Project Finance Flashcards
What is a cashflow S curve
Visual representation of cashflow.
Low at the start, goes up during and then low at the end
RICs guidance note
Cashflow forecast
Defined provisional sum
Benchmark data & defined scope
programme is bought (know the length of time itll take roughly)
Undefined provisional sum
Not defined scope
Not to exceed
NTE under instruction so cannot contractually be exceeded
What is in a cost report
Instructions to date
Expected instructions
Movement in cashflow
Valuations in line with programme
Overall budget - draw downs to date
How do you test financial stability
Past 3yrs turnover
Forecast turnover
Dan & broadsheet report
Balance sheet
what would you ask for in the PQQ
cashflow
budget
balance sheet
profit & loss from last 3yrs
how do you review a companies credit rating
the dun and bradshaw report
typical design contingency for a D&B contract
3%
what may affect cost of a project
pricing clarifications
provisional sums
contract amendments
valuation process
Interim Valuation Date is built into all JCT 2016 contracts
Interim Valuation Date is to be agreed by the parties in the Contract Particulars
Same day in each month, or the nearest business day in that month
contractor prepares application for this
QS attendees site and values work in totality
QS reviews the application & submits to EA/CA
EA/CA drafts payment certificate
application is approved
GC then submits invoice against the PO number
client pays invoice
quantity surveyors role in valuations
The quantity surveyor’s function is to assess value as
distinct from cost, particularly with reference to prices of
certain items in the preliminaries section and temporary
works.
Interim valuation involves a revaluation of the whole work,
not the work done since the last interim certificate or
payment notice was issued.
what does it mean to be ahead on cashflow
ahead on valuations- too much has been signed off. may lead to future valuations being less
what acts are relevant to payment
Housing Grants and construction regeneration act 1996
&
local Democracy, Economic Development and Construction Act 2009
