Sr.

No Process Sub-Process

1 Sales and marketing Contract review

Discounts
Entering into a contract

Invoicing

2 Project Planning / Project Planning

Monitoring /
Controlling

Project Management
 Observation

Commercail department process few jobs without any Enquiry Letter from Client/Contractor. In our sample we
found projects No. without 2043, 2037, and 2027.
We found in Project No. 2054, 2043, 2037, 2027, 2048 that Letter of Interest is not sent to the client and in some
cases Letter of Intent was sent to the client but it was not available in the file.
Final BOQ is sent to the client/main contractor togther with a cover letter which is duly signed by the Contract
Manager/CEO. But we noted the attached BOQ is only stamped but not initialed are signed by the Contract
Manager/CEO. The instances are; Project Number 2043, 2037, 2027, 2048.
In our sample number 4 that is Motor City Project J-2027, we noted that Job Processing Sheet was prepared and
filed but was not approved by the Contract Manager & CEO. Further, we noted that job was ordered to process
before receiving Letter of Intent from Contrator.
We observed during our course of audit that there is no practice of preparation of a control sheet in soft which
includes date of documents received from the client/contractor or send to them to check the efficiency of
acceptance and processing of projects.
We noted in Job No. 2054, 2027, 2037, and 2032 where no evidence of reviewing and approving Job cost sheet
was available.
We observed in Job number 2054, 2004 and 2032 that there are delays, from the date of letter of intent and to
the date of entereing into the agreement with Contractor.

We observed some jobs are processed on the basis of letter of intent recived by the Contractor instead of a
formal agreement between the both parties. Agreements of Job # 2054, 2037, and 2048 are still pending with the
Contractor for their approval.
We also noted the Contract department does not prepare a checklist of all contract documents relating to each
contract so that status of outstanding documents would be know and a followup should be conducted.

We noted that origional copies of the contract are kept in a box file with other documetns and these are not kept
in a safe lock which may result of loss/theft of the origional document.

We noted that in most of the Projects, there is no evidence of communication of Baseline/Updated/Recovery

program to the Project Management Teams (PMTs) or to the Main Contractor. Hard copy of these documents is
given to the concerned party without receiving any acknowledgement from him.

During our verification of weekly and monthly progress reports, we observed that reports of Project No. 2037 and
2027 are not available with the planning department for all the projects. Further, Manager of Planning department
stated that the department may received such reports but he is not aware of these as he joined last month. This
weakness shows lack of delegation of authority.
We also observed that due to inefficient planning and coordination with other departments, projects are being
delayed. Project No. 2037 and 2043 could not complete within due date. The planning department submit a
revised recovery program for these projects with their Contractors but did not get any written approval from the
main contractor. As per department's practice the submitted plans with Contractor are considered approved if
they do not respond within a specific period. However, this practice may cause disputes subsequently.