Project Financial Control and Reporting Flashcards
What are the financial control process pre and post construction?
Pre Con
Order of cost estimates
Cost planning
Value engineering
Post Construction
Cost reporting
Valuation
Variations
Final account
What is value engineering
Review of engineering solution with has already been developed
What is value management
Review of engineering solutions solution prior to the design stage For example, what is the best mix of different sizes and types of housing units in a residential development
How do you prepare a cashflow?
I would take the estimate cost based on my cost estimate/cost plan, I would then project the anticipated spend against the anticipated programme taking in considering the S curve
How do you know if a contractor is front loading on a cash flow
When there is an abnormally high cost at the beginning stage of a project.
What are the elements of a cost report
Agreed contract Sum, Variation, Loss and expenses, anticipated changes, PS adjustments, valuation summary, cashflow forecast
What is the purposed of a cashflow
So the client can anticipate the level of spend on the project at a period at time
What are the different categories of risk on a project
Design development
Construction risk
Client change risk
Inflation risk
What are the different types of risk on a constriction project
Unknown ground conditions
Underground services
Neighboring building
Site access
Asbestos
What are the types of PS on a project
Defined
Undefined
What is the difference between a defined and undefined PS
Defined - Contract ought tot have include the scope in the programme.
Undefined - Not included in programme
How do you instruct a PS
Once firm cost has been received from the contractor, I would assess the cost determine if it’s in line with the scope of works and whether the cost is reasonable, I would then issue an instruction as the EA omitting the PS replacing it with the actual cost.
On Bilton Road - What would you advise the client if the project cashflow is below the forecast amount
- Inaccurate forecasting from the contractor,
- The works is behind programme
- Issues on site impact works progressing
On Bilton Road - What would you advise the client if you think a change is not a variation
I would advise the client that the change request noted are include within the employer’s requirements and has not been excluded by the contractor in the CPs therefore it should not be required as additional cost to the client. I would also notify the contractor the works should be deems included under the contract.
You have allowance in you cost reporting for risk allowances as you project progresses what would you do to those risk allowances.
What document would you need to prepare a cashflow?
- Programme
- Estimate contract sum
What is an S curve?
Tool used to produced a cash flow forecast
Low expenditure at the beginning and end
Accelerated at the middle part of the project as construction works ramp up
How would you ever get prelims in a cashflow?
I would split the prelims in to fixed and time related prelims and allocated as appropriate in line with the programme
How would you manage provisional sums on a project?
Pre contract
Ensure the provisional sum are defined in the contract.
Request for contractor to fix PS if possible
Post contract
Create schedule for the provision sum
Following up with contractor on information required to fixed the PS
Review drawdown provided by the contractor.
Omit all PS at the beginning of the project.
What is defined and non-defined provisional sum?
Defined – contractor ought to have include the work within the programme
Undefined – Works which are not included in the contractor programme
