commercial management of construction-sandesh
TRANSCRIPT
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Presentationby
SandeshPangerkar MRICS, AMIE, LMEto
Indian Institute of Quantity Surveyors
14 November 2014
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CommercialManagement
of Construction
a presentation focused on the topics to be covered as per Royal
Institution of Chartered Surveyors (RICS) -Assessment ofProfessional Competence (APC) Reading List
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AGENDA
1
Why Commercial Management?
2
Role of a Commercial Manager
3
RICS – APC Reading List
4
Questions & Answers
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1. Why Commercial Management?
Need for Effective Cost Control System
Identifying Past Trends and Forecasting Future
Identifying Deviations from Budget
Risk Management
Late Completion
Cost Over Run
Suspension
Termination
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2. Role of a Commercial Manager
With ContractorReview and Verification of Estimates, Preparation of / Response to Tenders / Commercial
Proposals, Drafting Contractual / Commercial Correspondence, Identification & Management
of Commercial Risks, Linking with Procurement Team, Contract Administration & Negotiation
of Changes, Analyzing Costs & Profit for Project / Business, Cost Control, etc.
With Consultant
Estimating, Cost Planning, Budget Preparation, Risk Management, Value Management, ValueEngineering, Benchmarking, Life Cycle Costing, Procurement, Tender Evaluation, Change
Control, Assessment of Variations / Claims, Preparing Financial Statements, Cash Flow
Forecasts, Cost Control, Reconciliations, Interim Valuations, Final Account, etc.
With Client
Managing Budgets, Change Control, Preparation and Management of Tender / Procurement
Process, Identification and Management of Commercial Risks, Contract Administration, Cash
Flow Forecasts, Payment Certification, Final Account, etc.
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3. RICS –APC Reading List
3.1 Estimating and Establishing Budgets
3.2 Cash Flows
3.3 Reporting Financial Progress
3.4 Procurement of Labour, Plant and Materials3.5 Procurement of Sub-Contracts
3.6 Financial Management
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3.1 Estimating & Establishing Budgets
Components of Budget / Estimate
Effect of the Design and Construction Processes on the Cost
Estimating Techniques
Unit Method
Superficial Method
Elemental Cost Plan
Comparative Cost Plan
Approximate Quantities
Operational Estimate
Estimator’s Report
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3.2 Cash Flows
Types of Cash Flow ForecastsUse of Cash Flows
Preparing Cash Flows
Effect of Valuation Methods
Effect of Contractual Procedures Curves & Formulae
Adjustments to Cash Flow Forecasts
Monitoring, Analysing, Reporting and Advising on Cash Flows
Financial Implications and Appropriate Management Actions
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Let’s Have a Break!
Coffee Time
DAVID ADAMSON GROUP
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3.3 Reporting Financial Progress
Techniques to Reconcile Cost against Income
Collecting of Data for Reports
Preparing Reports
Cost to Complete (CC)
Cost Value Reconciliations (CVR)
Contract Variance
Earned Value Analysis (EVA)
Monitoring, Analysing, Reporting and Advising on Profitability
Financial Implications and Appropriate Management Actions
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Earned Value Analysis (EVA)
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3.4 Procurement of Labour, Plant and Materials
Supply Chain
Labour Costs
Material Costs
Plant Costs
Overhead & Profit
Units of Measurement in BoQ
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3.5 Procurement of Sub-Contracts
Domestic Sub-Contractors
Named Sub-Contractors
Nominated Sub-Contractors
Techniques to Financially Manage Sub-Contractors /Suppliers
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3.6 Financial Management
Efficient Data ManagementEfficient Change Management
Value Management / Value Engineering
Efficient Management of Sub-Contractors & Suppliers
Risk Management
Cash Flow Management
Effective Cost Control
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4 Questions & Answers
THANK YOU – ANY QUESTIONS?