Q: What are the essential of good cost control
& reporting?
• Not too complicated or expensive
• Reports that are easily understood by all levels.
• Cost and level of progress to date must be made available at the same
time as well as predictions as to the cost to complete the scheme.
Q: What is Cost management / Cost control?
Cost
management or Cost control is the process which ensures the estimated final
contract sum is within the client’s approved budget or cost limit.
Q: What are the major elements that affects
smooth cost control?
• Engineer’s Instructions and VOs
• Provisional sum adjustments
• Claims
Q: What is the Annual Budget?
Annual projected
estimate of company’s financial performance in terms of income and expenses. Once
established, it does not alter and is used as a tool against which to monitor
actual performance. Also budget can be used for different elements of a
project.
Q: What is Supply Chain management (SCM)?
A process
that attempts to fully integrate the network of all organizations and their
related activities in an efficient manner. The focus of SCM is to add value to
the product or service at each stage of the chain so that it meets or exceeds
customer/client expectations.
Q: Major elements of Time management?
• Information about nominated subcontractors, Client’s own workers or
direct contracts.
• Programmes and method statements (Progress reporting, acceleration of
works)
Q: Major elements of Quality management?
• Materials standards (BSI, ISO, ANSI standards)
• Workmanship (Specify tolerance levels, Quality assurance schemes, ISO
9000, TQM)
Q: Cost planning:
Cost
planning is a technique by which the budget is allocated to the various
elements of an intended building project to provide the design team with balanced
cost framework within which to provide a successful design.
Q: TQM on site comprises:
At least the following:
• To maintain the highest standards of workmanship which consistently
satisfy or exceed the requirements of the client, as defined in the
specifications, and to consistently deliver the highest levels of service in a
timely and cost-effective manner.
• To assess and improve client perceptions with regard to Company's
service levels.
• Aim to innovate through advanced methods of design and construction,
whilst ensuring safe systems of work with minimal impact upon the environment.
• To provide continual staff and employee training in order to ensure
personnel development, with particular emphasis on matters concerning Quality,
environment safety and health.
Q: TQM Techniques for controlling these issues
would be:
• Quality management plan – describing how the management team will
implement its quality policy
• Operational definitions – provides not just a definition of an
operation but also how it is measured in the quality control process
• Checklists – A structured tool used to verify that a set of required
steps has been performed
• Regular Audits - A structured review of quality management activities
that may be scheduled or random and conducted by trained in-house or external
auditors
• Inspection – Activities such as measuring, examining and testing to
determine if results comply with requirements
• Control Charts – A graphical display of results over time
• Pareto Diagrams – A histogram ordered by frequency of occurrence
linked to a category or identified cause
• Statistical Sampling – Choosing a part of the population of interest
for inspection.
• Flowcharting – Use of flowcharts to help analyse how problems occur
• Trend Analysis – Using mathematical techniques to forecast future
outcomes based on historical results
• Quality Assurance - The main output from the quality assurance process
is quality improvement. This may lead to change requests and corrective action.
Q: What is meant by a Cost Planning?
It is the
Cost Control during the design process. But during construction phase there is
no cost plan. Then the cost report is used as tool to control the cost.
There are
two main forms of cost planning
(1) External
(designing to a cost) and
(2)
Comparative (Costing a design) But in practice the method used may be mixture
of two.
Q: Cost planning procedure
- Different stages of development process are:
- Inception,
- Feasibility,
- Outline proposal stage
- Schematic design
- Detail Design
- Production Information
- BOQ
- Tender stage
In this
at feasibility study the budget is prepared. During Outline proposals the
Outline Cost Plan is prepared. During Schematic Design stage the Detailed Cost
Plan is prepared. Parallel to this the Cost Checks are done during the Scheme
Design and Detailed Design stage. Finally cost analysis is doing after the
tenders are received.
Source: J Thomas (July 2010)
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