Article #026 Tracking and Monitoring Spare Parts Usage During the Capital Project Standard and Extended Warranty Periods

Once the project reaches the handover stage, the contractor needs to turn over the spare parts as per the contract documents which will detail those requirements. A general spare parts specification is typically used to outline the common requirements related to spare parts, with additional specific requirements particular to a specific piece of equipment or building component specified in the particular specification concerned.

The project owner shall determine the requirements beyond the two-year operating spares if needed. In cases where it is logical for a vendor of specialist equipment to undertake the maintenance instead of project owner personnel, no spares would be held by the project owner. For example, for an elevator, it is common for the elevator vendor to undertake the maintenance under a maintenance contract and the elevator vendor is made responsible for keeping the required spares in stock.

Using a Project Management Information System (PMIS) like PMWeb, different inventory locations can be created which will include the project owner’s locations as well as the different vendors’ inventory locations as it relates to the project’s spare parts. This will enable the project owner to have an updated status of all inventory spare parts regardless of where they are stored.

In cases where the project owner will perform the maintenance, then the vendor’s recommendations of what spare parts are needed are required. The recommended spare parts list is typically included in the Operations and Maintenance Manuals (O&Ms) for the equipment/component concerned. The pricing for the Spare Parts is provided typically by the vendor through the contractor, and the project owner will determine which spare parts and in what quantity they are to be ordered. It should be noted that for common materials such as ceiling tiles or floor tiles the project specifications normally specifies that 2% spare materials be handed over by the Contractor and that this is included in the contract price, for example.

PMWeb will be used to capture the details of all those spare parts. The data that will be captured will include a stock number where within the inventory location it is a store, Item code (form PMWeb Item predefined list), description, condition (new or used), condition reported date, unit of measure (UOM), amount stocked, used, unusable, moved and on hand, unit cost and extended cost, manufacturer name (which will be selected from the predefined vendor’s number), manufacture number, item serial number, item lot number, stocked date and any notes to be added.

The attachment tab will be used to capture details of the spare parts stored at the inventory location such as catalogs, brochures, and delivery notes among others. Those documents would be used uploaded and stored on the PMWeb document management repository before they get attached.

Any movements for the stored spare parts whether to be used to replace damaged parts on the facility or relocate to another inventory location or simply remove because they became unusable, will be done by clicking on the relevant spare part and updating the moved quantity section. This will automatically the spare part stock status.

This stock movement will automatically update the spare part stock status. This will give the option to limit the displayed spare parts list to only current available stock, past stock, or both current and past stock. Selecting the desired option will automatically update the displayed spare parts list.

The data captured for the spare parts will enable the project owner to monitor and track the spare parts inventor status to determine subsequent procurement and delivery requirements. The report has a calculation for “% Spare Parts Remaining” for which the project owner will have a 20% threshold to alert that restocking of the spare parts could be needed while the 10% will be the threshold for starting the process of restocking if needed.

About the Authorfounder

Bassam Samman, PMP, PSP, EVP, GPM is a Senior Project Management Consultant with more than 35-year service record providing project management and control services to over 100 projects with a total value of over the US $5 Billion. Those projects included Commercial, Residential, Education and Healthcare Buildings and Infrastructure, Entertainment and Shopping Malls, Oil and Gas Plants and Refineries, and Telecommunication and Information Technology projects. He is thoroughly experienced in complete project management including project management control systems, computerized project control software, claims analysis/prevention, risk analysis/management (contingency planning), design, supervision, training, and business development.

Bassam is a frequent speaker on topics relating to Project Management, Strategic Project Management, and Project Management Personal Skills. Over the past 35 years, he has lectured at more than 350 events and courses at different locations in the Middle East, North Africa, Europe, and South America. He has written more than 250 articles on project management and project management information systems that were featured in international and regional magazines and newspapers. He is a co-founder of the Project Management Institute- Arabian Gulf Chapter (PMI-AGC) and has served on its board of directors for more than 6 years. He is a certified Project Management Professional (PMP) from the Project Management Institute (PMI), a certified Planning and Scheduling Professional (PSP), and Earned Value Professional (EVP) from the American Association of Cost Engineers (AACE) and Green Project Management (GPM).

Bassam holds a Masters in Engineering Administration (Construction Management) with Faculty Commendation, George Washington University, Washington, D.C., USA, Bachelor in Civil Engineering – Kuwait University, Kuwait and has attended many executive management programs at Harvard Business School, Boston, USA, and London Business School, London, UK


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