Describe forms of internal control systems for an engineering firm into pipeline construction.l joined an engineering firm recently, the task is...

The task of designing an internal control system for a pipeline construction firm requires two broad types of knowledge inputs. On is the general methodology for setting up internal control system. This remains same irrespective of the of the type business of the company. I believe you would have learnt this as a part of your education or experience before joining the company.

The second kind of input is the knowledge of the pipeline construction business. I do not expect, your formal education to have covered all the different types of industries where you may work. So, I will describe characteristics of the pipeline construction business that you need to be familiar with.

To begin with, any engineering and construction company is engaged in project work. Therefore, a great deal of control will have to be linked to the plans for their different projects. If, you are not already familiar with basics of project management systems, it will be good Idea read some book on project management to upgrade your professional knowledge. If your company has a project management manual or some similar document, it is a must read for anyone attempting to design an internal control system.

Another important aspect of project companies is that their total sales is generally composed of a small number of big customer orders. Therefore the system of internal control mus have the capability to monitor, control and evaluate performance against each customer enquiry and order.

Pipeline projects are usually dispersed over an long stretches geographical area. This affects the organization as well as the flow of information. It is quite likely, the location of site offices will keep on shifting frequently as the construction work progresses.

A large part of the pipeline construction is repetitive. The progress of work for most of the activities can be planned and measured quite conveniently and effectively in terms of length of pipeline segments covered.

Similarly it is possible to develop and use cost and other standards linked to length of pipelines of different types and for different types of site conditions