Project Finance L1

Question 1

How do you ensure effective cost control of construction projects during the construction phase?

Answer 1

A

Question 2

What are the differences between cost reporting & cost management?

Answer 2

A

Question 3

What are the advantages the employer gets through cost reporting at the end of a project?

Answer 3

A

Question 4

Are cost monitoring and cost control the same thing?

Answer 4

A

Question 5

What is being controlled in cost control?

Answer 5

A

Question 6

What items should be included in the cost report of a single stage traditional procurement route project?

Answer 6

A

Question 7

How will you establish a change control strategy in a project?

Answer 7

A

Question 8

What are the sources of information in preparing a CVR?

Answer 8

A

Question 9

How is the cash flow for a client calculated?

Answer 9

A

Question 10

How is the pre-tender cash flow forecast for the contractor prepared?

Answer 10

A

Question 11

How would you establish a cost reporting protocol?

Answer 11

A

Question 12

Explain your understanding of cash flow forecasting and monitoring?

Answer 12

A

Question 13

How would you implement change control procedures within a contract?

Answer 13

A

Question 14

How would you establish reporting regimes / protocol?

Answer 14

A

Question 15

How would you use risk management and analysis techniques while preparing a budget?

Answer 15

A

Question 16

How would you control cost effectively during the construction phase of the project?

Answer 16

A

Question 17

What is meant by design risk?

Answer 17

A

Question 18

What are the principles of contingencies and risk allowances?

Answer 18

A

Question 19

How would you use cash flow in financial management?

Answer 19

A

Question 20

What are the change control procedures in a contract?

Answer 20

A

Question 21

What are the key principles of controlling and reporting costs on any construction project?

Answer 21

A

Question 22

What legal and contractual constraints are you aware of?

Answer 22

A

Question 23

How do time and quality affect the cost of a project?

Answer 23

A

Question 24

What building legislation affects cost control?

Answer 24

A

Question 25

How can design risk be allocated?

Answer 25

A

Question 26

Tell me about your understanding of reporting and forecasting of costs during the construction phase.

Answer 26

A

Question 27

What are the principles of risk allowances?

Answer 27

A

Question 28

What is the importance of project financial controls during a construction project?

Answer 28

A

Question 29

Give two techniques that can be used in project control.

Answer 29

A

Question 30

What is your understanding of earned value management?

Answer 30

A

Question 31

What is your understanding of cost value reconciliation?

Answer 31

A

Question 32

Explain the concept of forecast cost to complete.

Answer 32

A

Question 33

What is your understanding of outturn cost?

Answer 33

A

Question 34

Explain the importance of cost estimate in project financial reporting.

Answer 34

A

Question 35

What is your understanding of contingencies?

Answer 35

A

Question 36

What is your understanding of risk allowance?

Answer 36

A

Question 37

What is the purpose of cost value reconciliation to a company?

Answer 37

A

Question 38

How often CVR is usually carried out?

Answer 38

A

Question 39

What is your understanding value during the CVR process?

Answer 39

A

Question 40

What is your understanding of the accrual principle during financial reporting?

Answer 40

A

Question 41

Explain whether cost and value should be taken at the same time. If yes why is this? If no why is this?

Answer 41

A

Question 42

What do you understand by subcontract liability?

Answer 42

A

Question 43

What are contra charges?

Answer 43

A

Question 44

What is your understanding of the term ‘value’ during financial reporting?

Answer 44

A

Question 45

What is your understanding of the term earned value?

Answer 45

A

Question 46

What is your understanding of the term certified value?

Answer 46

A

Question 47

What do you understand by an over-measure during financial reporting?

Answer 47

A

Question 48

What do you understand by under-measure during financial reporting?

Answer 48

A

Question 49

What is your understanding of a cash flow forecast?

Answer 49

A

Question 50

What are the key components that are needed to develop a cash flow forecast for a construction project?

Answer 50

A

Question 51

What RICS guidance relates to change control and management?

Answer 51

A

Question 52

When was it last updated and what changes were made?

Answer 52

A

Question 53

What are the key principles of this Professional Standard?

Answer 53

A