Project Financial Control & Reporting Flashcards
What is a Final Account
The final account is the conclusion of the contract sum
(including all necessary adjustments) and signifies the
agreed amount that the employer will pay the contractor.
It includes any works that are paid to the contractor
through the main contract such as any loss and expense associated with any extensions of time and any other claims the contractor feels he or she is due under the contract.
It also indicates the finalisation of any disputes
that may have arisen and in that sense draws a line under the financial obligations of both parties, save in respect of defects. The final account will not typically include items such as liquidated damages, VAT or interest on overdue payments.
What is the time period for the Contractor submitting the Final Account
JCT DB 16:
If the Contractor does not submit the Final Statement within 3 months of Practical Completion, the Employer may on on or after the expiry of that period five the Contractor notice that unless that statement is submitted within 2 months from the dat of notice, may himself issue a final statement in lieu of that from the Contractor.
What is a Cost Report?
The purpose of cost reporting is to inform the client in
a construction project of the likely outturn cost of the
construction project.
How often should a cost report be prepared?
Typically monthly depending on the size of the project
A cost report prepared on a regular and frequent basis
will afford the client and the project team the ability to
control the outturn construction cost.
What is a defined provisional sum?
The cost allowances for works or services whose
design and specification are not known at the date
of contract but the extent is sufficiently well known
to allow for programming and management.
What is a undefined provisional sum?
The cost allowances for works or services whose
design specification and extent are not known at
the date of contract.
What is a prime cost sum?
The financial adjustment of work whose extent is
known, but whose specification has yet to be
determined.
What are Dayworks?
These allowances are for work whose quantity and specification are unknown and whose instruction is likely to be on an adhoc basis where the valuing of the work by reference to contract rates would be inappropriate.
What are variable costs?
Provisional sums Provisional quantities Prime cost sums Day works Variations Contract Instructions Anticipated instructions / Early warnings Loss & Expense Risk Allowances
