fianance types

Question 1

What are the 4 types of finance in construction?

Answer 1

Lump sum, Schedule of rates, Bill of quantities, Prime cost

Question 2

Define Lump sum in construction finance.

Answer 2

Where all the money is paid, the contractors are all paid monthly

Question 3

What is a Schedule of rates?

Answer 3

a list in a contract setting out the staff, labour and plant hire rates the contractor will use for pricing costs

Question 4

Describe Bills of quantities.

Answer 4

Defines the quality and quantity of work carried out by a contractor or sub contractor

Question 5

What does Prime cost refer to in construction finance?

Answer 5

How much that building costs, can add plus percentage for quicker work

Question 6

What is a target cost in the context of Prime cost?

Answer 6

Gives contractors a bonus if they finish to high quality quicker

Question 7

Fill in the blank: A _______ is where all the money is paid, and contractors are paid monthly.

Answer 7

Lump sum

Question 8

True or False: Schedule of rates means payment is made when an object is placed in.

Answer 8

True

Question 9

Fill in the blank: Bills of quantities are _______ changing depending on the work.

Answer 9

constantly

Question 10

Fill in the blank: Prime cost can include a _______ percentage for quicker work.

Answer 10

plus