PROJECT REPORTING

Quality Management System

PROJECT REPORTING

CONTENTS

1.0 PURPOSE & SCOPE

2.0 DEFINITIONS

3.0 FLOWCHART

4.0 PROCEDURAL TEXT

5.0 REFERENCES

6.0 ATTACHMENTS

 Copyright. This document is the property of PT Thiess Contractors Indonesia and all rights
are reserved in respect of it. This document may not be reproduced or disclosed in any
manner whatsoever, in whole or in part, without the prior written consent of PT Thiess
Contractors Indonesia. PT Thiess Contractors Indonesia expressly disclaims any
responsibility for or liability arising from the use of this document by any third party. Copies
printed from the Thiess Management Systems are UNCONTROLLED.

Revision Status

Issue /
Date Revision Description By Checked Checked Approved
Rev.
Modification from the
A0 October 99 ES RL BAM
corporate procedure
A1 May 00 TMS Intranet Version ES RW RL BAM

A2 Nov 00 TMS Review RO ES RO BAM

1.0 PURPOSE & SCOPE

The purpose of this procedure is to describe the function, content and responsibilities
associated with preparation of Project Reports.

PT Thiess Contractors Indonesia Page 1 of 10 TCI-OPS-SP009/A2

Copies printed from the Thiess Management System are UNCONTROLLED

 PROJECT REPORTING
Quality Management System

2.0 DEFINITIONS
Project Report is a concise summary of the project’s progress, safety
and financial position.
Final Project Report is a concise summary of the previously prepared
monthly Progress Reports, as well as the means to
record important historical information and detailed
work descriptions.

3.0 FLOWCHART
Not applicable to this procedure.

4.0 PROCEDURAL TEXT

4.1 Responsibilities
4.1.1 Project Manager
The Project Manager is responsible for the preparation of Project Reports.
Depending on the size and type of project, assistance is generally obtained
from the surveyor/quantity surveyors on progress measurement, project
engineer or planning engineers on programming and clerical staff for
compilation of lists of site based plant and equipment.
4.2 General
It is a requirement on all projects that on a monthly basis a detailed Project Report is
prepared. A weekly Project Report which mainly containing weekly progress report
without the financial side may also be required by senior management depending on
the nature of the project.
The Project Report is a valuable communication tool and is used by senior
management in the preparation of reports for the Board of Directors.
The monthly Project Report provides a concise summary of the project's progress and
financial position. The information provided in the Project Report is used to prepare
financial budgets and is consolidated to form the Company's trading position.
It is critical to the Company's operation that the Project Report is prepared in a timely
manner and with a degree of professionalism and accuracy that is expected from a
Project Manager.
In addition to verifying the project's progress and financial position, the monthly
Project Report provides the Project Manager with the ability to review important
statistics which also reflect the overall `well being' of the Project. These include safety
and industrial statistics, contractual claims position, subcontracts let within budget etc.
The most critical section of the monthly Project Report is the section for “Forecast
Report”. The Project Manager's ability to accurately forecast the final project revenue
and final project cost (hence project profit) is essential to the statutory reporting
obligations of the Company's financial position.
PT Thiess Contractors Indonesia Page 2 of 10 TCI-OPS-SP009/A2

Copies printed from the Thiess Management System are UNCONTROLLED

 PROJECT REPORTING
Quality Management System

Because the Forecast Report is a vital document, the monthly Project Report can be
prepared using the forecast for the preceding month. This ensures that Project
Managers have sufficient time to prepare their forecast in accordance with the
timetable required by management. Where the Project Manager is satisfied that the
Forecast Report can be prepared accurately for the current month within the timetable
constraints, it is acceptable to use the current month's forecast to prepare the Project
Report.
4.3 Timetable

 The cost accounting system closes off on the last Friday of each month

 On the following Thursday a printout of the ledger costs is provided to the

Project Manager

 The Contract Valuation is to be provided in accordance with the Business Unit

timetable

 The Project Report is to be provided to the appropriate Functional Manager for

review prior to being submitted to the Business Unit Manager on the Thursday
of the following week. Two (2) bound copies are required, one to be retained
by the Business Unit Manager and one to be forwarded by the Business Unit
Manager to the General Manager with the Business Unit Manager's monthly
report. Most of the information contained in the Project Report can be
prepared in advance

 The Forecast Report will have been prepared approximately two (2) weeks
earlier based on the previous month’s costs
4.4 Report Contents - Summary
The Business Unit Manager shall determine the contents of the Progress Report, as a
guide the report may include the following:
4.4.1 Section 1 - Overview
1.0 Narrative
4.4.2 Section 2 - Financial
2.1 Contract Valuation – refer to TCI-OPS-SP009 and TCI-ACC-SF077
2.2 Forecast Report – refer to TCI-OPS-SP007
2.3 Subcontractors/Supplier Commitments
2.4 Engineering/General Accruals
2.5 Progress Claims/Certificates
2.6 Projected Revenue
4.4.3 Section 3 - Contractual
3.1 Contractual General
3.2 Claims Status Report
3.3 Extension of Time (E.O.T.) log

PT Thiess Contractors Indonesia Page 3 of 10 TCI-OPS-SP009/A2

Copies printed from the Thiess Management System are UNCONTROLLED

 PROJECT REPORTING
Quality Management System

3.4 Variation Status Report

4.4.4 Section 4 - Construction
4.1 Construction Status
4.2 Design Status
4.3 Staff Programme
4.4 Training Requirement - refer to TCI-HRM-SP001

4.5 Wages and Subcontractors Summary

4.6 Plant and Equipment Programme
4.7 Programme - refer to TCI-OPS-SP008
4.8 Production Studies
4.4.5 Section 5 - Industrial
5.1 Health & Safety Report
5.2 Industrial Summary
5.3 Instant Claim Forms
5.4 Accident Investigation Reports
5.5 Safety Audits
4.4.6 Section 6 - Quality Report
6.1 Overview
6.2 Non-conformance reports - refer to TCI-QUC-SP005
6.3 Remedial Work - refer to TCI-QUA-SP004
6.4 Quality Audits - refer to TCI-QUA-SP005
4.4.7 Section 7 – Environmental
7.1 Overview
7.2 Environmental Report
4.4.8 Section 8 -- Project Photograph
4.5 Report Contents - Explanation
Brief guidelines are provided below on the information required. Standard forms are
provided as an attachment to this procedure per Section 6 “Quality Report”.
4.5.1 Section 1 - Overview
A brief narrative, not more than half a page summarising progress, significant
milestones, existing or potential problems, immediate requirements for
resources, relationship with consultants, Client, union, etc, is required.

PT Thiess Contractors Indonesia Page 4 of 10 TCI-OPS-SP009/A2

Copies printed from the Thiess Management System are UNCONTROLLED

 PROJECT REPORTING
Quality Management System

4.5.2 Section 2 - Financial

i) TCI-ACC-SF077 “Contract Valuation” and TCI-OPS-SP009-ATT6.2
“Contract Valuation Details” is a standard form to be completed and
included in the Progress Report. A Contract Valuation Proforma and
the instruction how to fill Contract Valuation is included in TCI-OPS-
SP009-ATT6.2.
ii) Forecast Report - Refer TCI-OPS-SP007 “Cost Control" and TCI-
OPS-SP009-ATT6.3A, B & C.. The Forecast Report is the detailed
cost statement required to be produced monthly using the computerised
site costing system, "SITEMAN". Depending on the forecasting
methodology used (committed cost or actual cost), the following
reports are available from SITEMAN:
iii) TCI-OPS-SP009-ATT6.3A “Committed Cost Forecast Report”
iv) TCI-OPS-SP009-ATT6.3B “Actual Cost Forecast Report”
v) TCI-OPS-SP009-ATT6.3C “Actual Cost Forecast Report – Detailed”
vi) It is recommended that for all but the simplest projects that if actual
cost forecasting is used that the Detailed Forecast Report be used
vii) TCI-OPS-SF162 “Subcontractor/Supplier Commitment”. The
Subcontractor/Supplier Commitment form is a standard form to be
completed and included in the Progress Report. The form is
particularly useful on contracts with large supply/subcontract
components, where the overall job profit will be affected by the skilful
procurement of supply and services. The form is progressively updated
as services are procured
viii) Engineering/General Accruals. The Accruals Journals prepared is to be
included in the Progress Report
ix) TCI-OPS-SF159 “Reconciliation – Unpaid Progress Claim”.The
minimum to be included is the current monthly progress claim summary
(which supports the details provided on the Contract Valuation). If
requested by the Business Unit Manager, the Project Report is to
provide the full monthly progress claim in the Progress Report. The
payment certificate issued by the Client/Consultant for the previous
month’s progress claim is also to be included. A reconciliation of
unpaid/uncertified progress claims is to be included TCI-OPS-SF159
“Reconciliation – Unpaid Progress Claim”.
x) TCI-OPS-SF158 “Projected Revenue”. The Projected Revenue form is
a standard form to be completed and included in the Progress Report.
The Projected Revenue form is used by senior management in
developing overall Company budgets and predicting total Company
revenue

PT Thiess Contractors Indonesia Page 5 of 10 TCI-OPS-SP009/A2

Copies printed from the Thiess Management System are UNCONTROLLED

 PROJECT REPORTING
Quality Management System

4.5.3 Section 3 - Contractual

i) 3.1 - Contractual – General. A brief overview of contractual
relationship with the client and any potential problems with
subcontractors or suppliers is required
ii) 3.2 - Claims Summary. TCI-OPS-SF157 “Claims Status Report” is a
standard form to be completed and included in the Progress Report.
Any variation which is not approved or agreed in principle within 3
months of submission is considered to be a contractual claim
iii) 3.3 - Extension of Time Summary. TCI-OPS-SF153 “Extension of
Time” summary is a standard form to be completed and included with
the Progress Report
iv) 3.4 - Variation Status. TCI-OPS-SP009-ATT6.9 “Variation Status
Report” is produced by the SITEMAN system and gives complete
details of:

 Variations submitted

 Variations approved

 Value of variations taken up in forecast

4.5.4 Section 4 - Construction
i) 4.1 - Construction Status. Detailed overview of the project’s progress
along with a review of the project's requirements for resources
(personnel, plant, labour, etc.) is required
ii) 4.2 - Design Status. Detailed overview of the status of the design,
particularly if the design is by Thiess. If this is the case the programme
for design together with any significant design issues or changes should
be highlighted
iii) 4.3 - TCI-OPS-SF160 “Staff Programme”. Detailed list of current site
staff including date arrived on site, expected departure date, etc. This
listing is to provide for allocated staff (i.e. staff that you have been
advised by the Business Unit Manager that will be committed to the
project) and unallocated staff (positions to be filled but for which no
names have been provided)
iv) 4.4 - Training Requirements. A list of training courses available
through the current Thiess training Programme is provided in the
"Thiess Training & Development Programme". The Project Manager
should liaise with the Construction Manager/Business Unit and provide
a list of training requirements that can be married into the training
requirement for the Project/Business Unit

PT Thiess Contractors Indonesia Page 6 of 10 TCI-OPS-SP009/A2

Copies printed from the Thiess Management System are UNCONTROLLED

 PROJECT REPORTING
Quality Management System

v) 4.5 - Wages and Sub-Contractors Summary. A summarised list of

Thiess wages personnel and subcontractors wages personnel on site at
the end of each cost period is required (by classification and number)
along with comments on future needs, etc.
vi) 4.6 - Plant and Equipment Programme. A summarised list of plant and
equipment is required in the Project Report to cover Thiess Plant
Department, hired in plant and project owned plant. Standard forms are
provided in TCI-OPS-SF156 “Plant and Equipment - Thiess, TCI-OPS-
SF154 “Plant and Equipment – Hired In” & TCI-OPS-SF155 “Plant
and Equipment – Project Owned”
vii) 4.7 – Programme. The current construction programme is to be
included in the monthly report. The programme is to be prepared in
accordance with TCI-OPS-SP008 "Project Programming"
viii) 4.8 - Production Studies. Where the Project Manager prepares
daily/weekly or cumulative graphs of production or costs that give a
graphical or tabular indication of progress/costs, these are to be
included in the report
4.5.5 Section 5 - Industrial
i) 5.1 - TCI-OHS-SF023 “Health & Safety Environment Monthly Report”
is to be completed and included in the Progress Report. Refer TCI-
OHS-SP014 “Management Reporting”
ii) 5.2 - Industrial Summary. Details of any industrial disputation or
incidents are to be provided. Details of visits by union officials are also
to be provided
iii) 5.3 - Instant Claim Forms. In the event of any cause that requires the
preparation of TCI-ACC-SF091 “Instant Claim Form”, a copy is to be
included in the Progress Report
iv) 5.4 - Accident Investigation Report. In the event of any cause that
requires the preparation of an Accident Investigation Report, a copy is
to be included in the Progress Report
v) 5.5 - Safety Audits. A summary of any internal or external safety audit
reports are to be included in the Progress Report
4.5.6 Section 6 - Quality Report
i) 6.1 – Overview. A brief narrative outlining the progress of the
implementation of the Quality Assurance/Quality Control is required
ii) 6.2 - Non-Conformance Reports. A copy of all non-conformance
registers resulting from Quality Control measures are to be included in
the Progress Report

PT Thiess Contractors Indonesia Page 7 of 10 TCI-OPS-SP009/A2

Copies printed from the Thiess Management System are UNCONTROLLED

 PROJECT REPORTING
Quality Management System

iii) 6.3 - Cost of Remedial Works. The Project Manager is required to

provide the estimated or actual costs of the additional work required to
rectify a non-conformance report
iv) 6.4 - Quality Audits. A summary of any internal or external quality
audit reports are to be included in the Progress Report
4.5.7 Section 7 – Environmental
i) 7.1 – TCI-OHS-SF023 “Health & Safety and Environment Monthly
Report” is to be completed and included in the Progress Report
ii) 7.2 – Environmental Performance – Provide a summary of actual
environmental performance against the objectives and targets set in the
Environmental Management Plan. Where appropriate, provide
tables/graphs showing environmental monitoring data
iii) 7.3 – Incident Investigation Report – In the event of any cause that
requires the preparation of an incident investigation report, a copy is to
be included in the Progress Report and summarised in the text.
Summarise any breaches of Contract and/or legislative environmental
conditions and notification to relevant authorities.
iv) 7.4 – External consultant and complaints – In the event that any
complaints have been received, a copy of the complaint form is to be included
in the Progress Report and summarised in the text. Any pro-active
consultation with external stakeholders, as set out in the Environmental
Management Plan, is to be reported.
v) 7.5 – Environmental Audits – A summary of any internal or external
environmental audit reports are to be included in the Progress Report.

4.5.8 Section 8 - Project Photographs

Project Managers should ensure that a camera is available at all times on site.
A photo album should be kept on site with captions and dates shown to record
significant events. A small selection of these photographs should be included in
the Progress Report.

4.6 Final Project Report

4.6.1 General
The Final Project Report will be accessed by various service departments
within the Company to obtain information that is useful for estimating and
marketing. It is also used as an historical information source for senior
managers on production rates, work methods/techniques, systems
development, etc.

PT Thiess Contractors Indonesia Page 8 of 10 TCI-OPS-SP009/A2

Copies printed from the Thiess Management System are UNCONTROLLED

 PROJECT REPORTING
Quality Management System

The Project Manager should include any information that may be of benefit to
the Company on future projects.
The Project Manager should also include any information that relates to
unresolved matters at completion, i.e. potential/existing defects, unapproved
variations, etc.
4.7 Final Report Guidelines
The Final Report is to be modelled on the Project Report (refer to Section 4.4 “Report
Contents – Summary”) and provide a complete overview of the Project.
The following is a guide to the preparation of the Final Project Report.
4.7.1 Section 1 - Overview
Include a detailed scope of work, project description, project staff, client/
consultant details, construction time. List major work items and quantities of
work performed. The overview should be of sufficient detail to allow a project
description marketing sheet to be prepared.
4.7.2 Section 2 - Financial
Include TCI-ACC-SF077 “Contract Valuation”, and Forecast Report, along
with summary overview of project items which impacted on the profitability or
otherwise of the project.
4.7.3 Section 3 – Contractual
Include the final Claims Status Report and detailed commentary on any matters
that remain unresolved. Sufficient detail should be included such that if the
Project Manager is assigned other duties at the completion of the project, the
remaining issues can be attended to by the Business Unit Manager. Include the
status of all subcontractors and supplies with regards to retention, final
releases, defects, etc.
4.7.4 Section 4 - Construction
Include a summary of project achievements, listing any details which may be of
benefit in preparing estimates, planning or performing similar projects.
The report should include a detailed list of the major subcontractors and
suppliers along with comments on their performance.
Detailed production studies or technical reports should be included on the
performance of plant and equipment, labour production rates, etc.
An "As Built" programme is to be included.
Temporary works design drawings are to be included.

PT Thiess Contractors Indonesia Page 9 of 10 TCI-OPS-SP009/A2

Copies printed from the Thiess Management System are UNCONTROLLED

 PROJECT REPORTING
Quality Management System

4.7.5 Section 5 - Industrial

A final summary of the project industrial statistics is to be included along with
any appropriate comments on training programmes, site safety achievements.
Comments on the relationship with union officials, Department of Occupational
Health and Safety etc., should also be included. A list of personnel (if any) on
worker’s compensation or rehabilitation programmes is to be included.
4.7.6 Section 6 - Quality Report
An overview of the implementation of the Quality Assurance along with project
achievements or concerns regarding the quality of the work and cost of non-
conformance is required.
4.7.7 Section 7 – Environmental
A final summary of project environmental performance, along with any
appropriate comments on training programmes, technical solutions to
environmental issues, site environmental achievements. Comment on
relationships with regulatory authorities and external stakeholders (neighbours
etc.). Comment on the environmental conditions imposed on the project by the
Contract and regulatory authorities. Detail any issues which may be of benefit
in planning or performing similar projects.
4.7.8 Section 8 - Project Photographs
A selection of photographs, with caption and dates, to be included such that
when used with the Overview, a detailed project description sheet can be
prepared.
4.7.9 Section 9 – Key Learning Outcomes
Containing all the pertinent information, knowledge & project highlights that
are extracted upon a completion of the project. These outcomes are then used
to build the Company knowledge database for the purpose of learning.
5.0 REFERENCES
TCI-OPS-SP007 - Cost Control
TCI-OPS-SP008 - Project Programming
TCI-HRM-SP001 - Training
TCI-QUC-SP005 - Control of Non-Conforming Products and Services
TCI-QUA-SP004 - Corrective Action
TCI-QUA-SP005 - Quality Audits
TCI-ACC-SF077 - Contract Valuation
TCI-OPS-SF162 - Subcontractor/Supplier Commitment
TCI-OPS-SF159 - Reconciliation - Unpaid Progress Claims
TCI-OPS-SF158 - Projected Revenue
TCI-OPS-SF151 - Claims Status Report
TCI-OPS-SF153 - Extension of Time
TCI-OPS-SF160 - Staff Programme
TCI-OPS-SF156 - Plant and Equipment - Thiess
PT Thiess Contractors Indonesia Page 10 of 10 TCI-OPS-SP009/A2

Copies printed from the Thiess Management System are UNCONTROLLED

 PROJECT REPORTING
Quality Management System

TCI-OPS-SF154 - Plant and Equipment - Hired In

TCI-OPS-SF155 - Plant and Equipment - Project Owned
TCI-OHS-SF023 - HS&E Monthly Report

6.0 ATTACHMENTS

TCI-OPS-SP009-ATT6.2 - Contract Valuation Details

TCI-OPS-SP009-ATT6.3A - Forecast Report - Committed Cost
TCI-OPS-SP009-ATT6.3B - Forecast Report - Actual Cost
TCI-OPS-SP009-ATT6.3C - Forecast Report - Actual Cost Detailed
TCI-OPS-SP04-ATT6.9 - Variation Status Report

PT Thiess Contractors Indonesia Page 11 of 10 TCI-OPS-SP009/A2

Copies printed from the Thiess Management System are UNCONTROLLED

 CONTRACT VALUATION DETAILS

At the end of each month, the financial status of a contract is reported by the preparation
of a Contract Valuation. Each valuation is prepared by the Discipline/Operations/
Administration Manager prior to final review by the Business Unit Manager.

The Contract Valuation relates to the Forecast Report for the month or quarter prior to the
month for which the Contract Valuation is being prepared. An explanation is required if
the profit reported on the Contract Valuation differs from the profit on the Forecast
Report. Failure to explain any difference can result in the Company being exposed to
heavy tax penalties.

The Contract Valuation form has been designed to reconcile the differences between
contract revenue and contract costs and is the means by which revenue and profit are
declared for the project and collected for Business Unit and Company discounts.

The Company policy is that no project profits are declared in the Company accounts until a
project is more than 20% complete on the basis of costs (called 20% threshold). The full
profit is then taken up in accounts over the last 80% of the project (measured on the basis
of costs).

If profit was released on a straight line, then the difference between this and declared profit
is referred to as the Deferred Apparent Surplus (DAS) i.e. profit that should be available
but is not taken up.

This Deferred Apparent Surplus is covered in the Overclaims section contained herein.

The Contract Net Profit (CNP) declared on the Contract Valuation form on a cumulative
to date basis is calculated accordingly:-

CNP = (% Costs Complete – 20%) x 1.25 x final profit

Refer to the example on the graph on the following page.

PT Thiess Contractors Indonesia Page 1 of 6 TCI-OPS-SP009-ATT6.2/A1

 Contract Valuation Details

Graph of D.A.S. & C.N.P.

Graph of D.A.S & C.N.P
700
600 D.A.S C.N.P.
500
400
Final forecast profit =
300 611
PROFIT -$'000 189
200 D.A.S. = 189-84 = 105
84
100 C.N.P. = 84
0
0 20 31 40 60 80 100
% COMPLETE ON BASIS OF COST

CNP = (31% - 20%) X 1.25 X 611

= 84

The Deferred Apparent Surplus is:-

DAS = 31% x 611 – 84

= 105

In summary, on a straight line basis the project when 31% complete should have produced
189 profit (.31 x 611). The Company declared 84 using the 20% threshold, and the
balance, 105, is treated as a Deferred Apparent Surplus in the Overclaims.

If a loss is being forecast, the full loss is brought to account in the Cumulative to Date
column and the DAS is Nil.

A proforma Contract Valuation and worked example is attached.

The following provides an explanation of each of the Contract Valuation form.

PT Thiess Contractors Indonesia Page 2 of 6 TCI-OPS-SP009-ATT6.2/A1

 Contract Valuation Details
GENERAL

Contract Name As per Project Notification

Contract Number As per Project Notification

Client As per Project Notification

Month Current reporting period

Base Tender Date The date on which the contract tender was submitted

Contract Award Date The date of award of the contract

Original Contract Completion The date for completion of the contract under the terms and
Date conditions of the contract at the Contract Award Date
Current Contractual The date for completion of the contract under the terms and
Completion Date conditions of the contract excluding the maintenance period,
including all approved extensions of time for variations, wet
weather etc.
Forecast/Actual Completion The assessment of the final completion date for the contract
Date recognising current overrun of time, future expected time
delays/savings. For completed contracts – the actual date of
completion
VALUATION

Original tender values submitted to the client adjusted for

Original Contract Value
Previous Cumulative
This Month
Cumulative to Date
Revised Contract Value
Progress Claim No.
Progress Claim Date
Progress Claim Value
negotiations prior to contract award i.e. Original contract value,
costs, profit, as power the Project Notification. These amounts
remain unchanged.
Contract Valuation, costs, etc. from the beginning of the contract
to the end of the previous month.
Difference between the “Cumulative to Date” and Previous
Cumulative.
Contract Valuations, costs, etc. since the beginning of the
contract.
Forecast final contract valuation, costs, etc. which must relate to
the Forecast Report. This column is to be updated each quarter
only, unless the monthly change is significant and/or the contract
is closed. The values to be used to update this column quarterly
are to be those from the Forecast Report for the month prior to
the end of each quarter.
Records the number of the current month’s claim submitted to
the client. The claim number is to be shown in “This Month”
column.
The date the current month’s claim submitted to the client. This
date is used to calculate the contractual date for payment of the
claim.
The value of the progress claim that relates to the original
contract tender for lump sum contracts or the extended contract
price for a schedule of rates contracts based on approved
quantities or quantities determined on an agree basis.

PT Thiess Contractors Indonesia Page 3 of 6 TCI-OPS-SP009-ATT6.2/A1

 Contract Valuation Details
Records the value of all approved variation or variations agreed
Progress Claim Variations in principle submitted to the client with the monthly progress
claim. No value is to be shown in the original tender column.
The revised contract value is to only include the total value of
current approved variations or variations agreed in principle.
Progress Claim Rise and Fall The value of rise and fall included in the progress claim. The
revised contract value is to include rise and fall based on the
current rate of recovery in accordance with the contract rise and
fall provisions.
Sub Total Sub total which sums the “Progress Claim Value, Variations and
Rise and Fall”.
Sundry Income Records the value of all miscellaneous invoices relevant to the
contract invoiced to parties other than the client. The revised
contract value will generally equal the cumulative to date column
except where there is identified future sundry income.
Insurance Claims Settled All insurance claims settled and paid by the insurers.
Unapproved insurance claims are not to be valued unless
authorised by the General Manager and are listed under
“Unvalued Contractual and Insurance Claims”.
Total Claim Summation of “Subtotal, Sundry Income and Insurance Claims
Settled”.
REVENUE VARIANCE

Revenue Variance On any contract where the difference between revenue and costs
is adequately explained through contract Underclaims or
Overclaims, the Revenue Variance is nil. If the Revenue
Variance is not nil, this indicates that the stated profit margin is
probably incorrect and needs to be reviewed.
UNDERCLAIMS Underclaims are to be detailed on the second page of the
Contract Valuation and are to include, without being limited to:
Materials on Site The value of all materials on site included in contract costs that
have not been invoiced to the client.
Effect of Unbalanced Bid The under recovered components of items within an unbalanced
bid from progress claims submitted to the client e.g.
mobilisation.
Work Completed not Claimed The value of all work in progress at month end and included in
the contract costs that was not invoiced to the client in the
monthly progress claims and will be billed in future claims and
the position of the an approved variations not agreed in principle
you expect to receive from the client
Contractual Claims The portion of the contractual claims upon which you are relying
to maintain your current forecast profit at completion. These
claims are known as valued claims and approval from the
General Manager is required to include them on the valuation.
The valued claims must not exceed the actual costs incurred in
performing the work that is in dispute.

The full value of valued claims at completion is to be shown in

the “Cumulative to Date” column even if the work has not been
undertaken.

Any variation which is not approved or agreed in principle

within 3 months of submission is deemed to be a Contractual
Claim.

Contract Valuation Details

PT Thiess Contractors Indonesia Page 4 of 6 TCI-OPS-SP009-ATT6.2/A1

Contractual Claims (Cont’d)
OVERCLAIMS
Deferred Apparent Surplus
Contingency Amounts
Captured to Date
Provision for Future Losses
Effect of Unbalanced Bid
General Overclaims
CONTRACT COSTS
CONTRACT NET PROFIT
PREVIOUS FORECAST PROFIT
RATION ANALYSIS
% of Time Completed
% Claims to Date
% Cost to Date
% Profit to Date
PT Thiess Contractors Indonesia
The value of Contractual Claims on which the “Revised Contract
Value” relies is to be shown in the “Revised Contract Value”
column, however no other underclaims are to be shown in this
column.
(Note: It is recommended that the total progress claim submitted
to the Client includes unapproved variations and contractual
claims. However, these amounts are always excluded from the
progress claim or variations value shown on the Contract
Valuation. The only way to recognise revenue from these sources
is through a valued claim as explained above.)
Overclaims are also to be detailed on the second page of the
Contract Valuation and are to include without being limited to:
The value of any apparent profit surplus at the month end over
the profit that has been declared according to the profit
recognition policy i.e. 20% threshold.
All revenue contingencies accumulated to date against the
contract values to date. Contingency amounts are to be shown in
the “Revised Contract Value” column where appropriate.
Amounts provided for future costs that will exceed expected
revenues, usually in contracts where a loss is being forecast as a
result of the full loss being brought to account as soon as it is
forecast.
The over-recovered components of items within unbalanced bid
from progress claims submitted to the client (e.g. front loaded
bids).
All general overclaims included in the progress claim on the
client for which costs have not been incurred or accrued
including the value of work still to be undertaken in respect of
valued claims.
Contract costs are the total costs for the contract. “Original
Tender” costs will remain fixed and include any original cost
contingencies.
“Cumulative to Date” profit is to be calculated as per the profit
recognition formula. The “Revised Contract Value” is to relate to
the forecast report and is to be updated quarterly.
Prior month’s forecast of net profit at completion of the contract.
Elapsed time in weeks from contract start date to the current
month as a percentage of the contractual time or completion.
Total claims to date as a percentage of the revised contract value
total claim figure.
Total contract costs to date as a percentage of the final contract
cost in the “Revised Contract Value” column.
Contract net profit to date as a percentage of the final contract
net profit in the revised contract value column.
Page 5 of 6 TCI-OPS-SP009-ATT6.2/A1
 Contract Valuation Details
FINANCIAL INFORMATION

Gross Claims Total value of progress claims, including retention. This value
must equal “Sub Total Claim – Cumulative to Date” as shown on
the valuation.
Retentions Value of cash retentions retained by the client from progress
claims submitted
Received to Date Value of all cash received from the client to the end of the
calendar month for progress claims
Amount Contractually Due The value of outstanding progress claims which are contractual
due for payment from the client
Non Current Amount Value of progress claims submitted in previous months which are
Not Due not overdue for payment.
Current Claim Value of the current month’s claim less retention

Valuation at June 30 The total forecast revenue expected as at June 30 of the current
year as calculated on the Projected Revenue form.
COST ANALYSIS

Ledger Costs Cost to date as shown on the Selective Job Cost Summary Report
from the accounting system.
Manual Accruals Total costs accrued by the Project Manager. These accruals
represent the difference between the contract costs and the ledger
costs and must be detailed on an Accrual Journal which is to be
forwarded with the Contract Valuation

CONTRACT VALUATION – SECOND PAGE

In addition to the detailing of Underclaims and Overclaims, the second page also requires
details to be provided for valued Contractual Claims as well as Unvalued Claims and
Insurance Claims. The information required is:

 The date of claim

 Value of claim

 Value expected settlement

 Date of expected settlement

This information is to reflect the information provided in Section 3.2, Claims Status Report
of the Monthly Project Report. (Refer Section 370 of the Project Procedures Manual).

PT Thiess Contractors Indonesia Page 6 of 6 TCI-OPS-SP009-ATT6.2/A1

PT Thiess Contractors Indonesia Page 1 of 1 TCI-OPS-SP009-ATT6.3A/A1
PT Thiess Contractors Indonesia Page 1 of 1 TCI-OPS-SP009-ATT6.3B/A1
PT Thiess Contractors Indonesia Page 1 of 2 TCI-OPS-SP009-ATT6.3C/A1
PT Thiess Contractors Indonesia Page 2 of 2 TCI-OPS-SP009-ATT6.3C/A1
PT Thiess Contractors Indonesia Page 1 of 1 TCI-OPS-SP009-ATT6.9/A1