Financial control in construction sphere
Салихова И. Э. Financial control in construction sphere // Молодой ученый. 2014. №18. С. 442-444.
Currently, the most risky in the market of construction services are recognized major investment projects. This situation is due to the difficult economic situation. Customer and Contractor reduce their risks by means of clearly defined items with the written contract. Thus, we consider the main risks incurred by parties to the treaty [1,5].
The biggest risk to the customer — the risk of loss of invested funds. This can be caused by several factors:
- Increase the cost of the project;
- Violation deadlines construction;
- Not appropriate quality work.
The main risks to the Contractor is also associated with cash. These risks include:
- Risk of loss from the wrong cost estimates and, accordingly, the cost of the project;
- Risk losses from increasing the value of the materials used;
- Risk of loss from changes in the cost of labor;
- Penalties for non-construction schedule.
For obvious reasons, the Customer is trying to negotiate a written contract contract all possible risks that it incurs. Most often in such circumstances use a fixed price contract. However, there are a number of pitfalls, for example, when using this type of contract the Customer becomes dependent on the Contractor and can only rely on his honesty and integrity. And in that situation, if the customer arise requirements for building works, which are not specified in the contract, the customer may require the involvement of experts in order to not fall into financial dependence on the Contractor and not lose it.
Specialists such a profile called «Cost Engineering and Quantity Surveying». They specialize in determining the value of the project for the client and the contractor, its implementation, monitoring cash flows, prices and other substantiation and other components of the field of cost management. Professionals such region unites International Cost Engineering Council (ICEC). There are also organizations that are engaged in the assessment [2,12].
Experts value engineering (CE) and Specialists training and supervision Gazette Quantity Surveying (QS) have sufficiently broad functions:
- conduct Analysis investment in Construction work for Customers, investors, owners, and Contractors;
- conduct independent evaluation capital and operating costs are adapted obtained data and provide its financial Division for further operation.
Also the same e specialists perform the following work:
- calculation capital or property cost facility, including
- cost development;
- calculation cost operating and production of expenses on
- period utilization object;
- Analysis and evaluation risks;
- holding Tenders by main volume works and so the same at
- changes in the project;
- Analysis received / accepted making;
- financial analysis (for example, net cost, profit, speed
- Return investment and t. d.);
- control cost the project;
- evaluation cost existing property;
- Analysis Project Database Data and efficiency;
- planning and schedule works;
- evaluation production and investment needs, and so the same
- Operating technical structures;
- evaluation budget and Feasibility the project;
- management Value and procurement;
- contract administration;
- evaluation cost «Life cycle ";
- control volumes and quality;
- resolution contentious situations.
Most professionals have a narrow range of services and do not cover all the listed functions.
Analyzing the foregoing information, we can conclude that the range of tasks and value engineering specialists Specialists.
Training and supervision Gazette Quantity Surveying are very similar to the tasks performed by the project manager. However, it is not. The main function of the Project Manager — identify tasks that will lead to the desired goals and allocate resources to achieve these objectives. Often the project manager already has an idea of value engineering professionals and specialists in
Training and supervision Gazette Quantity Surveying, but he is not an expert in this field and, consequently, can not provide the required level of work on large projects [3,14].
Based on the above information, it can be argued that the value engineering professionals and experts in the preparation and monitoring Gazette Quantity Surveying have fully or partially possess the following knowledge and skills:
1) Planning for procurement of materials / equipment, and contract administration.
Professionals should have the skills a good explanation. He or she should explain to the customer not only advantages, and disadvantages of the various contracts from the perspective of the customer.
He also needs to understand the procedure of payment and changes in order to understand how the contracts perform the tasks of the project.
The specialist should be able to use a variety of methods to predict, understand where and what methodology will be appropriate to determine the behavior of the elements and the whole project.
3) Be aware of the amount of work and their implementation.
The specialist should be fully aware of the scope of work and project implementation strategy in the context of contract management, to be sure that most of the work accounted list of the project taking into account the work planned or required in the future. Understand the cost of the project, its potential changes and the impact on the project budget.
4) Performance Management. The specialist should be able to describe the concept of performance, be prepared to defend their assumptions, decisions, projected trend forecasts for the future.
As additional skills may appear:
1) The ability to correctly interpret the information correctly and build logical connections.
2) Awareness. Asking relevant questions.
3) Initiative. Ability to support the project team in the sides of the issue.
4) organization. Admin.
5) Leadership qualities.
You can say that «Cost Engineers» and «Quantity Surveyors» is a cost analysis experts equally well versed in technical, managerial and business knowledge. Their knowledge is necessary for the successful execution of the project budget for savings, for the proper relationship to changes in the project [4, 27].
In conclusion we can say that the expert value engineering professionals and experts in the preparation and monitoring Gazette Quantity Surveying is not just coached on specific methodologies worker. This is a person with a large range of knowledge manager that allows you to adjust interaction in a team project, taking into account the proper approach to its cost that makes it easier to achieve goals and avoid unnecessary mistakes.
1. AACE International Recommended Practice No. 11R-88
2. Cost Management in a Complex Contracting Environment., David Lucas
3. Best Practic es for an Owner Estimating Organization., Larry R. Dysert, CCC
4. Cost Overrun in the Public Sector, A Case Study., Dr Maarten SA Vrijland,