Print this Page
1.1 Portfolio
45 Cost Control Assistant
Close this Page

11.45 Cash Flow and Cost Control Assistant:
1. Cash flow must be managed to maintain a stable and viable business.
2. Costs must be controlled by type as:
  (1) Staff costs are derived from the daily register of people on-site for a number of hours at a hourly rate or a daily rate.
  (2) Contract Hire costs are derived from the weekly equipment inspection register and the daily hire rate.
  (3) Consumable costs are recorded in the DAB and daily site tasks for puchased deliveries.
  (4) Contractor costs are recorded in the DAB and daily site tasks for purchased activities.
3. Costs are consolidated into a weekly report showing the cost of doing the work completed in that week.
4. It is expected that this service will evolve to manage cash flow based on stage payments by the customer.   It is proposed that an open and transparent partnership is enjoyed by sharing costs, payments and cash flow with all parties.   Management Information is used to ensure that the overall direction of the project is viable, it is not to be financially responsible to the nearest pound.
5. Research evidence shows that 18% of construction projects fail because of cash flow problems.   It is of utmost importance to plan and manage projects with the certain knowledge that one in six projects shall have have a cash flow crisis.   It most cases, its the client who changes their documented project requirements that increases costs to be higher than revenue - every project change must be formally costed, contracted and funded.
2. Glossary:
Cost object glyph is "B34".
Cost page range is "4340 to 4349".
3. Cost Data:
1. Approved people are assigned an hourly or daily or monthly rate.
2. Daily Register of people working on-site is used to accumulate direct labour costs by date and by week.
3. Contract hire management includes cost of equipment by day or week.
4. Equipment inspected on-site each week is used to accumulate hire costs by week.
5. Commodoties delivered on-site are recorded in the diary as a purchased cost.   Commodoties are billed to the project when they are delivered on-site and not when they are used or scrapped.
6. Contractors working on-site are recorded in the diary as a purchased cost.
7. Weekly costs are reported with the major achievements delivered to imply a kind of value for money report.
4. Weekly Cost Management Information:
1. For each day of the week, the persons on-site, hours, rate, labour cost.
2. For each day of the week, commodoties delivered on-site, quantity, rate, cost.
3. For the week, contract hire equipment on-site, quantity, rate, cost.
4. For the week, contractors working on-site, total billed cost.
5. Accumulation of all costs.
6. Subjective opinion of deliverables archieved.
Document Control:
1. Document Title: Cost Control Assistant.
2. Reference: 161145.
3. Keywords: Cost Control Assistant.
4. Description: Cost Control Assistant.
5. Privacy: Public education service as a benefit to humanity.
6. Issued: 13 Oct 2017.
7. Edition: 1.2.