Project Finance

Question 1

• What is the New rules of measurement published by RICS?

Answer 1

They provide a standard set of measurement rules that are understandable by anyone involved in a construction project.

Question 2

• Why is it important to report the correct cash flow during construction phase?

Answer 2

So my client can report internally if the project is on track or there is a potential for an overspend

Question 3

• What is a provisional sum and how is it expended?

Answer 3

An allowance that is usually estimated for a specific element of the works that isn’t yet defined enough to be actually priced. Its expended by an instruction.

Question 4

• What is the difference between a provisional sum and a PC sum?

Answer 4

PC sum is normally used for a specific item such as floor tiles or toilets where as a prov sum is where the works haven’t yet been fully designed to price accurately

Question 5

• Why is controlling costs important?

Answer 5

To ensure the project is still viable, keeps the project in budget,

Question 6

• What is whole life costing?

Answer 6

Operational costs, maintenance and refurbishment costs – the costs over its lifespan of the building

Question 7

• What are the responsibilities of a cost manager?

Answer 7

Run monthly cost forecasts, accurately record expenditure, provide assistance to the organisation with budgeting.