Company Policy

Quality Assurance Policy

As a professional and leading firm in construction, WEN has always been committed to providing Clients with a high quality of design and build service. As an outward expression of this commitment, WEN not only develops and employs its in-house quality procedures but also establishes strong partnerships with only certified subcontractors and suppliers. It subjected its formal Quality Management System to assessment by a Third Party Assessor for compliance with the requirements of the BS EN IS0 9001:1994 Quality System Standard.

The formal and approved Quality Policy and Objectives are stated in the Quality Manual. This manual along with the operational procedures and associated support documentation forms the basis of the documented system. The system is common to all offices, disciplines and support activities and is mandatory in its application to all projects. This approach has the advantage of ensuring consistency when managing projects and in particular those where multi-discipline or inter-office activities apply.

Based on our Quality Policy, Customer Service Standards are defined in our Quality Manual and throughout the Operational Procedures. On appointment, a Project Quality Plan is prepared unique to the particular project. A key consideration in preparing this plan is the specific Client requirements contained in the brief concerning, specification, budget and program. The project program and resourcing are tailored to meet these requirements. The Quality
Plan includes details of consultation with and reporting to the Client on a regular basis so that the Client is kept informed of progress and of any modifications to the project as soon as possible. Design and documents are checked at key stages to verify adherence to system and project requirements.

During the course of a project, the Partner responsible or in his absence the
Project Leader, is available at all times to discuss with the Client’s representative any difficulties or concerns that may arise in relation to the project or its progress.

An important requirement of our Quality System is the recording of the issue and receipt of drawings, documents, emails and written communications using the state-of-the-art project management software including Primavera Expedition and customized databases. Also required is the recording of telephone or “in person” conversations that have a material impact on the scheme. These are all recorded on approved forms and this ensures that we are able to trace design changes and instructions.

Health and Safety Policy

WEN adopts a positive attitude to Health & Safety matters with an established Health & Safety Policy, which together with our Safety Manual and Safety
Guidance Document comprises a comprehensive set of documents covering our work within the construction sector. The following is an extract from our Health and Safety Policy:

General Statement of Policy

It is the policy of the Firm to provide safe and healthy working conditions for all members of the staff and to provide such information, training and supervision as they may need for this purpose. It is also the policy of the Firm to have proper regard to health and safety in every aspect of the services that it provides.

The allocation of duties for safety matters and the arrangements made to implement the policy are set out in the Safety Manual. Further details of safety procedures to be followed by staff in course of their work are also given in the document.

The Firm’s Safety Manager has instructions to review the Safety Manual annually and to make recommendations to the Safety Partner if any changes are necessary. After confirmation by the Partners, any such modifications will be notified to staff.

Where necessary, revisions will be made to take into account new legislation, modifications to accepted good practice and the development of the Firm’s business.

The Health & Safety Manager is responsible for advising all staff on health & safety matters and for co-ordinating the implementation of the Firm’s policy. All new staff are required to undergo an induction program which includes formal training by our Health & Safety Manager. As part of this induction, all staff are given a personal copy of our Safety Manual and Safety Guidance Document.

Awareness training seminars are held in-house for our designers and Planning Supervisors on a regular basis and these are conducted by our Health & Safety Manager. In addition to these seminars we arrange for members of staff to attend external training courses by specialist providers when this is appropriate. With regard to site health & safety matters, all of our resident engineers receive training commensurate with their level of responsibility in addition to in-house training and discussion seminars. All members of staff have access to a well stocked library of health & safety publications and receive updates from the Health & Safety Manager.

Environmental Policy

WEN is committed to carrying out our services in an environmentally sensitive nature and, whenever feasible to apply innovative, environmentally acceptable techniques to the implementation of projects.

In carrying out our design and build service, the Partnership seeks to:

  • carry out its services in the interest of society and the environment
  • minimize waste, wherever possible, through the efficient use of renewable resources, recyclable materials and careful use of energy including lighting and heating
  • use recycled paper products from sustainable forests, where possible
  • ensure proper disposal of waste, including recycling, where possible
  • ensure a healthy working environment for our staff.

WEN holds membership of the AECB (Association for Environment Conscious Building) which is one of the leading organizations promoting environmentally responsible Practices within the industry. The Association’s “Greener Building” products and services directory and the recently published BRE Green Guide to Specification are being incorporated into the Practice’s Specification philosophy.

The Practice has set-up an Environmental Policy Group with representatives from all disciplines. This group meets monthly to share knowledge, to keep abreast of current legislation and to promote sustainability within multi-discipline design projects. This group also organizes in-house seminars which, in conjunction with appropriate formal training, ensures that staff are aware of environmental issues.

Across all our disciplines, we aim, in partnership with our Clients, to achieve environmentally acceptable and sustainable designs. We believe that the application of innovative, yet realistic, environmentally sensitive techniques to construction projects can offer Clients a real long term benefit, both in terms of supporting their commitment to the environment under Agenda 21 and in terms of whole life costs.

Our approach also considers the construction phase when we hope to influence construction techniques in order to minimize the risk of damage to the environment during the implementation of projects on site.

Cost Control Policy

The Practice places a high degree of importance on the control and reporting of contract and project costs with an emphasis on reporting the estimated final cost of a contract or project. WEN recognizes the importance of keeping Clients as up to date as possible and the implications of any proposed changes are reported to the Client in advance so that the impact can be fully assessed and decisions taken before they become a "fait accompli".

With the setting of an initial budget WEN will closely monitor the design process, analyze the risks and report regularly to the Client on the impact to the estimated costs and the budget. Upon the commencement of construction work the Practice recognizes that variations and changes create the greatest risk to cost increases and time over runs and therefore it is the aim of the Practice to keep changes to a minimum and we believe this is best achieved through good initial design.

Where changes are unavoidable the emphasis is placed on assessing the cost implications and analyzing the impact of the change on other works and on the contract program. The impact of significant proposed changes should be advised to the Client in advance of an instruction being issued and where possible, the cost and time implications should be agreed with the contractor in advance of the works commencing. As a general rule the Practice aims to report to Clients on the estimated final costs of contracts and projects at monthly intervals.

The Practice aims to foster a close working relationship with contractors to resolve problems as and when they arise and to agree the cost and time implications of changes as the work proceeds with a view to producing a final account within 3 months of completion of the works.

WEN also recognize that the construction costs are only one component of all the costs that go to make up the total project cost and to that end the Practice controls staff time on a weekly basis with progress being monitored by the partner in charge. This information, together with an estimated final cost of fees, is regularly forwarded to Clients. Additionally, where requested to do so, we will also monitor and control other project expenditure such as other consultants, Statutory Authorities, specialist contractors and the like to allow cost control at the full project level.

 Annex A1: Overview of Quality Assurance System


The aims of the WEN Quality System are:

  1. To establish and maintain Client’s confidence in the firm’s ability to satisfy their needs.
  2. To continuously improve the level of service provided and the efficiency of the firm.

With these aims the objective for the system is that it should be adequately documented and adapted whenever developments inside or outside the firm demand it and be thoroughly understood and implemented in practice throughout the firm.


The company will appoint one Partner to be responsible for the firm’s Quality System. The Partner is supported by a Review Group which consists of the Quality Manager, who is responsible for the day to day running of the system, and others chosen to reflect the diversity of firm both professionally and geographically. The Quality Manager is in turn assisted by a Quality System Co-ordinating Officer based in the local office.

During periods when internal auditing is being carried out the Quality Manager can call upon a team of staff members trained in audit procedures.

Management Review and Resource Allocation

The Partners meet at least once a year to carry out a formal detailed review of the Quality System to ensure its adequacy, suitability and effectiveness in meeting the current requirements of the BS EN ISO 9001:1994 Standard and the Firm’s Quality Policy and Objectives. At this meeting the Review Group submits a report summarizing the operation of the Quality System over the preceding period.

The Partners recognize that adequate resources for the proper management, implementation and auditing of the Quality System must be made available.

System Documentation and Control

The WEN Quality System consists of the following documents:

  1. The Quality Manual – which is a policy document summarizing the firm’s management system. It defines the processes in the firm that are essential to quality including general and project related matters.
  2. The Operational Procedures – which describe in detail how the work processes which go into the provision of the service are to be undertaken.
  3. The Project Quality Plan – which relates the firm’s Quality System to meet the requirements of a particular project. It is a controlled document prepared and maintained in accordance with the guidelines laid down in the Manual and Operational Procedures.

The Quality Manual and Operational Procedures are controlled documents issued y the Quality Manager upon approval by the Review Group. The Quality Manager maintains a register of the holders and location of all copies.

Amendments to the Quality Manual and Procedures are made as required to reflect the current Quality System.

The Amendments are made by:

  • The replacement of the applicable page/s and recording the revision status and date on each page.
  • By the complete re-issue of a later edition where the number of changes make it impracticable to use the revision system.

Where changes are made to procedures, all pages in the procedure will be re-issued. Additionally, changes will be indicated by inserting a vertical line against the paragraph/s at which the changes occur. The Quality Manager will keep a record of all amendments.

Uncontrolled copies of the contents of the Quality Manual may be issued to Clients or potential Clients for information purposes. These copies will be marked ‘Uncontrolled Copies’ and will not be updated.

In addition non-mandatory Advice Notes are prepared by nominated staff members approved by the Review Group and maintained by the staff in the company library.

Staff Training

A key objective of the Quality System is to ensure that staff understand the system in so far as it affects their work and that they fully implement it.

It is the responsibility of the Partner or senior staff member in charge of a new staff member to make sure he/she is made aware of the Quality System and properly trained in its application.

Feedback and Corrective/Preventive Action

It is accepted that the Quality System is a living system and as such must be subject to continuous review so that it reflects the changing environment in which the firm operates.

The review procedure is initiated by feedback from staff members and others. Some of the opportunities are outlined below:

  • Suggestions from staff
  • Commission Reviews
  • Experience in use on Projects
  • Quality Audits
  • Published Feedback
  • Client Feedback

All feedback is channeled to the Quality Manager and is discussed with the Partner in Charge and/or the Review Group where appropriate. If approved in principal draft revisions to the documentation are drawn up by the Quality Manager and submitted to the Partner in Charge for formal authority to revise and re-issue the documents.

Where feedback indicates non-conformances of a recurring nature, they shall be analyzed to determine if suitable preventive measures can be applied.

It shall not however be the Firms policy to introduce immediate preventive action as a response to individual non-conformances.

Internal Quality Audits

The Quality Manager/Co-ordinating Officer is responsible for preparing a Program of Internal Audits.

The Program shall ensure that all disciplines and procedures undertaken by the Firm in each of its offices are audited at least annually.

Quality Planning

Approved documented Quality Procedures as specified in this Manual ensure the inherent planning for quality.

For specific Projects Quality Plans outlining the sequence of operations and specifying the acceptance criteria and verification policy are in use.

Each activity in the Quality Plan is further detailed in specific procedures.

The responsibility for the preparation and maintenance of Quality Plans is outlined in the relevant Procedures.

Annex A2: Quality Audits Procedure


  1. For annual audit plan: The Quality Manager, assisted by the Co-ordinating Officers.
  2. The Quality Partner is responsible for approval of the Audit Plan.
  3. The Co-ordinating Officers in local office are responsible for arranging internal audits.


Audit Plan

  1. The Audit Plan is suitably prepared in order to ensure that all activities and Operational Procedures are adequately audited in each of the Firm’s offices at least once in every twelve months.
  2. The Plan format and frequency of audits should reflect the findings of the previous year program of audits both internal and external in addition to any recommendation made at the Quality System Review Group Meeting.
  3. The plan is subject to approval by the Quality System Review Group and will be signed by the Quality Partner on approval.
  4. Where, due to operational reasons, it is not possible to conduct a planned audit, the audit shall be conducted prior to or at the earliest possible time following the planned audit date. A record of such changes shall be maintained by the Quality Manager/Co-ordinating Officer.

Audit and Follow-up

  1. Audits shall be conducted at a time agreed between the auditor and the staff and Partner of the Section being audited.
  2. Auditors shall ensure that the scope and application of the audit is clearly understood by all parties concerned in order to avoid any misunderstanding.
  3. The Audit findings will be recorded on the Internal Quality Audit Report and shall include, where applicable, a note of any corrective actions required.
  4. Where non-conformances are identified and corrective action is required, details will be recorded separately on the non-conformance/corrective action form. Details on the form will include the identified non-conformance, the agreed corrective action and where applicable, details of any action which may assist in preventing further recurrences of the non-conformance.
  5. The time given to implement corrective action shall be based on the nature of the non-conformance taking into consideration its implications on specific projects and the operating of the Quality System in general.
  6. Prior to the issue of a non-conformance/corrective action report, the findings of the audit will be discussed with the Auditee and when the Audit of a particular section is completed, a brief report will be prepared by the auditor.
  7. A copy of the Audit Report will be given to the Partner, Auditee and the Quality Manager/Co-ordinating Officer.
  8. Where re-audit is necessary, an Auditor will be appointed and will be responsible for ensuring that the necessary corrective action has been completed and within the time given.
  9. Where corrective action has not been implemented by the date given, the Auditor shall refer the matter to the Section Partner for resolution. The corrective action remains outstanding until further action is agreed and the action taken. A log of corrective actions shall be retained by the Quality/Manager/Co-ordinating Officer.

Audit Team and Qualifications

Audits will be carried out by staff with appropriate training. Team members’ audit experience is recorded by the Quality Manager (and/or on their general training record). Auditors shall be independent of the function being audited.

Management Review

Audit reports are submitted by the Quality Manager to the Quality System Review Group not less than annually.

The Quality Manager prepares a summary of the annual audit findings within the Quality System Review Group report to the Partners’ annual review meeting.

Based on this report and taking into account identified areas of risk, the audit plan for the following year will be determined.

Second Opinions

In the event of disagreement between the Auditor and the Auditee, this is resolved in the first instance between Quality Manager and Quality System Co-ordinating Officer or if necessary between Quality Review Group and local Partner(s).


Audit plans, reports and non-conformance notes are retained by the Quality Manager for a minimum of 5 years.


Please remember that the audit is NOT an exercise to catch people out! It is to help make sure that our system is up-to-date and properly used; an asset and not a source of danger or difficulty. It is to identify good ideas for promotion throughout the firm, as much as to identify things that need remedying. So please be as constructive as possible.

Annex B1: Overview of Health and Safety System


Individuals involved in the design development, planning, programming, tendering, purchasing and construction of a project will need to consider the consequences of their decisions for health and safety. The identification of hazards and the management of the risks arising from them is our prime responsibility and the more effective we are, the better shall be our financial, safety, and performance.

HSE Standard Requirements

Following the Health and Safety at Work Act 1974, 4th Edition in 1990, WEN has established necessary HSE requirements for a minimum standard of safety and health to be achieved on the job site as follows:

  1. The Company shall initiate and maintain a job-site safety and health program.
  2. No construction or works will be required to perform work under conditions that are either unsanitary, hazardous, or dangerous to his or her safety or health.
  3. The Company will assign competent persons to conduct frequent and regular inspections of job-site materials and equipments.
  4. The Company will prohibit the use of any machines, tools or equipment which do not comply with the safety standards.
  5. However, the Company will identify all equipment that does not comply with the safety standards by tagging and the controls locked to prevent the use and they must be removed from the job site.
  6. The Company will allow only employees qualified by training or experience to operate equipment.
  7. Every employee shall be instructed in the safety and health regulations applicable to his or her use.
  8. The Company will display HSE poster and distribute copies of the act and HSE rules to employees.
  9. The Company will post a record of all lost-time injuries at the job site.
  10. The Company encourages the reporting of all fatalities and accidents which result in the hospitalization of five or more workers.
  11. The Company will post the names and locations of the nearest medical facilities at the job site.
  12. The Company will instruct each employee the recognition and avoidance of unsafe conditions.
  13. The Company will organize a HSE training program to all employees.
  14. All workers will have access to exposure and medical records.

Annex B2: Health and Safety Procedure

CITB Procedures

WEN can guarantee the highest standard of Health and Safety practice by adopting Regulations and Procedures issued by the Construction Industry Training Board (CITB), UK. The CITB procedures constitute the following issues:

  • The Health and Safety at Work Act 1974
  • General Safety Legislation
  • Consultation with Employees
  • Induction Training
  • Accident Reporting and Investigation
  • Accident Prevention and Control
  • Tube and Fitting Scaffolds
  • System Scaffolds and Mobile Towers
  • Hoists and Hoist Towers
  • Ladders, Steps and Lightweight Staging
  • Control of Noise and Vibration
  • Manual Handling
  • Excavations
  • Asbestos
  • Lead Hazards
  • Protection of Eyes
  • Protection of Skin
  • Highly Flammable Liquids and Petoleum-based Adhesives
  • Liquefied Petroleum Gases
  • Vehicle Fuels
  • Fire – Legislation, Prevention and Control
  • Catridge-operated Tools
  • Abrasive Wheels
  • Electricity on Site
  • Lifting Equipment and Accessories for Lifting
  • Plant and Work Equipment
  • Woodworking Machines
  • Safe Working on Roofs and at Heights
  • Safety Nets and Suspension Equipment
  • Safety Auditing
  • First Aid at Work
  • Working in Confined Spaces
  • Buried Services
  • Mobile Elevating Work Platforms
  • Working Over Water
  • Food Safety on Site
  • The Control of Substances Hazardous to Health
  • The New Roads and Street Works Act 1991
  • Dust Hazards and the Control of Fumes
  • The Construction (Design and Management) Regulations 1994
  • Safety in Demolition
  • Security on Sit
  • Safety with Steelwork
  • Risk Assessments and Method Statements
  • Trackside Safety
  • Behavioral Safety and Science

All of these detailed procedures have been recorded in a CD-rom and held by a Safety Manager on site (see examples attached).


Toolbox Meeting

The Company will weekly assemble group of all members on site to discuss about the following possible topics:

  • any outstanding business from previous meeting
  • weekly projected activities, hazard recognition awareness and control
  • a review of accidents
  • any relevant job-site information
  • any new safety considerations for the job site

Safety  Committee Progress Meeting

  • a meeting that reviews both strategic and tactic for safety management on construction site 


A health and safety report will be generated monthly by the Safety Manager. The report shall include audit checklists for the operation performed in that month and accident statistics.

Annex C1: Overview of Environmental Management


Construction site activities are almost certain to have some impact on the environment. Before development starts, designers and contractors must establish the likely effects the project or work activities may have. They must make provisions to eliminate any sources of environmental damage or pollution, or establish sufficient control measures to minimize the harmful effects of construction activities.


The environment can be defined as any physical surroundings consisting of air, water and land. The main thrust of the current environmental legislation is to prevent damage, harm or pollution, which can arise from the release of ay substances having the potential to injure or harm human life or other living organisms supported by the environment.

Damage can also cause harm to the health of living organisms, other interference with the ecological systems or, in the case of humans, offence caused to their senses or property.

Environmental Damage

The construction industry can damage the environment in a umber of ways. It therefore has a major role to play in protecting natural resources and ensuring that they are passed onto the next generations, in good order, for their enjoyment.

Construction activities, which have the potential to cause environmental damage are:

  • environmentally damaging designs
  • high energy usage (minimizing greenhouse gas emissions)
  • ill conceived developments
  • the construction process itself

Clients, their designers and specifiers can obviously eliminate many of these damaging agents, by taking the problems into account when a project is first considered

Contractors and developers can also play their part in reducing the impact of their work, and it is important that environmental matters are incorporated within the company risk assessment and management processes.

Damaging Activities

Damage to the environment may arise from construction site activities, which may include any of the following pollutants:

To air

  • dust an radiation
  • exhaust emissions
  • gases or vapors
  • noise
  • smoke

To land

  • chemicals
  • litter
  • oils and fuels
  • spillage of materials
  • waste materials

To water course and drainage system

  • chemicals
  • contaminated water run-off
  • effluent
  • oils and fuels
  • hazardous solid matter
  • slurry

It is important that one solution to environmental pollution does not divert the problem to another medium, i.e. a solution to air pollution does not lead to a water contamination.

Environmental Assessments

Environmental assessments are a formal, systematic process used to assess the impact that a proposed development may have on the environment.

The process of environmental assessment is used to collate information for the use of the developer and Planning Authority in deciding if the development should go ahead.

Annex C2: Waste Disposal Procedure

Commencement of Work

  • In order to conform to the requirement of the relevant regulations, at the commencement of work on a new building, demolition or construction site, you are advised to, in addition to the necessary statutory notifications:
  • obtain the address and telephone number f the Waste Disposal Officer in whose area you will be working
  • contact that Waste Disposal Officer and advise them of your proposal to start work
  • advise them of the type of waste which you will be producing and, if possible, the approximate quantities and types which will be produced
  • advise the Waste Disposal Officer of how you intend to move the waste
  • if you intend to use a carrier other than your own organization, seek confirmation that the carrier you have chosen is registered
  • either advise where the waste will be deposited or seek advice as to where it may be deposited.

You should then confirm to the Waste Disposal Officer all the points and keep a copy of that notification, long with any acknowledgement or confirmation which you receive.

A building contractor who carries waste and anyone else such as a plumber, carpenter, bricklayer, decorator or odd jobber, must be registered, even if they carry only their own waste. They must have the necessary documentation to consign the waste to the management of a registered site, which will in turn acknowledge receipt and give details in writing of how, where and when the waste is to be disposed of.

Carrying surplus materials back to your workshop or stores for sorting and reuse does not constitute the carriage of waste.


If you carry waste, even if you have produced the waste and are in the process of disposing of it, you must have the proper transfer note.

That transfer note must:

  • give a description of the waste
  • state the quantity
  • state how the waste is packed, whether loose or in a container and, if in a container, the kind of container
  • give the place of transfer from you ownership into the waste site management
  • state the date and time of transfer
  • contain your signature

You must :

  • Keep a copy of that transfer note
  • Give a copy to the disposal site representative

They will:

  • Sign the documents o say where, when and how the waste will or has been disposed of

You must then keep all documentation for two years.

If you use a carrier o dispose of your waste for you, the transfer note must contain all the points described above and, in addition, state:

  • The name and address of the carrier
  • Their registration number and issuing authority
  • The place of transfer

If you use a registered carrier to remove your waste they will raise and distribute the necessary documentation as follows;

  • Give you a copy to keep
  • Keep a copy for themselves
  • Deliver your waste and a copy of the document to the management at the disposal site

When using a carrier ask to see their registration documents. The law demands that they keep a copy of this registration document on their vehicles. Do not accept Photostat copies of registration documents s proof of registration. If you have any doubt as to whether the carrier is registered or not, ask the Waste Regulation Authority.

Where it appears to a police offer, or to a duty authorized officer of the Waste Disposal Authority in the company of a police officer, that a consignment of controlled waste is being transported illegally, the vehicle carrying the waste must be stopped by the political offer and examined. The driver may be asked o produce registration documents, along with relevant transfer notes.

The driver must produce the necessary documentations at hat time, or produce them either by taking them or sending to a specified place within a period of time specified by the police or Waster Disposal Officer.

If you were then to apply for registration after conviction, your application could b refused and you would be unable to carry waste even your own.

Annex D: Overview of Cost Control System

Cost Control Framework

This part consists of three substantial factors, namely Work Breakdown Structure (WBS), Cost Code, and Earned Value Concept. It is well accepted that these factors must be appropriately employed as a critical frame for cost control system. With well-established framework, management can systematically manage the project in small manageable fashion and will not be overwhelmed by information explosion during construction phase. A pattern of proper cost control framework is illustrated in Figure 1.

Figure1 Cost control framework


Work Breakdown Structure

A task-oriented family tree of activities widely known as WBS is indispensable for project cost control. Unemployment or improper design of this structure can cause a chain of deficiencies in all cost control functions.  Commencing with estimating and budgeting, work items may be duplicated, overlooked, or sheltered inadequate details. This ineffective control reference, therefore, cannot be served as a guideline for systematic monitoring as well as comprehensive analyzing. Finally, an evaluation of project outcome and establishment of historical cost data can also be ineffective. The following are two major criteria for assessment of WBS:

Systematic Structure

The project must be partitioned into manageable elements of work for which budgets and expenditures can be systematically controlled. Formation of the WBS must begin by subdividing, or partitioning the project objective into successively smaller work elements until the lowest level to be reported on or controlled is reached.

Level of Detail of WBS

The WBS should be sufficiently broken down into various types of level components including functional system (i.e. major work, activity, resource), and span of control (i.e. area, floor). If the WBS is broken down into more than three levels and each work element has value not exceed 1,000,000 Baht (25,000 $US), the level of detail can be considered as 'Adequate'.

Cost Code

The success of cost control system depends to a large extent on an ability to develop a sound system of identification coding for the basic cost data. Primarily, this cost coding system must be designed based upon a systematic cost item framework, so-called Cost Breakdown Structure (CBS). Main essentialities for having the proper cost coding system were classically concluded. Firstly, as a data-handling facility, vast amount of cost data can be organized, collected, manipulated and presented in a useful form. Economy of storage and rapidity in data retrieval can also be provided in the case of computer. Secondly, as a common language, standard set of cost code should be publicized not only to the estimators, field supervisors, and engineers, but also to the bookkeepers and management. These people who feed data and receive information relating to cost control have different backgrounds; left to themselves they will develop their own naming systems for work items, which will lead to complete chaos instead of cost control. In addition, cross-referencing of data files, drawings, bills of materials, requisitions, purchase orders, and specifications can also be simplified.

Being able to achieve all advantages summarized above, the code must be properly designed. The followings are four major criteria for assessment of cost code:


The structure of cost code should have ability to cope with future expanding items. Utilizing of one numerical-digit code can represent ten items i.e. 0,1,2,...,9 while two numerical-digit code can represent up to a hundred items i.e. 00,01,…,99. Apart from numerical code, alphabetical code is another option. One alphabetical-digit code can represent up to 26 items i.e. A,B,C,….,Z and each alphabet can be designed as a meaningful symbol i.e. S-Structural work. When cost code among the sampled cases are taken into account, three levels of the degree of flexibility can be labeled as: (1) ‘High’ if the code at each level of CBS has two or more digits; (2) ‘Medium’ if the code has one digit in some levels and two digits in some levels; (3) ‘Low’ if the code at each level has only one digit.

Level of Detail of CBS

Similar to the WBS, the CBS should be sufficiently broken down into various types of level components including functional system (i.e. major work, activity, resource), and span of control (i.e. area, floor). If the CBS is broken down into not less than three levels and each cost item has value not exceed 1,000,000 Baht (25,000 $US), the level of detail can be considered as 'Adequate'.

Compliance with WBS

Cost coding should be designed based on WBS. With one control frame, it facilitates data collection and enables identification of cost status in term of activity progress.

Compliance with Accounting Code

When accounting system is integrated within the cost control system, not only data processing can be substantially speeded up but also many frauds can be avoided. For instance, account payable checking system can directly verify whether invoices of each work item are still under-budget and should be paid or not. Furthermore, account reports generated at head office and job cost reports generated at site can be cross-checked for ensuring the accuracy.


Earned Value Concept

For the past 30 years, the earned value concept has been a part of cost/schedule control systems criteria (C/SCSC) developed by the US Department of Defense (DOD). Earned value can be defined as the performance measurement to report the status of a project in terms of both cost and time at a given data date. At a given time, the earned value is obtained by using the formula regardless of actual cost:

                Earned value = budget unit price x actual quantity in place

The example in Figure 2 illustrates how to calculate earned value from daily reports.


Unit of




Unit Price

Total Quantity


Unit Price

Quantity to Date


Budget Unit Price

Quantity to Date

Earned Value

Conc., Grade Beam











Figure2 Calculation of earned value.

To proof the usage of the earned value concept, the documents of cost status analysis and reports generated by each company were used for supporting the evaluation. Such documents were examined in two major aspects illustrated as follows:

Accounting Status

Generally, management should be periodically provided with accounting status. The accounting status can be defined as:

      Accounting Status  = Budget – Total Actual Expenditure; when

  (Positive Value = Remaining Budget, Negative Value = Over Budget)

From the equation above, the accounting status of each work item therefore can provide management with the information whether and how much, at a given time, the total actual expenditure of that item has been over or under the established budget. However, without consideration of a given progress, this accounting status will indicate the true cost status only at the completion of cost item. Concerning with the report format, it should contain both: (1) comparison between budget and total expenditure to date; and (2) calculated accounting status.

Cost Status

If the company employs the earned value concept, cost status at a given progress will be able to be identified. The cost status can be defined as:

Cost Status      =     Earned Value – Total Actual Expenditure Used to Accomplish a  Given Earned Progress; when
(Positive Value = Underrun, Negative Value = Overrun), and

 Earned Value  =     Budget Unit Price x Actual Quantity in Place

By identifying the cost status, management gains an insight on whether and how much, at a given progress, the total actual expenditure of each item has been over or under the established budget. At a given progress, the cost status can be identified before the finishing of work item so that proper corrective actions can be timely taken before being too late. Significantly, an effective report format should contain both: (1) comparison among actual quantity in place or percent progress, budget, and total actual expenditure that is used to accomplish the earned progress; and (2) calculated earned value and cost status.