General Flashcards
You mentioned you are responsible for cost reporting to the client. Please talk me through how you would produce a cost report and how this would be presented to the client.
Set up meeting to go through key client objectives. This would include:
benefits
timescales
packages to use
cashflow
arrangement of changes
How do you produce the cashflows on your project and why is this helpful to the client… What do they use it for?
I use the programme and the cost plan to determine each packages value and time taken. I then input this to software to establish the cashflow amounts.
How did you calculate loss and expense on QSL?
Relevant Matter has occured
Assess the heads of claims
Prolongation costs; finance charges; loss of profits; general disruption and wasted management time.
How is Final outturn cost controlled by cost reporting?
Outturn cost is controlled by the recognition of cost changes incurred and planned implementation of future cost changes.
What are variable costs?
Provisional sums
Risk
Loss and expense
Liquidated damages
Variations
Prime cost sums
Re-measurable contracts
Anticipated instructions
Fluctuations
What is good cost reporting?
Always accurately track cost and changes
Communicate changes effectively as and when required
Keep a rolling final account
Good cost report document to keep client informed
Good relationship with contractor
What is cost control?
The process of valuing and manging changes. To ensure the project is delivered at the right price.
Would you issue a final payment certificate?
You should never issue a final payment certificate as this would mean you cannot claim for latent defects.
When is the final account produced?
FOR JCT D&B: Contractor must submit information within 3 months of PC. If they do not, you will need to prepare this and give notice you will do it.
FOR JCT SBC: Contrcator has 6 months to provide documents and 3 months for CA/QS to ascertain
FOR NEC: No real final account as all CE’s should be agreed, however the final account is essentially the assessment of the final amount due
On your projects, why was it important that the contingency pot was only used for risks which there was no provision for?
This is because these risks already have a provision in the contract and using the contingency would not be necessary. All costs which can be foreseen should have a provision within the contract.
Are there any costs you would exclude from a cost report?
If it is a construction cost report i would exclude professional fees, 3rd party costs, land costs, agency costs, finance cost and legal fees.
On the basis that most clients don’t want to read a whole report, what do you convey in the Executive Summary?
JCT: Budget, forecast cost, risk, approved changes, unapproved canges, provisional sums, cashflow
Same for NEC but Comp events and Early Warnings over changes
Would you include contractor claims in your cost report? What about loss and expense and LDs?
Yes these would be listed under the unapproved variations until they have been approved.
How have you controlled costs in the design stages of a project?
Change control and showed differences using precontract cost trackers.
Order of Cost Estimates
Cost Plans
What is the purpose of a cashflow? Who produces one and how?
For client:
To monitor progress against agreed programme
To be able to monitor loan payments and withdrawing money from funder
To manage resources
For contractor:
To monitor subcontractor’s progress against subcontractors
To manage resources
