1.

HUNNAR SHAALA: AN INTRODUCTION

The arid land of Kutch has been prone to frequent disasters – the continuous onset of
droughts every three years in a five year cycle, the recurring earthquakes every 50 years or so
and the cyclones. The people of this region have become extremely vulnerable due to
constant exposure to these natural disasters. A number of voluntary agencies have been
working in this region in an attempt to alleviate poverty and to empower the communities to
take charge of their lives. However, these agencies were mostly working independent of each
other, in different geographical pockets in their own area of expertise.

The cyclone that hit Kutch in 1998 brought together these diverse organizations as a
network, under the name of the Kutch Nav Nirman Abhiyan. During the subsequent disasters
of the 1999 cyclone & the earthquake that devastated Kutch in 2001, this network has worked
towards relief, rehabilitation and disaster mitigation

During the shelter reconstruction planning, it was decided that a shelter cell be formed
to assist the organizations who would be rebuilding houses by providing technical & design
support. (The implementing member organizations had no prior experience of construction,
but had to take it up as part of their rehabilitation activities due to the extent of destruction.)
The use of alternate technologies, dissemination of these technologies to the grass root levels,
the adaptation of these technologies in the local socio – cultural context, the training of
masons & entrepreneurs in these technologies would make the whole reconstruction process
an innovative, affordable and a community driven initiative.

Abhiyan formed a Shelter Innovation Support Center (SISC) for providing technical
assistance and support to these organizations in shelter reconstruction with seismic safe and
low cost innovations. Over the last year the shelter innovations and support center has
worked with the implementing member and non member NGOs in over seventy villages,
besides working with the government on technical guidelines and formulation of shelter
policies. The unit has also worked with renowned research institutions like the Indian
Institute of Science, Bangalore, and Center for Scientific Research, Auroville to bring
alternate technologies to Kutch.

1
 However, the basic purpose of earthquake rehabilitation and reconstruction
intervention was drawing to an end. At this juncture, there was a strong-felt-need for a long
term institution which would exclusively engage in innovation, planning, designing and
training in all areas of the built form, and would train rural and urban entrepreneurs in
construction related technologies. The shelter division of Abhiyan was therefore carved out as
a separate organization called ‘‘Hunnar Shaala’’ (House of Skills), was registered as a Section
25 not for profit organization.

As a separate entity Hunnar Shaala was taking projects in its name but the finance and
accounting system of the organization was managed by Abhiyan but after attaining the
separate status Hunnar Shaala started maintaining its own accounting system from 1st of July,
2004. Hence it became the need of the hour to monitor the projects handled by Hunnar Shaala
and take critical decisions in the implementation process. Therefore in these conditions this
project was being launched.

2. HUNNAR SHAALA ORGANIZATION STRUCTURE AND

RESPONSIBILITY ACCOUNTING

To attain the goals described in the business plan, an organization must coordinate the efforts
of all its employees-from the top executive through all levels of management to every
supervised worker. Responsibility accounting is a system that measures the plans- by budgets
– and actions- by actual results- of each responsibility center. In case of Hunnar Shaala
organization structure signifies arrangement of lines of responsibility primarily by business
function. I.e. Design Division, Project Division, Mati division.

Hunnar Shaala each department can be categorized as a responsibility center whose division
head is responsible for certain set of activities. Further analysis of various responsibility
centres can be categorized as cost center, revenue center or profit center.

Hunnar Shaala existing responsibility center:

1. Design Division: Design division is responsible for fulfilling the client requirement in
terms of designing the structure. It has its own client base apart from that it works in
tandem with project division for the implementation process. Therefore according to
the nature of work performed it is evident that design division is responsible for
revenues and cost hence it can be termed as profit center for the organization.

2
 2. Project Division: Project division works in a form of supervision and monitoring
agency for the project implementation process. It ensures that the project status is
according to the schedule and works on the basis of design prepared by design
division and client requirement. Hence it also possesses its own client base. On the
basis of projects being taken for design it can be termed as another profit center of
Hunnar Shaala.

3. Mati Division (Rammed Earth and Block Production): This division is engaged in
making structure while using rammed earth technology simultaneously block
production process for the purpose of catering to the requirement posed by project
division. According to the existing system where Mati division is working on the
basis of projects of project division and charging its profit on cost plus basis hence it
can be categorized as profit center of Hunnar Shaala.

4. DEWATS Division: DEWATS works on the basis of client requirement of

decentralized water treatment system. Hence it also maintains its own client base.
DEWATS division is another profit center for Hunnar Shaala.

5. Space Frame Division: This division is engaged in erecting roof structure and
contributing to the organization in generation of profits hence it is also one of the
profit center for the organization.

6. Administrative Division: Administration division is providing assistance to all other

divisions in terms of maintaining records and catering to all other requirements posed
by other divisions. Hence manager is accountable for costs only therefore it is the
only cost center of Hunnar Shaala.

3. HUNNAR SHAALA PROJECT IMPLEMENTATION SYSTEM

Hunnar Shaala project implementation process begins from receiving grant and funds from
the client and developing a common understanding with the client with respect to
deliverables. Depending on the assistance sought by the client Hunnar Shaala provides its
services in terms of design, project supervision and monitoring, DEWATS etc. In the existing
system after the finalization of drawings of the proposed structure other divisions prepare
their estimates and budget for the client and internal purposes for assessing the profitability of

3
the project. After the estimation process proper planning is done for project implementation
process. In the existing system project division is providing its services in supervision and
monitoring of the project. In terms of input and raw materials and labour requirement project
division decides about the system to be followed. Currently two kinds of contract are
prevalent; one is contract for labour only and other type includes both raw material and
labour component. Contracts are being allocated on the basis of estimates and quotation.

The primary problem that Hunnar Shaala has been facing is with respect to inadequate and
insufficient information in terms of project status. Generally there are two kinds of exception
that arise in the case of construction business is cost and time overruns. Hence it is necessary
for the management and the project team to recognise these exceptions in time to take
appropriate actions and decisions on every stage of project implementation process.

On the basis of comparison of Hunnar Shaala with other construction firms it has relatively
higher proportion of administrative overheads and currently these overheads are being are
allocated to various responsibility center on heuristic basis in the following manner.
• Project Division: 50 %
• Design Division: 20%
• Rammed Earth: 15%
• Block Production: 7.5%
• DEWATS: 7.5%

Another problem area that arises is absence of proper planning process of time schedules of
stage completion (according to work flow of activities) in the project implementation process
which is required for keeping track of time schedule in the implementation process.

Similarly due to lack of proper information is regarding the track of quantity ordered for a
project. Currently there is no system in place for keeping update of the difference between
quantity estimated and quantity ordered. Therefore management faces the problem while
clearing the bills for the raw material and the labour component which forms a major portion
of the cost.

4
Given this context, the task was to develop a costing system to provide proper allocation
basis for administrative projects and responsibility center to support information about the
variances that occur and measure the performance of responsibility center. Other aspect was
to develop a proper financial monitoring information system for the purpose of supporting
management in taking decisions on time.

A financial monitoring system for projects will generate information about the work in
progress of the project and major components of costs. Initial estimates of the proposed
structure has to be derived according to the client requirements based on the schedule of rates
and further break up of estimates has to be derived in terms of raw material, labour,
contingency, provision for administrative overheads and expected profits. In the existing
system absence of proper maintenance of information does not generate the required
information on time. Existing system that has been followed for recording and tracking
progress is following:

1. Estimate statement of the proposed structure on the basis of activities performed

based on the schedule of rates.
2. Stock register for maintenance of stock inflow and outflow information.
3. Actual expenses records based on cash basis instead of accrual basis in accounts book.
4. Records of material issue on site on the basis of stages of project execution. This
information was transferred to the organization form site after every 15 days instead
on stage completion.
5. Accounts book and record of administrative expenses were being kept in the
organization.

Given this current situation, it was thought that a planning exercise before project execution
can provide comprehensive overview of expenses and cost of the project. Based on this
information, project monitoring could be done more effectively and could be more exact.

4. REVISED PLANNING PROCESS OF PROJECT

IMPLEMENTATION

5
To facilitate the financial monitoring process in an effective manner the first task was a
comprehensive planning process before implementation of projects. First task was to identify
different stages in the construction process based on the work flow. After the identification of
stages and estimation of budgeted cost of structure on the basis of schedule of rates, a
subdivision was being done in the cost components of raw material, labour, administrative
overheads, and contingency expenses.

5. COSTING SYSTEM

In a project there are various cost components which are the part of proposed structure. It can
be divided into four major areas which are:

5.1 Raw Material

Raw material component comprises of cement, steel, binding wire etc. On the basis of stock
maintenance register on site and invoices, raw material cost of a project or structure is being
identified by the organization. Similarly with the help of formats developed and procedure of
data recording work in progress estimation can be done.

Labour: Direct and Indirect

Labour cost component comprises of both direct and indirect labour but in existing system all
the indirect labour expenses are maintained as part of administrative overheads and for direct
labour there are contracts being made with labour contractors which are based on budgeted
estimates. Therefore labour component of any structure are derived from the invoices of the
contractors.

5.3 Administrative Overheads

On the basis of comparison with other construction companies Hunnar Shaala is having
permanent administrative division which entails higher administrative cost in terms of
managing the projects. Hence the concern of is to derive the proper procedure for allocation
of administrative overheads for project costing. Simultaneously as there are different

6
responsibility center which are having their own client base therefore it is necessary to
allocate the administrative overheads to responsibility centres for the purpose of costing of
services.

Following are the administrative cost components in descending order:

• Salary to administration staff
• Vehicle hiring expenses
• Travelling expenses and allowance
• Miscellaneous Expenses: Office cleaning, Provisions (Consumables), Photographs,
Miscellaneous labour charges (for store keeper, guard), Crockery etc.
• Telephone and mobile phone expenses
• Printing and stationary expenses
• Fuel expenses for site visits and general office works
• Electricity expenses
• Food, water and entertainment expenses for guests
• Photo copying expenses
• Board Meeting Expenses
• Training expenses
• Computer consumables, repair and maintenance expenses
• Vehicle repair and maintenance expenses
• Postage and courier expenses
• Repair and service expenses of computer & other equipments

On the basis of context and administrative cost components few alternatives can be generated
for allocation of administrative costs. In the short term Hunnar Shaala can adopt an
alternative as their allocation basis but gradually in the long period a system can be adopted
where direct tracing of some expenses head can be done in a feasible manner.
According to the existing arrangement Hunnar Shaala can adopt one of the following options
for the purpose of administrative overheads allocation.

Option 1:

7
Based on the value of the project budgeted administrative overheads can be allocated and
charged to client. This option will lead to a higher proportion of overheads being allocated to
the project with high value and vice versa. The only aspect that can be ignored in this option
is extent of resources invested by manpower in a project can not be accounted.

Option 2:
Based on the turnover/ implementation fees of the organization administrative overheads can
be allocated to various responsibility centres in the proportion of percentage of administrative
overheads to the organization turnover.
Example: If the administrative overhead of organization is 1% of total turnover then 1% of
turnover of every responsibility center can be termed as administrative overhead.
I.e. Hunnar Shaala total turnover for year 2004 is One crore and administrative overhead is
one lakh which is 1% of total turnover. Similarly Division wise turnover break up and
administrative overheads allocation will be in the following manner:

Table 1: Administrative overheads

Division Turnover (In Administrative
Rs.) Overheads
Project 4500000 45000
Design 2500000 25000
Rammed earth and Block 1500000 15000
Production
DEWATS 1000000 10000
Space Frame 500000 5000

After first allocation to various responsibility centres it has to be allocated to the projects,
procedure that can be followed for the purpose is estimating total budgeted manpower
days/hours which are available in the beginning and dividing the amount of allocated
overheads from the budgeted manpower hours/days for the purpose of deriving budgeted
overhead rate. On the basis of actual time spent details from time sheets and budgeted
overhead rate, overhead expenses can be allocated to the project.
Example: If the budgeted manpower hours/days for design division are 750 days (250 days *
3 Employees) in a year. Hence budgeted overhead rate is Rs. 60. (Rs.45, 000/750)
On the basis of time sheet it is known that 300 days are devoted to a particular project then
Rs.18, 000 (Rs.60 * 300 Days) as administrative overheads can be allocated to the project.

8
This option takes care of extent of resources used and value of project while estimating the
extent of overheads for projects.

In the existing system either of the option can be incorporated according to the convenience
and requirements of management. Similarly in the long run management may try to directly
trace the cost to the projects for refining the costing system. For instance following criteria
can be used for tracing of the cost directly for different cost items:
• Vehicle hiring expenses: Register can be maintained while hiring vehicle for site visits
where record can be maintained for the purpose of deriving the distance of different
sites.
• Travelling expenses and allowance: If the travelling expenses are concerned with
projects then it can be directly charged to the projects, in case if there are two or more
projects being handled in one trip then based on the project value it can be allocated.
• Telephone and mobile phone expenses: For these kinds of expenses a register can be
maintained which can record the calls being made related with projects and charged to
specific project.
• Printing and stationary expenses: Similar treatment can be given for this expense item
where stationary purchased for the site or project or used in drawings/design of the
project can be charged to the specific project instead of terming it as administrative
overheads.
• Fuel expenses for site visits and general office works: Fuel expenses for site visits can
be estimated by deriving the data of distance and number of visits to site.
• Photo copying expenses: Similar kind of treatment can be provided for this cost item
as with printing and stationary expenses.
Application of above mentioned recommendations depends on the cost and benefit
relationship, if the organization perceives that the benefit from applying above mentioned
recommendation for different cost items is higher than the cost of maintaining the
information then management can bring it in practice.

6. FINANCIAL MONITORING PLAN

9
Effective financial monitoring strategy provides information to the management to influence
the control process. In case of project management performance reports provide management
with a handy tool to understand the progress of projects. This requires maintenance of
information to track the project status and take action if there is any deviation from standards.
In context of Hunnar Shaala following were the data requirements for maintaining up to date
records of various projects and generate useful information for evaluation of the project
success.

6.1 Data Requirements

Reported Processed
• Budgeted Data structure wise • Budgeted Data Project wise

-Material, Project stage wise -Total Material, Project stage wise

-Labour, Project stage wise
-Area
-Time plan for project stages
-Work flow of activities
• Actual Data Structure wise
-Total Labour, Project stage wise
-Total monetary valuation of area
-Total time for project execution
• Actual Data Project wise

-Material -Total Material

-Labour -Total Labour
-Area -Total monetary valuation of area
-Time utilised for project stages -Total time utilised for project execution

6.2 TRACKING OF DATA

10
It was necessary to develop suitable formats for generating above mentioned data
requirements to supplement the project monitoring and to maintain the records of budgeted
and actual cost related with project to derive the amount of variances. Hence to facilitate this
process certain standard formats had been developed to keep track of project status in terms
of cost and time.

6.3 COST VARIANCE

On the basis of division of estimates into material, labour and other expenses variance
statement were designed in the following manner:

In the existing system there is a project in charge that is responsible for the preparing
estimates based on the drawings and ensures the implementation of project. Similarly on the
project site there is store keeper and supervisor that ensure the proper monitoring of the work
on site. Hence three statements were designed for the concerned project staff.
• Budgeted expenses statement: A static budget is developed at the start of the project
based on the planned output level. Static budget summarizes the financial allocation
of resources for a project. Based on the stages of project execution and raw material,
labour component expenses and other expenses a budgeted expenses statement were
prepared for the project in charge to maintain the budgeted amount of proposed
structure. Budgeted administrative overheads estimation was based on estimated
implementation fees. According to the business plan 15% of the project value is to be
charged as implementation fees form the client for monitoring and supervision
services of project division of Hunnar Shaala and 8% of this fee is being allocated for
administrative overheads and salary of project in charge, site supervisor and site
storekeeper and remaining is termed as profit. Therefore out of 8% administrative
overheads site supervisor (devote full time on site for the project execution period)
salary was deducted and the remaining amount was divided by project in charge per
day salary. Hence in this manner numbers of days of project in charge were
calculated. (Annexure 1)
• Actual Expenses statement: Based on the on site expenses and stock register
maintenance and invoices of labour, raw material contractors an actual expenses
statement was prepared to be maintained regularly on site and reports to be generated

11
 at the end of completion of stage. To derive the number of days of project in charge
time sheets were designed and introduced. (Annexure 3). In case of Hunnar Shaala
flexible budget and static budget were same because contracts and estimates were
revised based on the client specifications. Therefore actual expenses at the end of
completion of stage were calculated on the basis of actual quantity and actual price
based on the data from actual expenses statement. (Annexure 2)
• Cost variance statement: Variances assist management in their planning and control
decisions. Management receives the necessary information from variances for
concentrating upon the areas not operating as expected and giving less attention to
areas operating as expected. Variances provide the information for proper allocation
of resources and attention of management. Variance analysis provides suggestion for
further investigations rather than as establishing conclusive evidence of good or bad
performance. A cost variance statement was designed for using the data collected
from actual and budgeted expenses statement. This statement was designed for
different stages of project to generate reports of cost variance for the management to
take effective decisions and timely actions for controlling cost overruns and planning
for subsequent stages of projects. (Annexure 4)

6.4 VARIANCES

Cost Variance

STATIC/FLEXIBLE BUDGET:
A static/flexible budget variance is the difference between an actual result and the
corresponding budgeted amount in the static/flexible budget. In terms of cost favourable
variance denotes actual cost being less than budgeted cost similarly unfavourable variance
denotes actual cost being greater than budgeted cost. As there is continuous revision of
estimates based on client specifications and requirements hence static and flexible variance
denotes the same aspect.

Static/Flexible budget variance was further subdivided into price and efficiency variances in
the following manner to provide information about the aspects that has influenced the
variance:

12
 • A price variance of project reflects the difference between an actual input price and a
budgeted input price.

The formula for computation of Price Variance is:

Budgeted Price
Actual Price of Input --- of Input *Actual Quantity of Input

• An efficiency variance of project reflects the difference between an actual input

quantity and a budgeted input quantity. It is the difference between the input that was
actually used and the input that should have been used to produce the actual output,
holding input price constant at the budgeted price.

The formula for computation of Efficiency Variance is:

Budgeted Quantity
Actual Quantity of Input --- of Input allowed *Budgeted Price of Input
for actual output

Based on the above mentioned statements reports are to be generated to the management
while providing information about the cost overruns with respect to quantity and price.
Similarly information can be used to estimate the value of work in progress which can be
utilised for the financial statements in compliance of AS12 (Accounting Standards) of ICAI
(Institute of Chartered Accountants of India).

TIME OVERRUN

In the process of project execution the factors that lead to cost escalation are not only price
and quantity of resources but time overruns or deviation from scheduled plan. The most
important effect of this is escalation of administrative overheads if overheads are allocated on
the basis of manpower hours/day/month basis. Similarly this may lead to penalty and other
consequences from the side of client.

13
 To identify the extent of time overruns a project planning process was adopted in the
consultation with project team. During the planning process project was divided in critical
stages or milestones on the basis of work flow. This resulted in recognition of material and
labour component stage wise to estimate the work in progress. In the following manner stages
were divided to ascertain the time schedule of different activities:

Up to Floor P.C.C. Level Up to Lintel / Roof

Excavation for foundationU.C.R.
masonry in foundationFoundation
P.C.C.U.C.R. masonry from G.L. to
plinth lv.Back filling, Rubble
soilingRCC Plint band
LevelS.R.E. work in Super
structure with sill band Lintel
bandR.C.C. column

Door - Window

Roof
Roof
Up to Finishing Level Understructure
IPS flooring Oil painting on door & (Plan area)
windowInside & Outside white
washPlaster patta at plinth
LevelPlaster patta at sill & lintel
Level Electrical/Plumbing
work and site cleaning

Fig. 1 Workflow of activities

Based on the inputs from project team and work flow of activities a detailed planning process
was initiated to prepare the stage and activities wise time schedule of project/structure. On
the basis of planning process and time schedule a detailed Gantt chart was designed with the
help of Microsoft Project for project monitoring in terms of time. The Gantt chart displays
task information about project as both text and bar graphics. Gantt bars were being used to
graphically display task durations and start and finish dates on a timescale. The relative
position of the Gantt bars displayed the sequence in which project tasks are scheduled to
occur. Responsibility of time based monitoring was delegated to project-in-charge and project
team leader to ascertain the variances if there is any deviation from the schedule and report it
to top management for the appropriate decision. Recommendations were being given to
evolve the structure wise project planning instead of considering whole project as an entity or
object. To display the effectiveness of Gantt chart and project planning Ujas mahila mandal

14
 was taken as case study to show the practical implementation of time monitoring. Planning
process of this project was done on the basis of different structure of the project. I.e.
Administration building, training hall etc.

Following is the example of planning process of Ujas Mahila Mandal Administration

building structure:

Task Information View:

Task Name Duration Start Finish Predecessors
Up to Floor P.C.C. Level 98 days Wed 3/10/04 Thu 7/1/04

Up to Roof Level 30 days Mon 7/5/04 Sat 8/7/04

S.R.E. work in super structure & Sill band 9 days Mon 7/5/04 Wed 7/14/04 1
Lintel band & R.C.C. column 5 days Thu 7/15/04 Tue 7/20/04 4
Wattle & Daub work & Plaster patta at plinth Lv.,sill & lintel Lv. 16 days Wed 7/21/04 Sat 8/7/04 5

Roof-Manglore tiles roof with wooden Understructure ( Plan area ) 12 days Mon 8/2/04 Sat 8/14/04 6SS

Finishing Level 12 days Mon 8/16/04 Sat 8/28/04

50mm thick IPS flooring with C.M. 1:4 2 days Mon 8/16/04 Tue 8/17/04 8
Door & window 6 days Wed 8/18/04 Tue 8/24/04 11
Oil painting on door & window & white wash 4 days Wed 8/25/04 Sat 8/28/04 11,12

Electrical work 3 days Mon 8/30/04 Wed 9/1/04 13

Electrical work 3 days Mon 8/30/04 Wed 9/1/04

Gantt chart view:

15
 Fig 2: Gantt chart

7. FINANCIAL MONITORING OF SRE/BLOCK PRODUCTION

DIVISION

On the basis of client and project requirement SRE/Block division provides input as a walling
unit or providing blocks for the walling stage. Recently in the process of organisational
restructuring SRE/Block production division has been separated from project unit to consider
it as a separate responsibility center. Hence the work of this division’s can be termed as of sub
contractor of project division. Based on the similar formats of project financial monitoring a
monitoring system was designed for SRE/Block division for estimating budgeted cost, actual
cost and variances. (Appendix 4)

8. CONCLUSION

The system that had been designed during the organisation traineeship segment is by and
large able to accomplish the purpose of project monitoring. First step was to initiate a
planning process, to lay the foundation for a system of tracking project status. A detailed
planning process was achieved for the existing project. On the basis of planning all the
documents and formats for project team and project site were implemented. Formats were
designed while keeping in mind the required information for monitoring of projects stage
wise. All this data and information from the formats and documents were then integrated in

16
 excel spreadsheets that informs about the variance and the responsible factors for the
variance. With these reports and formats a project monitoring system was implemented for
the ongoing Ujas mahila mandal project. Similarly to ascertain time overruns Gantt charts
were applied as a part of planning process.

As the administrative component of Hunnar Shaala is high compared to other

construction companies another objective was to device a costing system for allocation to
projects. Options were provided to allocate the administrative component on the basis of
project value or on the basis of turnover of responsibility centres.

The whole purpose of project was to implement the system to measure its practical
effectiveness. During the implementation process several issues were recognised and
incorporated according to the view points of project team. The reactions and capabilities of
the users were ascertained first to derive the practical issues in implementation process.
Finally to integrate the whole information and provide summarized reports a database in MS-
Access was designed to generate project monitoring reports on stage basis.

Major emphasis during the project monitoring implementing was on coordination

among the project site supervisor/storekeeper, project team and head office for deriving the
utility of the system. Without proper coordination and participation of actors involved this
process could not have been achieved.

Annexure 1 Budget Statement

Project Name

17
Structure

Expenses
Static
Budgeted Budgeted Budget
S.No Stages in Project Execution Expense Head Unit Quantity(1) Price(2) Amount(3)

1 Up to Floor P.C.C. Level Cement Bags

Steel 8mm Kg
Steel 6mm Kg
Binding Wire Kg
Labour
Stage Total Total

2 Up to Lintel / Roof Level Cement Bags

Steel 8mm Kg
Steel 6mm Kg
Binding Wire Kg
Labour
Stage Total Total

3 Door - Window (Sqmt.) Door&Window Sqmt

Labour
Stage Total Total

4 Up to Finishing Level Cement Bags

Labour
Stage Total Total

5 Roof(Sqmt.) Mangalore tiles Sqmt

Labour
Stage Total Total

6 Electrical work Points Points

Labour
Stage Total Total

7 Contingency
Stage Total Total

Project In
8 Administrative Expenses Charge Days
Supervisor Days
Stage Total Total

Annexure 2: Actual expenses statement

Expenses Statement
Project Name

18
Structure
Expenses
Actual Actual
Quantity(4 Actual Amount
S.No Stages in Project Execution Expense Head Unit ) Price(5) (4*5)

1 Up to Floor P.C.C. Level Cement Bags

Steel 8mm Kg
Steel 6mm Kg
Binding Wire Kg
Labour

2 Up to Lintel / Roof Level Cement Bags

Steel 8mm Kg
Steel 6mm Kg
Binding Wire Kg
Labour

3 Door - Window (Sqmt.) Door&Window Sqmt

Labour

4 Up to Finishing Level Cement Bags

Labour

5 Roof(Sqmt.) Mangalore tiles Sqmt

Labour

6 Electrical work Points Points

Labour

7 Contingency

8 Administrative Expenses Project In Charge Days

Supervisor Days

19
 Annexure 3: Time Sheet
PERSONNEL TIME RECORD

Employee Code:

Employee Name:

Week Starting from: Week Ending at:

S.No. Project Name Mon Tue Wed Thu Fri Sat Sun

1
2
3
4
5
6
7
8
9
10
Signature:
Please write 1 for full day, 1/2 for half day and 1/4 for quarter of
Instruction: the day.

20
 Annexure 4: Variance Statement
Variance Statement
Project Name
Structure

Expenses Expenses Variance

Static Actual
Stages in Project Budgeted Budgeted Budget Actual Actual Amount Price Quantity
S.No Execution Expense Head Unit Quantity(1) Price(2) Amount(3) Quantity(4) Price(5) (6) Static (6-3) (5-2)*4 (4-1)*2

1 Up to Floor P.C.C. Level Cement Bags

Steel 8mm Kg
Steel 6mm Kg
Binding Wire Kg
Labour
Stage
Total Total

2 Up to Lintel / Roof Level Cement Bags

Steel 8mm Kg
Steel 6mm Kg
Binding Wire Kg
Labour
Stage
Total Total

3 Door - Window (Sqmt.) Door&Window Sqmt

Labour
Stage
Total Total

4 Up to Finishing Level Cement Bags

Labour
Stage
Total Total

5 Roof(Sqmt.) Mangalore tiles Sqmt

Labour
Stage
Total Total

6 Electrical work Points Points

Labour
Stage
Total Total

7 Contingency
Stage
Total Total

Project In
8 Administrative Expenses Charge Days
Supervisor Days
Stage
Total Total

22
Appendix 4 Budgeted estimation, actual expenses and variance

Project Name
Structure

S.No Material Name Unit

1 Soil
2 Cement
3 Sand
4 Water
5 Oil
6 Diesel
7 Gunny Bags
8 Plastic Sheets

Labour Component

9 Machine Work
Loading Charges
Unloading Charges

10 Curing Process
Contractor charges

11 Supervisory Charges

Other Expenses

12 Curing Lab.

13 Rent-Block Machine

14 Transportation-Machine

15 Testing of Raw Material

Testing of SRE Cube

Maintenance Charges-
16 Machine

Roder Charges-Crushing
17 Soil