Sams Project Finance Flashcards
What is a provisional sum
a provisional sum is a sum of money for an element of work that has not been adequately designed at that point , but is known that it will be included in the project or likely to be included in the project.
What are the types of provisional sums
Defined Provisional Sum - Contractor had enough information to allow it within the preliminaries and programme
Undefined - Contractor does not allow for planning programming or or preliminiaries for this item. Contractor may be entitled to an extension of time.
How do you expend a provisional sum
CA will issue an instruction for its expenditure.
final amount payable will be adjusted.
Whats the purpose of a cost report
Overview of clients financial commitement
Give the client idea on potential savings and additional monies required
Inform client of likely outturn cost of the project.
What do you include in a cost report
In my cost report for Silverwood I include
Forecast Final Account Figure
List Of CE’s PMIs and EWNS
Commentary on risks and opportunities
Total of certified payments
Cash flow.
Who was the end user
Head teacher and senior management within the school.
They were speaking to the site managers on site asking them to carry out additional work not within the scope.
They carried out these works assuming that they would be covered under an instruction.
What was included in your change control tracker ?
I would meet the QS weekly , The change control tracker would include
- variations instructed to date
-variation costs instructed to date
- instructions still awaiting costs
- possible future variations or instructions with estimated costs.
What was the outcome of implementing this change control process
It enabled us to get a hold on the financial impacts of the change on the project.
It stopped the end user from being able to ask for change outside of the agreed communication channels
How did this affect the relationship between yourself and the end user
Fortunetly the end users were understanding , and once the situation was explained and the process told to them , they were fully supportive of it.
How did you estimate the CE cost for the delay caused by the arrival of the generator
I was aware of the length of the possible delay for the power generator.
I then multiplied the possible delay period by the weekly cost of the contractor preliminaries. I then allowed a % allowance to cover abortive costs associated with trades not being able to carry out their works and a % cost to cover and additional design fees that could occur due to the delay.
