplier's quotation, ranking the recommended order, and providing it to the purchasing department for the purpose of determining the supplier. In addition, the design department sends personnel to participate in the manufacturer coordination meeting organized by the purchasing department and is responsible for the exchange and negotiation of technology and drawings.
1.3. The procurement department summarizes the technical review and business review opinions, conducts a comprehensive review, and determines the supplier to be signed into the order contract. When there is a large gap between the technical review results and the commercial review results, the procurement manager should fully negotiate with the design manager and strive to reach a consensus result. Otherwise, it can be submitted to the project manager for ruling or a risk memorandum.
1.4. The purchasing department is responsible for urging the submission of advance drawings (ACF) and final confirmation drawings (CF) submitted by the supplier. After submitting them to the design department for review and confirmation, they will be returned to the supplier in a timely manner; if there are any objections, The purchasing department should require the supplier to submit revised drawings for re-confirmation.
1.5. When preparing the device master schedule, the procurement department shall classify the procurement control points of all equipment and bulk materials according to the required progress of the project contract (including the submission of purchase requisition orders). time, and after the design department approves the executability of the plan, it will be submitted to the project manager for approval).
1.6. During the equipment manufacturing process, the design department is responsible for sending personnel to deal with relevant design issues or technical issues.
1.7. According to the provisions of the order contract, both the supply and demand parties must jointly participate in the inspection and manufacturing supervision. The purchasing department must send personnel to participate. If necessary, designers can be invited to participate in product testing, trial operation, etc. Inspection work before leaving the factory.
1.8 The procurement department shall organize transportation, design, construction and relevant parties to complete on-site inspection, warehousing and other related work.
2. Cargo arrival management
Since the goods arrive at the site in items and batches according to the needs of the construction progress; due to the current global supply and demand relationship for goods is relatively delicate. , some are buyer's markets, and some are sellers' markets, but there are varying degrees of laxity in contract performance and inability to deliver goods on time; this has a great impact on the construction plan and project plan, and may lead to a situation where the construction plan is delayed when the goods arrive. Dynamic adjustments may also cause the overall project plan to get out of control, so the management of the arrival of goods after they arrive at the site is particularly important. Specifically, the control should be carried out in the following steps:
After the goods arrive at the site, the construction department shall submit an application, and the procurement department shall organize the handover of the goods to the construction unit, and at the same time invite the owner, supervision and other relevant departments to participate in the unpacking inspection A one-time transfer.
The timeliness of the goods arriving at the site will affect the progress of the project; if the goods arrive at the site too early, it will affect the stacking of goods on site, possible secondary shipments, early payment of project funds, and the quality assurance of the goods. A series of problems arise during the period. Therefore, the construction department should put forward the demand plan and requirements for the goods according to the construction plan when the goods arrive at the site. The procurement department will prepare the goods arrival site plan according to the construction needs and the special circumstances of the goods. After fully considering the Develop the expediting and arrival plan for the goods based on factors such as the resource status of the goods, transportation factors, geographical environmental factors, climatic factors, and the performance and production conditions of the manufacturer (vendor).
After the goods arrive at the site, in order to complete the arrival inspection, warehousing, outgoing, material control and cargo storage, a flow chart of goods entering and exiting the warehouse is formulated for dynamic control and management.
2.1. Flow chart of goods entering and exiting the warehouse
Qualified or unqualified
No Yes
Incoming goods inspection
Note: Inspection conditions are met; -Yes
Inspection conditions are not met; No 2.2. Warehousing preparation
After receiving the supplier’s delivery notice, the owner’s supply department should notify in time Special materials warehouse custodians should make the following preparations for warehousing: master the name, specification, model, number of pieces, and packaging size of the goods received, divide the warehouse area according to the type of goods, and prepare unloading equipment.
2.3. Incoming inspection (verification)
Incoming inspection shall be carried out in accordance with relevant regulations. The warehouse keeper shall participate in the whole process of incoming inspection together with other inspection personnel. Inspected goods are divided into three states: pending inspection, temporary custody and qualified according to their inspection status. Warehouse custodians are responsible for marking and recording goods in various states. The marking method is in accordance with relevant regulations. Only goods that have passed inspection can go through the warehousing procedures. Goods that are awaiting inspection and in temporary custody should be managed under control and must be signed for and kept by warehouse custodians according to their division of responsibilities.
2.3. Unpacking Inspection
It is absolutely prohibited for non-unpacking personnel to open the box at will. The unpacking work should be organized according to the plan under the unified organization of the owner's supply department. Generally, the unpacking plan should be arranged one week in advance and all relevant units should be notified so that commodity inspection, supplier representatives and relevant personnel can be invited to participate.
For unpacking inspection, the packaging should first be inspected to determine whether there is damage, opening, scratches and other abnormal phenomena. After unpacking, check the appearance of the equipment for bumps, jams, strains, and corrosion. Check the port inspection records to confirm whether any new damage occurred during the delivery and transportation process, and keep written records.
For precision, valuable, and special important equipment, engineering and technical personnel should participate in the unpacking inspection. It is best to unpack indoors.
According to the packing list and the labels of the components in the box, count the main unit, attached machines and spare parts, as well as supporting electrical, instruments, pipe fittings, valves, special tools and technical data, and check them one by one.
The geometric dimensions of bare and bundled packaging materials should be checked piece by piece (or randomly checked). For pipes, check whether the material, specification, pipe label, pressure level and color code are consistent, and whether the pipe mouth is damaged.
After unpacking and inspection, fill in the unpacking inspection form based on the actual acceptance record, and accept according to the quality. All goods that require compensation or supplementary supply should be reported in a timely manner.
If shortages, damage, rust, etc. found during the shipment and unpacking inspection need to be repaired or cannot be used, the owner's supply office shall notify the import agent after confirming with the foreign business representative and relevant personnel. Handle claims or compensation procedures.
The design department provides technical support for the entire unpacking technical requirements and unpacking inspection items.
2.4. Warehousing
Goods that pass the incoming inspection should go through the warehousing procedures in a timely manner. After the qualified products are put into the warehouse, the "Equipment/Material Warehousing Form" should be filled out and stored in pre-divided warehouse areas according to the characteristics and installation time of the goods. An effective distance should be reserved between various types of goods to facilitate transportation. access. All types of goods should be marked when entering the warehouse.
2.5. Warehouse management
Regularly check whether the doors and windows of the closed warehouse are tight and have good ventilation facilities, and whether constant temperature and humidity can be maintained in the constant temperature room.
All stored items should be arranged neatly and ensure the correct storage and cargo locations.
Long-term storage of rotating equipment, connecting flanges and rust-prone parts should be regularly coated with butter or anti-rust oil.
Regularly inspect the goods in the inventory area. If damage, rust, mildew, loss, etc. are found, records should be made and reported to the construction manager in writing in a timely manner.
Check the signs regularly and replace them if they are found to have fallen off or have illegible writing.
Special attention should be paid to preventing overweight equipment from deforming. The storage location is required to be flat, with a hard foundation, strong underlayment, and sleepers at the center of gravity to prevent deformation caused by local sinking.
Slender rotating shafts used in mechanical equipment should generally be hung and stored to prevent deformation.
Mark different types of goods/materials.
Fire prevention work must be done well. Fire-proof equipment should be managed by dedicated personnel, and fire-proof equipment should be inspected regularly to prevent it from expiration.
Maintain records of all types of goods entering and exiting the warehouse.
Random documents, information, inspection records, etc. should be classified and properly kept for inquiry and retrieval.
Transportation, loading and unloading should be carried out according to the characteristics and packaging markings of the goods to prevent damage to the items.
To prevent theft, no idle personnel are allowed to enter the warehouse area.
2.6. Management of non-conforming products Non-conforming products refer to goods that are listed in the area to be inspected and temporarily managed. Such goods should also go through handover procedures and be marked according to regulations after being signed by the warehouse keeper. . The area to be inspected and the temporary management area should have separate books and records, and their random documents should also be kept separately. Non-conforming products should be protected and stored in the same way as qualified products to maintain the original condition of the goods entering the warehouse.
2.7. Warehousing
The construction unit should go to the warehouse to pick up the required goods with the "Equipment/Material Warehouse Release" signed by the designer of the design unit after review. Warehouse custodians should carefully review the "Equipment/Materials Release Note". There should be no traces of alteration on this document, otherwise a separate release note should be issued. The warehouse keeper should issue the goods according to the varieties, models, specifications and quantities listed on the warehouse-out order. After verification, both parties sign the warehouse-out order. The warehouse-out order is the only proof of the goods leaving the warehouse, so it should be kept properly. .
2.8. Return of warehouse
The general contractor should organize the construction unit to handle the return procedures for remaining materials. Facility materials, packaging and containers should be recycled, and a recycling ledger should be established.
3. Control of cargo arrival
Since control itself is dynamic, control is based on constantly establishing and revising control standards, measuring deviation information, and taking corrective measures to ensure that The work continues to measure the actual work situation according to the newly established standards and correct the process of actual implementation deviations from the standards and planned errors.
Goods should arrive at the site in an orderly manner, in batches and by category. However, there is often a certain gap between the plan and the actual situation. Therefore, the arrival of goods should be dynamically managed and controlled; only mutual notification of information is not enough. The requirements and results should be notified to relevant units and manufacturers (vendors). After the site enters the installation period, a dedicated person should be responsible for the work, and dynamic control should be carried out according to the following procedures:
Can be controlled
4. Emergency plan and authorization
Due to the tight schedule requirements of the EPC project and the large number of external interfaces, it is necessary to design and purchase at the same time, resulting in a large workload for on-site emergency procurement. In order to make on-site emergency procurement work smoothly, EPC projects develop on-site procurement emergency plans and carry out certain authorizations.
Emergency procurement of equipment and materials can be purchased by the purchasing department in advance, but the relevant procedures should be completed within 10 days from the date of the purchasing activity. In particular, some goods under small-amount contracts (generally less than 10,000 yuan) do not need to go through the regular approval procedures, and the procurement department will purchase them directly after receiving the purchase requisition documents.
5. Procurement contract management and cost control
Complete the procurement tasks according to the design requirements in the general contract, which is only 90 to 95 of the actual total cost of completion of the procurement, and the procurement labor is completed 70 to 80 of the cost. Therefore, design changes at the construction site, differences between the actual arrival and the design, omissions in design purchase requests, differences in the scope of complete sets of supplies, etc. will all have an impact on the progress, especially on project cost control. The impact of goods; special management should be carried out on costs incurred due to goods.
Since the supplementary purchase requests proposed by the design are easier to classify and control, they can generally be divided into changes in the scope of the contract with the owner-proposing changes to the owner, design errors-adjustment cost plans and internal digestion.
Expenses caused by manufacturers (companies) are often difficult to define, and involve a wide range of areas and many units. This issue should be controlled and managed from the time the goods arrive at the site.
The possible expenses caused by the goods can be divided into the following situations and impacts: 1. Due to delay in arrival: if the manufacturer fails to arrive at the site as stipulated in the contract, the manufacturer shall bear the penalty stipulated in the contract; if the impact is relatively large or the contract stipulates, The owner shall be responsible for the fines levied on the general contractor and the construction unit's work delay costs. 2. Incomplete supply: This problem often occurs in complete sets of supplies, and some are only discovered during the placement process. Once it occurs, check the scope of the contract and it is a manufacturer's problem. It should be submitted to the supplier for resolution, or it can be solved by the general contractor. On-site processing is carried out, but the costs incurred shall be borne by the manufacturer. 3. Supply quality problems: This problem should be discovered early and dealt with as soon as possible, otherwise it will cause rework of the construction unit or hidden quality hazards in the construction, and seriously lead to project delay or major quality accidents. The equipment and materials management of the project should be strictly implemented in accordance with the specifications. Any incidents that exceed the specifications must be confirmed by the design manager and reported to the project manager. Such issues must be addressed "one issue at a time, and feedback and implementation alone".
3. Equipment and material management is the source of benefits for EPC general contracting projects
Management is a science and an art. It is based on multiple courses. science. Although each engineering company has its own management system, management system and engineering regulations for equipment and materials management, there are certain problems in the management of equipment and materials. The management of engineering equipment and materials should be as rigorous as project management. Exception: The management of equipment and materials is not only a process management, but also a detailed management. Only in this way can the economic benefits of the general contracting project be improved.
1. Control the material margin
Each company has its own experience and implementation methods for this problem, and advocates zero margin, but for a single general contracting project Generally speaking, no one can achieve it. According to statistics from several engineering companies and dozens of general contracting projects, it is considered that management can be excellent if it can reach 0.3 to 1 (total contract price). The main reason for the remaining equipment materials is the lack of experience in determining the margin in the design requisition document (for example, the purchasing margin for valves ≤ DN25 is 5; gt; DN25 ≤ DN100, the purchasing margin is 2; gt; DN100, the purchasing margin is 2 1) Procurement errors caused by design errors are directly related to the quality, use experience, management, etc. of the purchased products, so this type of problem is inevitable, and the remaining materials are the pure profits of the engineering company. Proper handling of this problem can Create greater benefits.
This problem can be avoided by risk avoidance, especially for some general equipment materials. An agreement is reached with the supplier at the early stage of procurement. At the end of the project, if the user has not used it and protected it well, it can be returned to the manufacturer for processing. ; However, for some products that cannot be returned, other related projects should be notified within the company first, and if possible, they should be used by other projects first.
2. Strict procurement contract management and cost control
Due to supply problems of equipment and materials, the project may suffer losses or fines may be imposed on the owner and related units. It mainly includes delays in supply that cause the construction unit to stop work and affect progress, resulting in fines from the owner; product quality causes duplication of work, schedule delays, and re-purchasing by the construction unit.
This type of problem is a frequent occurrence at the construction site of the project, and it is a relatively difficult and practical problem. Since the site is relatively tense during the construction stage, once the problem is solved without leaving any trace, it will only be relied upon at the end of the project. Memories are processed. In response to this problem, in addition to evaluating late delivery issues and transferring risks during the procurement stage, the contract management work of the procurement contract should be restated. There should be a dedicated person on site responsible for each incident (including late delivery, product quality, supply, etc.) Incomplete scope, unequal specifications) The manufacturer should be notified of the problems and impacts, and the impact results and initial estimated costs should be entered into the contract file to facilitate final settlement.
3. Retirement management
Projects are often tense at the end of the project, and the management of remaining equipment and materials is relatively lax, which may lead to theft of equipment and materials and treatment as scrap steel. During project execution, a return system for equipment and materials should be established based on project progress.
IV. Conclusion
In short, as the scale of EPC general contracting projects becomes larger and larger, and the structure and functions become increasingly complex, the procurement of equipment and materials is large in volume, variety, and specifications. The costs are increasing, the construction cycle is shortening, the intersection of project phases is getting deeper and deeper, the equipment and materials of engineering projects are out of control, and the risks of engineering projects are getting bigger and bigger. To this end, it is an important topic to conduct in-depth research on the management of engineering project equipment and materials and adopt a systematic and dynamic method to comprehensively manage engineering project equipment and materials to realize the economic benefits of EPC general contracting projects.
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