INSTITUTE: -

EIABC
PROGRAM: -

CONSTRUCTION TECHNOLOGY AND MANAGEMENT

Thesis submitted in Partial fulfillment for degree of

BSc. In CoTM

TITLE: -

Computer Application on Construction Works

Payment Certification

THESIS BY: - Berhan Alemneh

- Tesfaye Aseffa
- Yared Teketel

ADVISOR: - Wubishet Jekale (Dr.Eng.)

CO-ADVISOR: - Seifu Mengiste (Msc.)
DATE OF SUBMISION: - June/25/2010 G.C
Computer Application on Construction Works Payment Certification Thesis 2010

ADDIS ABABA UNIVERSITY

TITLE: -
Computer Application on Construction Works
Payment Certification

THESIS BY: - Berhan Alemneh

- Tesfaye Aseffa
- Yared Teketel

CERTIFIED BY SIGNATURE

Wubishet Jakale (Dr.Eng.) ____________

ADVISOR

Seifu Mengiste (Msc.) _______________

Co-ADVISOR

APPROVED BY SIGNATURE

____________________ ____________
EXAMINER

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Computer Application on Construction Works Payment Certification Thesis 2010

Acknowledgement

First and foremost, the writers of this paper would like to express special gratitude and
heartfelt honor to the founders and developers of the profession, ConstruCtion
Technology and ManageMenT in Ethiopia. Dr.Eng Wubishet Jekale is one of the

pillars to let the profession exist, striving to upgrade it to the international standard and
promoting the profession to the local stakeholders.

Wubishet Jekale (Dr.Eng) deserves additional gratitude for his friendly approach to his
students and providing all the necessary supporting materials. Every time a student comes
to his office he never answers “am busy!” Instead, treats like any other of his clients. This is
one of the many reasons that make him a role model. THANKS JAK, AND KEEP IT UP!

Seifu Mengiste (Msc) is the other most important person in this paper work. His relent
less effort made the thesis idea come true. He deserves a special gratitude for his
availability even without working hours, provision of the necessary documents and
tolerance to the uneven request of the writers of this paper unlike the usual way of
developing software, which is always done on a planned manner. THANS SEIF, AND KEEP IT
UP!

And all of you, who have contributed to the thesis writing in different ways by sharing
your ideas and experience in the focus group discussion, providing references and
documents ... THANK YOU VERY MUCH!

And the last but not the least, EiABC administrators for providing the faster wireless
broadband internet service. THANK YOU VERY MUCH!

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Computer Application on Construction Works Payment Certification Thesis 2010

TABLE OF CONTENT

CONTENT PAGE

Approval page ………………….………………………………………….……… 1

Acknowledgement ……………………………………………………….……..… 2
List of Figures and Tables…………………………………………………...…….. 5
Abbreviations ……………………………………………………………..………. 6
Abstract ……………………………………………………………………..…….. 7

Part_one:

Chapter I- Introduction
1.1 General ………………………………………………………………………… 8
1.2 Background …………………………………………………………………… 9
1.3 Objective of the study ………………………………………………………… 9
1.4 Scope of the study ……………………………………………………………. 9
1.5 Limitations …………………………………………………………….………. 9
1.6 Organization of the study …………………………………………………….
Chapter II- Methodology
2.1 General ………………………………………………………….……………… 11
2.2 Focused Group Discussion …………………………………………………….. 12
2.3 Desk study ……………………………………………………………………… 12
2.4 Analysis and conclusion ………………………..……………………………… 12
Chapter III- Literature Review
3.1 General ………………………………………………………………….……… 14
3.2 Construction payment certificate …………………………………………..… 14
3.2.1 Basic concepts of CPC
3.2.2 CP certification stages
3.2.3 Types of CPC
3.3 Visual Basic software ……………………………………………………………19
3.3.1 General ………………………………………………………………….
3.3.2 What is Visual basic software ………………………………………….
3.3.3 Advantages of Visual Basic Software …………………..
3.3.4 Specific Features of VB Used in this Project …………………..

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Computer Application on Construction Works Payment Certification Thesis 2010

CONTENT PAGE

Part_Two: Discussion and Analysis

Chapter IV- Focus Group Discussion Result

4.1 General ………………………………………………………………….……… 21
4.2 Main points and respondents profile……………………………………………21
4.3 Usage of payment certificate software in Ethiopia ……………………………22
4.3.1 Uses of payment certificate software …………………………………
4.3.2 Types of payment certificate software in use …………………………
4.3.3 Extent of use over time …………………………………………………
4.1.2 Usage and Size of project ………………………………………………
4.1.3 Performance and usage …………………………………………………
4.1.4 Availability of Software training …………………………………………

Chapter V- Desk Study; CPC Preparation by Computer Application

5.1 Software based payment certification …………………………………….……24
5.1.1 General description ……………………………………….…
5.1.2 Activity flow Chart………………………………………….…
5.1.3 Input/output for the soft ware………………………………
5.1.4 Features of the software ……………………….………….…

Part_Three:

Chapter VI- Conclusion and Recommendation

6.1 Conclusions ………………………………………………………………….……35
6.2 Recommendations ……………………………………………………………… 35
6.3 References ………………………………………………………….……….……38
6.4 Annex ……………………………………………………….……….………….…39

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Computer Application on Construction Works Payment Certification Thesis 2010

List of Figures and Tables

Figure Page

Fig.1 …………………………………………………………………………………..12

Fig.2 …………………………………………………………………………………. 25

Fig.3 …………………………………………………………………………………..26

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Computer Application on Construction Works Payment Certification Thesis 2010

Abbreviations/ Definitions
 FIDIC
 FEDERATION INTERNATIONALE DES INGENIEURS-CONSEILS (FIDIC) General contract condition
 MoWUD
 MINISTRY OF WORKS AND URBAN DEVELOPMENT STANDARD CONDITIONS OF CONTRACT FOR
CONSTRUCTION OF CIVIL WORK PROJECTS
 PPA
 Public Procurement Agency
 BOQ
 Bill Of Quantity
 CPC
 Construction Payment Certification
 Ms
 Microsoft
 VB
 Visual Basic
 Syntax
 Codes used to give orders to a computer in a statement form the set of rules that
define the combinations of symbols that are considered to be correctly structured
programs in that language. The syntax of a language defines its surface form.[1] Text-based
programming languages are based on sequences of characters, while visual programming
languages are based on the spatial layout and connections between symbols (which may be
textual or graphical).
 Ms-SQL server
 Microsoft SQL (officially pronounced / skju l/ like "S-Q-L" but is often
pronounced / si kwəl/ like "Sequel"), often referred to as Structured Query
Language, is a database computer language designed for managing data in relational
database management systems (RDBMS), and originally based upon relational
algebra.
 ConMIS
 Construction Management Information System

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Computer Application on Construction Works Payment Certification Thesis 2010

Abstract
The construction industry is one of the largest industries influencing the country’s
economic status. In Ethiopia the construction industry is mostly blamed of the
extended time and cost. Out of the many reasons for the elongation of time, lack of
proper management system is the prominent one. And the proper management
system consists of automating routine works and focusing on the unstructured
challenges. Payment certificate processing is one of the tasks that need automation in
a computerized system.
This paper work tries to show the theoretical background of payment certification.
Asses the trend of payment processing and identify the critical tasks that necessarily be
performed and the ones that can be omitted. Based on the assessment, the study
introduces a new chart that proposes the way payment certification shall be
processed. The new chart of activity flow, if computerized, can reduce the time wasted
on payment certificate processing. To demonstrate the proposed idea model software
is developed and tested.
Finally the paper tries to show the implication of the findings on the concerned
parties.

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Computer Application on Construction Works Payment Certification Thesis 2010

Part One:
Chapter I- Introduction
1.1 General

Construction is unquestionably one of the most significant industry contributing to all

developed and developing countries economy in terms of gross domestic product and
employment (C.E, 2009). It is where much of the country’s budget is allocated next to
ministry of agriculture in Ethiopian context. The industry by its nature is the most complex
and multidisciplinary field of practice, the reason why it has different stakeholders. It is the
way through which infrastructure and development facilities are fulfilled as a product of
the different sectors of the industry. Broadly, the major classification in construction
industry can be categorized in to Building construction, Highway and streets, Municipal and
Utility, heavy and rail road construction, water works construction and specialty construction
based on the service it gives.
As a multi disciplinary and a development facilitating industry, construction has different
stakeholders contributing and influencing it. Each stakeholder has its unique role in the
construction process. Among the contractual stakeholders the following three are the
major ones;
 Employer (private or government): - initiate investment ideas and fund the project. The
employer as a client is contractually obliged to make payments and receive the product,
has the right to change the scope of the work, approves payment certificate.
 Consultant (a professional or group of professionals of design, project management
etc): - consult the client on the investment idea and during construction, act on behalf of
the client. Contractually obliged to inspect and supervise the work process. Has the right
to give order to the contractor, certifies payment certification.
 Contractor (individual or organization): - brings the clients need to reality by
constructing the proposed design idea, contractually obliged to complete the works in
accordance with the specification agreed upon, has the right to apply for payment for
works completed, and demands the consultant’s certification and the client’s approval in
order to be entitled for payment.

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Computer Application on Construction Works Payment Certification Thesis 2010

Payment in any production and/or service rendering industry is like fuel for engine. In
construction, payment certification involves different levels of tasks. The tasks are routine
and involve calculations. Before the actual payment certification is performed it is these
routine tasks that make payment certificate preparation tedious and takes much of the
time. If there had been a means to automate these tasks by means of computer aided
system, the time and the paper works and also the error that might result from
calculations would have been eliminated. Therefore this study tries to seek solutions for
these problems.

1.2 Objective of the study

The main objective of this thesis work is to: -
 Show the trend of payment certificate preparation process
 Introduce a computerized system that will result in:
- Reduced time and paper works spent on payment certificate preparation by
automating the tasks
- Facilitate ease of data processing and handling
- Increased accuracy of the calculations involved
1.3 Scope of the study
The scope of this thesis work is limited to analyzing the trends used to prepare payment
certificate in the construction industry. Show the drawbacks and recommend a better
systematic way of doing it by applying computerized system. The trend analysis was done
on sample building construction and did not considered any other sectors of the
construction industry.
1.4 Limitations
Time was the main constraint that restrained the writers of this thesis work from
performing detailed analysis. It would also have been possible to introduce a better and
more sophisticated computer system that can give aid on more of the tasks involved in
CPC preparation.
1.5 Organization of the study
Part one:
Chapter one-Introduction
 Deals with the general introduction of the construction industry as a whole. The types of
the construction sector and the stakeholders are discussed. The objectives, scope,
limitations and organizations of the study are also discussed in this chapter.
Chapter Two-Methodology
 Describes the methods used to conduct the thesis. The flow of activities in conducting the
study, the techniques employed in data collection, the way data was analyzed is
discussed.

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Computer Application on Construction Works Payment Certification Thesis 2010

Chapter Three-Literature review

 Shows the general contractual and legal basis for payment and the related concept as in
FIDIC and MoWUD. The chapter also discuses payment related issues from publications of
other scholars. The steps followed in payment certificate preparation and sample formats
utilized in payment certification are included. The descriptions about what Visual Basic is,
advantages, and the specific features used for our purpose are discussed in detail.
Part Two: Discussion and Analysis

Chapter IV- Focus Group Discussion Result

 Discuses the results based on the Focus Group Discussion. The topics discussed on, the
participants profile, and the responses for every topic are discussed.
Chapter V- Desk Study; CPC Preparation by applying computerized system
 Shows the payment certificate preparation process by using particularly developed
software. The activity flows in the CPC preparation by using the model software are
shown in chart. The features of the software are also shown in photos captured from the
model software.
Part Three:
Chapter VI- Conclusion and Recommendation
 Summarizes the results from the focused group discussion and desk study
 Concludes from the results based on the principle of payment certificate preparation as
stated on the conditions of contract.
 Recommends on the advantages of using particularly developed software for
construction payment certificate preparation.
 Discusses on the implications of the finding of the study on different parties.

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Computer Application on Construction Works Payment Certification Thesis 2010

Chapter II Methodology
2.1 General
The flow of activity in this study starts from the proposal idea. To continue the thesis
writing, the first job was to collect data by using different techniques. The techniques
used to gather data for this thesis work are of two types: Focused group discussion
and Desk study. The procedures followed to come up with the conclusion can be
summarized in the following diagram. The activities shown are discussed next to the
diagram.

FI GURE 1 RES EAR CH MET HODOLOGY

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Computer Application on Construction Works Payment Certification Thesis 2010

2.2 Research proposal

The proposal which was submitted earlier, showed the basis for the study work. The
scope and objectives of the study are stated on the research proposal. The procedures
to be followed were also stated and the study work was done accordingly.
2.3 Focus group discussion
From the focus group discussion data was gathered by using open ended interview
questions and discussing on them. In combination with the literature review results
the data were analyzed and discussed. The results were also combined with the results
from trend analysis and model software application (desk study). Then the results are
used as an aggregate for the development of activity flow chart which is utilized to be
an input for writing the software program. The results are also used for the thesis
writing.
2.4 Desk study
The desk study is done through assessing the trend of payment certificate
preparation in Sample Construction Company and by applying the model software.
Then every steps used in the traditional method of payment certificate preparation
were recorded and studied carefully. After reviewing the significance of each activity
involved and identifying the most critical task, a new activity flow chart is developed.
The new chart included the tasks that are believed to be critical and ignored those that
are not. The model software functions in accordance with the new activity flow chart.
2.5 Literature review
The literature review is mainly based on the conditions of contract; FIDIC, MoWUD
and PPA. Clauses related to payment issues are discussed in detail. Other related
publications on payment certification by different scholars are also discussed. The
literature review here is not only used to show the related publications, but also as a
basis for the generalization for the conclusion part. The reason why the generalization
was based on the literature review is that the literature review itself is based on the
conditions of contract, and the conditions of contract are the basis for any activity
under contract including payment certification. Therefore the study conclusion had to
comply with clauses on the conditions of contract as the conditions of contract are the
basis for every contractual work.
2.6Data collection
In addition to the information gathered from the focused group, data was collected
from different sources. The main sources of data are contractors and consultants, and
other organizations in the construction industry like the software developing
companies for commercial purpose have also contributed. The techniques used were
mainly interviews and archives.
2.7 Data Analysis and discussion/ summary

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Computer Application on Construction Works Payment Certification Thesis 2010

The data collected was analyzed by deduction in a qualitative manner. The discussion
was done by comparing the basic principles stated on the conditions of contract
specifically FIDIC, MoWUD and PPA with the practice. The main points from the
discussion were summarized to be used as conclusion.
2.8 Trend Analysis
The practice of payment certificate processing was carefully studied. The importance
of every step was critically discussed, and the information gathered was used as an
input for analysis and discussion to be compared with the principle.
2.9Activity flow chart
The chart was developed by modifying the trend of payment processing. The
modification was possible because some of the tasks executed by human action can be
automated to be done by the computer application. In the chart different arrows were
used to show the flow of command and data. Some activities cannot be felt by humans
but only the computer does. The user only feeds the basic input data into the
computer, and sees the end result which is the report. The reports comply with the
basic requirements of payment processing.
2.10 Model Software development / Application
To demonstrate the advantages of using computer application, model software was
developed and checked by applying to real project. The payment was previously
processed by the traditional way. The inputs and outputs were the same but the
difference in the processing has drastically reduced the time spent on payment
processing in the usual way.
2.11 Conclusion and recommendation
After passing through all the steps discussed above the writers of this study have
come up with conclusions and recommendations. The conclusions are the
combinations of the summaries from the trend analysis and the focused group
discussions. The recommendation has shown the implication of the study in the
industry and other concerned institutes.

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Computer Application on Construction Works Payment Certification Thesis 2010

Chapter III Literature Review

3.1 General
‘Cash flow is the blood line for any kind of industry be it
production or service rendering.’ (Construction management web site;
www.constructionmanagementguide.org) Payment is a gate valve of cash flow to
control the flow in a discrete manner. In construction, payment is done on a
contractual basis; every scenario related to payment issues is bind with clauses on
different conditions of contract.
3.2 Construction payment certification
Contract for construction works consists of two major parts; promissory (the work)
and consideration (the payment). Payment in construction is made for different
reasons (Advance payment; to support a contractor mobilize the necessary resources
to the construction site, interim payment; for every completed work according to the
agreement and the agreement may include the minimum amount of work to be
completed in order for the contractor to be entitled for payment, liquidated damage;
compensation for damages due to either party’s fault, etc). Different standard
conditions of contract have stated in their clauses about the way payments shall be
treated in different situations. Under the next topic some of the clauses related to
payment certification are discussed as stated in FIDIC 1987, revised in 1992 and
Standard Conditions of Contract MoWUD DECEMBER, 1994.
3.2.1 Basic concepts of payment certification as stated on conditions of contract
Payment certification process has three distinct but interrelated sequential stages to
pass through. Application for interim payment, payment certification and payment
approval are the stages. The three contractual stakeholders; the Contractor, the
Consultant and the Employer are the parties that act to let the process pass through
the stages respectively.
Interim Payment Application
‘The Contractor shall submit to the Engineer after the end of
each month six copies, each signed by the Contractor’s
representative...’ (FIDIC Clause 60.1 and MoWUD clause 60, (1)) This is the point
where the payment certificate preparation process starts. The contractor applies for
payment by summiting a monthly statement to the consultant’s representative
(Engineer). The application shows the amount of work that the contractor assumes
himself to be entitled, which includes: -
 The quantities and value of the permanent work executed on Site.
 The value of materials on Site intended to form part of the permanent work together
with supporting invoices.

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Computer Application on Construction Works Payment Certification Thesis 2010

 The value of temporary work, as included in the Bill of Quantities and completed on Site.
 An amount reflecting any changes in cost.
 Amounts approved in respect of day works executed up to the end of the month in
question.
 The monthly statements shall be in an approved form and shall comprise an original and
one copy, each duty signed by the contractor.
This is the reason why a contractor needs to have a means of processing the
measured quantity. And as the quantifying process entails detailed manipulations there
is always a desire that arises from the job. The desire being accuracy, speed,
relentlessness, ease of previous data retrieval, organized data storage system etc can
be attained through application of computerized.
Interim Payment Certification
The statement in order to be approved by the Employer demands prior certification
by the representative of the consultant (Engineer). The Engineer after checking and
agreeing upon the contents of the statement that the contractor stated, will certify
within 28 days or 30 days as stated on FIDIC and MoWUD respectively. For ease of this
specific task, computer application is the most important tool. Arithmetic errors are
never expected to happen ones correct measurements are fed. The contractor after
discussion with the Engineer if decides to make changes on the input data still the
fastest way of doing this demands a computer help. The engineer after checking the
statement, if orders some changes to be made, he can make the rest to remain without
any change, if computerized system is used. This helps the Engineer to avoid
rechecking the item of works that are not changed and only focus on the works he
ordered, because only he can make change on the restricted ones.
The amount stated on the monthly statement is not directly forwarded to the
Employer for approval rather is subject to some modes of deductions. As FIDIC Clause
60.2 and MoWUD Clause 60, 2 stated there is a need for calculating the deductions
with some specified percentage. This calculation if needed to be free of error and
reduce the time spent on the process it shall be automated so that the computer
automatically performs the required tasks.
‘The Engineer may by any Interim Payment Certificate make any
correction or modification in any previous Interim Payment
Certificate…’ (FIDIC Clause 60.4 and MoWUD clause 60, (5)) One of the
advantages of using computer application for the payment certification is that it allows
us to have a well organized data base system so that we can retain back up of every
document. The Engineer can any time retrieve the previous data and modify if
computerized database system is used. The modifications can also be incorporated
easily with the rest of the data.
Interim Payment Approval
This is the final stage for payment certification to be completed. The Employer is the
one who has the power to finalize the process by approving the issuance of the
payment. As stated on FIDIC Clause 60.10 the Employer has 28 day to approve and
issue interim payment and 56 days for final payment. The contractor, if not paid within
the 28 or 56days of interval, can claim for liquidated damage due to delayed payment.
The delayed payment when released after the specified interval on the standard
conditions will be subjected to interest considerations.

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Computer Application on Construction Works Payment Certification Thesis 2010

The client/Employer can manage and approve the payment process easily and
automatically. The computerized system if automated properly can take control of
every consideration including the claims.

3.2.2Project payment certificate preparation steps/process

Payment certificate preparation process is always initiated by the contractor’s
application for payment. The application is submitted through monthly statement
which consists of the quantity of work completed, the amount of that quantity the
client is supposed to issue and other details. But the first step to all the processes is
taking off.
‘Until comparatively recently, the person preparing the Bill of
Quantities—the ‘taker-off’— had a limited choice of how to convert
the information on the drawings into a Bill of Quantities.
Traditionally the systems followed a procedure of:
Taking off - measuring from the drawings and entering the
dimensions on to specially ruled dimension paper,
Squaring – calculating and totaling the lengths, areas and
volumes of the dimensions,
Abstracting - collecting the totals from the dimension paper
on to an abstract to produce a final total for each individual
description,

Sample Take off Sheet

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Computer Application on Construction Works Payment Certification Thesis 2010

(Taking Off Quantities: Civil Engineering-First edition 1995, reprinted in the Taylor
& Francis e-Library 2005 p11-18)

 The letters on the Take Off sheet sample; A, B, C and D are place holders for this
particular case and what they represent is discussed next: -
A: Times- a multiplier column
B: Dim- a column for dimensions; Length, Width, Height
C: Sqr- (squaring) a column for products of the dimensions on the left column
D: Description- a column for description of the trade of works, every detail for a
given task is written here
Billing - reproducing the items from the abstract on to bill
paper in draft form ready for typing.’

Sample Bill of Quantity

(Taking Off Quantities: Civil Engineering-First edition 1995, reprinted in the Taylor
& Francis e-Library 2005 p11-18)

The second step is to summarize all the amounts on the bill of quantity by its
respective trade of work. The summary is built up of columns that show item no. of the
work, its description, contract amount, and amount of the work executed previously
and also the current amount of work executed. Depending on the size of work grand
summary might be used to summarize the work in blocks or other means of
generalizing.

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Computer Application on Construction Works Payment Certification Thesis 2010

The final step to complete the preparation process is to bring the total of the
summary to the payment certificate format. The format therefore consists of the
contract amount, amount of work executed, deductions, previous payments, the
balance to be paid to the contractor and detailed descriptions of the project. There is
also a space left for confirmation of the preparer, certifier and approver.
Sample Payment Certificate Format

Wubishet Jekale Mengesha (Dr.Eng) (April 2006) Procurement & Contract Management
3.2.3 Types of payment certificate
The construction industry is a big family of different sectors that produce different
infrastructural facilities. The factors that resulted in some of the slight difference
among the sectors are method of production, materials and equipments involved. The

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Computer Application on Construction Works Payment Certification Thesis 2010

intended function of the infrastructure is a compelling reason for the selection of those
factors. However when it comes to payment certificate preparation the main
difference lies on the item of works which is related to the factors discussed above. But
the steps followed are the same and also the formats serve the same purpose with
slight difference in appearance.
3.3 Visual Basic software
3.3.1 General
In the globalized world of our time the planet has started acting like a simple village where
everything is easily heard of, and communication through the planet requires minimum
cost and time than it used to. This has come true because of the development of
information communication technology. In the civilized world the involvement of
computers in everyday life has vital role to ease the difficulties in life. Computers, with
some limitations of humanity have many advantages over humans. Computers process
data much faster than humans do, the accuracy, relentlessness, speed and capacity of
memory is also no comparable. As long as we give them the correct input data or unless
they are attacked by malicious programs (virus, warm…) computers never make mistakes.
The other advantage computers have is that we can set programs that they obey as a rule.
Once we set the program they should follow, every time we order them, they know what
to do and without negligence they will get it done. Software is a means through which we
can give orders to the computer. And the computer also commands its hardware through
its respective software. It’s also by the help of softwares that we set a program for the
computer to follow.
3.3.2 What is Visual Basic software
A computer despite the advantages explained earlier, is just a machine. It requires
commands and work procedures to accomplish the intended work. Until now there is no
better way of telling the computer what/how to do, than programming language. It is the
only way that we can show our computer about the work procedures as the computer
doesn’t understand human language. Visual Basic is one of the programming languages
commonly used in recent days.
‘Visual Basic is a development tool that you can use to build
software applications that perform useful work …using Visual Basic,
you can create applications for the windows operating system, the
web, …the most important advantage of Visual Basic is that it has
been designed to increase productivity in your daily development
work...’ (Microsoft_ Visual Basic_ 2008 step by step by Michael Halvorson)

3.3.3 Advantages of Visual Basic Software

There are different types of programming languages currently in use, among them Visual
Basic is the most popular. ‘… Visual Basic makes it much, much easier to
write professional -grade windows- and internet-based applications
that compete on an equal play field with Visual C++, and C# and Java
applications. And the beauty of Visual Basic is that it is much

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Computer Application on Construction Works Payment Certification Thesis 2010

easier to learn than other programming tools…’ (Microsoft_ Visual Basic_

2008 step by step by Michael Halvorson)
It is not mandatory to be professional programmer to use Visual Basic, but only some basic
understanding. There are books on the market that teach the basics of Visual Basic. This
helps professionals in other field of practice to develop suitable software that can fulfill
their professional need.
3.3.4 Specific Features of VB Used in this Project
 Integrated Database System
VB can be easily integrated with Ms-SQL server so doesn’t require working on other
applications like Ms-Excel and Ms-Access. The advantage of Ms-SQL over MS-Excel or
Ms-Access is its features of high integrity, security and performance. It is possible to
work on VB and store/retrieve data right from there to Ms-SQL. This facilitates easier
data management system; one of the compelling reasons to use specifically developed
software.
 Formulas/Calculations
VB enables to include formulas that can be used in calculating the required function.
The formulas used in payment processing are easily included in the syntaxes of VB
programming. This eliminates the need for checking arithmetic errors by the certifier.
And avoids writing and/or copying/pasting of formulas when ever payment is prepared.
 User Account Separations
Authorizations and access controls are possible in VB. This feature is also applied in the
model software to separate the privileges of a contractor and/or the consultant/client
to protect some information/data that is believed to remain relatively permanent.
These include item rate, basic project information, contract amounts etc, that demand
negotiation between the contractor and the client/consultant if there arises a need for
change.
 Data input/output Interfaces
It is possible to make friendly user interfaces by using forms. Forms are templates that
enable the programmer to create windows application software in an easier way. It is
the way through which the user communicates to the computer. In the model software
different forms that are specific to the payment certification are used to let the user
give an order to the computer.

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Part Two:
Chapter IV- Focus Group Discussion Result
4.1 General
There are a number of ways to collect data for a given thesis work. Focused group
discussion is one of the most popular techniques. ’A focus group is a form of
qualitative research in which a group of people are asked about
their perceptions, opinions, beliefs and attitudes … Questions are
asked in an interactive group setting where participants are free
to talk with other group members’ (From Wikipedia, the free encyclopedia,
http://en.wikipedia.org/wiki/Focus_group) Then the responses from the participants
are recorded carefully. The writers of this thesis work have selected potential sample
population from the construction industry and formed mini focus groups on different
times. The need for making mini groups on different times was basically due to the
difference between the working time and area of the respondents. The issues raised
were limited in the Ethiopian context. The summaries of issues raised and the
responses are shown under the next topic. Later on under the last chapter of this
paper the summaries are used as an input for conclusion.
4.2 Main points, participants and their profiles
 The table below shows the main points discussed on, these points are not the only
ones but are the major ones.

Topic Reason for selecting of the topic

Uses of payment certificate software
To identify the uses/benefits of the
software from practical experience
Types of payment certificate
To see how familiar the construction
processing software in use
industry is with the software world
Extent of use over time
To asses if there is a growth of demand
for software application
Usage and Size of project
To asses if there is limitation of software
applications with project size,
Availability of Software trainings
To know how much aware the industry is,
about the advantages of using particular
softwares

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Draw backs of the traditional way of

To identify the problem, look for
payment certificate processing
solutions and include the solution in the
model software

 The participants of the focus group discussion and their profiles are shown in the
next table. For the sake of uniformity, participants name is not included for the
reason that some respondents are not willing.

Participants Educational Level Years of experience/

Position/ Current status

P-1 Building Engineering Dip. 27 /Site/Office Engineer,

Project Manager/
Deputy Manager

P-2 Building Engineering Dip. 5, Site Engineer/,

Currently enrolled in
CoTM B.Sc.

P-3 Building Engineering Dip. 6 , Site Engineer/,

Currently enrolled in
CoTM B.Sc.

P-4 CoTM Graduate B.Sc. 4, Office Engineer

P-5 CoTM Graduate B.Sc. 3, Site Engineer, Office

Engineer, Owns Private
Company

P-6 CoTM Graduate B.Sc. 2, Office Engineer,

P-7 CoTM Graduate B.Sc. 1, Office Engineer,

Project Engineer

P-8 Water Engineering B.Sc. 4 years in construction as

site Engineer, project
coordinator

4.3Application of payment certificate software in Ethiopia

The process of payment certification is composed of sequential activities that
demand great attention. The process involves calculations and considerations of
different factors. The calculations involved make the process laborious and tedious.

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These days many companies use Microsoft excel to ease the calculations. However if a
software that is particularly prepared for this purpose is used, it would have been easy
to automate the work. In this regard let us see the case of Ethiopia based on the
responses from the participants of the focused group discussion.

4.3.1 Uses of payment certificate software

Software has a vital importance on payment certificate preparation. The use of
software is particularly on quantification of the work executed. The quantification task
involves taking measurement and calculating of the linear length, areas, volumes,
weights, numbers, etc of the work. These tasks if assigned to specific software and
automatically manipulated:
 The time spent during manual calculation would be drastically reduced
 Arithmetic errors would completely be avoided
 The data processing and handling will be easily done
 The application of Ms Excel is making advantage over the manual calculation. But
Excel needs formulas for every manipulation and setting the formulas is not easy.
 Specifically developed softwares do not need any formulas to be set at all. By just
selecting from the available menus, the only thing the user needs to do is feed the
inputs the rest is the computers task.
4.3.2 Types of payment certificate processing software in use
Most companies use Ms Excel to process payment certificate preparation. But there
are some companies that developed particular softwares.
 GTZ has developed software for own use that gives aid in controlling projects under
GTZIS.
 There is also commercially available software; ConMIS
4.3.3 Extent of use over time
Sometime earlier payment certificate processing was done manually but these days
Ms-Excel is becoming familiar in most companies. Even if there are some softwares
available on market which are particularly developed to be used in construction, they
are not being fully utilized by the industry. There are factors that hinder the industry
from becoming familiar with these softwares. The conservative behavior of the
industry, lack of awareness, affordability issues are among the factors.
4.3.4 Usage and Size of project
Softwares can be used in projects of any size but bigger projects are more advised to
have a tradition of applying software in their projects. This is due to the increased
complexity of projects with their size.
4.3.5 Availability of Software trainings

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The importance of software application in projects is inevitable but for companies to

be familiar with softwares and apply in every necessary step there must be a paradigm
shift. To make this, awareness workshops and software trainings need to be available
in an easier and accessible manner. Currently Synergy a company that owns the
ConMIS software offers trainings about ConMIS. But yet much needs to be done.

Chapter V- Desk Study; CPC Preparation using computer aided system

5.1 Software based payment certification
5.1.1 General
There are works that need to be done only by human action. In construction where
planning and executing usually does not coincide, the challenges that resulted the
deviation need critical thinking, the need for managerial team.
But for routine tasks that come again and again it’s a good practice to automate them in
a more productive manner. With this regard the writers of this thesis work highly
recommend the payment certificate preparation process to be automated. To
demonstrate how the automation could have been done sample software is developed.
The flow of tasks and logical linkage of the database are shown here under.
5.1.2 Activity flow Chart
Payment certificate preparation process is a whole sum of different activities. The
activities are linked together in accordance with their logical sequence. In the traditional
way of preparing payment certificate the link has longer linear corridor of activities to
pass through. It has a one to one relation between activities and every activity a room for
a person to make wrong or right.
But in the case of software application we only have a single activity, to feed the input
data. The rest of the activities are linked to each other in the database with a radial and
one-to-many relation. The initial input has direct relation with the final output through
central database. This makes the process easier and faster.
The user does not participate in the calculation means that the computer does. But the
activities to be performed need to be set for the computer by means of programming.
The programming used followed the activities done during payment certificate
preparation.
In quantification the syntax used is to let the software calculate the linear length, area,
volume, weight, no., pieces as an output.
In the bill of quantity the activity involved is to calculate the amount by multiplying the
results in the detailed measurement with its respective rate. And the summaries are
nothing but abstract of the bill of quantity.
The program set for the payment certificate lets the computer to bring all the
necessary information in a summarized form. The data in the general information,
contract amount, current amount of work done, percentage of deductions including
VAT, amount of previous payment, are brought together on the payment certificate
format and the manipulation is done automatically with proper formulas set with the
syntax. The following diagram shows the logical link between activities. Activities that

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would require the user’s action are here just reports. The four types of arrows represent
the flow of commands and data. The two bolder arrows represent the user interface; the
user gives commands and obtains end results. The other two arrows represent the flow
of data from and to database. Only summary from payment certificate is taken back to
the database as previous payment.

5.1.3 Inputs/ Out puts for the soft ware

The tasks involved in payment certificate preparation are of sequential manner. In the
manual or application of Ms Excel the sequences are strictly followed. But in the case
of software application it is not necessary to obey the sequential order. Only the
following three steps are followed. The first and the second steps are only done at the
first instance of payment certificate preparation. For the payments that successively
follow, only step three is repeatedly done. This is one of the advantages for saving time
by eliminating unnecessary routine steps.
i. The first step in payment certificate preparation by the automated system is to
record permanent information. The permanent information contains details about the
location, contract amount, contract no., project start/finish date, name of the client,
consultant, contractor etc. This permanent information is the details that we desire to
include on the reports of take off sheets, bill of quantity, summaries of bill of
quantities, payment certificate, and other reports that the software can produce.

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Computer Application on Construction Works Payment Certification Thesis 2010

ii. The second step is to record the temporarily permanent details which includes
contract bill of quantity and its respective rate.
iii. The last step is taking/ recording measurements. The measurements taken are
fed into the software with its respective input dialog box. The software automatically
produces the required result as area, volume, weight etc. The user does not need to
calculate or tell the computer the required result.
After completing data recording as an input, the user can just see any of the required
reports without its traditional sequence. The user doesn’t need to take part in the
processing. That is the machine’s duty! The inputs, processing, outputs scenario can be
summarized in the following diagram.

5.2 Features of the software

 VB enables the separation of user. This helps to manage the privileges of the users by
allowing and limiting access. This window shows the way users are logged in to be
identified by the computer. The contractor and the consultant will have different user
name and pass word to log in as their authority differs.

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 This window is where the software displays all of the available menus. We can pick a
task from the drop down menus. The menus have different purposes and the software
offers different options. For example the input menu has the purpose of recording
data so the software provides us with the options to create, edit and delete the input
data. The input records include general information, contract amount, item rate,
current measurement, payment parameters. The parameters are the values of the
deductions like retention, penalties, advance repayment and rebates.

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Computer Application on Construction Works Payment Certification Thesis 2010

 The process menu enables us to proceed on calculation. If we recorded a new data for
the first time, we need to click on ‘Calculate Project Cost’ to set the contract amount.
Then we can record a new measurement data and click on ‘Calculate Current Measured
Amount’ to process payment certification.

 To process the second and all the rest of the payment certification, we need to clear
the current data by clicking ‘Clear Previous Measurement’ so that the computer
records the summary of the current payment certificate as previous and prepares a
space for the new process.

 Enquiry menu enables us to see all the recorded data in a non editable form. The data
to be displayed are General Information, Item Rate, Bill of Quantity, Current
Measurement, Price Escalation Details, Variation Orders and Claims.

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 In the change order menu we can record data that not part of the contract. These data
may arise from changes in the environment. The data includes price escalations, claims
due to different cases, variation orders. It is also possible to edit and/or delete these
records when necessary. These data are stored separately in the database however
their summary will be included in the payment certificate report.

 In the input menu the General information record dialog box looks like in this form.
Basically there is no difference in form b/n recording, editing and deleting the info.

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 To record the contract amount the select from the input menu contract amount
creation

The following window will be displayed with the heading ‘Add New Bill of Quantity’.
After entering the required data in the dialog boxes, click Add to proceed and Exit to
return to the main menu. The input menu also provides the option to edit and/ or
delete the input data. The same procedure works for item rate too. The user interface
window is shown next to the Bill of Quantity window. The form has a heading ‘ Add
New Item Rate’.

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 To process payment certification the only routine thing to do is to take measurement.

The measurement taken is entered in the dialog boxes of the form shown below with
the heading ‘Add New Takeoff Quantity’. The work can be selected by using the drop
down from the contract bill of quantity. The item code and the description for the work
immediately appear. Then enter the measurement with its respective dialog boxes. To
enter value for linear length only one dimension is required, for area two and volume
four dimensions are required. The software calculates and displays the result with its
respective label on the report.

 To calculate the quantity of reinforcement bar, enter the total length of the bar, the
total number of bars its respective unit weight. This form needs further development
to calculate quantity of reinforcement bar readily, however unit weight constants are
provided here on the form to ease the process at this level.

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 Every report the user desires to see is a single step away from the data entry stage.
After entering the data for the current work executed the user can directly go to the
report menu and see any of the required reports. Unlike the traditional way where flow
of work has a linear head to tail relation, the radial centralized system in the software
enables the user to access the database freely without any sequential step.

 To see the reports; click on the report menu and select the type of report to view, then
click Preview to see the printable report. The reports include rate table, Contract BOQ,
Current Detail Measurement, Current Bill of Quantity, Summary, Payment Certificate
Report and Comment.

 Unlike the traditional way, rate has separate self contained data input and report
preview. This is due to the centralized radial referencing system. The rate is stored in
the central database so that every report can take the necessary data from it when
ever needed.

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What is new in the reports?

The reports are aimed to serve the same purpose the documents produced in the
traditional do. However due to the fact that the way data are processed through the
model software has some difference from the traditional way, some minor differences
are made to ease the computerizing process. The changes are shown below.

 The format of Take off Sheet used in traditional way is changed in the software
application because the software does not allow vertical calculation of entries like the
usual way. However the end result remains the same.

 Itemizing tasks has a bit modification here. For example: - four levels of numbering are
assigned to differentiate the level and type of work.

 First level: - alphabets like A, B, C are assigned to Sub-Structure, Super-Structure

and Site Works respectively for building work items.

 Second level: - A1, B1 or C1 are for trade of works like excavation and earth work,
concrete work, block work, finishing etc.

 Third level: - A1.10, B1.10, C1.10 refers to activities like site clearance, bulk
excavation, concrete work, form work, HCB/Brick wall plastering etc.

 Fourth level: - A1.11, B1.11, C1.11 refers to same activities with some differences
/Dittos. For example, ditto but to a depth not exceeding …., ditto but with a
thickness of …., ditto but two coats of plastering etc are assigned with the fourth
level of numbering.

Critical Activities

 Critical activities are activities that can neither avoided not ignored. From
the study of the payment certificate preparation trend analysis the only
activity that cannot be ignored is recording the measurement of work
done once the project details are saved. The rest of the tasks can be
ignored/ skipped while using the model software. This is not possible in
the case of traditional method as the process is sequential.

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Part Three:

Chapter VI- Conclusion and Recommendation

6.1Conclusions
From the responses of the focus group discussion and the trend analysis, the writers of
this paper have come to conclude the following points:
 The manual payment processing takes much time and is prone to arithmetic error.
 Ms Excel reduces the time it takes in manual processing but there is a probability
that calculation error will happen due to cell miss referencing.
 Ms Excel does not have a built in database system so it lacks systematic data
processing and handling.
 The development of particular software for construction projects is important.
 Arithmetic error is never expected when using particularly developed software.
 Speed is enhanced as writing formulas or calculating is not necessary.
 Data processing and handling is digitally managed.
 Security is not an issue when applying particular software.
 Payment issuance through electronic media can be incorporated with the
software as the end results are automatically and digitally produced.
 In Ethiopia automating tasks by specific software especially in construction is not
common.
 Affordability issues with the available softwares are one of the challenges
keeping the industry from computerizing works.
 There is a demand to make awareness about the advantages of using software to
automate routine tasks in the construction industry.

6.2 Recommendations
6.2.1 General
As discussed earlier in the introduction part, this study is grouped under
applied research category. Apparently the discoveries of this thesis work have
several implications that demand the attention of the concerned parties. Under
the next topic the implications of the study are discussed.
6.2.2 Implications
The writers of this study have come up with the recommendation by showing
the implications of the paper work. These implications may not be the only but
the major ones. If the concerned parties can respond to these implications and
take action, the writers are convinced change will come.

 Industrial implication;
The writers of this thesis work have come up with the conclusion that there is
a need for some of the routine construction works to be automated. Payment
certification is one of the routine tasks that need automation. Accordingly the

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model software that is developed to demonstrate the automation, even if

supposed to be used for demonstration purpose only, can be used for real
projects too. The construction industry in Ethiopia is usually known by delayed,
extended time and the corresponding cost.
But applications of modern technologies like the information communication
systems can contribute to the effort to minimize the time wasted unnecessarily.
Therefore companies in the industry are strongly advised to be familiar and get
advantage of it.

 Stakeholder’s role;
As the need for automating routine tasks is inevitable, every necessary step
shall be taken to boost the effort of computerizing the tasks. It is
unquestionable that the minimized time has advantages for all parties involved
in a given project. Therefore the contractual stakeholders can play significant
role to support the effort. The client/ consultant can include clauses in the
specific conditions that enforce the application of particularly developed
software. The contractor can initiate the consultant by showing the advantages
of using software in daily tasks.

 Theoretical implication;
There are tasks that need human act, but for routine tasks specially the ones
that involve calculations no one can do better and faster than a computer. A
Computer can make it faster because it does not follow the sequential way of
processing.

 Institutional implication;
By principle Institutions are where professions born and flourish on research
basis. Institutions ought to lead the corresponding industry. In this context the
newly formed EiABC in cooperation with AAU, professional associations and
other related institutes, can make a difference.
For example: - including programming courses in the curriculum or in
association with Computer Science Department in Science Faculty/ Informatics
or whichever is convenient, facilitate programming courses trainings for
interested students. This is a common practice in other faculties like Linguistics
at sidist kilo.
 Research implication;
The writers of this study with the limitations indicated earlier have come up
with the conclusion that, it’s possible to make changes on the traditional way of
doing things. The changes can be utilized to speed up processes and increase
quality. But further can be done specific to the construction industry.
Concerning payment certification, additional features that the writers of this
thesis work did not included due to limited time bound can be studied further.
The features include: -

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 Inclusion of a separate form that enables the quantification of reinforcement

bar.
 Integration of VB with graphic software like AutoCAD, to take measurements
directly from the softcopy of the drawing is also possible.
 Enabling the software manage several projects at the same time.
 Inclusion of change orders; claims, escalations, variations etc to be processed.
 Inclusion of Help menu to make the software more user friendly so that a user
can operate even for the first time by referring to help menu.
 Commenting possibilities for the supervisor after checking the current
executed work so that the contractor can see the changes the supervisor
made by comparing with his application.

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6.3 References
1. FIDIC, 1987; Conditions of Contract for Works of Civil Engineering Construction
2. Public Procurement Agency (PPA), 2005; Condition of contracts
3. MoWUD, December, 1994; Standard Conditions of contract for Construction of civil work
project
4. Edwards H.griffith, March, 1953, Specification
5. Wubishet Jakale Mengesha (Dr.Eng) (April 2006) Procurement & Contract
Management (peg 94)
6. Taylor & Francis e-Library 2005, Taking Off Quantities: Civil Engineering-
First edition1995 by Bryan span, (peg 11-18)
7. Michael Halvorson, 2008, Microsoft- Visual Basic_ 2008 step by step.
8. Jeff Kent, 2006, Visual Basic 2005_DeMistified
9. www.constructionmanagmentguide.org

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6.4 Annex
A. Focus Group Discussion Guide
 Professional requirement
Respondents shall be from professions that are believed to practice the
payment certificate preparation. Building Engineering, Civil Engineering,
Construction Technology and Management etc
 Experience
The respondents need to be from positions that can practice payment
certificate preparation. At least one year of experience.

 Position of Practice
The position the respondents were working on shall be the type of position
that performs payment certification. Office Engineer, Site Engineer, Project
Manager, Project Engineer or any other

B. Printed Reports of the model software

 To be attached

C. Payment Related Clauses from FIDIC and MoWUD and the Thesis proposal
 To be attached

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