Commercial Management - Level 2 Flashcards
Eastcheap Court - Take me thorough the process of carrying out the cost to completion exercise that you refer to in your summary of experience.
I would regularly update projected final account documents for the subcontractors that I was managing, such as roof works and floor finishes, which highlighted the contract sum and any variations to show the projected final account. These projected final account figures were fed into a cost to complete document for every package on the project which would then demonstrate the projected final costs to complete the project.
Eastcheap Court - How did you address potential cost overrun issues?
I would highlight this to my senior commercial manager when I became aware of any cost overrun issues and these would be discussed in detail in monthly meetings.
Manchester Project - Tell me about this cashflow forecast you prepared. What was it based on?
This cashflow forecast was based on the monthly costs on the project which were preliminary costs and the net payments in the agreed subcontractor monthly valuations. I also inputted the figure for cash coming into the business which was the net payment in the agreed monthly client valuation.
Manchester Project - Explain the purpose of a cashflow forecast such as this one.
The purpose of a cashflow document such as this one is so that the business can ensure that there are enough liquid funds in the business to keep the business running.
Manchester Project - Take me through a process you have implemented to deal with negative cashflow or potential negative cashflow.
The negative cashflow was caused by works being delayed at the fault of the subcontractors, I therefore instructed trades to accelerate labour at zero cost in order to pick up this shortfall in the next valuation.
