ZG holding
Oracle Primavera P6 solution for the project of reconstruction of the sewage water supply of the City of Zagreb.
User: Zagrebački holding d.o.o.
Headquarters: Zagreb, Croatia
Industry: Public sector
Employees: 11.000
Annual budget: 800,000,000 €
Introduction
Zagrebački holding d.o.o. was founded in 2007 and is 100% property of the City of Zagreb. It comprises 15 branch offices that perform activities of the former city enterprises. Zagrebački holding d.o.o. also owns 9 companies/institutions. The companies’ activities are divided into four business areas: municipal, transportation, commercial, and energy-related activities.
Zagrebački holding
Croatian Civil Engineering Institute: Project leader, coordination of design services, partial monitoring of activities
Investinženjering: preparation of tender documents, FIDIC engineer, partial monitoring of activities
Vodotehnika: 5 sections, water supply works
Zagreb-Montaža: 10 sections, drainage works, control building, and chlorine site of the pumping station
Osijek Koteks: building of water reservoir 10,000 m3
Končar: WLM (measuring equipment for water supply pipelines),
SCADA (measuring equipment for drainage)
Georad: 3 sections, water supply pipelines, reservoirs, and CS
Challenges
• Different structural, descriptive, and media formats of cost statements
• Ensuring a reliable information platform for project management of separately managed subprojects
• Need for support in two-level management - according to the project master plan and according to the plans of single subprojects
• Need for implementing a link among quantities defined by contract, cash flow, and dynamic plans
Achievements
• Formatting and restructuring of existing cost statements into the standard format of contract cost statement
• Standardization and electronic processing of contract cost statements and situations
• Centralized project management and collaboration among participants in the P6 environment in compliance with the best global and domestic practices
• Consolidated monthly data and contract performances show the real state by all levels and represent entry data for sequential financial transactions
Solutions
Oracle Primavera P6 EPPM
Two-level project management
Primakon PI
Updating contractor plans by following the execution of single contracts monthly
Project
The investment project for water supply and drainage of Zagrebački holding started in 2008, with planned completion in 2015. The total value of the project is over 40,000,000 € and is financed with EBRD loans. In the beginning, Primakon offered support to the consultant - Croatian Civil Engineering Institute in the preparation of the project master plan in conformity with the Contract requirements and for the Bank’s (EBRD) needs. After choosing the contractors (7 subprojects/contracts) with conditional monitoring of the temporal and financial execution of activities in an application that is compatible with Oracle Primavera P6 EPPM, Primakon was employed also by the contractors and offered them technical and expert support.
The model
This is a variation of the standard Primakon model suitable for the investor for the monitoring of performances of single contracts in which the structure of plans corresponds to contract cost statements up to the level of the cost statement entry. Every entry corresponds to the activities of the plan that are scheduled in time and represent the financial plan of execution. The Primakon PI application is used to import a single contract cost statement in the P6 EPPM system, from which MS Excel templates for the input of budget situations, including evaluations and variations, are generated monthly. With their import into the P6 EPPM system, there is an automatic update of plans monthly. These plans are found at the contractors, who deliver them updated, monthly, to the contractor representative - the FIDIC engineer, following the contract procedure. The specificities here refer to the following:
Master / technological plan
The existence of a master / technological plan of the sequence of activities of the entire project up to the contract level, where the durations of technological activities of single contracts are determined by inter-project links with activities from the contractors’ plans. This plan is found and is updated at the consultant’s, based on the received updated contractors’ plans.
Plan development
We have approached plan development according to the existing cost statements which were used in tendering and contracting, and which suffered from the typical malady caused by long-standing practice and the nonexistence of a national classification system of construction activities - all activities were quantitatively summarized in a certain entry, no matter the place and time of execution, and the description of certain entries used to contain “essays of one full page” with the description of the activity and stating the standards, including the acquisition and implementation of materials. Since the definition of activity is an expense in a place at a time, here we had to divide entries in the cost statements which included summarized quantities with all, for example, sections into the same sections. This enables the simultaneous financial, physical, and forward monitoring of performances of single contracts and the master plan of the project.
Example of a financial report of one package - subproject