Project Finance Flashcards
What are the different techniques used in project finance reporting?
- interim valuations
- cost reporting
What is the purpose of cost reporting?
- inform client on where the project is at
- provide client on indication of where the project is heading
What makes good cost reporting?
- clear and concise
- accurate
What goes into a cost report?
- Exec summary
- Anticipated final cost
- Project details
- cash flow
- Instructed variations
- anticipated variations
- contingency graph
Why are cash flows used?
How are cash flows used?
What is a risk allowance?
Sum of money for any unknown risks or unmitigated risks on a project
What is a contingency allowance?
A sum of money in place for any unknown or unmitigated risks
How do you price variations?
1 . Measure the works
- apply contract rates
- pricing books
- day works
- deemed fair and reasonable
What is a variation?
A change of design to what is in the contract
What is the anticipated final account?
What is the interim valuation timeline?
- Application
- 7 days til the due date
- 5 days for interim certificate
-14/21 days for payment - 5 days before payment to issue Payless notice
What is a pay less notice?
Example of variation on BS landscaping?
- additional planters
- change of color to spotlights
What is an anticipated change?
What are prov sums?
Allowance in contract price that is not sufficiently designed or work the employer may or may not want
What are defined prov sums?
Contractor is deemed to have included for programming and prelims
What are undefined prov sums?
Contractor has not allowed for programming and prelims and may be entitled to an EoT or additional prelims
What is a prime cost?
What were the key milestones on BSL required to meet the completion date?
- Delivery of kerbs from china
- long lead time
- client and architect needed to agree on quality
