In this video, I'll be sharing my knowledge on price comparison sheet, I'll be explaining price comparison
sheet using a format that I have prepared for this video.
Let us understand some information about price comparison sheet.
Preparing a price comparison sheet is the responsibility of a procurement or a quantity surveying professional.
In most companies, there will be a separate procurement department that handles all the procurement
related activities.
And in some cases, all procurement responsibilities also comes under quantity surveyors job description.
This shift is mainly used to compare the rate the makes the brand delivery and payment terms and other
important terms and conditions of the prospective material suppliers or subcontractors.
Many firms do not use to see which causes and in efficient management of windows, which in turn leads
to cost overruns.
There is a total transparency while choosing the right supplier or a subcontractor, as the requirements
of approvals of top management and budget details mentioned in the sheet makes everything clear and
properly documented.
Now to see how the flow happens towards a price comparison sheet preparation stage, we have our project
team who prepares of material or work requisition form.
This will have the details of the materials or type of work required, the quantity, the specification
Stice makes and other brands.
This will be then forwarded to the procurement department or the concerned quantity surveyor, nor their
request for quotations from different vendors.
After receiving the quotations, the best three or five quotes that are meeting all the requirements
mentioned in the requisition form is selected.
Now, with these quotations, the price comparison sheet is prepared.
No, I assure you, a format which I have prepared for this video, which will make the things more
clearer.
So this is a sheet which I have prepared to understand.
Price comparison sheet.
So you here, you can see the project details, the project name, number, the material name and material
called organized companies, they usually during the tendering stage, the budgets they prepare during
the tendering stages, always system wise.
So for civil structure, then for electrical HPC plumbing for each system.
The budget that prepared during the tendering stage is always separate so that it is more easier during
the execution stage to control the budget and to monitor the budget.
And even in the system, there are subsystems, for example, in electrical cabling works, the material,
then the labor, the machinery, the tools, consumables, all these items are separately budgeted.
So that, again, we there research is in monitoring the monitoring the budget properly.
So here in this example, if you see we have prepared this price comparison for cables, the same for
cables is a zero three price comparison sheet number is also the same, so that it is clear for which
project and for which material this sheet is being prepared.
So this is the third sheet being prepared for cables or previously one and two has already been prepared.
So this is a table which gives you the budget details.
So to forty five thousand dollars have already been spent on cables.
The approved budget from the tendering documents for supply of cables is 500000 USD.
So once we select the supplier from this price comparison sheet that the more of the same engineers
are, for example, here, if you see the table here, we have the description of the material.
You have the different sizes, the quantity, then the court from each supplier.
We have the total amount.
And again, we have the we have other terms and conditions being.
And company here, like the delivery period, the payment terms, the make and the brand.
So from all these details we can compare, we can analyze and come to a conclusion to whom the disorder
needs to be placed to.
So from the Amazon supply tree has gotten the lowest and their delivery period and the payment terms.
Everything is complying with the requirement.
So in this example, we are choosing them.
So there are more than we can mention here.
So to 45 plus 40, the remaining from five hundred thousand to 14 after this.
Orders placed, the remaining budget for cable is to fourteen thousand nine hundred, so we can come
to know that there is budget remaining for Gable's year.
So once this becomes negative, then there is a problem like it might be a tendering problem during
the tendering stage.
The estimation must have gone wrong or sometimes during the execution stage, additional works or variation
works.
New works must have come.
And for this works, additional cables must have been required.
So for that we must have purchased additional cables.
So that justification needs to be provided when this becomes negative.
The remaining balance budget becomes negative.
So all the approvals from the higher management is properly taken care of here in the state so that
there is a total transparency while confirming the order to the supplier, the hope the suit is clear.