commercial management of construction-sandesh

8/17/2019 Commercial Management of Construction-Sandesh

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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?

commercial management of construction-sandesh

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