3.6 Commercial Management Flashcards
(13 cards)
What is earned value analysis?
Objectively measure progress against resources expended.
How is EVM completed?
Planned value(milestone/activity schedule) against programme
Earned value of completed work
Actual cost of work completed
What are the cost components under NEC?
People,
Equipment,
Plant & Materials,
Subcontractors,
Charges,
Manufacture & Fabrication,
Design,
Insurance
How do you put together a cashflow?
Review when the outflow of cash and and inflows come in. Retention shoul dbe considered.
What is a cost plan?
Cost plan is a developed cost estimate. Elemental costs are formalised based on designs.
What is the difference between a cost plan and cost estimate?
Cost estimate is based on little design, likely based on m2 rates.
What is value engineering?
Finding alternative ways to build while keeping the function.
What is value management?
Increasing the value by evaluating the requirements.
What is benchmarking?
Comparing a project’s performance against similar projects
Poor weather under NEC?
1 in 10 year value
What is float?
Time a task can be delayed without impacting subsequent tasks
What are payment terms under NEC?
Final date for payment is 14 days from due date. Due date is 7 days from assessment date
What are the requirements on payments under construction act?
Payment notice must be 5 days after due date
