Project Finance (Control and Reporting)

Question 1

What are the different types of provisional sum?

Answer 1

Defined - sufficient information to allow the contractor to include for prelims and programme.

Undefined - contractor has not allowed for prelims and programme, therefore may be entitles to an extension of time / loss and expense.

Question 2

What is contained within a post-contract cost report?

Answer 2

Executive Summary
Cost Report - detailing position, movement, risks and opportunities
Approved and pending changes
Provisional sums
Cashflow - if required

Question 3

What is usually contained within a change control register?

Answer 3

Change reference
Date change is raise
Details of the change
Reasoning for change
Cost Impact
Programme Impact
Source of funding
Change status

Question 4

How would you produce a cashflow?

Answer 4

Using a cashflow projection or S Curve tool.

Pre-contract - should be avoided as difficult to predict
Post Contract - request from main contractor