Ethio Construction Engineering

👉𝑬𝒂𝒓𝒏𝒆𝒅 𝑽𝒂𝒍𝒖𝒆 𝑴𝒂𝒏𝒂𝒈𝒆𝒎𝒆𝒏𝒕 (𝑬𝑽𝑴)

💫Every project require method to control & manage project execution & delivery.

🏷PM follow different project monitoring methods

⏺Earned Value Analysis (EVA) allow PM to measure amount of work actually performed on project beyond basic review of cost & schedule reports

▶️"EVM is systematic approach to cost integration & measurement, schedule & scope accomplishment on project or task" USA Department of Energy

🚧𝐖𝐡𝐲 𝐔𝐬𝐞 𝐄𝐕𝐌?

⏺EV helps determine if project is on schedule & within budget by assessing project on basis of cost & schedule as compared to what has been accomplished

🚧𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐢𝐧𝐠 𝐄𝐕𝐌 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬

⏺To determine current project performance & forecast future project performance based on 3 data points:

-𝐏𝐥𝐚𝐧𝐧𝐞𝐝 𝐕𝐚𝐥𝐮𝐞 [Budgeted Cost of Work Scheduled (BCWS)]

PV can be looked at in 2 ways:
-Current: approved budget for activities scheduled to be performed during given period (days, weeks, months,etc.)
-Cumulative: sum of approved budget for activities scheduled to be performed to date

-𝐀𝐜𝐭𝐮𝐚𝐥 𝐂𝐨𝐬𝐭 [Actual Cost of Work Performed (ACWP)]

Actual expenditures incurred to execute work on project
AC can be looked at in terms of
-Current
-Cumulative

-𝐄𝐚𝐫𝐧𝐞𝐝 𝐕𝐚𝐥𝐮𝐞 [Budgeted Cost of Work Performed (BCWP)]

Work Quantification “worth” done to date
EV can be presented in
-Current
-Cumulative

𝐌𝐞𝐭𝐫𝐢𝐜𝐬 & 𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐌𝐞𝐚𝐬𝐮𝐫𝐞𝐦𝐞𝐧𝐭𝐬
EV performance measurement look at project cost & schedule performance by analyzing cost & schedule variance along with cost & schedule efficiency

🚧𝐕𝐚𝐫𝐢𝐚𝐧𝐜𝐞 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬:

-𝐒𝐜𝐡𝐞𝐝𝐮𝐥𝐞 𝐕𝐚𝐫𝐢𝐚𝐧𝐜𝐞 (𝐒𝐕)=EV–PV
If result is +ve: On Schedule
If result is -ve: Behind Schedule

or SV% = SV/PV % Schedule varies from planned to date

-𝐂𝐨𝐬𝐭 𝐕𝐚𝐫𝐢𝐚𝐧𝐜𝐞 (𝐂𝐕)=EV–AC
If result is +ve: Underrun
If result is -ve: Overrun

or CV%= CV/EV %Cost varies from planned to date

𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐈𝐝𝐢𝐜𝐚𝐭𝐨𝐫𝐬:

-𝐒𝐜𝐡𝐞𝐝𝐮𝐥𝐞 𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐈𝐧𝐝𝐞𝐱 (𝐒𝐏𝐈): Schedule Efficiency measure
SPI=EV/PV
If result > 1.0, project is AHEAD of schedule
If result < 1.0, project is BEHIND schedule

𝐂𝐨𝐬𝐭 𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐈𝐧𝐝𝐞𝐱 (𝐂𝐏𝐈):
Cost Efficiency measure
CPI=EV/AC
If result > 1.0, cost is < budget.
If result < 1.0, cost is > budget.

𝐄𝐬𝐭𝐢𝐦𝐚𝐭𝐞 𝐚𝐭 𝐂𝐨𝐦𝐩𝐥𝐞𝐭𝐢𝐨𝐧 (𝐄𝐀𝐂)

Objective to provide accurate projection of cost at project completion

EAC= AC+ETC

𝐄𝐬𝐭𝐢𝐦𝐚𝐭𝐞 𝐓𝐨 𝐂𝐨𝐦𝐩𝐥𝐞𝐭𝐞 (𝐄𝐓𝐂)
Cost to complete authorized remaining work
EAC = AC+ETC

𝐁𝐮𝐝𝐠𝐞𝐭 𝐀𝐭 𝐂𝐨𝐦𝐩𝐥𝐞𝐭𝐢𝐨𝐧 (𝐁𝐀𝐂)

All budgets sum allocated to
project scope, BAC must always equal Project total PV, If they aren't equal, EV calculation & analysis will be inaccurate

🚧𝐕𝐚𝐫𝐢𝐚𝐧𝐜𝐞 𝐀𝐭 𝐂𝐨𝐦𝐩𝐥𝐞𝐭𝐢𝐨𝐧 (𝐕𝐀𝐂)

VAC =BAC–EAC
If result is +ve, project is projecting an Underrun
If result is -ve, project is projecting an Overrun

@etconp

በግንባታ ወቅት ለሚደርሱ አደጋዎች ከአልሚዎች በተጨማሪ የዘርፉ አማካሪዎች እና የስነ ሕንጻ -ንድፍ ባለሙያዎች ተጠያቂ እየተደረጉ መሆኑ ተገለጸ

በግንባታ ወቅት የሚደርሱ አደጋዎችን ለመከላከል እና የሕንጻ ደረጃን ለማስጠበቅ ከአልሚዎች በተጨማሪ የዘርፉ አማካሪዎችንና የስነ ሕንጻ -ንድፍ ባለሙያዎች ተጠያቂ የማድረግ ሥራ እየተሰራ መሆኑን የአዲስ አበባ ከተማ አስተዳደር ግንባታ ፈቃድ ቁጥጥር ባለስልጣን አስታውቋል፡፡

የባለስልጣኑ ምክትል ዋና ዳይሬክተር አቶ ገዛህኝ ደሲሳ፤ ረዘም ያለን ጊዜን በሥራ ላይ በመቆየት እና አብሮ በመስራት በሚፈጠር ትውውቅ፤ በግንባታ የሥራ ሂደት ላይ ክፍተት እንዳይፈጠር በዘርፉ ባለሙያዎች፣ በአልሚዎች እና በስነ ሕንጻ -ንድፍ ሙያተኞች ላይ ድንገተኛ የሆነ ቁጥጥር እየተካሄደ እንደሚገኝ ለአሐዱ ተናግረዋል፡፡

ምክትል ዋና ዳይሬክተሩ የአንድን ሕንጻ ከፍታው እንዲሁም ሕንጻው መገንባት ያለበት ቦታን በተመለከተ ባለስልጣን መስሪያ ቤቱ ከአልሚዎች ጋር ስምምነት እንደሚከናወን ገልጸዋል፡፡

አክለውም "ከስምምነት በኋላ ወደ ግንባታ በሚገባበት ወቅት ለአሊሚዎች ወይም ለዘርፉ ባለሙያዎች ፈቃድ በወሰዱበት የግንባታ መሠረት እንዲሁም ዲዛይን መሠረት የሕንጻ ግንባታ እንዲያከናውኑ በባስልጣን መስሪያ ቤቱ ቁጥጥር ይደረጋል" ብለዋል፡፡

በመሆኑም በተፈቀደው መሠረት ግንባታው እየተከናወነ ስለመሆኑ በዘርፉ ባለሙያ እና በአልሚዎች ላይ ድንገተኛ የሆነ የክትትል ሂደት እንደሚደረግ ገልጸዋል፡፡

ከዚህ ቀደም በአገልግሎት ላይ የነበረው የሕንጻ አዋጅ በባለስልጣኑ በሚከናወነው የቁጥጥር ሂደት ላይ እንደ ክፍተት የሚነሳ እንደነበር የገለጹም ሲሆን፤ ከአልሚዎች ውጪ ሌሎች በግንባታ ሂደቱ ተሳታፊ የሆኑ አካላት ተጠያቂ የማይኑበት ሁኔታ እንደነበር አስታውሰዋል፡፡

በአሁኑ ወቅት በተሻሻለው የአሰራር ሂደት ላይ በግንባታ ወቅት በሚከሰቱ አደጋዎች አልሚዎች ብቻ ሳይሆኑ የዘርፉ ባለሞያዎች እና ኮንትራክተሮች ተጠያቂ እየሆኑ እንደሚገኝ ተናግረዋል፡፡

የባለስልጣኑ ምክትል ዋና ዳይሬክተር እንደተናገሩት፤ በአሁኑ ሰዓት ረዘም ያለ ጊዜን በሥራ ላይ በማሳለፍ በአልሚዎች፣ በስነ ሕንጻ -ንድፍ ሙያተኞች እንዲሁም የዘርፉ ባለሙያዎች ላይ በሚፈጠር ትውውቅ ምክንያት፤ በሥራ ሂደቱ ላይ ክፍተቶች እንዳይፈጠር ድንገተኛ የሆነ ምልከታ በግንባታ ቦታ ላይ እየተከናወነ ይገኛል፡፡

አክለውም በክትትል የሥራ ሂደት ላይ ከፍቃድ ውጪ ግንባታዎች ተከናውነው ከተስተዋሉ በአልሚዎች ላይ የገንዘብ ቅጣት እንዲሁም በስነ ሕንጻ -ንድፍ ሙያተኞች እና በዘርፉ ባለሙያዎች ላይ ፍቃድ እስከ መሰረዝ የሚደርስ እርምጃ እየተወሰደ እንደሚገኝ ለአሐዱ ገልጸዋል፡፡

አቶ ገዛሕኝ ጥፋተኛ ሆነው በተገኙ አልሚዎች ላይ እስከ 6 ሚሊየን ብር የሚደርስ ቅጣት የሚጣልበት ሁኔታ እንደነበር አስታውሰው፤ በአሁኑ ወቅት በ2016 ዓ.ም ወደ ትግበራ በተገባው የሕንጻ አዋጅ ማሻሻያ እስከ 65 ሚሊየን ብር ቅጣት ስለመጣሉ አስታውቀዋል፡፡

በወር ከ100 በላይ የሚሆኑ ሰዎች በግንባታ ወቅት ላይ በሚደርሱ አደጋዎች ምክንያት ቅሬታ ያቀርቡ እንደነበር የገለጹም ሲሆን፤ በሚወሰዱ እርምጃዎች የቅሬታ አቅራቢዎችን አሃዛዊ ቁጥር መቀነስ ስለመቻሉም ተናግረዋል፡፡

@etconp

👉𝑪𝒐𝒏𝒔𝒕𝒓𝒖𝒄𝒕𝒊𝒐𝒏 𝑪𝒐𝒏𝒕𝒓𝒂𝒄𝒕 𝑫𝒐𝒄𝒖𝒎𝒆𝒏𝒕𝒔

📜By referring to "Contract" you technically refer to entire document group form agreement comprise numerous documents cumulatively define Scope, Cost, Schedule, Quality, Work Conditions & Responsibilities

1》Agreement

Depending on chosen financial strategy, agreement form will adapt forming basis from which all subsequent project details Lays down foundation to govern entire process Signed agreement will reference other documents & addendums that all parties bound to by signing

This document with "dotted line" parties to agreement sign include

-Parties(Authorized Signatory)
-Value/Currency
-Time for Completion
-Governing Law/Language
-Appendix(Documents Identification)
-Site Provision
-Valuation(Work/Material)
-Variation Procedure
-Retention
-Arbitration Rule(If Any)
-Exceptions

2》General Conditions

Common contract addendum act as project execution & management rulebook
Encompass terms dictate fundamental procedural guideline, establish right & obligation include

+General Provisions
•Preamble/Recitals
•Definitions
•Communication(Reporting/Statement)
•Document Priority
•Statutory Obligation

+Owner/Contractor Responsibility
•Right to access
•On-site Condition(Security/safety Measure)
•Execution
•Approval

+Representatives

+Design
•Submittal guideline
•Accountability
•Responsibility

+Programme
•Execution
•Time of Completion
•Delay/EOT

+Taking Over

+Remedy

+Variation & Claim

+Payment
•Frequency
•Milestone
•Retention
•Currency
•Delay

+Default

+Risk & Responsibility
•Care of Work
•Force Majeure

+Insurance & Bond

+Conflict Resolution

+Project Termination

3》Particular Condition

Appended to General Condition, provide tailored approach to project specifics, describe custom fit elements cater to project's unique aspects
-Environmental sustainability feature
-Specific site & safety protocol

4》Scope of Work

Detailed narrative define work, project's requirements, outline tasks broken down using WBS, specify material, standard, equipment & other operational detail including performance criteria & quality

5》Construction Drawings

Project visual representation, offer essential details & dimensions of desired end result

6》Specifications

Project's technical data, material requirement, construction methods, quality standard complementing construction drawings in describing detailed project attribute, often organized according to Master Format(CSI Divisions)

7》Programme (Schedule)

Outline timeline detailed activities & milestones sequence guiding project's progression

8》Schedule of Values

Itemized work segment list with corresponding value, contractor prepare to show % each work item complete to category expenditures, pivotal to payment process

9》Bill of Quantities(BOQ)

Predictive tool, provide itemized materials/labor cost forecast, allow contractor prepare accurate bid & facilitate client efficient bid evaluation

@etconp

👉የፌዴራል መንግስት የግዥ አፈፃፀም መመሪያን መሰረት በማድረግ የተጫራቾች ግዢ የዋጋ ተመን በተመለከተ ለግንባታ ፕሮጀክቶች ተቋራጭ፣ አማካሪ እና እቃ ግዥን ለማስፈጸም በመንግስት ግዥና ንብረት አስተዳደር ኤጀንሲ የተዘጋጀና በፌደራል መንግስት የግዥ አፈጻጸም መመሪያ ሰኔ/2002 ዓም በገንዘብ ሚንስትር የፀደቀ እንዲሁም መስከረም/2014ዓም በተሻሻለው መሰረት ጥቅም ላይ የሚውሉ አምስት (5) ዋና ዋና ዋጋን መሰረት ያደረጉ የግንባታ እና የማማከር አገልግሎት ሥራ ግዥ ውሎች አሉ፡፡ እነዚህም?

🏷1)  ከስድስት መቶ ሚሊዮን (600,000,000) ብር በላይ ዋጋ የሚያወጡ የግንባታ ፕሮጀክቶች ግዥ እና ከሰላሳ ሚሊዮን (30,000,000) ብር በላይ ዋጋ የሚያወጡ የማማከር አገልግሎቶች ግዥዎች ምንም እንኳን አሰሪዎች አልፎ አልፎ በዶላር እጥረት ምክንያት በብር ነው የሚከፈላችሁ በሚል ማፋረሻ ለሀገር ውስጥ ጨረታ ተወዳዳሪዎችን ብቻ በማሳተፍ እየተጠቀሙበት ቢሆንም e-GP የኤሌክትሮኒክስ ጨረታ ማስፈጸሚያ በየነ መረቡ ግን አስገዳጅ መስፈርት እድርጎ አስቀምጦታል፡፡ በዚህን ያክል ብር የሚሰሩ የግንባታ ፕሮጀክት ግዥ በመደበኛነት ጥቅም ላይ የሚውሉት ለአለም አቀፍ ጨረታው (International Bid) ተወዳዳሪዎች ክፍት ይደረጋሉ።

🏷2)  ከአስራ አምስት ሚሊዮን (15,000,000) እስከ ስድስት መቶ ሚሊዮን (600,000,000) ብር ዋጋ የሚያወጡ የግንባታ ፕሮጀክቶች ግዥ እና ከሁለት ሚሊዮን ሁለት መቶ ሃምሳ ሺ (2,250,000) ብር እስከ ሰላሳ ሚሊዮን (30,000,000) ብር ዋጋ ያላቸው የማማከር አገልግሎቶች ግዥዎች የውለታ መጠን የሆኑ በሀገር ውስጥ ተጫራቾች የሚሰሩ ይሆናል፡፡ ይህን ያክል ፕሮጀክት ዋጋ የሚያወጡ ግንባታዎች በመደበኛነት ለግልጽ ብሔራዊ ጨረታ (Open National Bid) ተወዳዳሪዎች ክፍት ይደረጋሉ።

🏷3)  ከአንድ ሚሊዮን (1,000,000) ብር እስከ አስራ አምስት ሚሊዮን (15,000,000) ብር የውለታው መጠን የሆነ የግንባታ ፕሮጀክት ውል እና ከሁለት መቶ አርባ ሺ (240,000) እስከ ሁለት ሚሊዮን ሁለት መቶ ሃምሳ ሺ (2,250,000) ብር መጠን ያላቸው የማማከር አገልግሎቶች ግዥ በሀገር ውስጥ ተጫራቾች የሚሰሩ ናቸው፤ ነገር ግን ይህን ያክል ፕሮጀክት ዋጋ የሚያወጡ ግንባታዎች በመደበኛነት ለውስን ጨረታ (Selective Bid) ክፍት ይደረጋሉ፡፡

ይህም ማለት ከአሁን በፊት በተቋሙ የግንባታ ፕሮጀክት ውስጥ መልካም የሚባል የግንባታ እና የማማከር አገልግሎት አፈጻጸም ውጤት ያስመዘገቡ ከሆነ በልዩ ሁኔታ ከአምስት (5) አስከ ሰባት (7) የሚደርሱትን ተቋራጮች በመጋበዝ ብቻ ማወዳደር ይቻላል፡፡ 

🏷4) ከአንድ ሚሊዮን (1,000,000) ብር ያነሰ የውለታ መጠን ያላቸው የግንባታ ፕሮጀክቶ እና ከሁለት መቶ አርባ ሺ (240,000) ብር ያነሰ የውለታ መጠን ያላቸው የማማከር አገልግሎቶች ግዥ የሚያወጡ ግንባታዎች በተቋማት ከፍተኛ አመራሮች ውሳኔ በማሰጠት በቀጥታ የግንባታ ግዥ መፈፀም ይቻላል፡፡

🏷5)ከዚህ ውጭ በልዩ ሁኔታ ግዥ እንዲፈጸም በመንግስት ካልታዘዘ በስተቀር የግንባታ እና የማማከር አገልግሎት ግዥ ሂደቶች ተጠያቂነትን የሚያስከትሉ አሰራሮች ናቸው፡፡
መስከረም 2017 ዓ.ም በገንዘብ ሚኒስቴር በተዘጋጀው ረቂቅ ሰነድ፤ነገር ግን ባልጸደቀው የፌዴራል መንግሥት የግዥ አፈፃፀም መመሪያ መሰረት

🚧1) ከሶስት ቢሊዮን (3,000,000,000) ብር በላይ ዋጋ የሚያወጡ የግንባታ ፕሮጀክቶች ግዥ እና ከዘጠና ሚሊዮን (90,000,000) ብር በላይ ዋጋ የሚያወጡ የማማከር አገልግሎቶች ግዥ ለአለም አቀፍ ጨረታ (International Bid) ተወዳዳሪዎች ክፍት ይደረጋሉ።

🚧2) ከስልሳ ሚሊዮን (60,000,000) ብር እስከ ሶስት ቢሊዮን (3,000,000,000) ብር ዋጋ የሚያወጡ የግንባታ ፕሮጀክቶች ግዥ እና ከሰባት ሚሊዮን (7,000,000) ብር እስከ ዘጠና ሚሊዮን (90,000,000) ብር የማማከር አገልግሎቶች ግዥ የውለታ መጠን የሆኑ የፕሮጀክት ውል በሀገር ውስጥ ተጫራቾች የሚሰሩ ናቸው፡፡ ይህን ያክል ፕሮጀክት ዋጋ የሚያወጡ ግንባታዎች በመደበኛነት ለግልጽ ብሔራዊ ጨረታ (Open National Bid) ተወዳዳሪዎች ክፍት ይደረጋሉ።

🚧3) ከሁለት ሚሊዮን (2,000,000) ብር እስከ ስልሳ ሚሊዮን (60,000,000) ብር የውለታው መጠን የሆነ የግንባታ ውል እና ከአምስት መቶ ሺ (500,000) ብር እስከ ሰባት ሚሊዮን (7,000,000) ብር መጠን ያላቸው የማማከር አገልግሎቶች ግዥ በሀገር ውስጥ ተጫራቾች የሚሰሩ ናቸው፤ ነገር ግን ይህን ያክል ፕሮጀክት ዋጋ የሚያወጡ ግንባታዎች በመደበኛነት ለውስን ጨረታ (Selective Bid) ክፍት ይደረጋሉ፡፡ ይህም ማለት ከአሁን በፊት በተቋሙ የግንባታ ፕሮጀክት ውስጥ መልካም የሚባል የግንባታ እና የማማከር አገልግሎት አፈጻጸም ውጤት ያስመዘገቡ ከሆነ በልዩ ሁኔታ ከአምስት (5) እስከ ሰባት (7) የሚደርሱትን ተቋራጮች በመጋበዝ ብቻ ማወዳደር ይቻላል፡፡ 

🚧4) ከሁለት ሚሊዮን (2,000,000) ብር ያነሰ የውለታ መጠን ያላቸው የግንባታ ፕሮጀክቶ እና ከሁለት መቶ አርባ ሺ (500,000) ብር ያነሰ የውለታ መጠን ያላቸው የማማከር አገልግሎቶች ግዥ የሚያወጡ ግንባታዎች በሚመለከታቸው ተቋማት ከፍተኛ አመራሮች ውሳኔ በማሰጠት በቀጥታ የግንባታ ግዥ መፈፀም ይቻላል፡፡

@etconp

👉Cost-Plus Vs Lump-Sum Contracts: Which One is Right for Your Next Construction Project?

💫In the world of construction, choosing the right contract type can make all the difference between a smooth project and one riddled with surprises.

🚧The two most commonly debated contract types are Cost-Plus and Lump-Sum—but which one fits your project best?

🔄 Cost-Plus Contract
In a cost-plus arrangement, the contractor is reimbursed for actual costs incurred (materials, labor, etc.), plus an agreed fee. This is perfect for projects with uncertain scopes or those prone to changes.

✅ Why choose Cost-Plus?

⏺Flexibility: Ideal for evolving designs.

⏺Transparency: Clear breakdowns of real-time costs.

⏺Adaptability: Great for unforeseen challenges.


⚠️ Things to watch for:

⏺Risk of cost overruns.

⏺Less certainty for total expenses.


💵 Lump-Sum Contract
With a lump-sum contract, the price is fixed from the start—this approach is favored for projects with well-defined scopes and minimal anticipated changes.

✅ Why choose Lump-Sum?

⏺Cost certainty: Budget is fixed, protecting against increases.

⏺Contractor bears more risk: Reduces financial surprises for the client.

⏺Efficiency: Well-suited for tightly scoped projects.


⚠️ Things to watch for:

⏺Less flexibility for changes.

⏺Can lead to disputes if unexpected conditions arise.

🏷How do you choose?

⏺It comes down to your project's scope, complexity, and flexibility needs. Cost-Plus offers adaptability in uncertain projects, while Lump-Sum delivers predictability when everything is mapped out.

@etconp

👉𝑳𝒊𝒒𝒖𝒊𝒅𝒂𝒕𝒆𝒅 𝑫𝒂𝒎𝒂𝒈𝒆𝒔/𝑼𝒏𝒍𝒊𝒒𝒖𝒊𝒅𝒂𝒕𝒆𝒅 𝑫𝒂𝒎𝒂𝒈𝒆𝒔
/𝑷𝒆𝒏𝒂𝒍𝒕𝒚

🌟Liquidated damages indicate compensation agreed upon by parties entering into contract & is payable by party who breaches contract to a non-breaching party.
Also, it has fixed amount contractually defined as a reasonable estimate of actual damages to recovered by one party in case the other party breaking the contract.

⏺If parties in contract have properly settled number of LDs, sum fixed, measure of damages for violation of contract.
It doesn't matter if actual damages are more than or less than fixed damage amount.
Distinction between a penalty & substantial liquidated damages is complex to apply.

⚡️𝐂𝐨𝐧𝐬𝐞𝐪𝐮𝐞𝐧𝐜𝐞𝐬 𝐨𝐟 𝐋𝐃𝐬:

⏺Main essence of contract is performance.

▶️Parties in contract generally involve their expectation in terms of damage, which is caused by failure of either party to perform its duty.

▶️LDs specify number of damages to be compensated by breaching party if it fails to perform specified obligations & otherwise in event of certain types of breaches under contract.
Also, amount agreed as liquidated damages describe estimate of parties regarding actual damages suffered by non-breaching party in event of a specified breach of contract by other (breaching) party.
By this, parties can save on a lot of time, money & energy on potential conflicts in Liquidated damages.

🎲𝐃𝐢𝐬𝐬𝐢𝐦𝐢𝐥𝐚𝐫𝐢𝐭𝐲 𝐛𝐞𝐭𝐰𝐞𝐞𝐧 𝐋𝐢𝐪𝐮𝐢𝐝𝐚𝐭𝐞𝐝 𝐃𝐚𝐦𝐚𝐠𝐞𝐬 & 𝐔𝐧𝐥𝐢𝐪𝐮𝐢𝐝𝐚𝐭𝐞𝐝 𝐃𝐚𝐦𝐚𝐠𝐞𝐬

⏺LDs referred to as ascertained damages of which cost has fixed by parties during contract formation.
Wounded party in contract can accumulate compensation upon a specific breach.
It also aids in recovery of amount breached by avoiding necessity of proof of loss.

⏺LDs clarify procedure relating to any types of conflicts & may persuade performance of a contract.
LD clause directs right of parties after breach of contract.

⏹Unliquidated damages are not a pre-fixed or restricted amount.

⏺Damages that claimed for 𝐔𝐧𝐟𝐨𝐫𝐞𝐬𝐞𝐞𝐚𝐛𝐥𝐞 𝐃𝐚𝐦𝐚𝐠𝐞 are known as unliquidated damages.

⏺Ascertaining exact amount for compensation has a bit difficult in this case since amount is unliquidated.

⏺It's extremely necessary for including a provision for unliquidated damages in a contract.

⏺As it assists parties to recover those losses which aren't possible to estimate.

📜𝐂𝐨𝐧𝐜𝐥𝐮𝐬𝐢𝐨𝐧:

🏷𝗟𝗶𝗾𝘂𝗶𝗱𝗮𝘁𝗲𝗱 𝗗𝗮𝗺𝗮𝗴𝗲𝘀

Damages pre estimated & specified in contract (either % or an amount).

🏷𝗨𝗻𝗹𝗶𝗾𝘂𝗶𝗱𝗮𝘁𝗲𝗱 𝗗𝗮𝗺𝗮𝗴𝗲𝘀

Damages not specified in contract & shall be determined by court in case of dispute.

⏺𝗣𝗲𝗻𝗮𝗹𝘁𝘆

Word penalty considered to be void & null in contracts governed by common law

@etconp

👉𝑬𝒗𝒐𝒍𝒖𝒕𝒊𝒐𝒏 𝑶𝒇 𝑪𝒐𝒔𝒕 𝑪𝒐𝒏𝒕𝒓𝒐𝒍 𝑺𝒚𝒔𝒕𝒆𝒎

💫Evolutionary diagram of cost control system & certain activities involved in cost control process based on IFAC’s (1998) framework.

⏺Changes in certain activities & tools involved in cost control system, reflect changes in management accounting role in different periods.

🏷𝐓𝐚𝐫𝐠𝐞𝐭 𝐂𝐨𝐬𝐭𝐢𝐧𝐠 (𝐓𝐂) is seen to be a shift from traditional control system focusing on standard costs analyzed after production process toward strategic cost control system focusing on cost control in earlier stages of production process. However, through cost control system development stages, recent management accounting techniques have great advantages coming from its close linkages with company profit planning strategy.

⏺Cost improvement activities linkage with overall strategic planning processes ensure achievement of long-term profit goals without being concerned with meeting standard costs & analyzing variances being used in traditional cost control system.

⏺Monden & Hamadah (1991) claim that TC must be closely connected with company profit planning.

⏺They report that a company focused only on costs may be biased against high cost/high profit products, means TC link with company strategic profit planning would put in personnel minds that company ultimate goal is highest profit, not cost reduction.

⏺Based on Daihatsu experience presented by Monden & Lee (1993), Kaizen Costing practiced by using actual production costs of previous year as cost base of current year. However, this is functioning in a similar way as a budgetary control system in standard costing process.
Then, cost reductions will be determined from this cost base figure & ratio of cost reduction amount to cost base is called 𝐂𝐨𝐬𝐭 𝐑𝐞𝐝𝐮𝐜𝐭𝐢𝐨𝐧 𝐑𝐚𝐭𝐞 (𝐂𝐑𝐑).

🏷CRR is established for each element of cost base at each year-end for following year. Hence, total 𝐊𝐚𝐢𝐳𝐞𝐧 𝐂𝐨𝐬𝐭𝐬 would reflect integrated target reduction rates of all cost base elements. Certain changes might happen in mid-year due to design change of model & mixed model production alteration.

⏺In this case, 𝐕𝐚𝐥𝐮𝐞 𝐄𝐧𝐠𝐢𝐧𝐞𝐞𝐫𝐢𝐧𝐠 (𝐕𝐄) comes into practice in design stage & TC is also applied in this stage. As VE is cost reduction activity involves functional changes in new product development stage, it differs from 𝐕𝐚𝐥𝐮𝐞 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬 (𝐕𝐀) technique where the last focuses only on cost reduction activities involved in design stages of existing products (Monden & Hamadah, 1991).

⏺This supports active integration between Kaizen Costing & TC to attain company total cost management goal.

🏷𝐓𝐨𝐭𝐚𝐥 𝐂𝐨𝐬𝐭 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 (𝐓𝐂𝐌) role is being severe in product design & development stage & production stage. This contrasts with traditional cost management role limited in production stage for cost control purpose.

@etconl

👉Procedure for rebound hammer test:

💫It is essential to calibrate the rebound hammer tool before using it to test a concrete section.

⏺The hammer is tested against a test anvil made from steel to calibrate the rebound hammer.

⏺The steel anvil has a Brinell hardness number approximately equal to 5000N/mm2.

⏺After successful calibration against the test anvil, the rebound hammer is pressed against the concrete surface orthogonally to take the readings from the graduated scale in the hammer itself.

🚧The hammer is kept horizontal against vertical surfaces. When we align the hammer at any alternative angle other than 90o against any surface gives a different value for the same concrete.

⏺The rebound value varies with the type of application. Approximate impact energies are different for different surface applications.

🌟Some average impact energy levels are given below for various applications:

1. Normal Weight Concrete - 2.25

2. Light Weight Concrete - 0.75

3. Mass Concrete Testing - 30.00

@etconp

👉Construction Accounting Formulas

1. Gross Profit = Sales – Cost of Goods Sold

2. Gross Profit Margin = (Gross Profit / Sales) x 100

3. Operating Profit = Gross Profit – Operating Expenses

4. Operating Profit Margin = (Operating Profit / Sales) x 100

5. Net Profit Margin = (Net Profit / Sales) x 100

6. Return on Investment (ROI) = (Gain/Cost) x 100

7. Return on Equity (ROE) = (Net Profit / Shareholder Equity) x 100

8. Asset Turnover = Sales / Total Assets

9. Inventory Turnover = Cost of Goods Sold / Average Inventory

10. Days Sales Outstanding (DSO) = Accounts Receivable /Sales x Number of Days

11. Days Inventory Outstanding (DIO)= Inventory / Cost of Goods Sold x 365

12. Current Ratio = Current Assets / Current Liabilities

13. Quick Ratio = (Current Assets – Inventory) / Current Liabilities

14. Debt-to-Equity Ratio = Total Debt / Shareholder Equity

15. Earnings Per Share (EPS) = Net Profit/Number of Shares

16. Price-Earnings Ratio (P/E Ratio) Stock Price / EPS

17. Break-Even Point (BEP) = Fixed Costs/ (Selling Price -Variable Costs)

18. Margin of Safety = (Sales – BEP) / Sales

19. Cost of Goods Sold (COGS) = Direct Materials + Direct Labor Overheads

20. Operating Leverage = (Operating Profit/Sales) x (Sales /Fixed Costs)

21. Financial Leverage = (Net Profit/Operating Profit) x (Operating Profit / Sales)

22. Return on Assets (ROA) = Net Profit/Total Assets

23. Return on Capital Employed (ROCE) EBIT / (Total Assets – Current Liabilities)

24. Residual Income (RI) = Net Profit (Total Assets x Cost of Capital)

25. Economic Value Added (EVA) = Net Profit – (Total Assets x Cost of Capital)

26. Cash Conversion Cycle = DIO + DSO-Days Payable Outstanding (DPO)

27. Asset Utilization Sales / Total Assets

28. Profitability Index (PI) = Present Value of Future Cash Flows/Initial Investment

29. Accounting Rate of Return (ARR) = Average Annual Profit/Average Investment

30. Payback Period = Initial Investment / Annual Cash Inflows

31. Discounted Payback Period = Initial Investment/Discounted Cash Inflows

32. Net Present Value (NPV) = Present Value of Future Cash Flows Initial Investment

33. Internal Rate of Return (IRR) = Discount Rate that sets NPV to zero

34. Cost of Capital = Weighted Average of Debt and Equity Costs

35. Weighted Average Cost of Capital (WACC) = (Cost of Debt x Debt) + (Cost of Equity x Equity)

36. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) = Net Profit + Interest + Taxes + Depreciation + Amortization

37. Interest Coverage Ratio = EBIT/Interest Expenses

38. Cash Flow Margin = (Operating Cash Flow / Sales) x 100

39. Cash Flow Return on Investment (CFROI) = Operating Cash Flow/Total Assets

40. Free Cash Flow (FCF) = Operating Cash Flow – Capital Expenditures

@etconp