Level 1 Project Finance

Question 1

What is a cost report?

Answer 1

A report informing the client of all costs to date, risks, and changes to the contract sum. Advisees the client of the likely final cost and how to work in line with the budget.

Question 2

What measures to do if a budget is exceeding forecast?

Answer 2

Omit unnecessary specs. Change specs without reducing quality.
Reduce: the scale of elements
Specs: reduce the spec of works

Question 3

Defined provisional sums?

Answer 3

Provisional sums that are unmeasurable but described in sufficient detail which the contractor can expect to allow for progrmame, price and prelims.
- STATS

Question 4

Undefined provisional sums?

Answer 4

Less described and contractors can’t make allowances for. Which may mean the contractor is entitled to an EOT.
- work below to existing structure where the ground conditions cannot be determined until structure is demolished and ground investifated.

Question 5

What is cashflorw?

Answer 5

the lifeblood of organisations and projects

Question 6

S Curve Spending

Answer 6

the general curve of spending, less spending at the start and end, large spending in the middle.

Question 7

Project and Organizational cashflow?

Question 8

Different payment methods - stage, milestone & 3rd part valuation

Answer 8

Stage: pre-arranged amounts are pre set times.
Milestone: Pre-agreed amounts at different stages of construction completion.
3rd Party: Assess the current works and value against it.

Question 9

Risk factors affecting the accuracy of a cashflow forecaset

Answer 9

Inflation, Estimating Errors, Change in Design Spec, Change in sequencing