Project Finance Flashcards
What are the pricing mechanism to arrive to a contract sum?
Bill of quantities, activity schedule, schedule of rates
What are the factors affecting outturn of the cost?
Fixed costs, variable costs, variations
What is cost reporting?
The purpose of cost reporting is to inform the client in a construction project of the likely outturn cost of the construction project.
What are the three levels of cost reporting?
construction cost report, project cost report, programme cost report, detailed cost report
What are the expected content of a construction cost report? Project cost report?
construction cost report - contract sum, adjustments of variations, adjustments of variable costs, adjustments of fluctuations, claim for loss/expense, adjustment on risk allowance
How often should cost reporting be reported?
Common practice is to value the works on a monthly basis, therefore it is recommended that cost reports are updated and issued on a monthly basis.
How is contingency generally reported and updated?
General risk allowance maintenance method, General risk allowance progressive release method
What is risk? And how what is the role of QS in risk management?
Risk is the potential for an event or condition to impact the project’s objectives, including cost, schedule, quality, or scope.
QS roles as follows:
1) Helps in identifying, assessing and monitoring risks
2) Valuing risks under risk registers
3) Allowing contingency allowance to cover risks
How would carry out risk analysis and assessment?
Identify, assess, mitigate, monitor and review
What is expected monetary value method?
EMV=ProbabilityofRiskEvent×MonetaryImpactofRiskEvent
In fitout refurbishment project, how did you prepare a cost report?
1) Gather the pricing document arriving to contract sum
2) Reflect the contract sum, adjustment of measurable works, variable costs, variations, fluctuations, claims and risk allowances
3) Reflect these against budgets
How did you prepare a payment register? What is it for?
Payment register aids in monitoring cashflow to ensure that payments are made in timely manner. I would refer to the contract as to plot the payment timelines and populate a register from it.
In a bahrain government project, what are required in claiming for provisional sum?
Reference provisional sum details, instruction from the engineer, cost breakdown, invoices or payment vouchers from supply chain, contractual compliances
Is there any early warning mechanism in the contract? How is this dealt with?
Identify issues early, prompt notification, hold early warning meetings, implement mitigation measures, document and monitor
What is a cash flow report?
It is prediction of the flow of cash in and out of a project over time. It ensures sufficient funds available to meet project obligation at a given a time.
