Project cost control

CEM Estero S.p.A has a very stringent man-hour cost control procedure that is closely monitored and maintained throughout the execution phase of the project.

The initial man-hour allocation plan is prepared during the tendering stage itself by our Estimating Department. Upon awarding the project, the estimated man-hours are finalised according to any new developments and are then divided among the various activities on the programme in order to establish the accurate manpower loading.

A percentage of the total project is allocated to each activity based on these man-hours, their relative cost and the plant required per activity, These percentages serve two purposes - the first being the establishment of a progress percentage curve for the duration of the contract and the second CEM Estero S.p.A being the basis for the monthly progress payment to be effected, according to the percentage of work completed each month.

Every month the man-hours spent are compared with the authorised man-hours per activity, thereby enabling the Project Manager and the Senior Management to monitor the labour efficiency and to take necessary action, if needed. The percentage completed per month is plotted against the master progress curve, depicting any deviations that may arise and allowing for the necessary actions to be taken. The actual man-hours spent per activity are then fed back to the Estimating Department for future consideration.