7 financial resources

Question 1

How does the main contractor incur expenditure?

Answer 1

1 suppliers of materials 
2 to subcontractors 
3 internal or external equipment hire 
4 labour 
5 overheads

Question 2

What is the price?

Answer 2

sum of money charged by a contractor or supplier to cover its costs and pay a profit

Question 3

What is a liability?

Answer 3

When a person has received a service or had work done and they need to pay it back eventually turns to expenditure

Question 4

What are earnings?

Answer 4

when you have done work/ provided value and you have not received the payment yet eventually turns to income

Question 5

What are the best parameters to use to measure performance and why?

Answer 5

liability and earnings- there is a time delay between liability and expenditure and it gives a false impression of profit

Question 6

what is surplus?

Answer 6

income- expenditure

Question 7

what is profitability?

Answer 7

earnings - liability

Question 8

What is retention?

Answer 8

money held back by promoter which creates a fund to cover any defects. Paid back to contractor after a pre-agreed time period