Site Work Package

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1. Site Work Package:

1. Work is undertaken for a price to match the stated requirements of the client. No work is permitted that does not result in the client paying for that work.

2. A project quotation becomes a project contract that is agreed by the client.

3. A project contract will involve one or more Site Work Packages where each Site Work Package has a price.

4. A Site Work Package is generally a unit of work that the client can measure when it is complete and correct. When the client is able to verify that a Site Work Package is complete and correct, they are in a position to pay the invoice that identified the Site Work Package and its price.

5. Every sales invoice shows one or more invoice lines where each invoice line is a Site Work Package with price that has been agreed by the client.

6. Every contract must have a unique name or reference and every Site Work Package within a contract must have a unique name or reference.

2. Quotation - Contract - Site Work Package - Invoice:

1. A Quotation may become a Contract that is agreed by the client.

2. A Contract must identify one or more Site Work Packages.

3. Each Site Work Package must have an price agreed by the client.

4. The information provided to the client on a sales invoice is one or more Site Work Packages where each Site Work Package has the agreed price.

5. Each Contract is a Project at a Site (physical location).

6. Many Projects may be undertaken at the same Site - a site is not a project

3. Billing Procedure:

1. Invoice payment delays may be caused by the contents of the invoice not matching the clients expectations - everything must be done to minimise such delays.

2. The contents of any invoice must match the clients expectations that were agreed with a contract - no work can be undertaken without a contract.

3. Where the contract is for one Site Work Package with a price to be done, then the invoice references that one Site Work Package and its price.

4. Where the contract is for many Site Work Packages with prices to be done, then the invoice references each Site Work Package and its price.

5. Where the contract terms include a main contractors discount (MCD), then the invoice must reference that MCD and its percentage as a line item.

6. Where the contract includes equipment hire, then the invoice must reference that equipment hire with its price as a line item.

7. Where the contract includes purchased supplies, then the invoice must reference those purchased supplies with the price as a line item.

8. Where the contract is for labour to be provided on a day rate, then the invoice must reference the labour provided with the daily price as a line item.

9. Every payment in advance or part payment is a Site Work Package with a negative (credit) amount to be shown on the sales invoice.

4. Site Work Package Procedure:

1. Where the client contract includes many Site Work Packages, then it becomes critical to ensure that clients are kept fully informed as to when each Site Work Package is complete and correct.

2. The Site Manager shall create a task to identify each Site Work Package and its contracted price.

3. The Site Work Package task can be printed as a Daily Site Work Package (DWP) document that is provided to the client - the client representative may sign the DWP and a photograph uploaded as evidence. Each DWP is generally emailed to the client represenative to request verification that the Site Work Package is complete and correct. A DWP may be printed and the printed copy signed by the client representative, photographed and uploaded as evidence.

4. The Daily Site Work Package has an objective of acting as an invoice preview - the information in the Site Work Package task shall be replicated as a line iten in the client sales invoice.

5. When the sales invoice i presented to the client, all applicable Site Work Package documents are attached as evidence.

5. Contract Procedure:

1. In client negotiations, the price of each Site Work Package is agreed, including invoice line items like MCD.

2. The Site Manager is responsible to create a task that represents when each Site Work Package is complete and correct.

3. Site Work Package progress should be continually shared with the client and every completed Site Work Package document must be emailed to be client.

4. The role of the Contract Manager is to make sure that each project is initiated with a very clear and complete set of Site Work Packages that the Site Manager must deliver.

5. The Site Manager must only undertake work that is part of a Site Work Package with a price.

6. Change Management:

1. Some projects are developmental with evolving contracted deliverables.

2. The Site Manager and the Client must always be working with the same set of agreed Site Work Packages and prices.

3. Where a contract is to drill 120 holes at 10 pounds per hole over 3 days, then it is reasonable to consolidate into three daily Site Work Packages as 40 holes per day.

4. It would be unreasonable to try to consolidate different sized holes with different prices into the same Site Work Package - the client must understand and be able to match the invoice with the contract.

1. Project Information:

1. Every project is a contract that may be treated as if it was a legal company with corporate documentation recording obligations. Every large project is founded as a legal company with the client and contractor as partners in the project.

2. Every project is paid for by the client and so the client become the eventual legal copyright owner of all project information. Copyright law is very simple, the company that pays for information to be authored becomes the copyright owner. Before the client has paid, then the contractor has paid for the information to be authored and is the legal copyright owner.

3. Project information (BIM) becomes part of the building or property infrastructure and is sold from customer to customer. The life cycle of project information may be many decades.

4. Because the contractor pays contract hire and supplies before the contractor is paid by the client, then an administration fee of say twelve percent is fair and reasonable. It is fair and resonable for late payment to have an adminstration fee of two percent per month.

Glossary:

"DAB" means Daily Activity Briefing.

"ENT" means Project Task.

"FIRER" means Fire Extingisher Registry.

"LOLER" means Lifting Operations and Lifting Equipment Regulations.

"HAV" means Hand and Arm Vibration Report.

"MIN" means Minutes of Meeting or Document.

"OHS" means ISO 45001 Occupational Health and Safety Standard.

"PUWER" means Provision and Use of Work Equipment Regulations.

"QA" means Quality Assurance and Control Checklist as Site Work Package of work done.

"REG" means Register of people on-site as time sheet list.

"RFI" means Request for Information or Document.

"TSRA" means Task Specific Risk Assessment.

2. Responsibilities:

1. Every project must by law be undertaken in full compliance with applicable OHS codes of practice.

2. Every contractor has an implied duty to author all applicable OHS information.

3. Every client has an implied duty to demand a copy of all contractors OHS information.

4. No matter what is in the contract, these legal duties cannot be revoked.

5. Ignorance of the law is no defense - OHS is a legal obligation on both client and contractor.

6. The client has the right to ignore any OHS information provided by the contractor at their own risk.

7. The contractor shall remain liable for damages for many years after the project has completed, if they cannot prove with evidence that the project was conducted in accordance with OHS legal obligations. A one day project without adequate OHS evidence could become a significant liability many years later when a defect is discovered.

3. Project Information:

1. Quotation as Contract and Risk Assessment and Method Statement (RAMS).

(1) Activities as method statement and manpower project schedule.

(2) Assets as hired equipment and usage schedule.

(3) Supplies as delivery and spoil collection schedule.

(4) Risk Assessment as hazards and control measures.

(5) Terms and Conditions as welfare, facilities and payment schedule.

(6) Cost analysis for labour, asset hire, supplies, expenses.

(7) Revenue and cash flow analysis.

2. Daily Time Sheets with clock in and clock out times.

(1) Daily register of people on-site.

(2) Daily OHS checklist for each person.

(3) Daily Hand and Arm Vibration (HAV) record for each person.

(4) Weekly time and cost summary for project labour.

3. Daily Activity Briefing (DAB).

(1) Activities scheduled to named people.

(2) Task Specific Risk Assessment (TSRA), hazards and control measures.

(3) Toolbox Talk (TbT) reference sheet with on-site schedule.

(4) Schedule of people due on-site.

(5) Schedule of asset deliveries and collections.

(6) Schedule of supplies deliveries and waste disposal.

4. Daily Task list of events and evidence.

(1) Note, Reminder; Staff; Other.

(2) Uploaded evidence pictures.

(3) Excavation (Drill or Cut) dimension evidence.

(4) Minutes of Meeting (MoM) with distribution list; Template document.

(5) Request for Information (RFI) with reply.

(6) Additional Work Request (AWR); Delay; Change to Project Plan.

(7) Non-Conformance Report; Snagging List; Corrective Action Plan (CAR).

(8) Quality Control Checklist (QA) of signed off milestones.

(9) Collection (off-hire or spoil removal); Delivery (on-hire or supplies); Purchase.

5. Weekly Inspection of assets.

(1) PUWER as Provision and Use of Work Equipment Regulations.

(2) LOLER as Lifting Operations and Lifting Equipment Regulations.

(3) FIRER as Fire Extingisher Registry.

(4) Weekly cost summary for project equipment on hire.

(5) Weekly cost summary for project supplies and expenses.

6. CRM of people and companies.

(1) Client invoiced revenue payment transactions.

(2) Project Cost Summary: labour, equipment, supplies, expenses.

(3) Project balance sheet and cash flow.

4. Presentation:

1. With more than 30 distinct types of information, the project information can feel overwhelming to some people - simplicity is mandated.

2. Information is classified into three and only three parts as:

(1) Diary of Tasks, time sheets and day-by-day information.

(2) Asset register of equipment used and inspected with hire costs. Intelectual property as documents and photographic evidence is also registered as an asset.

(3) CRM register of people and companies involved with the project, including client representatives with project financial account.

3. The majority of project information is authored by the project manager or site supervisor. As information is authored, the data is encrypted to make sure that data cannot be stolen and replicated to a large number of secure data centres to ensure that the data cannot be lost. Other people are granted immediate read-only access to project information in an open and transparent way. Every request to view any project information is recorded in an immutable evidence trail of "when did who do what".

5. New Project:

1. Every new project is a copy of a prior similar project where the data copied includes:

(1) Project CRM as overall information.

(2) Equipment hired list to undertake project.

(3) Activities as manpower schedule and method statement.

(4) Supplies used by the project.

(5) Hazards and applicable control measures.

2. The above information is edited to match the bespoke requirements of the new project.

3. Quotation document is 100% generated from the above information.

4. Contract document is 100% generated from the above information.

5. RAMS document is 100% generated from the above information.

6. Project accounts are 100% generated from the above information.

7. The project is undertaken by editing the above information so it evolved from estimates to actuals. The actual information used by one project may be copied and used by future projects in a cycle of continual improvement.

6. Asset Management:

1. The definition of a project asset has evolved to include the following information:

(1) Equipment hired with HAV, safety and cost information.

(2) Activities as manpower schedule and method statement.

(3) Supplies used by the project.

(4) Hazards and applicable control measures.

(5) Documents as Intellectual Property and project accounts.

2. The above information begins life as an estimate and is edited to reflect reality.

3. From the begining of the project, all relevant information exists as estimates to be edited.

4. Equipment assets includes scheduled inspections during the project life cycle - inspections that cannot be overlooked.

5. Daily time sheet information is summaried and added as a weekly activity cost to the project accounts.

6. Payments by the client are recorded as an asset type to be shown in the project accounts.

5. Financial Accounts:

1. The client has their own private company accounts.

2. The contractor has their own private company accounts.

3. Each project has its own accounts as shared information from contractor to client. Never confuse shared project accounts with private contractor accounts.

4. All equipment used by a project is hired and has a project hire cost, even if the contractor owns the equipmemt amd hires it to the project. The cost of equipment to the project is as contracted rates (cost plus 12%), while the cost of equipment to the contractor will be different. The cost of supplies to the project is as contracted rates (cost plus 12%), while the cost of supplies to the contractor will be different.

5. All labour used on a project is hired and has a project labour cost, even if the contractor uses a PAYE employee. The cost of labour to the project is as contracted rates (cost plus 12%), while the cost of labour to the contractor will be different.

6. An objective is open and transparent project accounts where the "cost plus" administration fee is used to cover the cost of borrowing funds by the contractor before the client pays the contractor. An objective is a zero balance sheet at the end of the project - costs will be equivalent to what the client paid. It is NOT an objective for a clients project to be profitable for the contractor and a loss to the client - a zero balance is fair, reasonable and what was quoted.

6. Contractor Accounts:

1. The contractor has a legal duty to maintain their own private company accounts to include:

(1) Revenue paid by a customer (client) as Net plus VAT.

(2) Salary and benefits paid to Directors on PAYE.

(3) Purchased labour paid to agencies and self-employed people with CIS and optional VAT.

(4) Purchased contract hire costs as Net plus VAT.

(5) Purchased supplies costs as Net plus VAT.

(6) Purchased expense costs as Net plus VAT.

2. The contractor has a duty to maintain their own private company information to include:

(1) CRM of each customer or client or prospect company.

(2) CRM of each supplier or conract hire company.

(3) CRM of each person involved in any project, including client represenatives. To include rates and annual CIS withholding amounts.

(4) Asset reference data with HAV and hire costs for all equipment.

(5) RAMS reference data as a framework for typical projects.

(6) Toolbox reference data as a framework for typical projects.

3. The legal company is a different entity to either of the Directors so no Director has the right to make any transaction without evidence, even if its a hand crafted note. The company has limited liability so no liabilities on the company can be past on to the Directors, other than their legal duty to act in a legal way. An illegal act by a Director shall have no implications on the other Director or the company, other than by reputation.

4. It is recommended that the company do not employ any other person on PAYE and treat all other people as a private company, self-employed or agency staff. The act of employing a person involves long term liabilities such as private pension scheme, holiday and sickness schemes, health and welfare schemes and significant paternity/maternity costs. The HR cost of employing a person can be 2.7 times their agreed salary. The GIG economy exists because it is cost effective to do so.

5. It is recommended that the company set up any potential employee in their own private company with their own accounts as a sub-contractor, rather than self-employed so they can earn dividends without NI contributions and expenses on meals and travel. Leading business and sports people are normally paid through their own personal management company. Contractors should follow this tax efficent method of working.

6. It is recommended that the company undertake all transactions at as Net amounts with to be VAT added. The company MUST be registered as a CIS gross paid contractor so 20% CIS is not deducted on all revenue. Labour costs can be assumed to have a 20% CIS deduction that is paid directly to HMRC in as potential NI and income tax.

7. Where each financial transaction is recorded when it happens, then mothly CIS returns, monthly payroll, quarterly VAT returns and annual company returns are fully automatic. No clever tax avoidance schemes are used, cash accounting methods are used, no revenue is defered to the next financial year, profits and corporation tax are reduced towards zero with a taxable dividend is paid to the Directors. No fixed assets are retained and very little cash is retained in the company so the balance sheet shows a company that would not be cost effective to be sued. The Directors are advised to make significant tax free contributions to their personal private pension scheme as a lomg term saving plan.

Document Control.

1. Document Title: Site Work Package.

2. Description: Site Work Package, policies and guidelines.

3. Keywords: Site Work Package, policies and guidelines.

4. Privacy: Shared with approved people for the benefit of humanity.

5. Edition: 1.1.

6. Issued: 2 Jan 2018.