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5/19/2020 Construction Updates: Reconciliation

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             All civil Engineering works invariably require various material for incorporation and completion of work. These January (26)
materials could be procured by the Employer or the contractor. In some cases the employer stipulates that
certain materials would be issued by him and the contractor should quote for the work accordingly. In other cases Labels
the employer may leave procurement of materials to the contractor.
Admixtures (4)
              In both these cases, the material need to be accounted in the bills for payment. This is a very important function Cement (3)
of quantity surveyors and executives. Non reconciliation will result in delay in clearance of bills as well as Concrete (1)
recoveries as per conditions of contract. Some organization may stipulate recoveries for non reconciled materials Construction Management (23)
at penal rates of recovery
Formwork (5)

      Pre Stress/Post Stress (1)


Reinforcement (2)
  Road (6)
Soil (5)
     What is Reconciliation?    
Vaastu (1)
     It is the process of comparing the standard data with actual data after considering data relating to variances. Waterproofing (4)

 
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      E.g. Suppose 100 MT of  16mm dia. TMT steel bars of Fe-500 grade are procured.  Assume that the weight of the bar
received  is 1.63 kg/ Rm. The  weight variation details of the consignment are as follows:
BTemplates.com
 

Total weight of steel received    1,00,000 kg Main Menu

Standard weight of steel            1.58 kg/m Home


Length of steel received         1,00,000/ 1.63 Features
_ShortCodes
= 61,349.693 m (Actual weight 1.63 kg/Rm.)
_SiteMap
Length of steel as per standard weight  1,00,000/1.58 = 63,291.139m
_Error Page
Loss of weight  0.05/1.58 = 3.16% Documentation
Weight computed by measurement and std. wt. Video Documentation
=61,349.693 x 1.58 = 96,932.50 kg Download This Template

Loss of weight = 3067.50 kg


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Ø Scrap rss

Ø Improper bar bending


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Ø Miscellaneous usages

Issue of materials by Employer:

§ Estimate the sizes and quantities of materials

§ Procurement

§ Check on receipt from supplier with regards to correct size, quality and quantity and weight

§ Account these materials in the material ledgers with all the characteristics

§ Issue to contractor against indent specifying the quantity (Units, Tonnage, length etc.)

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5/19/2020 Construction Updates: Reconciliation
Procurement of Materials by contractor: Followers (61) Next

§ Estimate the sizes and quantities of materials

§ Get approval for the source of supply from Employer, and procure

§ Check on receipt from supplier with regards to correct size, quality and quantity and get them checked by employer

§ Account these materials in the material ledgers with all the characteristics

§ Issue to work site

  Follow

Preliminary check of materials:

Ø Check for quality

Ø Check Size, unit weight, physical Characteristics and keep record

Ø In case of steel the unit weight of steel will be assessed by weighing random samples/ weighing a bundle and
comparing with standard weight as per BIS and working out variance for conformity within tolerance

Incorporation of materials in work:

Ø Study the drawings and specifications and prepare method statements

Ø Prepare BBS/ shop drawings for steel items to conform to Architectural/ structural drawings

Ø Get them approved by Employer/consultants

Ø Check availability of material and examine how best cutting could be done to minimize wastage

Ø Fabricate and erect

Ø Correct the BBS on incorporation in the work before pouring concrete

Joint Measurements:

Ø  Preliminary check and approval by structural Engineer/ Architect/MEP consultant

Ø Preparation of joint measurements after checking the respective drawings and as provided at site

Ø Record any additional provisions  required at site but not shown in GFC drawings

Ø Assess the quantities in the respective units as per BOQ

Measurements for payment:

Ø  For completed items of work joint measurements will form the basis

Ø Joint measurements will be signed by both the parties

Ø For additional items of work not covered in BOQ a separate detail will be kept

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   Issue of materials by Employer and Reconciliation in Running bills:

Ø Prepare the list of stores issued. If it is steel, the issue must show the weight of steel issued, the size, length, and 1 8 1 0 3 4 1
number of bars

Ø Alternately, the unit weight of steel shall be assessed based on actual weight of random samples or bunch of bars. Labels
This weight need to be compared with standard weight as per BIS.
Admixtures Cement Concrete

Construction Management
Formwork Pre Stress/Post Stress Reinforcemen
  Road Soil Vaastu Waterproofing

   Issue of materials by Employer and reconciliation in Running bills:


About
Ø The difference between actual weight and standard weight shall be kept in the issue register
Labels
Ø This procedure need to be repeated for each fresh consignment and for each size of bar
Admixtures (4) Cement (3) Concrete (1
Ø The contractor/subcontractor must be charged at standard weight only
Construction Management
  (23) Formwork (5) Pre Stress/Post Stress (1
Reinforcement (2) Road (6) Soil (5) Vaastu (1
   Issue of Materials by Employer and Reconciliation in Running bills: Waterproofing (4)

Ø The difference of weight has to be borne by the employer and written off from the materials ledgers periodically so
that ground balances tally with ledger balances Follow Us

Ø If the figures do not tally the matter should be investigated further and corrective action taken

  Issue of Materials by Employer and Reconciliation in Running bills:


Ø Contractor shall be asked to submit reconciliation statement with each bill or at periodicity as specified
Ø Off cuts/scrap should be defined. E.g. Steel bars above 1.5m can be considered as off cuts and below could be
considered as scrap
Ø The off cuts and scrap shall be periodically verified jointly by rep. of employer and contractor.

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5/19/2020 Construction Updates: Reconciliation

Construction Up…
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   Issue of Materials by Employer and Reconciliation in Running bills:

Ø Other items like cement bags, pipes, fittings, shuttering plates, masonry blocks etc. could be counted in numbers
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and accounted

Ø If reconciliation statement is not submitted suitable amount needs to be withheld in the bills Be the first of your friends to like this

 
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   Issue of Materials by Employer and Reconciliation in Final bill:
Updates
about 2 months ago
Ø In the final bill all materials issued by the employer must be accounted. The bill can’t be progressed unless the
reconciliation statement is not submitted https://constructionduniya.blog
spot.com/…/stability-analysi…
Ø Base percentages for wastages, scrap shall be specified in the contract Agreement
#stabilityanalysis #civil
Ø For unaccounted materials penal recoveries shall be effected #CivilEngineering
#Construction #Building
  #ConstructionUpdates
#Restoration
   Materials Procured by contractor and Reconciliation in Final bill:

Ø For  material procured by contractor the contractor need to produce purchase vouchers, transport challans, test
certificates, gate passes or any other proof required by the employer to satisfy that the materials conform to
specifications and requisite quantity of material was brought to site and actually incorporated in the work CO…
St…
 
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   Reconciliation of work done: Similar to accounting done for the materials, the work done need to be compared with
the BOQ or the base estimate. The base estimate may consist of abstract quantities and rates. The actual work Blogroll
may consist of either sub contractor’s work or materials supplied by employer, labour rates, machinery charges,
taxes, royalties and other miscellaneous charges.
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VARIOUS TYPES OF FLOOR
   BOQ as a Base estimate: If the contract is based on BOQ it can be taken as base estimate and comparisons could be
FINISHES IN
made with actual work done. If the contract is based on lump sum the estimate made subsequently will be taken   DEFINITION OF FLOORS:
as base estimate. The purpose of this comparison is to find out the variances from the base and to monitor and Floors are horizontal
control the variances elements of building
structures which divide
building into different levels for the
purpose of...

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ROOFS
    Terrace is the most
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MACHINERY
    1.                DOZER (D – 6)    
Speed                                    =          1.5
Km / Hr. No. of Passes           =          ...

Categories

Admixtures
Cement
Concrete
Construction Management
Formwork
Pre Stress/Post Stress
Reinforcement
 
Road
   Actual work Done: The actual work could be carried out through a sub contractor or by the main contractor by Soil
supplying the main resources like materials, equipment, shuttering etc. and the sub contractor may be asked to Vaastu
provide necessary labour. In such cases the value of work done could be aggregated and other incidentals and Waterproofing
taxes are added.

    Variances: Blogroll About

Ø Earned value of work done is assessed by measuring the quantity of work done. This is done item wise and
230,000 230,000
compared with contract quantity. The difference is treated as quantity variance and converted into amount by
multiplying with contract rates.

 
230,000 230,000
    Direct cost variance= Standard cost- Actual cost

Ø Work change orders are shown separately


230,000 230,000
    Variances:

Ø Material incorporated will be assessed and compared with standard quantity and rate

https://constructionduniya.blogspot.com/2012/01/reconciliation.html 3/9
5/19/2020 Construction Updates: Reconciliation
   Material cost variance= Standard cost- Actual cost (Material usage variance + Material price variance)
230,000 230,000
Ø Equipment used in the work will be assessed and compared with standard productivity cost

    Equipment variance = Standard cost- Actual cost

Blog Archive

January (26)

Co Std. Rate for one Std. Cost for 4 Rafts Actual Cost for 4
st Raft Rafts
for
4
Ra Desc U SR Qt Std. Qty Actu
fts ripti ni y Cost al
on t Cost

1 Mate M 5, 32 16,3 330 17,1


rial ³ 00 6. 2,00 M³ 6,00
0 4 0 0

2 Labo M 40 - 1,30 - 1,40,


ur ³ 0 do ,500 do- 250
-

3 Eqpt M 80 - 25,1 - 25,1


. ³ do 12 do- 12
-

4 shutt M 20 - 65,2 - 60,0


ering ³ 0 do 80 do- 00
-

Total 18,5 19,5


Cost 2,89 3,96
2 2

Note: Standard quantity of 4 rafts, each 80 M3 plus 25 WASTAGE = 4 X 80 X 1.02 = 326.40

COST DATA FOR CASTING FOUR RAFS

Category Std. Cost Actual Cost Variance

Material 16,32,000 17,16,000 -84,000

Labour 1,30,500 1,40,250 -9,750

Equipment 25,112 25,112 0

https://constructionduniya.blogspot.com/2012/01/reconciliation.html 4/9
5/19/2020 Construction Updates: Reconciliation

Shuttering 65,250 60,000 +5,250

18,52,862 19,41,362 -88,500

(-) 4.80%(Unfavourable)

                       Summary of Cost Data     

   Analysis of Earned value: From cost variances of work done, materials incorporated and equipment employed the
earned value will be analyzed and corrective action taken to ensure profitability. This is basically the duty of
quantity surveyor  to bring out possible loss of profitability to the Management at periodic intervals.

   Case Study: Reconciliation of steel issued in a Real Estate multistory building:

   Brief description of project: The project is 15 story residential RCC framed building having 10 flats in each floor. The
building has sub cellar and cellar for parking. Various sizes of Fe 500 TMT steel was issued. The issues size wise
are shown below. Reconcile the steel statement and offer comments. The work is still in progress.

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5/19/2020 Construction Updates: Reconciliation

https://constructionduniya.blogspot.com/2012/01/reconciliation.html 6/9
5/19/2020 Construction Updates: Reconciliation

   Reconciliation Statement up to 12th RA bill: Unit: MT

S Descriptio 8m 10m 12m 16m 20m 25m 32


l n m m m m m m mm
.
N
o

1 Total issue 314. 180. 30.9 222. 339. 193. 28.


3 36 3 3 0 9 86

2 Consumpti 272. 172. 26.7 184. 282. 174. 25.


on 7 37 4 28 76 35 33

3 Work in 11.8 Nil 0.65 6.73 12.9 5.37 Nil


progress 6 8

4 Full 15.0 Nil Nil 4.00 26.5 10.0 3.0


lengths 0 0 0 0

5 Cut 1.00 Nil 0.50 3.00 3.75 3.00 0.1


lengths 7

6 Scrap 9.40 5.00 0.85 3.60 5.10 Nil Nil

Total 309. 177. 28.7 201. 331. 192. 28.


96 37 4 61 09 72 50

  Notes:

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5/19/2020 Construction Updates: Reconciliation
Ø   Total steel issued     1309.65 MT

Ø Total quantity of scrap  23.95 MT

Ø Lengths indicated are as actually measured or based on random  sample weight on receipt of steel from
Visakhapatnam steel Factory against each consignment

Posted by The Civil Engineer at January 31, 2012

Labels: Construction Management

7 comments:

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One of the prime qualities of a tmt bar is its seismic performance. Good quality bars are known for their high strength, weld
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