Project Finance

Question 1

What is a cashflow S curve

Answer 1

Visual representation of cashflow.
Low at the start, goes up during and then low at the end

Question 2

RICs guidance note

Answer 2

Cashflow forecast

Question 3

Defined provisional sum

Answer 3

Benchmark data & defined scope
programme is bought (know the length of time itll take roughly)

Question 4

Undefined provisional sum

Answer 4

Not defined scope

Question 5

Not to exceed

Answer 5

NTE under instruction so cannot contractually be exceeded

Question 6

What is in a cost report

Answer 6

Instructions to date
Expected instructions
Movement in cashflow
Valuations in line with programme
Overall budget - draw downs to date

Question 7

How do you test financial stability

Answer 7

Past 3yrs turnover
Forecast turnover
Dan & broadsheet report
Balance sheet

Question 8

what would you ask for in the PQQ

Answer 8

cashflow
budget
balance sheet
profit & loss from last 3yrs

Question 9

how do you review a companies credit rating

Answer 9

the dun and bradshaw report

Question 10

typical design contingency for a D&B contract

Answer 10

3%

Question 11

what may affect cost of a project

Answer 11

pricing clarifications
provisional sums
contract amendments

Question 12

valuation process

Answer 12

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

Question 13

quantity surveyors role in valuations

Answer 13

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.

Question 14

what does it mean to be ahead on cashflow

Answer 14

ahead on valuations- too much has been signed off. may lead to future valuations being less

Question 15

what acts are relevant to payment

Answer 15

Housing Grants and construction regeneration act 1996
&
local Democracy, Economic Development and Construction Act 2009

Question 16

what did the HGCR act include

Answer 16

fair payment for contractors- to stop clients not paying/ contractors not paying their subcontractors

Question 17

what did the LDEDC act include

Answer 17

dispute resolution

Question 18

when do you notify contractor of a pay less notice

Answer 18

no less than 5 days before the payment is due