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Raising an invoice for Engineering

[Music] yeah so welcome to all of you and uh Happy New Year guys and uh as mehu described that I have an experience more than a decade in construction management so today uh I'll just you know throw some insights from my past career and the topic which we have chosen and the topic is Project billing so without wasting any further time so let me share my PPT uh yes or we are able to see your screen just need to do a slideshow that's it yeah great great great yeah so guys uh today we are going to discuss about the project billing and its entire process so first of all we should know that you know what is construction project and what is the role of a building engineer in that construction project then we will be going through the billing introduction so what is billing what is invoicing how many types of Billings are available in a construction project that we will be covering next we will be discussing about the entire process how any civil engineer if he is working on a project or an office location how he will be making the project Bill what will be the entire process lastly we will be discussing that you know what is the total cycle of it who are the stakeholders involved in this billing process then subsequently what techniques and softwares are required by anybody to become a billing engineer or to you know upgrade their career in this profession so first of all let's discuss about the construction project and role of billing engineer so I I always start any session uh with very first thing that we have to understand what is Project so that is the first requirement yeah so this billing will be uh entire billing session it will be you know not any domain specific so it will be covering all the aspects it can be applied to any of the domain so first of all we will be discussing about the project so what is a project so as per the PM IPM is a body project management Institute that is an American body as per the American Body they have given a definition that project is a temporary and aware to achieve something unique either it's a product service or a result let's say that if you are going to construct any building so that will be a specific time will be there specific it will be a having definite scope and ultimately we will be having one thing in common that at the last we will be having one building so that is a project so what are the other things if a project is there it has a definite start time definite end time definite goal the other thing is the operations suppose you are working in a factory and in that factory you know operations it's a recurring cycle so if you know car component has to be made so all the year the entire team will be working on the making on the same product so they will be making same car product in the factory but here in the project it will be specific it will be unique so that's the difference so whatsoever the project is related to the construction domain those are called the construction projects so in construction projects a lot of domains are available okay you may you will be seeing you know uh nuclear plants are there renewable energy projects are there but basically we can bifurcate this construction project into two domains one is building domain second is infrastructure domain so under this building domain building and factories do come like building if statue of unity has to be prepared that's a building project if a high-rise building has to be constructed that's a building product if Amazon wants to you know construct a new Factory in India so that's a factory project similarly there are a lot of infrastructure projects are coming in India almost more than 8 000 projects are going on in India for infrastructure development why because India is a developing nation and they want to become a developed Nation to become a developed Nation they have to spend a lot on their infrastructure so a lot of road projects Highway projects Bridges Railway Metro airports a lot of water waste water river water linking a lot of infrastructure projects are happening in India so that is why a lot of scope is available a lot of skilled civil engineers are required to complete these projects now we have understood about the we have understand about the understood about this project now we have to understand about the Project Life Cycle so basically we will be bifurcating this entire project into five phases so first is the initiation phase where any you know client let's say that client is saying that I require this building I require this flyover so they will be initiating the project second phase will be the planning phase so in this planning phase the planning Engineers they will be working on like you know how to complete this project what will be the total this damn duration is available how we will be planning this project what will be the budget of this project then in execution phase actual things will be happening as with respect to the plan post execution the closer will be there but before that we have to monitor the entire project during its entire execution life cycle so we will be checking that whether our project is happening as per the plan or not then once all the things have been achieved as per the defined scope then we will be declaring it a completion of the project so that is the Project Life Cycle now we have understood about project and Project Life Cycle let's understand how this project will be completed a team of civil engineers that will be required to complete this entire project so this stream will be led by one person that is called the project manager all right so once the engineering department or the consultant will be giving all the design and drawings so with the help of this entire project team led by a project manager the project will be completed so most of all there is one Department that is pmo project management office Department that is called the brain of the project so under this department Planning Engineer cost controller billing engineer they will be working then under the construction manager site engineer quality engineer safeties rewards those will be working there is another department contracts Department in which the procurement team who will be procuring all the material Services plant and machinery and you know claims department quantity surveyor they will be working but we have to understand that you know what is billing engineer and what he will be doing so guys if you are having any doubts if you want to you know uh if something is coming on your mind right now just put it in the chat box so that you know I'll be having the visibility and a few of the answers uh a few of the questions we will be resolving with the passage of this course of webinar and few answers will be given at the end so but don't stop your thoughts just whatsoever is coming in your mind whatsoever you are feeling that this doubt is there just put it in the chat box so now we will be you know understanding what is this billing we have understood they are in the project structure One Billing engineer is required so I'll be giving you one example okay we'll start with one example generally what happens for any project like it's building it's uh infra it's water it's it's a plant anything so one client will be there so that client will be having the media I want this project and he'll be selecting One Construction Company a contractor like Tata project cell and t-shirt 4G any company he'll be selecting and that will be monitored by 1 PMC that is project management consultancy company all right so let's say this project is there some water supply project and in that project they have to lay a lot of pipeline they have to make wtp and do the how service connections they have given a timeline of two years and the project value is 500 crore rupees now there is a very special thing about that this value 500 crore rupees it is not like that the construction company will be getting this amount after completion of the entire project all right it's just like that after two years they'll be the client will be giving the 500 crore Rupees to the contractor company they will be giving this amount to the contractor company on you know as per the payment cycle that has been defined in the contract document the contract that has been signed between both the parties so it could be like monthly or it could be Milestone based depending upon the condition so first thing I just want you to give an idea this is the brief which every project will be having and there this billing is required on monthly or Milestone basis depending upon the contract condition all right all right so guys any doubt just put it in the chat box so now here we have understood there from this example that we have to do the billing now what is billing there so billing is the process of raising the invoice all right to the client whatsoever we have delivered let's say that somebody is ordering anything from either uh from the uh like pizza or you know they are buying something from any app or from the local market then one bill will be given by the shop owner okay so it's similarly whatsoever we will be executing in this site we will be raising a bill to the client that is called the billing and this billing will be having two things we have to raise the invoice yeah this much work we have executed and then we have to collect the payment from the customer so like in previous example what we discussed that if the project value is of 500 crore and uh total duration is of 12 24 months two years so just for this sake of you know uh simplicity each month the contractor will be collecting 20 crore rupees all right so now you can understand that you know how big are the construction projects and how big this amount has to be there all right so that is why a billing engineer is working on these big bills what he will be presenting so now how this billing will be done so this billing will be done based upon the contract condition it could be like Milestone let's say for this uh water supply project it is mentioned that once you will be completing 100 kilometer of pipeline then we will be giving you this amount or let's for a building project they will be saying that once you will be completing all the foundation work then we will be giving you 10 percent of the project contract value it's not like that it's not on item rate sometimes it's on item rate that whatsoever excavation you will be doing whatsoever shuttering you will be doing whatsoever concrete you will be uh casting that we will be giving the amount based on that thing so that will totally depend upon the contract conditions in uh many projects it is on item rate basis so whatsoever the quantity you will be executing on periodic basis you will be raising the bill to the client and if it's a lump sum process then Milestone payments will be there and then they will be having the bills yeah so guys any any question please put it in the chat box so but why it is so important so you see that no company wants to invest its own money for a very long time let's suppose that this 500 crore rupee even very big companies they do not want to invest this money all right so that is why that is why they want to have this periodic cycle so that their cash flow will be very good suppose they are getting 20 crore from the client and they are spending 15 crore 20 crore 25 crore so somewhat they are nearly whatsoever they are getting then they are spending that money only then they can sustain and complete the project in a better manner second thing profitability if suppose they will be getting the money at the end of the project that to complete the project they require this money they will be borrowing this money from the some kind of bank and then they have to give the interest on that amount so if that amount that interest if they will be giving it to the bank then what they will be earning so that is why the profitability is very much dependent upon this thing also okay now next thing projects are very complex few projects are simple but if a project is complex it takes more time then billing becomes more challenging because every time a lot of bills have to be submit a lot of things have to be happen ing so that will be happening all right so can we claim the money of purchase materials see it depends upon uh project to project now we will be seeing that you know what will be coming in the project okay so like in Water Project which we have taken as an example or a building project so if I'll be saying that this project will be having a lot of items all right so then we will be analyzing that what has been mentioned in our contract document whether we have to go item rate or Milestone basis if we are going for item rate or Milestone basis is there any condition available that if we are procuring all these steel cement concrete pipe initially at the start of the project we will be getting the payment or not so that's why the contract management is very important now we have understood about the importance of project billing so this is the boq format so any civil engineer ultimately working in the billing department will be working on this simple thing so here we can understand the name of item so here the concrete steel excavation uh structural steel shuttering work brick work cluster work everything will be coming here in this everything will be coming under this nature of name of item then we will be having the quantity whatsoever the work because it's like suppose in one month we have completed this quantity work that we will be covering in this quantity unit of measurement is very important because unit is very important if suppose still it is there steel unit is in kilogram or it is in metric ton so then the rate will be varying so that is why we have to give very much importance on unit rate will be predefined as per the contract okay then the amount will be coming so this is just to show that this is the format this is the simple template that whatsoever item we will be executing on a periodic basis we will be putting it over there we'll be doing the quantity estimation and with respect to the rate mentioned in the contract document we will be raising the bill to the client now we will be understanding how this will be done now next topic is related to the billing process all right so there are two types of billing all right one billing is related to the client billing suppose for this contract which is for water pipeline or for anything there will be one client and you are the contractor so this contractor company will be raising periodic on periodic basis bills to the client second thing is the vendor or subcontractor big construction companies do not complete the entire work by their uh Workforce only all right they will be having you know they'll be getting uh so many Petty contractors so many labor contractors who will be doing this labor work so these are called the subcontractor so for these subcontractor we have to do the billing in a similar manner how the subcontractor will be raising a bill to the contractor whatsoever work he has performed as per the work order given by the company contractor company to subcontractor so in simple terms there are three person one is the client second is the contractor company third is the subcontractor so initially subcontractor prepares the bill whatsoever work he has executed as per the work order given by the contractor company to the he will be raising the bill so contractor will be raising the bill to the contractor contractor will be certifying it and contractor company will be raising a bill to the client all right so the billing engineer will be working on two things he has to raise the bill to the client second whatsoever Bill he is getting from the subcontractor he has to evaluate it so these are the two things two major processes by which billing happens now let's understand this client building if you will be understanding one process so the other process is of this similar kind all right so in this client billing we'll be understanding this entire process into simple three steps so first step is the RFI so what is RFI all right what generally happens if any project is happening let's say tomorrow you have to do the concreting work site engineer is there quality engineer is there and they have to do the concreting work for the columns so the columns are available in the project and for that let's suppose that 10 columns they have to do this concreting work but before that that everything has to be inspected by the client's representative he may be junior engineer he may be a he may be an engineer from the consultancy deployed by the client so this site engineer or quality engineer will be raising one request for inspection to the client then client will be coming to the site next day he will be checking whether all the things that are pre-execution and post execution have happened as per the quality as per the scope as per the specification so he will be checking the entire thing so let's say that we are doing the concreting so he will be checking whether the form work alignment is there or not whether the adequate number of rebars are available or not whether the positioning of rebars as per the stress it is there or not so he will be checking all those things post execution he will be checking that whether you know slum test was performed or not whether the uh compressive testing of concrete was done or not whether the curing has been completed or not so all these details will be mentioned in the RFI document it will be a detailed template will be available and in that template entire things will be mentioned over there that on which day this work was executed what work was executed any abnormalities there or not whether the client is satisfied whatsoever has been executed or not if he is satisfied then he will be signing this thing this document then he will be keeping this document a copy with the contractor that will be available so this is the first step means on day to day basis this thing will be happening so at the end of the month once whatsoever the things has been executed so all the rfis all the measurements that has been recorded in that RFI document will be available now in this Step 2 at the end of the month or at the end of the milestone the contractor will be submitting the invoice okay whatsoever they have executed all right so they will be raising the invoice as per the contract document now we have understood that a rfis are available and they have to raise the invoice they will be raising the invoice as per the either Milestone or item rate basis and whatsoever that is available in the contract document they have to raise the invoice how they will be doing it so first of all whatsoever the work they have done in that period they'll be making one cumulative quantity of it so let's say they're 30 days we have done the concreting work so for that concreting work whatsoever the shuttering work whatsoever the rebar work concrete work we have got 30 or 50 or 100 rfis or n number of rfis we have got then we will be combining all these rfis quantity all right so those quantity and item will be mentioned in the boq in the boq we will be mentioning this is these are the items then one by one we will be combining this is the RFI number this is the quantity executed that they will be compiling so they will be getting a cumulative quantity with respect to each item in that in that period so that they will be getting all right so now it's not like that it will be a simple process let us say that a big flyover or a big building is there I saw a lot of Works will be happening and there will be thousands of activity if concrete will be there then concrete will be of multiple grade concrete will be of M10 grade M20 grade M40 grade M60 grade if steel will be there then steel will be of different 8 mm dire 12 mm Dia 16 mm if shuttering will be there then with shuttering it's a plywood shuttering or steel shuttering if brick work is there plaster is there so so many activities will be happening so this billing is of hundreds Pages all right so then with each sub part of it let's say somewhere one room is getting constructed somewhere foundation work is going on somewhere brick work is going on somewhere finishing work Plastering all these things are going on somewhere painting is going on so then the billing engineer will be taking the quantity of all these items it's not like that only concrete will be happening or it's a small bill so they have to take and compile the quantities of the entire projects whatsoever has been executed in this so a billing engineer you know during the entire cycle so his work will be starting at the end of the month so let's say that up to 31st we have done the work then first he will be getting all these he'll be compiling all these rfis he will be checking all the quantities whether those quantities are as per the drawing or not he will be compiling all these quantities and he'll be putting in that boq with respect to each of the item then unit rates are already available all right so those rates can be obtained from the contract document because that has already been predefined by both the parties between the client and the contractor company so that rates they will be getting from the contract document now they have got the quantity they have got the rate they have the each items so they will be getting the amount all right so this is one of the example now it's a very simple project example has been taken but in reality com projects and the quantities and everything is on a very vast manner so here we can see that excavation is there so excavation quantity is 30 cubic meter all right rate is 75 okay generally the excavation rate is 200 so uh that depends upon soil to soil how we are doing the excavation and everything this amount has been taken now PPC work that is concrete work the grade is M15 here it's mentioned in a simple manner but when you will be having the specification also for a particular item you will be getting a detailed specification of it okay so similarly the quantity is there rate is 2500 cubic meter and the amount is there similarly different grade of concrete is available then we do have the steel quantity all right generally what's the formula that for one cubic meter generally 100 kilogram of Steel is required generally so in slabs or simple column beam it range from 80 to 120 then in very nuclear plants or something like that it varies from 150 to 200 and beyond that is 456 helps there all right so then we have another grade of concrete M20 then we do have brick work we have plaster work so likewise items are there these quantity have been obtained have been obtained from the different different RF files and rfis where we have did the work the client checked it up during pre and post construction stage and we have compiled those quantities then billing engineer will also be checking all these quantities with respect to the drawings because it's his duty sometimes mistakes may happen sometimes uh the work which has been done some he will be reconciling whether drawing stays suppose 15 cubic meter of quantity and in the alpha it is mentioned 10 cubic meter of quantity then he will be checking why this variance is coming so it is his duty if if it is matching with a minimal margin then he will be putting those quantity in the quantity column so similarly unit of measurement is important that is why whatsoever the unit of measurement is there so in in this same fashion he has to put the quantity if he will be putting the quantity e of excavation in cubic meter then it will be coming 30 if you will be doing it in on square meter basis then the quantity will be different rate will be different so that is why he has to give a very uh he has to you know put a lot of effort to check that what the unit of measurement is there with the practice the billing Engineers will be getting to know yeah this is the standard unit of measurement required and they will be putting the quantity in the same fashion so then they will be getting the amount so this is only 10 items but generally there are 100 items all right so then they will be clubbing because you know 10 type of concrete will be there 10 type of Steel will be there then they'll be compiling the steel only for the excavation excavation will be there excavation different heights will be there like 0 to 1.5 meter 1.5 to 3 meter three to four point five meter then backfilling will be there then disposal of excavation uh that item will be there so a lot of items will be available in that portion so now this is the thing that they have done the this project billing all right so once the billing engineer has prepared this entire boq they will be making one perform my invoice in that perform my invoice they'll be mentioning all the details previous build retail this bill detail uh then the total cumulative amount how much amount has been given that will be you know checked by the project accountant project manager and this will be given to the client then the client will be checking it they will be taking time so generally what happens on the at the end of the month the billing engineer will start preparing the bill he will take around three to five days then he will be helping the clients uh to you know provide all the documents and during the checking process with the client so it will take another 7 to 10 days so all this time the billing engineer will be involved with the client if any help or support is required for the waiting of this entire Bill once the client is satisfied and he has checked all the bills then he will be certifying and processing it to the Finance team for the payment all right but before that we have to understand one simple aspect that is reduction and recoveries it's not like that if they will be making the bill of 100 rupees they will be getting the 100 rupees okay there will be some deduction and recoveries so what are these deduction and recoveries so one deduction will be like that labor says so that is the labor law maybe one percent or two percent and everything is dependent upon the specific to that particular project every project is different so that is why it is dependent then GST we do have uh cgst sgst so we know GST but GST is of two types Central GST or state GST all right so if suppose uh client has given some mobilization advance to start the to kick off the project to help the contractor so that they will be recovering on periodic basis similarly one very a retention amount that in mostly contracts mostly projects client will be holding some five percent or in few very few projects 10 percent of the amount of the project bill that they will be releasing at the end of the project so that is the retention or safety amount that there will be holding all right so all these deductions will be there let's say that you have completed the work of 100 rupees but out of those hundred rupees 15 rupees will be either deducted or they will be going into the recovery all right so that for 15 rupees it will the net amount will be 85 rupees so that 85 rupees check amount will be given by the client to the contractor company so any doubt up to now I think we have covered mostly the billing process part where we have seen the first of all the site engineer and Quality Engine they'll be raising the RFI and in the at the end of the month the billing engineer will be compiling all the documents he will be checking all the quantity with respect to the engineering drawings he will be submitting all he'll be preparing all these invoices in the boq format and submitting it to the client then he'll be helping the client while analyzing all these things and once the client is satisfied after deducting all the necessary deduction and recoveries he will be giving the net amount to the contractor company now let's understand our final topic you know role and techniques in the project building you know uh what is the uh you know who are the persons involved in this entire billing process what are the techniques which a billing engineer should know what are the tools that you know that which you should practice to become proficient in the billing engineer profession so these are the persons which we discussed okay so first of all site engineer and quality engineer they will be executing all the works they'll be raising the RF FIS they'll be compiling all the documents uh recording all these rfis at the end of the month they'll be giving all this document to the billing engineer the billing engineer will be doing all these things he will be vetting all the uh design engineering drawings uh engineering drawings with respect to the quantity executed then with the help of project accountant they will be raising one performer invoice because the accountant will be knowing that what was the amount certified in the last bill uh what will be the deduction and recoveries that should be there in the invoice so ultimately the project manager who has the authority ah for that particular project he will be signing on that particular Bill and that will be given to the client once the client will be satisfied then he will be certifying the bill giving a copy to the contractor and paying the amount generally what happens a lot of projects are not completed within the time because it takes a lot of time for a contractor company to raise a bill to the client and then again it takes a lot of time for a client to you know go through these entire documents if the entire documents and the billing documents are not adequate then the payment will be delayed so generally one month two months three months the payments will be delayed because the billing is not done in a good manner so if the payment will be delayed then the contractor will not be giving the amount to the petty contractor subcontractors material providers then they will be stopping the work so that is why a good billing engineer is required a skilled engineer is required so that this entire cycle can go in a very quick and adequate manner all right so now we have understood this requirement what should this billing engineer know so generally two things they should know one is the quantity and cost estimation they should know that how to estimate the quantity how to take off the quantities from the engineering drawings everybody know about the engineering drawings how to take the excavation quantity how to take the concrete quantity how to take the shuttering quantity everything how to take all of it similarly they should know about the cost estimation process they should know that if the brick rate is 4500 or 5000 rupees per cubic meter that has been mentioned in the contract document how to read that you know what is this 5000 cubic meter per cubic meter or if that entire specification how it is mentioned so they should know about the quantity and cost estimation second they should know about the contract management if a billing engineer doesn't know how to read the contact condition in clauses he will not be raising and submitting the bill in an adequate manner then suppose a lot of documents uh a checklist will be there that all these documents have to be submitted with respect to the with respect to the bill like if a bill is there then bill should be there then perform my invoice should be there measurement book copy should be there RFI should be there quality test should be there whatsoever the material has come the third party inspection certificate should be there all right so all these things whatsoever are available that will be mentioned in the contract document that is why billing Engineers should know that how to read the different contract condition Clauses and ing to that he they should submit the bills to the client so only then the you know the billing cycle can be completed in a very short period of time now what they should know because they should know the technique you know they should know how to read the contract document they should know what is the quantity and cost estimation but on which tool they will be working so generally generally in India and even in Gulf there are only one basic tool that is the MS Excel so this entire book preparation that will be happening in this Ms Excel either they will be submitting this Ms Excel file to the client or they'll be taking a printout from this msxr so the persons should know the techniques that is very much important that is contact management that is quantity and cost estimation but they will be they should know about the MS Excel Microsoft Excel what are the basic functions of this Ms Excel what is the vlookup function what are the different lookup functions how to make the pivot table so that they can prepare the bill in a shorter period of time all right generally what happens 10 15 years back so people will be doing everything on the hard copies uh the clients usually but nowadays everybody is working on the MS action only so every bill will be prepared in this Ms Excel because if let's say that you have to prepare a road project of 500 kilometer so there will be change so for this 500 kilometer there will be almost 50 000 change items so 50 000 uh you know that much data will be available in this Excel so then they will be making excavation for it they will be making GSB quantity wmm quantity concrete quantity or vitamin quantity so lot of things that will be Excel will be helping in faster completion of this entire thing other software like Erp they should know about the basics you know erps enterprise resource portal so everything happens these days in big companies in the Erp only but that is different billing will be happening in Ms Excel only so in this entire webinar we have gone through basic Force things one we started with you know what is Project what is construction project how does the Project Life Cycle starting from initiation planning execution monitoring and closer how does it this happen then what is the role of a billing engineer what is this project team look like then we understood about the billing what is billing all right why it is required how this cash flow and profitability is linked to it then we understood about when we understood about the uh about the billing process so first of all for the entire month whatsoever the work has been executed that has been recorded in the rfis and measurement books and at the end of the month the billing engineer is compiling all these rfis and making one boq document and verifying that boq document with respect to the engineering drawings so that is the process then they will be raising one performer invoice with the help of project accountant and project manager the client will be certifying all these quantities whatsoever will be certified that amount will be paid to the contractor so to become a good billing engineer they should know three things they should know quantity and cost estimation they should know contract management and they should know Ms Excel so if they know all these three things they'll become a good billing engineer so generally what happens uh there sometimes a specific thing is available in the construction companies that a billing engineer is required so many times even when I started my career 10 year 11 years back so I was doing both the things I was a Planning Engineer a billing engineer so it's like the civil engineer they will be working for both the things they will be simultaneously working for planning and billing so if any company is demanding a Planning Engineer they they may also expect that you should know about the billing also all right guys so here uh till the technical webinar so if anybody is having any doubts uh they can just put in the chat box I'll be happy to answer great uh thank you so much uh sort of you know for the wonderful and insightful session but uh definitely you know we have received so many questions uh in my inbox I'll ask one by one um and uh guys so this is the now the technical session is done uh we will be basically um you know going with the questions you have asked here and we will um then uh you know take up the career counseling part all right so let's start with the questions so one second okay so Ankit yadav is asking sort of uh can you please explain in short uh about the chart again so which chart Ankit you are talking about if you can give the clarity will you know help you out with that uh piyush okay [Music] so I got a question if there is a delay in executing a milestone for example the foundation case which you said due to some soil Trader clearance or design issue up to what time can we expect the payment or to be released if this Milestone is kept on hold but around 80 percent is executed till date yeah so that is a very very good question but first of all that that the billing engineer should know about the contract condition so if this delay is there in this soil straight up clearance or design issue who is the owner for that if soil strata that has to be verified by the contractor then it is on their fault if design is not cleared by the client then the billing engineer will be mentioning or they will be asking you know the Planning Engineer to issue a letter to the client that they are not issuing the design and that is why we are not able to do make raise this invoice so then they will be asking for the delay payment then they will be saying that we are not only fault side that is why they have to understand the contract document so it it will depend upon contract document okay second thing what about deviations and price escalation yeah that's very good so generally what happens if a project is of more than one year then the price escalation Clause is available in that uh contract document so there one formula will be available so in that formula it will be mentioned if suppose it is a bit for bit domain it's for whole price index it's for steel only so ing to that formula sometimes it will come in positive sometimes it will come in negative so that will be a risk but generally for for more than one year of contracts so this uh uh price escalation Clause is available the billing engineer will also be submitting the bill for this process collection Qs and estimations versus billing what is the difference between them yeah okay so uh estimation is basically estimating the quantity so the person he is estimating the quantity from the engineering drawing second thing is the billing billing means that quantity is multiplied by the rate amount has come and it is given to the client that is called billing now Qs Qs is basically quantity surveyor so quantity server it's not like that he'll be just you know estimating the quantity quantity surveyor is the person who knows about uh who knows about uh quantity estimation who knows about what cost estimation who knows about the contract management so this entire package whatsoever whosoever the person is knowing is called the quantity surveyor this is the buzzing term in the Gulf so you will be seeing a lot of sometimes billing Engineers are required by the companies but they will be saying we require the quantity survey so that is why the contract management should also be there with the persons how can we reconciliation done so reconciliation we discussed about the client billing so similarly we will be doing the contractor billing subcontractor billing so subcontractor we will be issuing the material let's say that we have given this deal to the subcontractor so at the end of the month we will be preparing the billing engineer will be preparing one reconciliation document so that in this reconciliation document it is a very simple document store will be giving one statement I have given uh 50 metric ton to this subcontractor then billing engineer will be evaluating based on the RF files or based on the quantities raised by the subcontractor that they have executed the work up to 40 meter return 10 metric ton of Steel is available with the subcontractor and that will be verified by the site engineer so in similar way this reconciliation statement will be done for each of the bill similarly if client is issuing one free any free issue material to the contractor they will be expecting the same thing for their free issue material and that Qs and estimations or billing engineer be the same person or different one so generally uh estimation there is no estimation if some person is there estimation engineer so estimation Engineers are generally called the billing engineers so then the Qs is the person that is the terminology uh billing plus contract management so if you want to become a you know good if you want to put in your CV or if you want to put in your LinkedIn uh you have the knowledge of quantity survey then they will be estimating they will be analyzing or emphasizing that you know everything about estimation billing contract so person should become a quantity surveyor but uh from La long time the terminologies like estimation or Billings are profiling in the country hope this helps great um so any other question in your inbox or like a couple of questions are you know kind of repeating uh to me and you also so any other questions you are having my my chat box so I got one question if some work has been done on the site which is most important to be done but not in the agreement then how we can claim that work payment okay if some work has been done on the side so generally see that is the duty of construction manager uh and the contract Department that first of all they should not execute that work either it is important or not second of all if they have to execute it they have to first write a letter to the client that this is not mentioned in the contract document but we have to execute it as per the site requirement it will not be executing it our project will not be completed they should get the get the agreement from the client get the confirmation from the client but generally delays happen in all that so based on that correspondence then the billing engineer will be doing the billing so then this will be extra claim and this will be handled by the contracts Department so couple of questions here like a lot of questions are coming um great so okay that is already done what is labor says uh asked by who asked actually he left so if you want to answer you can answer it it will be beneficial to others just like that income tax is there then GST is there so like Labor Department our they have made labor says so that will be deducted and uh that will be going for the uh to the uh Labor Department that money will be utilized over there so that is standard great so another question uh you know which are coming is uh by asked by uh Patrick is like I didn't understand uh the reason why client do deduction and recoveries yeah so there are two things deductions if deduction is there then this deduction is as per the government government law if GST is there if you are paying for the food bill so you are uh you know tax will be there uh similarly uh income tax will be there so those are the deductions if labor says is there so the labor industry Labor uh law is uh uh every company has to abide that then recovery is other thing so if they are recovering the retention amount on periodic basis but the end of the uh entire project they will be giving this retention amount and giving back if suppose mobilization Advance recovery is there so initially they have given for uh 500 crore rupees let's say they have initially given 25 crore rupee to start the work without any uh work being done by the contractor company so that they will be recovering uh day by day so that is the uh that is the thing for the deduction and Recovery yeah I got one question uh code reconciliation is only be the rest part and waste part of material or it can or it can be done in like he doesn't follow curing period or he doesn't follow work sequence or he done something blunder mistake now reconciliation is basically a reconcile the thing okay it's not related to the quality or execution methodology it's reconciling it's generally happens for the free issue material what one civil engineer should know as two years of experience in reality construction site engineer or want to shift in infrastructure sector so sector uh you know uh from reality to infrastructure sector if you want to shift uh that is there are two ways learn the common thing if you are a site engineer so ultimately you know you have to learn about the construction project management so it is common for all the domains anywhere they have to progress and then uh during learning that construction project management try to you know showcase that yeah I have done this infrastructure sector so I have done the tendering I know how to do the tending for the Metro project how to uh you know make the project planning for the cable link project something like that okay labor says is also known as TDS or not no labor says is labor says only uh TDs is tax deducted at source that is equal to income tax how to grab opportunities as a fresher okay so that's a big question so yeah I think May who will be covering how to grab opportunities as a freshers uh difference between RFI and checklist yeah RFI is request for inspection uh you know it's it's the request that we are anybody is Raising in the contractor is Raising to the client that come and check that we are going to do this activity you inspect it checklist is different checklist you know somebody they prepare the checklist okay this is the contract condition that for this uh these things uh should be there in the bill so they will be raising the checklist just to remember the thing due to NCR client would be holding some amount additionally in this in the subsequent or I believe this amount is on hold due to some unforeseen issue because of the other contractors involved in the project how will it get cleared as we have escalated tendency to the consent contractor but no actions are being taken see if it is no actions are being taken then as you have to check the contract that you know the client is not doing their Duty so you can put a letter to the client as per the contract condition that we have done our part but our things are getting delayed so you'll be making a prolongation claim any technical mistake in management might cause the overestimating the material required in such cases who get blame for uh site engineer or inventory manager or head or material procurement see everybody is there it's not like it's one body uh if you know the estimation or billing engineer or quantity surveyor initially he'll be estimating the things uh then the project manager has to check it so all these things will be there CPM per techniques are used in management or do we have any modified alternative for it yeah CPM part is okay CPM is critical path method so in uh when you will be doing any project planning in the Primavera CPM will be there what about debits given by a client if a contractor does not accept debit how does the settlement for debit work out and as per is code how much amount can be debited maximum no is code defines that uh this how much amount will be there the simple thing is there they both have to be satisfied why this amount has been deducted either the inadequate work is there or the quality of the work is not up to Mark what is the difference between TDS versus TDS on GST yeah that's a long topic so that's not part of uh this billing process so that's accountancy will be there all right in infrastructure sector as a highway site engineer what Basics one should know as a two-year experience of construction sector of building yeah so if you have an exposure of two year of as a site engineering now you have to work on the construction project management uh how to do the planning how to do the costing how to understand the contract how to do the billing how to monitor the project that all thing you have to learn that's the next thing yes may hold over to you hope I was of some help guys great um so fantastic uh I mean you know a couple of questions has already been answered here and I can see um so so uh you know Iron a month is you know asking like uh uh I need the explanation of site Engineers so if you can explain what is uh you know site engineer and what are the rules of site engineer uh can you please help saurabh here this is site engineer is works in the execution phase so what happens let's say tomorrow you have to do some execution activity so you will be working under a construction manager so that construction manager is working under project manager so the site engineer firstly will be understanding the planning okay this is the plan has been prepared by the planning department tomorrow I have to do the concreting at this particular area so then he will be checking uh the engineering drawings he will be asking the subcontractor whether the uh labor availability is there or not he will be checking with the store department whether the concrete is available or not then when everything is available then he will be raising an RFI to the client the client will be coming to uh next day in the morning then he has to satisfy the client and then during the entire execution which the subcontractor will be doing uh with the help of a material issued by the store Department of the company that whether work is going operation this work is going as per the engineering drawing or not post execution then they will be seeing the work is done as per the quality or not the client will be satisfied and uh the RFI will be signed this is just one of the example for a site engineer great uh so another uh you know uh question uh which uh has been asked by one second okay Ankit is saying he's on his he got the answer that's great Ankit thank you hey guys if you are having any question just put it to uh my uh chat box so that I'll be having direct visibility for any technical question okay so wani uh is asking uh how to become a billing engineer is that question answered already a simple thing uh to become a billing engineer I'm not sure what's your background if you're a fresher or you are working as a site engineer so to become a billing engineer you should know how to do the billing you have to understand the contract uh so you know my advice is to learn the construction project management so by that you will be coming a billing engineer great uh jayaprada is asking how to schedule uh work completing dates in Milestones is that answered how to sorry how to schedule work uh completing dates in milestones let's say I'm not understanding the question properly so my question is you know I'll I'll try to simplify that if I'm not wrong she is basically asking that we basically have a project so you know how we basically keep our Milestones right uh like this this is how much I'll simplify this let's take one flyover project okay so the company will be saying if we'll be completing the foundation work that is one Milestone if we'll be completing the pr work that is second milestone if you'll be completing the uh casting entire you know of the pre of the Precast segments that is uh third Milestone then you will be making the deck that is fourth Milestone and when you will be finishing the project that is fifth Milestone so something like that I guess estimation versus billing what is the difference between them yeah I think we have covered that it is same thing only so basically either a billing or estimation or a Qs people should know about billing plus contract management um how can we is asking how can we do reconciliation yeah that we have done done okay so Shivam is asking I'm currently working in lnt as a bridge design engineer but I personally like management uh more will you advise me to switch from design to Pro uh design engineer profile to billing engineer see uh one thing I I forgot the name what you said but the thing is [Music] so whatsoever you like you should do that thing uh then you have to find the way how you can do that thing that is the simple most thing otherwise you may you will be working maybe like now two to four two four five years but after 10 15 years then you will be cursing that maybe uh this is what I didn't like so if anybody is working on construction management he wants to go for design go for design and if you'll be switching in now if you are in design you want to switch to CPM switch it now so if you uh this is the early stage only later on it will become difficult how is PMT very important for any billing engineer I'm sure this pmt's project management professional this is for more than five years of experience if you are having more than five hour of experience then this question is valid great so um how jayaprada is asking how to decide profit on contractor if prices arise like kovid or uh and and work need to be completed where contractor will be paid extra payments and work will be done sorry can you please repeat how to decide I'll just copy paste the question to you I got one question I know quantity estimation site execution AutoCAD BBS is code is it enough for planning no it is not enough you do not know how to plan a project how to make the budget how to understand the contract so that is required to become a contract construction project management professional how to decide profit on contractor if crisis arise like covet and work need to be completed where contractor will be paid extra payments are see uh that there is no particular criteria uh generally what happens that depends upon upon severity so usually uh 10 to 15 profit margin is given on any cost price but if it is of something very specific then you can specify the amount uh what the contractor is asking similarly in similar to that which person is paid more and which role is very important in construction industry I think uh the simple thing I'll I'll give you my example that I started my career as as a git graduate engineer training in lnt so the chairman of lnt he joined the lnt as g-e-t uh and uh I was working in construction management they were working in construction management so I look up to them so most of the guys who are CEO of any construction companies they had or they had their entire career in construction management and they are earning in crores that is what I say can I learn at site upon experience level or I would learn it from other source I I don't understand the question okay so another question Aditi is asking uh here is basically on what should freshers do to get a job as a oh I think Aditi that has already been answered if still the question you know stands uh then please uh you know type in the chat box yes and then we can explain you again uh so another question without RFI can we claim client bills yeah we can claim but you know uh that depend upon com companies so big construction company like 100 200 big construction company in India they've followed these kind of processes okay so in the infrastructure sector as a highway site engineer what Basics one should know as a two-year experience of constructions okay uh anju is asking how do you stay up to date on changes in Billing and invoicing laws and regulations sorry uh how do you stay up to date uh on changes in Billing and invoicing laws and regulations there are no you know uh changes and law we are the engineers so we basically whatsoever has been executed that has been executed as per the drawing whatsoever in the mentioned in the contract document if we will be knowing those two things uh the change in the law or that has to be taken care by the accounts Department oh great I hope that answered your question anju um so Javed is asking what are uncontrollable costs uncontrollable costs which are not in control I believe so I'm not understanding the uh and so sometimes what happened contingency cost is there so we evaluate you know there will be some unidentified risk which we cannot estimate at the start of the project so if you are asking that contingency or uncontrollable cost so people take a look uh for one percent two percent five percent based upon the history of the projects great uh how can we handle retainage and progress payments in construction project sorry retainage and progress payments in construction projects how can we handle which payments retainage she has written retainage in progress if it needs to be refreshed then anju you have to refresh the question what do you exactly want to understand another thing great so I'm gonna uh it was covered okay thanks for the confirmation one question which I'm getting uh multiple times that the companies are asking for the experienced people only it's not like that the every company big construction company they start with the freshers only but what happens uh that is the ultimate thing you know uh the course curriculum in the companies are mostly of the design you know 80 90 you will be learning the design aspect but they'll not be uh teaching you how to do the actual construction or how to manage the projects at the uh projects then the industry will be expecting you know you know you should be equipped in that thing uh so that is why they ask you know the experienced people if you will be knowing about these techniques uh at initial time then you will be cracking the interview in a better manner greater so another question is um yeah that pressure thing is done um what is market rates I mean I don't know what is what if you use the okay I think that is fine is asking what one should be the one what one should be need to be okay what one should we need to be done to learn CPM and is CPM same for infrastructure and construction sector as I'm two years experience in construction for building yeah so you know it depends how do you learn the construction project management uh so uh one program is available in skill link so that program is generic so there you will be learning Metro also there you will be learning something about residential building something about Bridge so that it becomes you know Common that you know the technique uh okay one question about planning and billing sir I can learn at site upon experience level or I would go for other source doesn't matter Upon Time Gap yeah that's true you can learn Planning and Building at site but how will you learn it how will you demonstrate to anybody that you have learned it if you are at the site engineer so how much time you will be devoting so therefore you require some certifications you require some projects to show that yeah I have done it otherwise it it it seems very easy that I can learn it over there but it it's very difficult to learn those things at that level being a site engineer so sort of since this uh you know now has been touched uh how about you basically uh give a walk through about this program because a lot of you know questions are coming revolving around the same thing so if you can just share your screen and help us with the uh walkthrough like you know about the program which we are offering on in construction project management and what are the projects tools they are going to learn I'll do one thing so here in skill link if anybody will go to this courses and the Civil project management this course is their postgraduate program in construction project management so under this program you know there are many courses that have been developed all right so these all are the opportunities like a planning cost billing project coordinator construction Engineers what does this look like okay so I'll give you the full syllabus so it is having eight courses first of all you know we'll be starting about the fundamental you know how to uh how this entire Project Life Cycle work I got a very good question is it possible to switch my job from IIT sector to core sector that depends if you are a civil engineer then you can then that's not an issue all right so in first course uh the entire Project Life Cycle so that that will be covered in this entire course all right starting from 10 returning to the planning to the billing to the Quality to the then second is the project planning and scheduling so in this course you know there will be like how to do the planning how to make the WBS how to do the scheduling everything that will be mentioned in the third uh Primavera software so how to do the project management with the help of Primavera software so the entire things of the Primavera software starting from scheduling updating and monitoring that will be done four course is related to the progress measurement and Reporting so here it will be like that you know how to do the correspondences how to monitor the project what is earned value management what is bar chart so somebody was mentioning that he will be learning planning from the site but he will not be understanding these techniques which are required by the companies fifth is the project cost control so here how to do the cost estimation how to make the budget direct cost indirect cost contingency budget how to make the Mis report how to make the general statements then contract and subcontract management what is contract what are the different type of conditions what is the claims what are the legal aspects what's what is physic everything will be mentioned then two courses like Excel so Excel will be total Excel starting from you know fundamental uh then uh you know how to make the vlookups lookup functions then we will be having pivot tables all those things will be mentioned over here then we will be having power bi so power bi is the burst terms now the company is uh that will be the next thing uh after the Excel so how to use the power bi how to use the query editor how to do the modeling how to basically prepare the reports and everything so this is the content but each content will be having you know uh projects so that they will you will be getting the exposure of the challenges and projects how to do the tendering for a Metro project then how to do the uh develop a project plan in Primera for Bridge construction for cable link project then how to do the cost control for a residential project so these good construction uh these good projects are there so likewise you will be getting a lot of exposure that you know uh either you are working in any industry that how to manage the project so ultimately thing is the cry uh graph is just like that you have to become a project manager to become a project manager either a fresher or a site engineer they should know about you know uh the diff uh construction project management only because the project manager handles these big things only cost time and contract and the project manager subsequently after 10 15 years he'll become the CEO or business head of any company so this is the graph which anybody has to you know go on