Cost Reporting Flashcards
Why do we need cost control ?
Ø To manage project costs within the approved limits
Ø To provide a ‘decision support’ advice
Ø To provide better value for money
Ø To development the financial information to controlled & monitored the change
Ø To achieve balance of expenditure over various elements
In the case of cost increases above the client budget the what are the action may be considered:
◊ Omit elements of remaining construction work that are not immediately critical for the required functionality of the building.
◊ Reduce the scale of elements of remaining construction work without diminishing the required functionality of the building. This may include reducing room sizes, circulation and communication, space and storey heights.
◊ Reduce the specification of elements of remaining construction work.
Why Change Management is impoartant?
To provide a method of assessing and managing project change,
giving detail of consequent cost and programme effect,
in order to provide the employer with the choice to accept and approve changes,
and allowing that choice to be made with knowledge of all implications.
What is a Cost Report and what are contents?
Cost Report - A construction cost report captures historic and forecast costs incurred under a construction contract.
Typical cost report headings; Ø Contract sum Ø Adjustment of variable costs (PS, PC, DW) Ø Adjustment of variations Ø Adjustment of fluctuations Ø Claims for loss and/or expense Ø Adjustment of risk allowances
What is Cash Flow? Why it is important ?
Cash flow is the movement of income into and expenditure out of a business over time.
Purpose: to ensure that an appropriate level of funding is in place.
Need of a cash flow calculations
- Needs to know his obligations at different stages
- Monitor the progress
What are the Documents required to prepare a cash flow?
Ø Construction program
Ø BoQ
Ø Conditions of contract
