Project Finance

Question 1

What is a Provision Sum?

Answer 1

A sum that’s been earmarked/put aside for an unknown quantity until later defined.

For example foundation costs
(Note) This transfers risk onto the client

Question 2

Tell me about your change control process on your project?

Answer 2

• Changes/variations are managed within a change register or tracker.
• I would ensure I carry out my own identification review of any risks prior to the change being instructed
• I would arrange a design team meeting and review with the team
• I would review costs changes with the QS before I review with the Client.
• Update the change register of the latest status then I would monitor and record the change

Question 3

How do you know you getting value for a change

Answer 3

• Speak to consultants QS on their rates
• I would carry out benchmarking request for alternative to compare to check if getting value for money
• Look a previous tendered rates
• Look at BCIS

Question 4

How do you know you are getting value for money?

Answer 4

I would ask for a breakdown of the costs and compare each item with 3 other quotes

Depending on the form of the contract I could take it outside and get an alternative quote.

Or ask the main contractor to get alternative quotes from their subcontractors

Question 5

What is prime costs sum?

Answer 5

Prime cost Sum is an allowance usually calculated by cost consultant for the supply of work / materials to be provided by a contractor or supplier that is nominated by the client.

The allowance is exclusive of any profit mark up (such as material handling, rubbish clearance and scaffolding) by the contractor

Question 6

What is contingency?

Answer 6

A future event or circumstance that
cannot be predicted with certainty, i.e.
additional construction

Usually 10% is set aside to account for the unknowns