2014

Saudi Diyar 
Consultants 
Construction Supervision Department 
Procedures Manual 
 
 
 
Division 06– Financial 
 
 
 PROCEDURE

for

CHANGE ORDER REVIEW

Document No. CS-06-11 Revision E

Contents: 1. Purpose
2. Scope
3. Abbreviations & Definitions
4. Responsibilities
5. Flow Chart
6. Work Method
7. Verifying Method & Record Documents
8. References
9. Appendices
10. Document Status
 Issued by Issue Date Document No.

Construction Supervision Dec 11 CS-06-11 Revision E

Department
Subject
PROCEDURE FOR CHANGE ORDER REVIEW

1. PURPOSE

1.1. To describe how Change Orders received from the Contractor through the
Contracts Manager are checked and approved before forwarding to the Client.

2. SCOPE

2.1. Applies to all Change Orders submitted by the Contractor.

3. ABBREVIATIONS & DEFINITIONS

3.1. SDC Saudi Diyar Consultants

3.2. HSD Head of Supervision Department
3.3. RE Resident Engineer
3.4. CO Change Order
3.5. QS Quantity Surveyor

4. RESPONSIBILITIES

4.1. The Contractor is responsible for producing and submitting Change Orders with
associated quantities and prices for variations.
4.2. It is the Contracts Manager responsibility to action the Change Orders received
from the Contractor.
4.3. The Engineers, Inspectors and Quantity Surveyors on site are responsible for the
checking and commenting on the CO and associated documentation, and reporting
back to the Contracts Manager.
4.4. HSD is responsible for monitoring and ensuring that the review of the Change
Orders is carried out and the results reported back to the main office.

2 of 5
 Issued by Issue Date Document No.

Construction Supervision Dec 11 CS-06-11 Revision E

Department
Subject
PROCEDURE FOR CHANGE ORDER REVIEW

5. FLOW CHART FOR CHANGE ORDER REVIEW

Claimed by
Contractor

Contracts Manager receives CO &

Advise documentation from the Contractor and CO & back-
Contractor; distributes to site up
adjust documents
quantities

RE carries out preliminary review then

allocates to relevant Engineers
No

Do
quantities Engineer takes off quantities and
agree? checks against Contractor’s

Reviewer checks
Yes
prices against SDC
Construction Cost
Estimate

RE finalizes review; approves & sends to

HSD and/or Contracts Manager Approved
Change Order

HSD and/or Contracts Manager

Head office
reviews, signs and forwards to the
files & HSD
Client
files

End
Responsibility
of DC

3 of 5
 Issued by Issue Date Document No.

Construction Supervision Dec 11 CS-06-11 Revision E

Department
Subject
PROCEDURE FOR CHANGE ORDER REVIEW

6. WORK METHOD

6.1. The Contracts Manager receives then distributes to the site the CO and associated
documentation from the Contractor, and/or the RE receives on site.
6.2. Upon receipt of the CO and documentation, the RE performs a preliminary review
and distributes the relevant sections to the various site discipline Engineers for a full
review.
6.3. The assigned reviewer takes off the quantities for all the items from the Design
drawings and the quantity executed on site then records them on the Quantities
Take-off Form (F-CS15/A).
6.4. The reviewer cross-checks and adjusts the Contractor’s quantities, accordingly.
6.5. Prices are checked against the SDC Construction Cost Estimation Document and
relevant Contract clauses, shall be confirmed by the QS Department and adjusted
accordingly.
6.6. After finalizing the review of the Contractor’s CO and documentation, the RE
approves and sends to the HSD and/or Contracts Manager.
6.7. On receipt, the HSD or the Contracts Manager reviews, signs and then forwards to
the Client.

7. VERIFYING METHOD & RECORD DOCUMENTS

7.1. All record documents will be processed in accordance the Procedure for Document
Control on Site.

8. REFERENCES

8.1. Procedure CS-02-07: Site Document Control

8.2. Procedure CS-02-34: Archiving
8.3. SDC Construction Cost Estimation Document.

NOTE: The latest revisions of the above documents apply.

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Quantity Take Off

Project Name : Building # : Date:

Title : Sheet of Taken off by:

Item Description Nos. Unit L W H/D Deduct Total

F-CS15/A
 PROCEDURE

for

PAYMENT CERTIFICATES
Document No. CS-06-13 Revision G

Contents: 1. Purpose
2. Scope
3. Abbreviations & Definitions
4. Responsibilities
5. Flow Chart
6. Work Method
7. Verifying Method & Record Documents
8. References
9. Appendices
10. Document Status
 Issued by Issue Date Document No.

Construction Supervision Dec 11 CS-06-13 Revision G

Department
Subject
PROCEDURE FOR PAYMENT CERTIFICATES

1. PURPOSE

1.1. To certify that the correct payments are made to the Contractor for the works
performed, measured against the quantities installed and accepted against the
approved submittals and specifications.

2. SCOPE

2.1. Applies to all Payment Certificates submitted by the Contractor.

3. ABBREVIATIONS & DEFINITIONS

3.1. SDC Saudi Diyar Consultants

3.2. HSD Head of Supervision Department
3.3. RE Resident Engineer

4. RESPONSIBILITIES

4.1. It is the Contractor’s responsibility to submit the Application for Payment on time
and for the Application to accurately represent the works done. Full information to
justify the Application should accompany the Application.
4.2. The RE and Site Engineers are responsible for checking the Application for
Payment of the permanent works executed on the site and reporting to the main
office.
4.3. It is HSD’s and/or the Contracts Manager’s responsibility to action the Payment
Certificates.

2 of 5
 Issued by Issue Date Document No.

Construction Supervision Dec 11 CS-06-13 Revision G

Department
Subject
PROCEDURE FOR PAYMENT CERTIFICATES

5. FLOW CHART FOR PAYMENT CERTIFICATES

Required
by
Contract

Contractor submits Payment Application

with full supporting documentation to RE Payment
Application

RE checks actual quantities, materials on

site, etc. against Payment Application

Do values No
and Returned to Contractor
quantities for revision & reissue
agree?

Yes

Head office
RE approves Payment Application, signs
files & HSD
& forwards to HSD
files

Responsibility HSD signs and releases the amount Payment

of DC payable; produces Payment Certificate Certificate
and sends to Contractor

End

3 of 5
 Issued by Issue Date Document No.

Construction Supervision Dec 11 CS-06-13 Revision G

Department
Subject
PROCEDURE FOR PAYMENT CERTIFICATES

6. WORK METHOD

6.1. At the end of each month the Contractor submits his Application for Payment based
upon the following:-
i. Quantities of work executed
ii. Materials on site
iii. Approved Variations
6.2. The RE and Site Engineers check and, as necessary, adjust the quantities
submitted against the actual progress on site and making necessary adjustments
for incomplete or defective works.
6.3. Where payment for materials on site is permitted under the Contract, the RE and
Site Engineers verify the claimed amounts for materials on site against the Material
Inspection Requests and invoices.
6.4. The RE checks that all the deliverables required from the Contractor mentioned in
the Contract Documents have been fulfilled.
6.5. The RE signs the amended Application for Payment and forwards to the Contractor
and HSD in the main office. A copy is filed on site.
6.6. In the main office, the HSD and/or the Contracts Manager sign and release the
payable amount due to the Contractor, then send a Payment Certificate to the
Client.
6.7. In certain projects, if the RE and/or Site Engineer is to check the payment due to
the Contractor along with the percentage of work executed, payment shall be
reviewed in the main office as in the procedure above.

7. VERIFYING METHOD & RECORD DOCUMENTS

7.1. All record documents will be processed in accordance the Procedure for Document
Control on Site.

4 of 5
 PROCEDURE

for

SUPERVISION PAYMENT CERTIFICATES

Document No. CS-06-26 Revision A

Contents: 1. Purpose
2. Scope
3. Abbreviations & Definitions
4. Responsibilities
5. Flow Chart
6. Work Method
7. Verifying Method & Record Documents
8. References
9. Appendices
10. Document Status
 Issued by Issue Date Document No.

Construction Supervision February CS-06-26 Revision A

Department 2013
Subject
PROCEDURE FOR SUPERVISION PAYMENT CERTIFICATES

1. PURPOSE

1.1. To ensure that all monthly supervision invoices are prepared and issued to the
Client on time, and are collected on time by SDC.

2. SCOPE

2.1. Applies to supervision payment certificates issued to Client for both Lump Sum
projects and Monthly Billings projects.

3. ABBREVIATIONS & DEFINITIONS

3.1. SDC Saudi Diyar Consultants

3.2. HSD Head of Supervision Department
3.3. RE Resident Engineer

4. RESPONSIBILITIES

4.1. The RE is responsible for preparation of the Monthly Attendance sheet of staff
assigned to the project and submitting this to HSD.
4.2. Head of Supervision Department is responsible for the preparation and issue of
Monthly Billings every end of the month as per the supervision engineer’s
attendance sheet on the project and based on approved supervision contract rates
and schedule.
4.3. HSD to follow up with the Accounts Department with respect to Monthly Billing
progress to see to it that all invoices issued to the Client are updated and collected
on time.
4.4. HSD in coordination with Accounts Department are responsible for following-up and
taking action if there is any uncollected monthly supervision payment certificate
from the Client based on the regular report of SDC Internal Auditor.

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 Issued by Issue Date Document No.

Construction Supervision February CS-06-26 Revision A

Department 2013
Subject
PROCEDURE FOR SUPERVISION PAYMENT CERTIFICATES

5. FLOW CHART FORSUPERVISION PAYMENT CERTIFICATES

Required
by
Contract

Head of Supervision Department

submits Payment Application with full Payment
supporting documentation to Client Application
based upon Contract conditions and
attendance of staff

Client checks Payment Application

Application No
Accepted? HSD revises the Payment
Application and reissues

Yes

Head office
Client approves Payment Application,
files & HSD
signs & forwards to HSD
files

Responsibility HSD receives and forwards to Payment

of DC Accounts Department for follow up Certificate
and payment

End

3 of 5
 Issued by Issue Date Document No.

Construction Supervision February CS-06-26 Revision A

Department 2013
Subject
PROCEDURE FOR SUPERVISION PAYMENT CERTIFICATES

6. WORK METHOD

6.1. The amount of the Monthly Billings shall be as per approved supervision contract
rates and schedule of staff.
6.2. The Monthly Billing is submitted by SDC to the Client with attached monthly
attendance sheet signed by the Resident Engineer at the end of each month.
6.3. Resident Engineers shall follow-up and coordinate with the Client Representative
with respect to payment of the issued monthly supervision invoice.
6.4. HSD and/or Resident Engineer shall request on a regular basis the invoices
payment summary report from Accounts Department or from internal auditor to see
if there are any pending invoices or uncollected payment from the Client.
6.5. During project close-out and handing over stage the Resident Engineer shall
confirm and ensure to HSD that all supervision billings are cleared from the
beginning and no uncollected invoices are pending with the Client prior signing any
handing over certificate.

7. VERIFYING METHOD & RECORD DOCUMENTS

7.1. All record documents will be processed in accordance the Procedure for Document
Control on Site.

8. REFERENCES

8.1. Procedure CS-02-34: Archiving

NOTE: The latest revisions of the above documents apply.

9. APPENDICES

9.1. Sample Supervision Payment certificate

9.2. F-CS30 Supervision Staff Monthly Attendance

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 Supervision Staff Attendance Record
For the Month of
BILLABLE STAFF

Project Name:
Project Code:

For the month of

SN. CATEGORY NAME EMPL.# ATTENDANCE SHIFT
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Attendance: √ - Present
FT - Full Time
PT - Part Time Checked & Reviewed by:
V - Vacation Resident Engineer
HD - Holiday

F-CS30