Project managment

Supply contract records

On some projects separate contracts are let for the supply of pipes and valves, and other types of material to be incorporated in the works by the civil engineering contractor. Some of the materials, especially large pipes and valves, may be on long delivery so contracts for their supply have to be let before the construction contract commences. When this occurs it is essential to set up a stock-book in which a record is kept of all items ordered, and those delivered.
Atypical stockbook page is shown in Fig. 13.7. It lists items ordered, where they are to be used, items delivered and where stored, and how finally used.
The last three columns are useful to record a number of matters which, if not recorded, can cause confusion, such as pipes cut and the unused portion returned to stock, or a bend taken out but not used and returned to stock, etc.
For the financial book-keeping a Pipe (or Valve, etc.) Delivery Schedule should be kept in the style shown in Fig. 13.8. Under the columns headed ‘Deliveries’ the delivery position at any time can be known, and the tonnage weights entered can be used to calculate payments to the contractor for haulage on a tonnage rate basis. Under ‘Payments’ the checked invoice prices are inserted, and the date when the invoice is included in a certificate for payment.
A transmission letter should always accompany transfer of invoices to the engineer, listing them by their reference and invoiced price. This acts as a check if an invoice goes astray.
The items when delivered would be stored in stockyards, from whence they need to be issued and accounted for in various parts of the work. Even if pipes are strung along the route of the pipeline, their location needs to be logged. Factors needing to be taken into account when setting up a system may be the following:
• Items need to be inspected for damage as they are offloaded.
• Some items may be delivered before the main contract starts, and some after.
• Some items may be supplied by the employer from his own stocks, but have to be collected by the contractor.
• Some further items may have to be ordered and delivered.
• Jointing materials, bolts and other small items will need storage under cover.
The RE should supply the contractor with a list showing where all items delivered are stored; and keep the list updated as more materials come in. He must make arrangements with the agent as to how materials are to be taken from stock. Usually the RE’s pipeline inspector will take charge, he will tell the pipeline foreman where the appropriate pipes and specials are and will see that the right ones are taken.
If no proper stock-book is kept, there may be considerable wastage due to failure to make economic use of pipes and specials; or delay and extra cost can be caused by failure to use specials in the right place, so more have to be ordered.

The question can be asked – need the RE keep such a stock register if the contractor supplies the pipes and valves, etc.? The answer depends on the method of payment to the contractor. If he is paid unit rates for ‘supply, lay and joint…’ pipes and valves, then it is not necessary for the RE to keep a stock record – but the contractor will be wise to do so for the reasons given above. If, however, the contractor is to obtain the pipes and valves from nominated sub-contractors whose charges are reimbursed to the contractor, then the RE should set up the stock-book to check that mismanagement of items and unnecessary wastage does not occur.
Any materials left over on completion of the contract remain the property of the employer if supplied by him. This is another reason why control via a stock-book should be exercised by the RE, so that the employer does not get returned to him a miscellany of cut pipes of little use to him, but as many whole pipes and undamaged specials as possible.

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