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Eanred Value rules for M&E procurement

3 replies [Last post]
Gary Whitehead
User offline. Last seen 2 years 33 weeks ago. Offline
Typically a project will earn the value of major M&E kit according to a series of milestones such as order placed, FAT, delivery & installation. The milestones used and % split of value across them is aligned with the T&Cs of the PO.

But I am curious to know what general rules or guidelines do fellow planners follow when developing inital baseline, before the T&Cs are known? And do these guidelines vary across regions and industries?

Replies

Ashb .
User offline. Last seen 3 weeks 2 days ago. Offline
Joined: 25 Nov 2008
Posts: 772
Hi Gray

I have come across a case in which the specification states that delivery of materials Eg,-Generator ,at site cost 75% of Budgeted Value and remaining 25 % goes to the respective installation Activities
Ashb .
User offline. Last seen 3 weeks 2 days ago. Offline
Joined: 25 Nov 2008
Posts: 772
Hi Gray

Are u looking for Earned Value procedure in MEP or WBS in developing the MEP Baseline schedule
Gary Whitehead
User offline. Last seen 2 years 33 weeks ago. Offline
I’m looking for how you apportion the budget cost & assocaited earned value of major M&E kit in your baseline programme

e.g. perhaps 10% of the value is earned when the order is placed, 50% throughout manufacturing period, 10% at FAT and 30% on delivery