Department / Function: Projects

Sr. No. Process Brief Narrative of the Process

1 Project Initiation and Project Charter:
Planning A project charter is prepared as part of the Project Initiation
Activities. The Project charter details the scope of the work, the
project schedule, Contracting strategy, procurement strategy,
manpower plan, HSE and Quality plan, project requirements,
etc. A project charter is a live document and is updated
throught the project lifecycle.

Master Plan:
The Master Plan of the project is generally prepared by Design
Team or external Contractor and approved by BoD. The baseline
schedule (i.e. project plan) using Primavera P6 software which
shows the critical path of the project is included as part of the
Master Plan.

Project Budgeting:
Based on the information gathered from the Project Charter and
discussions with the Finance Team, total budget is approved for
the project by BoD. The budget is detailed to include all the
material, manpower, equipment, etc.

Project Contracting:
A project contractor is hired for the execution of the project. A
competitive bidding process is followed.

2 Project Execution, Project S-Curves:

Monitoring and Project progress is measured periodically as per the reporting
Reporting schedule in the contract which states that all stakeholders are
responsible for preparing and submitting periodic reports.
Project S-Curves are developed for physical and financial
progress.

Communication Plan:
Communication plan details the processes and procedures for
Communication management. This includes Communication
Approach and Process, Communications Philosophy,
Communications Analysis, Communication Procedures, Roles
and Responsibilities of the Project Team and responsibility
matrix.
Contract Compliance:
All the below at the minimum or as part of the contract should
be obtained and reviewed:
1. Performance Security insurance
2. Advance Payment bond insurance
3. Contractor's Equipment insurance
4.Third party Liability insurance
5. Workmen's compensation insurance
6. Employer's liability insurance
7. Motor vehicle insurance
8. Professional indemnity insurance

Project Schedule:
Based on the project requirements contractor prepares, PMC
reviews and Business Unit approves the baseline cost loaded
project schedules to forecast the key milestones of the project
and expected completion date. Schedule reviews were
performed by the PMC and sends to the contractor for schedule
update.

Time Forecasting (Delay Management):

A progress report is prepared by PMC summarizing Project
progress and highlighting status of the project including:
- The progress reports details the forecasted project duration.
- Any changes in the forecasted time are reported to the
Management through progress updates.
- 30, 60 & 90 day look ahead schedules
The following is reported as part of budget and cost
management:
- Project and Programme Risk Register (which will include risk
impact cost details);
- Contractor Payments;
- Potential Variations & Value Engineering;
- Claims and Potential Claims;
- Non-contract fees;
- Commercial Reporting;
- Bonds
HSE Planand
andSecurities,
Reporting:including the establishment of a log;
PMC develops the initial HSE Plan which are subsequently
transferred to the contractor. HSE plan prepared by PMC is
reviewed and approved by Project Manager.
Contractor submits the following reports;
- monthly/ weekly HSE reports
- audit or observation raised report
- All accidents, incidents and near misses
- Man power, training and look ahead
PMC conducts monthly audits to ensure adherence and
compliance to the approved SHE plan.
Quality Assurance:
1. The quality requirements for the construction project must
be addressed in the Quality Management Plan.
2. Contractor is required to create a Quality Management Plan
for their respective contract, in accordance with the Project
quality management objectives which are in line with
Employer’s QA Plan.
3. PMC will review the Quality Management Plans to ensure
that they meet the objectives of the Project and are
implemented, reviewed, and updated as required.
4. Contractor's quality plan to cover the following areas:
• Scope
• Project Inputs
• Quality Objectives
• Management Responsibilities
• Control of Documents and Data
• Control of Records
• Resources (Materials, Human Resources, Infrastructure and
Work Environment)
• Specific Project Requirements
• Customer Communication
• Purchasing (Supplier Management, including subcontracting)
• Production (Execution of Works and/or Design Production and
Review Process)
• Identification and Traceability of the Materials and Equipment
(including maintenance and calibration, if applicable)
• Customer Property Management (when applicable)
• Preservation of Product (materials handling, storage,
packaging, delivery, etc., if applicable)
• Control of Non-conformances (Material and
Procedural/Contractual)
• Process Monitoring and Measurement
• Audits

Risk Management:
1. Stages for effective risk management are as follows:
• Risk Identification Procedure
• Risk Assessment Procedure
• Risk Analysis Procedure
• Risk Response Planning Procedure
• Risk Monitoring and Control Procedure
• Risk Close-Out Procedure
2. PMC prepares a monthly risk register as a record of the
management of risk, once a baseline risk register has been
prepared.
3. Monthly Risk Profile Report based on the analysis of the
revised/ updated risk register is prepared in pre-defined
template.
Change Management Process:
1. Variations and Adjustments in Contract details procedures for
Variation Management and includes Process for:
- initiation
- review of variations
- approval / rejection of variations.
Variations due to Client Request:
1. The client requests the Contractor through PMC to execute
additional works as part of the scope for the project.
2. The contractor reviews the additional scope items and
identifies time and cost impact and submits to the PMC (ROM).
3. The Cost consultant prepares an estimate and compares the
same with the contractor's estimate and informs the Client of
the Price range.
4. Go ahead from client is received on all items.
5. PMC and the Cost Consultant reviews the contractor
estimates and conduct negotiations.
6. The final agreed price and time impact (if any) between the
Contractor, PMC and Cost Consultant are submitted to the
Client for review and approval.
7. Approval is received from the client and is shared with the
Contractor to start the work.
Variations raised by Contractor:
1. The Contractor raises a request for Variation and submits the
list of items.
2. The PMC reviews the same and conducts meeting to clarify
such items.
3. On the agreed items the PMC requests the Contractor and
Cost Consultant separately to provide estimated cost and time
impact.
4. The contractor and cost consultant submits their estimates
(time and cost)
5. The Cost consultant & PMC compares the same with the
contractor's estimate and informs the Client of the Price range.
6. PMC and the Cost Consultant reviews the contractor
estimates and conduct negotiations.
7. The final agreed price and time impact (if any) between the
Invoicing:
1. All Consultants and Contractor raise invoice as per the
process defined in the Contract
2. The invoicing of all consultants and contractor should be as
follows:
- For Contractor Invoicing: PMC, Technical Advisor and Cost
Consultant review the Payment Requests from the Contractor
against the actual progress.
- For PMC Invoicing: Cost consultant review the Payment
Requests from the PMC against the contractual deliverables /
KPIs.
- For TA Invoicing: Cost Consultant reviews the Payment
Requests from TA against the contractual deliverables / KPIs and
sends to PMC for review and endorsement.
- For Cost Consultant Invoicing: PMC reviews the Payment
Requests from the cost consultant against the contractual
deliverables / KPIs.
4. A payment log is maintained to track the actual payments
made against invoices.
3 Project Closing Lessons Learnt Process:
1. Lessons learned for each contract and the Project as a whole
is to be identified and documented throughout the Project life
cycle and compiled as a comprehensive list prior to contract
close-out.
2. Lessons learnt document to be prepared with support from
all the stakeholders for good and bad instances of each contract
and for entire project.

Project Closing:
1. All the deliverables are received before the contract closure.
2. Snag list is prepared to identify any corrective actions to be
taken by the contractor before the Project Completion
Certificate
 Key Data Points Document
Alignment of Project Charter with approved scope 1. Project Scope of work
of Works. 2. Project Charter

Alignment of master plan with the Business Strategy 1. Project master Plan
2. Business Strategy
3. Project Charter

Approval of project budget 1. Approved Project Budget

1. Competitive bidding process to be checked 1. RFP and bid evaluation documents

2. Check contract for standard terms and conditions 2. Contract Document
3. Check for legal review of contract

1. Alignment of Planned Vs. Actual Progress 1. Project S-Curves (Physical and Financial
Progress)

Check if the communication plan is detailed and 1. Approved Communication Plan

consistes of Communication Approach and Process,
Communications Philosophy, Communications
Analysis, Communication Procedures, Roles and
Responsibilities of the Project Team and
responsibility matrix, etc.
Check if the mandatory requirements of the 1. Performance Security insurance
contract are met by the contractor. 2. Advance Payment bond insurance
3. Contractor's Equipment insurance
4.Third party Liability insurance
5. Workmen's compensation insurance
6. Employer's liability insurance
7. Motor vehicle insurance
8. Professional indemnity insurance
9. Any other mandatory requirements as
identified in the contract

1. Check if schedule reviews are performed on 1. Project Schedule

periodic basis 2. Schedule Reviews
2. Check if the schedule is approved

1. Review the progress report to identify any delays 1. Daily, weekly and monthly progress
and the justifications for the delays. reports

1. Check the detailed progress reports to identify 1. Daily, weekly and monthly progress
any HSC related incidents / events. reports
2. Check the HSE audit plan for compliance and 2. HSE Audit Reports
review the reports for observations
1. Check approved quality plan for complaince and 1. Approved Quality Plan
approvals

1. Check if a risk register is prepared and updated Project Risk register

periodically.
1. Check if a variation log is prepared Variation log
2. Check if the variations are approved as pper the Sample variation
authority.

Check payment log for details of the payments 1. Payment Log

2. Sample Invoices
Lessons learnt register alignemnt with risk egister 1. Lessons learnt register
and identified issued in the project reports 2. Risk Register
3. Project reports identifying critical issues

1. Check if all the deliverables are received before 1. Snag list

the contract closure? 2. Project Completion Certificate
2. Check if the contract closure dates are extended
formally through a contract amendment in case all
the project deliverables are not received.
 Application in Industries
1. Oil and Gas
2. Facilities Management

1. Oil and Gas

2. Facilities Management

1. Oil and Gas

2. Facilities Management

1. Oil and Gas

2. Facilities Management

1. Oil and Gas

2. Facilities Management

1. Oil and Gas

2. Facilities Management
1. Oil and Gas
2. Facilities Management

1. Oil and Gas

2. Facilities Management

1. Oil and Gas

2. Facilities Management

1. Oil and Gas

2. Facilities Management
1. Oil and Gas
2. Facilities Management

1. Oil and Gas

2. Facilities Management
1. Oil and Gas
2. Facilities Management

1. Oil and Gas

2. Facilities Management
1. Oil and Gas
2. Facilities Management

1. Oil and Gas

2. Facilities Management
Department / Function: Projects

Risk Rating Parameters

Risk Inherent Risk
Risk Ref # Process Risk Description Control Description Documents for Testing Test of Controls
Classification Impact Likelihood Rating
(1 to 5) (1 to 5)

1 Strategy Infrastructure- Absence of or inadequate policies and procedures leading to Infrastructure department follows the workflow process defined for 1. Policies and Procedures for - Obtain and review workflow process for project
Estimation & ineffective implementation of Procurement processes. project development team. Infrastructure department development team to ensure all operational aspect of
Planning 3-Moderate 3-Possible 6 2. Delegation of Authority infrastructure department are covered adequately.

2 Operational Infrastructure- Absence of detailed Project Charter (including project need, A high level presentation is made to the Tender & Project Committee (T 3. Approved project Charter for the Obtain approved project charter for sample projects to
Estimation & scope, objectives, key stake holders, high level budget, key &PC) for approval; referred to the Board when deemed necessary by T selected project(s) validate following:
Planning risks and ROI etc.) to formally authorize the project. &PC. - Project charter approved by the Tender & Project
Committee/ Board.
2-Minor 2-Unlikely 4 - Validate if project objective, high level scope of work, key
risks, stakeholder roles and responsibility etc. included in the
project charter.

3 Operational Infrastructure- Absence/ Delay in defining technical and commercial - Tamouh involves Consultant for tendering and bidding process to 4. Technical and commercial - Obtain the Evaluation Criteria and scoring guidelines and
Estimation & evaluation parameters may result in favoring of one of the finalize the contractor. As per the scope, PMCs are responsible for Evaluation Criteria verify if the scores against each criteria were given as per the
Planning bidders and selection of incompetent vendor. bidder's technical and commercial evaluation and award 5. Technical and commercial guidelines.
recommendation. evaluation report including - Obtain and review consultant's evaluation report to ensure
3-Moderate 3-Possible 6 - Based on the Consultant's award recommendation, T&PC finalize the contractor's scores against the technical and commercial evaluation are carried out
contractor and issue LOA. evaluation criteria for the selected adequately and recommendation is made to T&CP
project(s) accordingly.

4 Operational Infrastructure- Inadequate review of estimates prepared by in-house - In case consultant involves in estimation, consultant prepares the 6. Final Estimate and budget for - Obtain and review the estimate and budget prepared for
Estimation & estimation team / third party QS firm to ensure BOQ is in line estimate and budget. master plan (detailed estimation master plan.
Planning with design specification and client BOQ. - In case in-house team involves in estimation, CM/ QS/ Contract sheet) - Review the benchmark considered for initial estimate and
department prepares the estimate and budget. 7. Benchmark considered for initial correlation with current market price.
- CD, CDO and ExCom review and approve the estimate and budget for estimate and correlation with current - Review the calculation and interlinking with different tabs
3-Moderate 3-Possible 6 master plan. market price, if any of estimation sheet.
- On yearly basis, Infrastructure Director reviews the estimation sheet
and update the budget based on actual site condition and existing
contract for similar service.

5 Operational Infrastructure- Inadequate or absence of documentation to capture key - Assumption and justification are captured in the estimation sheet for 8. Assumptions and justifications - Obtain and review master plan estimation sheet and validate
Estimation & assumptions made during project estimates to help project future reference. considered for master plan estimation the justification and assumption highlighted against the
Planning team during execution phase. 3-Moderate 2-Unlikely 5 - In case of any update in the unit price, explanation are captured for change.
future estimate/budget update.
Operational Infrastructure- Inaccurate cost to complete report / analysis by Project team/ - Tamouh receives comprehensive monthly reports from PMC. 9. Last 6 weekly and monthly - Obtain and review periodic cost report, monthly and weekly
Estimation & cost consultant on account of incomplete cost components, - In-house team also updates the expense record and contract summary progress and cost reports for the progress reports generated by project team to ensure effective
6 Planning inaccurate basis for estimation. 2-Minor 2-Unlikely 4 report to monitor the cost performance. selected project(s) including Cost to cost monitoring.
complete estimates
Operational Infrastructure- Absence of consistent and comprehensive procedure for Contractor invoices are reviewed and verified by PMC and Tamouh 10. Contract agreement for selected - Obtain contract agreement for sample projects.
Estimation & verification and approval of invoices from consultants and before payment. Payment to contractor is done as per agreed terms project(s) - Review the payment certification and invoicing procedure
Planning contractors. mentioned in contract. In case of consultant payment, Tamouh reviews 11. Last 6 approved invoices along stipulated in the contract agreement.
and verifies the invoice before releasing the payment. with progress certificate and other - Obtain sample invoices along with progress certificate and
supporting documents for the selected other supporting documents.
project(s) - Verify whether progress certificate is endorsed and
7 2-Minor 2-Unlikely 4 12. Updated invoice tracker for the approved by project team.
selected project(s) - Verify whether invoice figures are matching with progress
certificate and necessary adjustment and deductions i.e.
retention money, advance payment deduction etc. has been
done.

Operational Infrastructure- Absence of a formal process to document/ capture lessons - Contractor prepares the close out report which captures financial 13. Lessons learnt register for the - Verify if lessons learnt document has been prepared by
Estimation & learnt from previous / current projects experience. summary, status, s-curve & histogram, lesson learned and list of selected project(s) contractor / consultant.
8 Planning 3-Moderate 2-Unlikely 5 documents for dossier. - Verify if all learning experience has been captured
adequately in the lesson learnt register.
Operational Infrastructure- Absence of comprehensive and documented risk management Tamouh relies on PMC / Contractor to provide risk registers relevant to 14. Risk management procedure, if - Obtain risk management procedure.
Estimation & process / risk register in project execution phase. the specific project. any - Obtain last 6 month's updated risk register to validate if risk
Planning 15. Updated risk registers for the past register has been updated on time.
6 months for the selected project(s) - Validate if all project related risk has been captured in the
register.
- Validate if captured risk has been evaluated as per the
approved procedure.
9 3-Moderate 2-Unlikely 5 - Validate if a mitigation plan is in place along with assigned
responsibility and timeline for each risk.
- Validate if risk has been discussed and adequate action has
been taken to mitigate the risk by project team.

Compliance Infrastructure- Risk of non compliance with statutory requirements (e.g. All compliance requirements are managed by the PMC. 16. Updated regulatory authority
Estimation & licenses/ permits/ regulations from statutory bodies and approval tracking sheet
10 Planning government, e.g. RERA, BIM, Civil Defense, Dubai/ Abu 3-Moderate 2-Unlikely 5
Dhabi Municipality etc.).
Compliance Infrastructure- Delays in obtaining necessary authority approvals (e.g. All documents are submitted to regulatory authorities in a timely
Estimation & licenses/ permits/ regulations from statutory bodies and manner. - Obtain authority approval tracking sheet to ensure
11 Planning government - RERA, BIM, Civil Defense, Dewa, Dubai/ Abu 3-Moderate 2-Unlikely 5 adherence with the timeline and requirement.
Dhabi Municipality etc.).
Compliance Infrastructure- Lack of awareness and knowledge of local regulations Tamouh has no regulatory tracking mechanism, this risk is covered by
12 Estimation & amongst stakeholders new to UAE. 3-Moderate 2-Unlikely 5 the PMC.
Planning
Operational Infrastructure- Absence of clearly defined roles and responsibilities may lead Tamouh has approved organization structure with defined roles. 17. Approved organization structure - Obtain and review approved roles and responsibilities
Estimation & to ambiguity in decision making at different stages of project. Workflow process also defines the roles of each department involved including roles and responsibilities document to ensure roles are clearly defined and aligned with
13 Planning 3-Moderate 2-Unlikely 5 during project lifecycle. for the selected project(s) the project requirements.

Operational Infrastructure- Absence of review of project progress on a continuous basis PMC is responsible for timely reporting and arranging of review 18. Past 6 monthly / weekly progress Obtain and review sample periodic reports to ensure the
Estimation & leading to inadequate monitoring and absence of timely meetings. reports for the selected project(s) following:
14 Planning corrective actions to avoid delay in completion of project. 3-Moderate 3-Possible 6 along with distribution email - Reporting frequencies;
- Reporting structure and content.
Operational Infrastructure- Absence of approved site HSE plan and HSE monitoring PMCs are responsible for compliance with QHSE requirements. 19. Approved HSE plan for the Obtain and review approved site HSE Plan, periodic HSE
Estimation & mechanism may lead to reputational loss due to accidents and selected project(s) reports to ensure adequate monitoring of HSE related issues.
15 Planning injury. 3-Moderate 3-Possible 6 20. Past 6 monthly / weekly HSE
reports for the selected project(s)

Operational Infrastructure- Failure to deliver project on time and as per contract terms Infrastructure Director and PMC monitors contractor performance 21. Approved baseline and updated - Obtain baseline and updated project schedule along with
Estimation & may lead to financial loss and reputational damage to the against the program, deliverables, and milestones in line with progress project schedule for the selected progress report to verify whether ETC has been reviewed and
Planning company. measurement and reporting system set out in the contract. project(s) (Primavera / MSP, PDF reported.
and Excel file) - Validate if contractor has submitted catch up plans to
16 3-Moderate 3-Possible 6 22. Crashing Plan / Catch up Plan mitigate the delays.
prepared for the selected project(s)

Operational Infrastructure- Inadequate evaluation of consultant / contractor's performance Tamouh has no defined procedure for consultant / contractor's 23. Contractor's and Consultant's Obtain and review post contract consultant / contractor's
Estimation & post contract closure may lead to selection of non-performing performance evaluation post contract closure. performance evaluation for the performance evaluation guidelines
17 Planning consultant / contractor being selected for future projects which 3-Moderate 3-Possible 6 selected project(s)
may further affect the quality project.

Operational Infrastructure- Inadequate monitoring of the budget may lead to project cost - Tamouh receives comprehensive monthly reports from PMC. 24. Approved budget amendments, if - Check the approved budget for any amendments.
Estimation & overruns - In-house team also updates the expense record and contract summary any for the selected project(s) - Check if approvals were taken before the amendments were
18 Planning 3-Moderate 2-Unlikely 5 report to monitor the cost performance. made.
Department / Function: Projects

Sr. No. Observation Title Observation Detail

1 Inadequacies noted in On review of the project charters for the selected
development of the projects we noted an absence of the following
project charter aspects:
- Project Success Criteria;
- Interdependencies;
- Communication plan;
- Project Risk Management Criteria and Project Risks;
- Project Milestones;
- Stakeholders;
- Key Assumptions;
- Quality Management;
- Sustainability;
Further, the draft policies and procedure document
does not detail the guidelines for the project team to
develop a project charter.

2 Governance - Policies, Based on the review of policies and procedures, we

Procedures, Organizational noted that the policies and procedures have been
Structure and Delegation updated in 2019, however, on review of the existing
of Authority policies and procedures, we noted the below:
- Document retention policy has not been created
and approved. Industry’s common practice sets a
threshold of 10-15 years before archiving data.
Currently, Emarat still has documents dating from the
1990.
- Inadequate guidelines for project Quality Assurance
and Quality Control system.
- Guidelines to impose penalties are not clearly
defined.
- Process for approvals of extension of time for
projects was not defined.
- Guidelines for project financial reporting /
monitoring was not defined.
- Process for handover of projects to maintenance
team was not defined.
Further, the project management manual currently
developed by the E&P Department is inadequate as it
does not cover the below areas:
- Project planning
- Project Execution
- Project monitoring
- Project reporting
- Project close-out
3 Project Estimation and - On review of the existing policies and procedures,
Contract Management we noted that the guidelines for approval of variation
orders are defined, however, the limits for approving
authority for variations are not detailed in the
Delegation of Authority.
- Further, on comparison of the approved budget and
the actual cost of the retail projects, we noted that
the actual cost for the projects is as high as 47%.
- On further review of complete portfolio of projects
under retail, the overall additional sanction is 7%
above the approved budgeted cost.
- On review of sample contracts, we noted that there
are inconsistencies in the advance payment to the
contractors. The Sajaa contract defines the advance
payments to be 20% of the contract value, however,
the other contracts such as Jazeera, Khadeira, etc.
defines the advance payments to be 10%.
- Further, on review of the recovery of advance
payments for the selected projects, we noted
inconsistencies in advance recovery payment for
Sajaa throughout the timeline of the project.
4 Project Management - On review of the progress reports for Retail,
Office Terminal and Maintenance we noted that there was
absence of a single template designed by Emarat to
be adopted by third parties for weekly and monthly
reporting, which will ensure consistency.
On sample review of weekly and monthly progress
reports, we noted the following:
o The progress percentage (planned Vs. actual) is
not reported.
o Areas of concerns and action taken are not
identified.
o Different report formats are used for the same
project.
o Updated logs for material, drawings, submittals,
procurement, etc. are not reported.
- On review of monthly progress report for DG, we
noted the following:
o The actual costs are not reported against the
budgeted costs.
o The variations approved and under review are
not reported.
o Planned vs. actual physical progress is not
detailed.
o Key Risks are identified, however, the status of
such risks in the next month reports is not available.
-  On discussion with the E&P team, we noted that
there is absence of project financial reporting which
may include the below:
 Item wise budgeted and actual cost
 Cost to complete forecast
 Variations (approved, under review, rejected,
etc.)
 Opportunities and vulnerabilities matrix
 Cost at completion
5 Invoice Register and - On review of the invoice register for E&P, we noted
Invoice Processing that the below information was not tracked:
oContract number
oProject number
oAdvance provided
oAdvance recovered
oRetention amount, etc.
- On review of the invoice register for maintenance,
we noted, 112 invoices amounting to AED 1,637,421,
have missing receipt dates.
- On the review of Maintenance invoice register, we
noted delays up to 186 days in issue of payment after
invoice receipt. 168 out of 1,783 invoices amounting
to AED 2.58 million have a delay of more than 60
days.
- On further review of all the above invoices
processed by engineers, we noted that out of total 16
engineers, 12 engineers have delays in processing
invoices amounting to AED 2.58 million. Out of the
above 12 engineers, 7 engineers cumulatively
correspond to 90% of the delays.

6 Engineering KPIs - Based on the review of process for capitalization,

we noted that the assets were capitalized with delays
ranging up to 233 days for 13 out of 20 commissioned
projects.
- On review of the completed projects as of April
2021, we noted that for 14 out of 17 projects,
information related to capitalization of the assets was
not sent to Account section.
- Non-achievement of the set KPIs for the delays in
project completion below the acceptable limit of 10%
and 15% for Greenfield and Brownfield projects
respectively.
7 Absence of a project risk On review of the policies and procedures and
assessment process discussion with the Infrastructure Team we noted an
absence of a process of project risk assessment to
include the below:
- Risk Identification;
- Risk evaluation;
- Risk rating criteria;
- Risk control strategy;
- Risk monitoring and reporting, etc.
Further, there is absence of a process to identify and
quantify the vulnerabilities and opportunities in the
project.
On review of the selected sample projects, we noted
that the project risk registers were also not
developed, to identify and mitigate the project risks.
A typical project risk register would include:
- A unique risk ID;
- Risk Description;
- Risk Rating;
- Mitigation Plan;
- Responsible person;
- Action taken, etc.
 Impact Root Cause
Project Charter including Absence of guidelines defined in
project key information policies and procedures to
may not be developed develop project charter
which could lead to the
inability to have all the
information readily
available during the
project execution.

- Outdated policies and - Absence of periodic review of

procedures may fail to policies and procedures.
comply with external and - Absence of a formally approved
internal changes. document retention policy.
- Uncontrolled documents
archiving and storing may
lead to loss of important
information.
 - Additional cost incurred - Inadequate project estimation
on the project in absence for all category of work to be
of detailed project budget. performed.
- Impact on project cash - Non-adherence to the standard
flow on account of excess advance payment guidelines
advance payments to the leading to excess advance
contractors. payments.
- Requests from other
contractors to increase the
advance payment
percentage in their
projects.
 - Inability to take timely - Absence of Emarat designed
decisions impacting standard reporting templates for
workflow and project weekly and monthly progress
completion in absence of reports.
adequate information in - Absence of project financial
the management reports. reporting.
- Inadequate project
monitoring and
information transfer to the
senior management.
- Delays in timely
decisions by senior
management in absence of
visibility on financial
reporting.
 - Excess / over payments - Absence of standardized
in absence of inadequate formats to capture complete
information tracking in the information related to
invoice register. contractor / consultant invoicing.
- Reputation loss on - Ineffective monitoring of the
account of delayed defined internal service level
payments to the agreements for invoice
contractors / consultants. processing.

- Increased probability of - Inadequate monitoring of the

quality concerns, safety set departmental KPIs due to
engineering threats and absence of manpower.
project delays in absence - Lumpsum contracts making cost
of monitoring of project breakdown a lengthy process
KPIs. causing delays.
- Delay in recognition of
asset costs in the books of
accounts on account of not
achieving the set KPIs for
asset capitalization.
Potential risks of the - Lack of focus to develop
project such as project comprehensive project risk
delays, additional costs management processes.
etc. may not be identified - As informed, lack of personnel
on timely basis, in absence as part of Infrastructure team, to
of a robust risk support quantitative, and
management process. qualitative analysis.
 Recommendation
1. Policies and procedures should be updated to
include the guidelines and content for developing the
Project Charter
2. Project charter for all projects should be modified to
include the above requirements.

Update the current policies and procedures to include

processes such as document retention, quality
assurance and quality control, handover process, etc.
 - The project estimates should be detailed to include all
possible expenses. All additional expenses / variations
should be approved as per the DOA.
- Standard advance payments of 10% should be
provided to the contractors and the advance recovery
should be deducted as per the conditions defined in the
contract.
 - Develop and implement standard weekly and monthly
templates for project reporting.
- Identify and develop internal Project Management
Team to streamline the project monitoring process.
- Develop and monitor the project financials through
standard project financial reports which should include
details of budgeted cost, actual cost, cost to complete,
approved variations, variations under review, cost at
completion, opportunities and vulnerabilities matrix, etc.
 - A standard invoice register format should be
developed and implemented to include information such
as invoice number, invoice amount, invoice date, project
number, project name, advance, advance recovered,
retention, status, approval date, release date, etc.
- The E&P team should enhance tracking of
contractor / consultant invoices to meet the internal
service level agreements for release of payments.

The departmental KPIs established as part of the

engineering objectives should be monitored on periodic
basis. The variance to the set KPIs should be reported
to the senior management.
1. Develop and implement a detailed project risk
management policy and procedure.
2. Risk registers including identification and
quantification of opportunities and vulnerabilities should
be developed for all the projects and monitored
periodically.
 Project KPI Assessment
S.No. Process
1
Project Strategy, Organization &
2
Administration
3
4
5
6
7
8
9
Project Planning, Integration, Monitoring &
10
Reporting
11
12
13
14
15
16
17
18
Project Finance & Cost Management
19
20
21
22
Value Engineering
23

24
25
26
27
Tendering & Procurement
28
29
30
31
32
33
34 Contract Management
35
36
37
38
39 Inventory & Material Management
40
41
42
43
Risk Management
44
45
46
47

Project Governance
48
49 Project Governance
50
51
52
53
54 QHSE
55
56

57

58 Sustainability
59
60
 Project KPI Assessment
KPI
Project Internal Rate of Return (IRR)
Adherence to Feasibility Budget (Design to Cost Target)
Adherence to Feasibility Timeline
Timeliness for Release of Monthly Executive Dashboard Reporting
Type of Reporting used in organization
Timeliness of Decisions from Executive Management
Schedule Performance Index by Phase and Project
Schedule Completion Risk Probability Trending
Aging of Problems Reported - Schedule & Progress Related
Average response time for design team for site-related design issues
Average timelines for addressing Request for Information
Average timelines for addressing change requests in Design
Number of Non-Compliances / Delay in Design MIS Submission
Manpower deviations from the Planned histogram
Use of Leading Project Management Tools
Use of Leading Document Management Tools
Cost Performance Index by Phase and Project
Cost Completion Risk Probability Trending
Aging of Problems Reported - Cost Related
Turnaround time for invoicing and payment receipts
Demonstrated Time savings by Project Parties
Demonstrated Cost savings by Project Parties

Number of Value Engineering & Value Management Workshops conducted across each Project Phases

Use of Building Information Modelling (BIM) Technology

Selection of Main contractors and award (RFP - LOA)
Timelines for finalization of designers and architects / other consultants
Contract Finalization post release of LOA
Turnaround time for procurement upon raising of PR
Tender Success rate
Adherence to Procurement / Packaging Strategy
Zero Dispute / Arbitration between the contracting parties
Effectiveness of early identified claims and early resolution
Documentation of all project events and potential claim risks and opportunities
Timely contractual communication to parties on the event of claims / delays / prolongations identified
Timely reports to Management on the status of claims
Change Management Processes Closed Out
Adherence to the Scope of Work / Contractual Deliverables
Wastages at Site for High Value Items
Ageing of Inventory
Material Reconciliation
Mitigation Timeline and Closure for "Red / High" Rating Risk
Mitigation Timeline and Closure for "Amber / Medium" Rating Risk
Adherence to Risk Management Plan Protocols
Conducting Risk Identification & Mitigation Meetings
Risk based Project/Program Contingency / Reserve Utilization
Quantitative Schedule & Cost Risk Assessment
PMC Performance Evaluation
General Contractor Performance Evaluation
Project Audit Score for last 2 Years
Project Attrition Rate for Project Staff / Project Based Resource
Number of Trainings conducted for Project Based Resource
NCR Turnaround Time (TAT)
Site Observation TAT
Rolling average Incident rate be less than prescribed
Rolling average Severity rate be less than prescribed
Environmental & Sustainability Audits

Percentage of Energy generated by renewable sources

Percentage of Waste recycled

Number of non-compliances for waste recycling / segregation at site
Number of sustainability trainings and workshops conducted
 Industry Thresholds
Project Based
(+) (-) 5% Variance
(+) (-) 5% Variance
Allowable deviation upto 3 days
PMIS Integrated systems
Within 7 days of Request Initiation
Threshold SPI of 0.9-1.1
P75 (Probability of 75%) or greater
Less than 2 months
Within 3-5 days
Within 3-5 days
Within 5-7 days
Within 5-7 days
Upto 5%
Primavera / PMIS
Tool Based
Threshold CPI 0.9-1.1
P75 (Probability of 75%) or greater
Less than 2 months
As per Contract
5-10% of Original Master Baseline
5-10% of Original Master Baseline

Minimum 5 nos. across all project phases

Adopting BIM across project

60-90 days
30-60 days
Within 15 days
As per defined process
Greater than 60%
100%
0 Disputes
100%
100%
100%
100%
60 Days starting Identification of change
100%
Upto 3% Wastages
Less than 2 Months
System based real time Reconciliation
Within 2 Weeks
Within 4 Weeks
100%
Fortnightly
Less than 50% of the allocated Contingency
P75 (Probability of 75%) or greater

Performance score more than 70%

Performance score more than 70%

Attrition Rate <5% per year

5 nos. per year
Within 3-7 days
Within 3-7 days
<0.04 per 1,000,000 man hours
<0.77 per 1,000,000 man hours
Once every 6 months

Minimum 25% generated by renewable sources

Minimum 75% waste recycled

0 tolerance
Once every quarter