Project Finance Flashcards
What are some of the headings noted in the RICS Cost Reporting Guidance Note 2015
- General Principles:
- Report formats
- Reporting frequency
- Purpose of reporting - Practical Application:
- Example cost report
- Treatment of variable costs
- Establishing a budget - Practical considerations:
- Client presentations
- Risk allowance management
- Reporting LDs
What are the cost reporting formats you use on your projects?
Cost reports are usually presented by the QS. These include the overall construction costs, variations, forecast final account and contractor cashflows. Normally a fluctuation over the period will be show.
I also use the one page budget summary which will include construction costs, professional team fees, legal allowances and contingencies.
How do you set a project budget?
- Understand the client quality aspirations.
- Project complexity
- Project risks
- Wider industry risks
- Contingency allowances
What is included in a project Budget?
- Construction Costs
- professional team fees
- legal costs
- furniture costs
- contingency
What is a cost plan?
A project cost report captures historic and forecast
costs across a construction project. Typical cost report
headings are given below:
* construction costs
* professional fees
* statutory fees and charges
* third-party costs
* direct works costs
* land costs
* agency costs
* finance cost; and
* legal fees.
What is included in contractor preliminaries
A group of items necessary for a construction company or contractor to complete a project but that won’t become a part of the finished work—site overhead, scaffolding, powering the site, etc.
What are OH&Ps and what level would you expect on a D&B vs traditional contract?
Dependant on the project, market trends and complexity of the works
What is a provisional sum
Provisional sums
* Undefined provisional sums
The cost allowances for works or services whose
design specification and extent are not known at
the date of contract.
* Defined provisional sums
The cost allowances for works or services whose
design and specification are not known at the date
of contract but the extent is sufficiently well known
to allow for programming and management.
What is contingency and how is this allowed ?
What is the current construction cost inflation?
4.6%
What current risk allowances would you advise your client when considering contingency for a project?
Why was the drawdown helpful for the client?
Allowed for proactive cashflow management
How would you manage a project where the budget could not be exceeded? What specific measures would be taken?
- Ensure a specific and tight brief is made
- Understand the quality aspirations
- Employ a QS to review all contractor costs received.
What is a fixed cost and what is a variable cost?
Fixed costs
The costs that have been agreed to be paid for the
known work or services.
Variable costs
Provisional sums
What is on a profit and loss statement?
A profit and loss statement is a summary of business income and expenditure on an annual basis.
Example of a Statutory account
