Project Finance Control and Reporting Flashcards
How can costs be controlled during the design phases of a project?
Costs can be controlled during the design phases of a project through:
1) Regular review of the scope vs budget with Client and Design Team
2) Value engineering reviews & DTM’s
3) Developing and maintaining a risk register from conception
4) Regular communication between all key parties
5) Change control register
How can costs be controlled during the construction phases of a project?
1) Managing risk
2) Closing out of provisional sums asap
3) Close management of instructions and anticipated instructions.
4) Regular communication between all key parties.
5)
On Chelsea Barracks Phase 4 - Building 8, what provisional sums did you close out?
I closed out a provisional sum for the Contractor to install balcony dividers in the Lower Ground Floor apartments. I used contract rates where applicable, otherwise I used benchmarked data from the Building 6 contract and S&C contract and adjusted for inflation.
What are the timelines in JCT for agreeing a final account?
Under a JCT D&B Contract, the Contractor has to issue their final statement within 3 months of practical completion.
The Client then may issue a notice on or after the the those 3 months, stating that failure to provide their final statement within 2 months then the Client will issue their own.
What is the latest edition of the ‘Cost Reporting’ Practice Information?
1st Edition, 2015.
What are the 4 types of cost report?
1) Construction cost report (typical cost report)
2) Project cost report (includes overall costs for the project, such as construction cost, professional fees, third party costs, land costs etc)
3) Programme cost report (reports on programme management office costs and construction costs)
4) Detailed cost report - might break the cost report down elementally or by individual buildings.
How does contract strategy impact a cost report?
JCT fixed price lump sum vs a JCT cost re-imbursable / re-measurable.
On Chelsea Barracks, how did you present risks in your monthly cost report?
My Client wished for the risk section to only include items that were disputed between the Employer and Contractor. As such, I only included these items.
What is an example of a “disputed item” held within your cost report?
There was an instruction that the Contractor sought additional costs for. However, the Employer and CMT advised that the change was design development and the Contractor was not entitled to additional costs. I held the costs included within the Contractor’s quote within my risk section.
(The item was change from Mbus to Pulse)
How did you implement valuation rules on Chelsea Barracks?
The JCT valuation rules are a set of guidelines for
What are the JCT valuation rules?
The JCT valuation rules are a set of guidelines for valuing variations and interim payments.
They are assessed in measurable and non-measurable works.
If works are measurable, then you would measure and value the change in accordance with CSA rates or quotes from the market.
If works are non-measurable, day works shall be used.
What was included in your change control register? Is this a typical QS role?
Included within my change control register was:
1) Reference, description, cost, status, action / owner and comments.
I am aware this is not typically a QS role and is usually for the EA to control, however to proactively manage change and to ensure regular agreement of cost, I developed my own change control register.
What are the two methods for expending provisional sums?
1) Omit the provisional sum entirely, add the cost in the instructions.
2) Adjust the provisional sum to the value of the instruction.
What are the two methods for preparing a cashflow?
1) S curve
2) Programme / package breakdown
What could it suggest if the Contractor is behind on cashflow?
1) They’re in delay
2) They’re resequencing the works.
3) Cashflow was wrong.
