Project Finance (Control and Reporting) Flashcards
What are the different types of provisional sum?
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.
What is usually contained within a change control register?
- Change reference
- Date change is raise
- Details of the change
- Reasoning for change
- Cost Impact
- Programme Impact
- Source of funding
- Change status
How would you produce a cashflow?
Using a cashflow projection or S Curve tool and adjusting for abnormals and retention.
Pre-contract - should be avoided as difficult to predict
Post Contract - request from main contractor
What is included in pre-contract cost reports?
- Executive summary
- Narrative on latest financial position based on cost plans
- Outstanding information
- Value Engineering
- Risk and opportunities
- Market conditions
What would you include in a post contract cost report?
- Executive summary
- Overview of current financial position and change in the period
- Risks and opportunities
- Change control register
- Provisional sums
- Contingency position
How are variations managed from a cost perspective?
Following the valuation rules:
- Additional or substituted works should have consistent values with similar items already included within the contract sum
- If no similar items included, a fair and reasonable valuation should be made
- Once a sum is agreed an EA/CA instruction would be issued and the contract sum is adjusted
What is a cashflow and how can it aid clients?
A financial planning tool to show the expenditure of a project throughout the contract.
It aids the client by helping them planning their draw down and planning their funding.
Can aid in checking against valuations to highlight issues.
What may impact a cashflow?
- Retention
- Partial possession
- Materials on site
- Variations
- Public holidays
- Advanced payment
