Project Financial Control and Reporting

Question 1

Purpose of a Cost Report?

Answer 1

To report against budgeted values and any savings or additional monies required. To report on contract progress.

Question 2

What are Variations?

Answer 2

Alteration to the design, quality, or quantity of works (or working conditions).

Question 3

Why might Variations arise?

Answer 3

SDcDsED

Question 4

Under what circumstances can a contractor object to a variation?

Answer 4

CCN

Question 5

What are Dayworks?

Answer 5

The prime cost of labour, materials, plant, along with % additions set out in the contract.

Question 6

What document forms the basis of calculating Dayworks?

Answer 6

The Definition of the Prime Cost of Dayworks Carried Out Under Building Contracts (RICS)

Question 7

What is Quantum Meruit?

Answer 7

It means ‘What he deserves’, and is defined as ‘the fair and reasonable costs incurred’.

Question 8

What is Loss & Expense?

Answer 8

The reimbursement of the contractor for carrying out additional works or breach of contract.

Question 9

What are Relevant Matters?

Answer 9

Events listed in the contract entitling the contractor to claim for Loss & Expense.

Question 10

What are the Relevant Matters?

Answer 10

VIASI

Question 11

What are the common Heads of Claim for Loss & Expense?

Answer 11

P expense
T expense
U loss
I expense
O expense
P loss
F expense
A expense
C expense

Question 12

What are the procedures for claiming L&E under the JCT?

Answer 12

i) Contractor to notify in writing as soon as aware
ii) Submit further information as requested
iii) Submit information requested to ascertain costs.