Project Finance

Question 1

What are the different types of Cost Report?

Answer 1

1) Elemental
2) Construction
3) Project
4) Programme

Question 2

What is Cost Control?

Answer 2

The processes and procedures to align and manage cost in line with the

Question 3

What are Defined and Undefined Costs?

Answer 3

Defined costs are those that are clearly specified and allowed for in the contract.

Undefined costs involve elements where the specific nature or scope of the work is not fully known, leading to greater uncertainty and potential for variations.

Question 4

What are Disallowed costs?

Answer 4

Costs that are incurred by the Contractor that they are not entitled to payment such as:

• Amounts not justified by records
• Amounts paid for something else not part of the project
• Errors or mistakes in payment to others

Question 5

What cost measurement methods are there?

Answer 5

• NRM1 - Order of cost planning for building works
• NRM2 - Detailed measurement of buildings works
• NRM3 - Order of cost and measurement of Maintenance Works
• ICMS - International Construction Measurement Standards
• RMM - Rail Method of Measurement

Question 6

What is the Price of Work Done to Date?

Answer 6

Defined cost the contractor will have spent before the next assessment date, which includes CEs, plus their fee