Managements Procedures : Forecasting And The Financial Manager

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MANAGEMENTS PROCEDURES – Forecasting. There are several items in a construction project that require some form of forecasting, including: * Labour requirements – this will be required by the contracts manager from each construction site so they can work out when to bring in additional labour or transfer labour from one site to another. * Cash flow – this will be undertaken by the construction company’s quantity surveyor or the financial manager. This is necessary to predict how much revenue and expenditure is entering and leaving the business. * Plant requirements – if the company owns several pieces of plant, then the utilisation for key items like a concrete pump or an excavator needs to be forecast so that it can be used on each…show more content…
This can be achieved through a sequence of line managers. Tool box talks involve a short discussion of key issues with supervisors who then inform the rest of the workers. Discipline is therefore essential and must be monitored. Monitoring. Progress on the project needs to be monitored through use of contract programmes; progress is plotted to establish if work is on time, in front or running behind. If work is falling behind, monitoring will catch this early so that resources can be directed to the lagging activity to bring it back on schedule. The financial side of the project must also be closely monitored to ensure that the predicted profit for the contract is met and that a positive cash flow is maintained. This monitoring is called coat value reconciliation, and involves adding up all the costs against revenue at a particular time interval, to show profit or loss. Controlling. Resources will need controlling to avoid wastage. High wastage cannot be maintained for long as it adds up to a loss of a profit to a contractor. Controlling is undertaken by the supervisors on the site who may be aided by computer software solutions that identify what needs to be there and when. Control must be effective and directed at the site resources – anything beyond the supervisors’ control is serious and should be avoided. Discussions at site meetings where items can be recorded are a very effective method of controlling the programme and progress. Coordinating
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