Commercial Management

Question 1

How do you proactively control costs during construction?

Answer 1

Change control.
Dialogue with design team.
CF Forecasting.
Cost reporting.
Risk management.
Mitigate early warnings.

Question 2

What is earned value analysis?

Answer 2

Measures projects progress at a point in time.

Question 3

SPI Formula?

Answer 3

Earned value / planned value.

Question 4

CPI Formula?

Answer 4

EV / Actual Cost.

Question 5

What are capital allowances?

Answer 5

Way of reducing after-tax cost of buying plant, equipment, FFE.

Question 6

What is the reason for capital allowances?

Answer 6

Encourage investment to encourage spending by businesses.

Question 7

Legislation related to capital allowances?

Answer 7

Capital Allowances Act 2001.

Question 8

What is a Build-Operate-Transfer model?

Answer 8

Build and operate for a certain period to a private party.

Question 9

What is a Build-Own-Operate-Transfer model?

Answer 9

Private entity owns the works, but also only owns asset during agreement period.

Question 10

What is a build-own-operate model?

Answer 10

Private sector party owns the project and doesn’t transfer to government.

Question 11

What is a build-lease-transfer model?

Answer 11

Private entity completes build and leases to the government, at end of period the government assumes ownership.