When we talk about Cost Value Reconciliation (CVR) two things come into our minds. If the cost of a particular BQ item exceeds the rate stipulated within the Contract, either it could have been a productivity issue at site or the estimator has used incorrect norms in arriving at the rate. The best way to identify the actual case is to perform a work study. Suppose you are a contractor performing a bulk excavation for a basement of a building. Upon completion of a CVR, you may find that the cost incurred in the production of a unit of excavation is higher than that of the BQ rate. The traditional way of looking at this is to perform a work study and to identify the actual resources expended to excavate a unit volume. After repeated number of work studies, if you still find that the resources spent in the production of one unit is higher than that allocated within the BQ, you may be opted to think that the estimator's norms are impractical. If your judgement is justifiable by observing the production rate under similar conditions (may be from another site running in parallel) it is your duty to alarm your estimation department to avoid future losses. So that the estimator can correct the norms in future tenders. On the other hand, if you find that the production rate at your site is lower than that of the aforesaid similar sites, it is the time to alarm the project manager on the productivity concern. He/ She may have to consult the higher management on either changing the labour or provide them more training on the job to elevate productivity.
Now let us think out of the box. Whenever there is a bulk excavation, the excavation rate is high at the initial stage of the project owing to the facts such as ease of access to excavation, ease of loading, ease of carting away the material, no threat of demobilization of equipment which is common in completion stage of any work element and no fine tuning is required to achieve fixed reduced levels. when you go deeper, a degree of complexity is unavoidable due to above reasons. furthermore depending upon the ramp slopes it may not be possible to load the trucks fully in carting the material away which will definitely affect the productivity. Therefore, your advice to either the estimator or the project manager shall be more detailed despite the fact that the BQ has got a single rate for the whole of the excavation (in CESMM and NRM this is different as there are depth bands identified within the BQ to embed the degree of complexity on executing the works). You may have to perform separate work studies for different depth bands defined based on your experience. Accordingly, you can apportion the excavation quantity into your own depth bands which will generate a more accurate advice to either the estimator or the project manager.
Conclusively, you can perform an extended CVR.
Now let us think out of the box. Whenever there is a bulk excavation, the excavation rate is high at the initial stage of the project owing to the facts such as ease of access to excavation, ease of loading, ease of carting away the material, no threat of demobilization of equipment which is common in completion stage of any work element and no fine tuning is required to achieve fixed reduced levels. when you go deeper, a degree of complexity is unavoidable due to above reasons. furthermore depending upon the ramp slopes it may not be possible to load the trucks fully in carting the material away which will definitely affect the productivity. Therefore, your advice to either the estimator or the project manager shall be more detailed despite the fact that the BQ has got a single rate for the whole of the excavation (in CESMM and NRM this is different as there are depth bands identified within the BQ to embed the degree of complexity on executing the works). You may have to perform separate work studies for different depth bands defined based on your experience. Accordingly, you can apportion the excavation quantity into your own depth bands which will generate a more accurate advice to either the estimator or the project manager.
Conclusively, you can perform an extended CVR.
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