同济大学：《项目费用管理》课程教学资源（PPT课件讲稿）Commercial and Budgets May 2001

Commercial Awareness Preparing Budgets

Commercial Awareness Preparing Budgets

Introduction ●WHAT∴ is financia| contro|? ●WHY∴ do we need it? ●HOW.. do we do it? ●WHEN, do we do it WHo is involved?

2 Introduction • WHAT … is financial control? • WHY … do we need it? • HOW … do we do it? • WHEN.. do we do it? • WHO … is involved?

WHAT Is financial control? A definition The regular process of ascertaining actual earnings actual costs comparing them against planned earnings planned costs and projecting any trends to the end of the project

3 WHAT is financial control? A definition • The regular process of ascertaining – actual earnings – actual costs • comparing them against – planned earnings – planned costs • and projecting any trends to the end of the project

Successful financial control To do this successfully both earnings and costs must be identified classified allocated recorded

4 Successful financial control • To do this successfully both earnings and costs must be – identified – classified – allocated – recorded

Control-a simple diagram The Control Cycle Plan Action Measure Monitor

5 The Control Cycle Control - a simple diagram Action Plan Monitor Measure

WHAT Is financial control? ● PLAN THE SPEND Set the financial targets we want to achieve MEASURE the actual results as we go (regularly) MONITOR these against our targets(and project what will happen) ACT-if necessary

6 WHAT is financial control? • ‘PLAN THE SPEND’ – SET the financial targets we want to achieve • MEASURE – the actual results as we go (regularly) • MONITOR – these against our targets (and project what will happen) • ACT - if necessary

how do we do it? simple diagram TOTAL VALUE PLANNED COSTS TOTAL COSTS PROFITS ACTUAL 卡 PROJECTED TOTAL COSTS COSTS +PROJECTED ACTUAL APROJECTED TOTAL ACTUAL PROFITS VALUE VALUE indicates indicates a a projection comparson

7 HOW do we do it? - a simple diagram RESULTS STANDARDS VALUE COSTS TOTAL VALUE TOTAL COSTS ACTUAL PROJECTED TOTAL COSTS COSTS ACTUAL PROJECTED TOTAL PROJECTED ACTUAL PROFITS VALUE VALUE PROFITS PLANNED indicates a projection indicates a comparison

WHO is involved? Estimator sets cost/price in the first place Commercial managers produce budgets and codes Production staff generate the data Project commercial team measure/monitor Production staff implement actions In other words -just about everyone

8 WHO is involved? • Estimator sets cost/price in the first place • Commercial managers produce budgets and codes • Production staff generate the data • Project commercial team measure/monitor • Production staff implement actions In other words -just about everyone!

Producing the Budget Where do we start? o The tender Tender analysis Price, cost, margin The elements of cost some possible complications

9 Producing the Budget where do we start? • The Tender – Tender Analysis – Price, cost, margin – The elements of cost – some possible complications

Recasting the Tender as Project Budget What are the problems in using the Tender? Late adjustments Commercial adjustments Gross pricing mistakes! Outputs and methods used in the Tender may require review

10 Recasting the Tender as Project Budget • What are the problems in using the Tender? – Late adjustments – Commercial adjustments – Gross pricing – mistakes! • Outputs and methods used in the Tender may require review