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Cover Page
Shop Talk with Steve
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Estimator's Corner
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The Project Manager
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The Painter's Bucket
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The Steel Erector
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Creating QC Standards
Contact Us
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The Steel Detailer
Steel Advice - The Fabricator's Resource
The Project Manager
Partially executed purchase order billings will need to be kept in line with the execution of the work.

Obtain the required billing format information from the customer. Do this early on to prevent missing billing cycle opportunities.

Find out who verifies and approves the billings within your customer's office and send them a preliminary copy to review. Create the billing to match the staged purchase order amounts.

Proceed with the billings only after you are sure that the required information is correct. You don't want to create an opportunity to prevent timely payment of the work.
Any additional costs and billings need to be processed billed separately in order to prevent payment rejection.
Here it is, front and center. Estimating has just handed you a million dollar project that has staggered award dates. Included with the package is the promise of potential work flow that may last a few years. While this sounds like a great thing to have in this struggling economy, there is part of you that wants to run screaming at the prospect.

Keeping project costs within budget and getting the fabricated materials delivered on time is always a challenge. The need for micro managing projects that are being released in a staged format makes job requirements edge towards the impossible.

Managing staged release projects is the same as managing several small jobs. Instead of having one job number by which to purchase materials, goods and services you will have many. The work involved for each segment will overlap. You will find yourself spending lots of time helping to keep everyone else's paperwork straight along with your own. It will be all you can do to keep the cost accounting from turning into a nightmare.

Pay close attention to the delivery schedules. Establish the budgeted labor hours for each portion of the work. Check and verify the scheduled material deliveries. Verify the shop marking of the delivered materials and know where it is staged. Watch the shop fabrication progress closely.

Keep an open dialogue with the shop foreman about the progress. Verify on a daily basis that the fabrication will be completed as required. Maintain customer contact and notify them immediately if a problem arises to enable a negotiable solution. The extra effort put forth will create a successful project.







Staging Management
Staged project release - Managing the Impossible
The idea behind project staging is to allow the customer to keep tighter control on their expenses.
This is the new procedure required of the bankers to allow the owners a green light on their jobs.

The management time required for the steel fabricator to properly execute staged projects goes far beyond what is ever in the bid pricing for overhead allowance.

Is this to be the new normal? If so, it will surely drive up the price for steel fabrication.
Keeping up with the billing process for partially executed purchase orders
Dedicated to promoting the awareness and continuing education of steel professionals everywhere!
January
  2012