3.4 Commercial Management

Question 1

How to proactively manage costs during construction?

Answer 1

Have a change control procedure
Monitor progress of design
Ensure payment timeline is followed
Cash flow forecasting
Regular cost reportingManage risk and contigencies
Agree Ces/variations as they come
Monitor and mitigate EWNs

Question 2

How can you protect your client from contractor insolvency?

Answer 2

PCG or bonds
Credit check
References
Hold retention
Collateral warranties

Question 3

CM - Level 2 example?

Answer 3

Tracking and reconciling staff costs on AQP.

Question 4

CM - Level 3 example?

Answer 4

Advised on ways to increase margin and help cashflow.