2 - Project Finance Flashcards
What are the different types of Cost Report?
1) Elemental
2) Construction
3) Project
4) Programme
Explain an S-Curve
- Plots COWD against time
- As you go through the project, an S-Curve is formed
- Can analyse project performance by reviewing if you are in front of or behind the curve
- HOWEVER - It can mean that maybe the costs were front loaded, or that the works are over-priced.
What is Cost Control?
The processes and procedures to align and manage cost in line with the Cost Plan
What is a Cost Plan?
The overarching plan of the project costs over time. An evolving document that grows in accuracy and scope.
What informs the early stages of a cost plan?
- Initial appraisal through feasibility study
- BCIS / Index amounts
What informs the middle stage of a cost plan?
- PTE
- Quants taken from design
What informs the final stages of a cost plan?
- CSA and Contract Sum
- Final account
Under NEC, what is Defined Cost?
The costs permitted under the Contract that are incurred/expended by the Contractor
What is the Schedule of Cost Components?
List of categories of Defined Costs that form the total of the prices setting out what the contractor will be paid for and how that is calculated. These are:
- People
- Equipment
- Plant and materials
- Charges
- Manufacture
- Design
- Insurance
What are Disallowed costs?
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
What cost measurement methods are there?
- 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
What was the Standard Method of Measurement replaced by?
NRM2
What is an Outturn cost and what affects it?
Actual construction cost
Fixed costs - The works undertaken
Variable - Changes, prov sums etc.
What is the Price of Work Done to Date?
Defined cost the contractor will have spent before the next assessment date, which includes CEs, plus their fee
What is a provisional sum?
An allowance or estimate included within the contract price.
This is not sufficiently defined, designed or detailed and may not be work the employer wants to carry out.