Andrew Ross, Peter Williams

Financial Management in Construction Contracting

• Broschiertes Buch

Produktbeschreibung

This authoritative text provides a detailed insight into howconstruction companies manage their finances at both corporate andproject level. It will guide students and practitioners through thecomplexities of the financial reporting of construction projectswithin the constraints of accepted accounting practice. The book iswritten for non-accountants and from a contractor'sperspective and is equally relevant to subcontractors and maincontractors.
The authors examine the relationship between the external annualaccounts and the internal cost-value reconciliation process. CVR iscovered in depth and the authors consider issues such as interimpayments, subcontract accounts, contractual claims, final accounts,cash flow management and the reporting of the physical andfinancial progress of contracts.
A broad perspective of all the financial aspects of contractingis taken along with related legal issues and the authors explainhow things operate in the 'real world'. They describegood practice in financial control while at the same time beinghonest about some of the more questionable practices that can - anddo - happen. The approach taken is unique as the financialmanagement of construction projects is considered from theperspective of the contractor's quantity surveyor. The bookdeals with the real issues that surveyors have to address whenusing their judgment to report turnover, profitability, cash flow,and work in progress on projects and the financial problems facedby subcontractors are frankly and pragmatically explored.
The payment and notice requirements of the Construction Act areexplained in detail and relevant provisions of JCT2011, NEC3, ICC,DOM/1 and other standard contracts and subcontracts are alsocovered.
Financial Management in Construction Contracting addresses the wide variety of external factors that influence howconstruction companies operate, including government policy,banking covenants and the financial aspects of supply chainmanagement. Cost reporting systems are described and real-lifeexamples are used to illustrate cost reports, accrual systems andhow computerised systems can be employed to provide the QS withinformation that can be audited.
Examples drawn from practice demonstrate how work-in-progress(WIP) is reported in contracting. Cost value reconciliation reportsare featured and the book demonstrates how adjustments are made forovermeasure, undermeasure, subcontract liabilities and WIP as wellas explaining the processes that contractors use when analysingexternal valuations.
This is the ideal core text for final year degree andpost-graduate level modules on Quantity Surveying, CommercialManagement, Construction Management and Project Management coursesand will provide an invaluable source of reference for quantitysurveyors and others who may be engaged in the financial managementof construction projects.
The book's companion website at www.wiley.com/go/rossfinancialmanagement offersinvaluable resources for students and lecturers as well as forpractising construction managers:
end-of-chapter exercises + outline answers
PowerPoint slides for each chapter
ideas for discussion topics
links to useful websites

Produktdetails

• Verlag: Wiley & Sons
• 1. Auflage
• Seitenzahl: 456
• Erscheinungstermin: 11. Januar 2013
• Abmessung: 245mm x 175mm x 20mm
• Gewicht: 848g
• ISBN-13: 9781405125062
• ISBN-10: 1405125063
• Artikelnr.: 36706335

Autorenporträt

Andrew Ross, BSc(Hons) MSc PhD MRICS MCIOB, Head of postgraduate programmes, School of the Built environment, Liverpool John Moores University. Andrew is a chartered quantity surveyor and chartered builder, after graduation he worked as a commercial manager for Balfour Beatty Building and financially managed projects ranging from refurbishment, adaptation of industrial facilities, health care and new build industrial building. He joined Liverpool John Moores University and has an MSc in Information Technology and a PhD in Construction Economics. He has published over 100 journal and conference papers on construction economics and procurement and is the joint author of three text books, Building Design Cost Management, Construction UK and Financial Management for Construction contracting. His current position at LJMU is head of post graduate programmes and he teaches construction project financial management to undergraduate and post graduate students. He has successfully supervised many PhD students and has been an external examiner to numerous UK and overseas Universities for undergraduate, postgraduate and research degree courses. Peter Williams is a Consultant and Lecturer with extensive practical experience in building, civil engineering and surveying. Formerly a chartered builder, chartered quantity surveyor and principal lecturer, he is now a writer, researcher, lecturer and consultant with particular interests in contracts and finance, delay analysis and health and safety management.

Inhaltsangabe

About the Authors xvii Preface xviii 1 Finance in the construction industry
1 1.1 Introduction 1 1.2 The purpose of this book 2 1.3 Construction
contracting 3 1.4 Work in progress 3 1.5 Reporting 4 1.6 Structure of the
book 5 1.7 The construction industry 6 1.8 Industry output 12 1.9 Industry
clients 15 1.10 Structure of the industry 17 References 22 2 Stakeholders
and the regulatory environment 23 2.1 Accounting 24 2.2 The Companies Acts
26 2.3 Accounting standards 26 2.4 UK accounting standards 27 2.5
International accounting standards 28 2.6 Financial reporting 28 2.7
Financial reports 29 2.8 Annual accounts 35 References 41 3 Risk and
uncertainty 42 3.1 Definitions 43 3.2 Risk and reward 45 3.3 Corporate
governance 48 3.4 Market risk 49 3.5 Working capital 50 3.6 Competition 58
3.7 Profitability 59 3.8 Work in progress 60 3.9 Insolvency risk 62 3.10
Instability 64 3.11 Credit control 67 References 68 4 Contracts and
documentation 70 4.1 Types of contract 70 4.2 Financial implications of
contracts 75 4.3 Project documentation 78 References 86 5 Payments in
construction 88 5.1 Industry credit system 89 5.2 Payment problems 93 5.3
The scheme for construction contracts 96 5.4 Payment under the Construction
Act 96 5.5 Payment notification under the Construction Act 97 5.6
Conditional payments 99 5.7 Late payments 100 5.8 Suspension of performance
101 5.9 Adjudication 102 5.10 Value Added Tax 103 References 104 6 Managing
the supply chain 105 6.1 Supply chain management 106 6.2 Subcontractors 108
6.3 Subcontract tenders 112 6.4 Subcontract stage 115 6.5 Payment 118
References 121 7 Getting work 122 7.1 Business development 122 7.2 Decision
to tender 124 7.3 Competitive tendering 129 7.4 Tender lists 130 Ad hoc
list 132 7.5 E-bidding and reverse auctions 134 References 135 8 Corporate
governance and management 136 8.1 Definitions 137 8.2 The UK Corporate
Governance Code 138 8.3 Turnover 140 8.4 Profit 142 8.5 Long-term contracts
145 8.6 Management accounts 145 8.7 Accounting for contracts 147 Reference
152 9 Company structure 153 9.1 Management functions 153 9.2 Organisation
structures 159 10 Service departments 165 10.1 Estimating and tendering 166
subcontract works 175 10.2 Tender submission 176 10.3 Planning 179 10.4
Buying 179 10.5 Accounting, costs and information 179 10.6 Company
management accounting systems 181 10.7 Contract cost reports 190 10.8
Project audits and site processes 196 References 197 11 Financial
management 198 11.1 Budgetary control 198 11.2 Definitions 200 11.3 Cash
flow 201 11.4 Working capital 218 References 221 12 Project governance 222
12.1 Introduction 223 12.2 Procurement methods 224 12.3 Conditions of
contract 229 12.4 Method of measurement 237 12.5 Bills of quantities 244
References 254 13 Budgets 255 13.1 Developing and monitoring budgets 256
13.2 Types of budget 256 13.3 Project level budgets 259 13.4 Activity level
budgets 262 13.5 De-scoping bills of quantities 263 13.6 Budget development
264 13.7 Variance analysis 270 13.8 Control procedures 272 13.9 Earned
value analysis 272 References 282 14 Resource procurement 284 14.1
Introduction 284 14.2 The resource budget 285 14.3 Resource procurement
programme: subcontractors 285 14.4 Tender assessment 286 14.5 Tender
negotiation 287 14.6 Buying gains and losses 287 14.7 Newer approaches to
subcontract procurement 287 14.8 Materials procurement 291 14.9 Plant
procurement 292 14.10 Labour procurement 292 14.11 Labour-only
subcontractors 293 15 Project risk and control 294 15.1 Introduction 294
15.2 Tender risk 295 15.3 Contract risk 307 15.4 Claims 311 15.5 Insolvency
risk 315 References 328 16 Programme and progress 329 16.1 Contractor's
obligations 329 16.2 Programme 330 16.3 Progress 338 16.4 S-curves 344 16.5
Project acceleration 349 References 351 17 Valuations and payments 352 17.1
Valuations and interim certificates 353 17.2 Interim payment 355 17.3
Principles and procedures 358 17.4 Valuation techniques 362 17.5 Materials
on site 364 17.6 Basic valuation procedure 366 17.8 Preparing the external
valuation 371 17.9 Internal valuation 378 17.10 Subcontract valuation 384
17.11 Final accounts 386 References 389 18 Cost value reconciliation 391
18.1 Introduction 392 18.2 Guiding principles 393 18.3 Cost reporting 401
18.4 Net sales value (NSV) 405 18.5 Losses 407 18.6 Claims and variations
408 18.7 Valuation: application and internal valuation 409 18.8 Development
of the internal valuation: an example 412 18.9 Reconciliation 414 18.10
Explaining variances 419 18.11 Summary 421 References 421 Glossary 422
Index 429

Rezensionen

Highly recommended ***** Hi guys, thought I would share some thought provoking and agenda stimulating reading I have recently come across. The book is entitled "Financial Management in Constructing Contracting" by Andrew Ross & Peter Williams, but could easily have been called "The Constructor's Almanac" or "Wisdens Construction Guide". If you want the "inside line" on construction know how, this book covers it all.

From an understated promise to "explain how the financial position on construction contracts is reported" the book expands into every conceivable avenue the authors could explore in their quest to open up, explain, walk through and map, the processes that guide the industry and control the business operation of a construction company, from finance to bidding, managing risk to delivery, and every stop in between.

If you are a student, the early chapters on finance, accounting, contracts and procurement, will set out the basics of the industry in straightforward language, lots of good worked examples and clearly labelled diagrams. The later chapters address the subtleties of cash management, budget control, risk and opportunity management, progress monitoring, valuations and cost/value reconciliations, in far deeper detail and with contemporary work sheets to guide you through and explain the complexities of reporting cost and value in equal proportion.

The authors have extensive practical experience of the industry, both having risen from the shop floor to the lecture theatre, are suitably qualified to add insight to knowledge and have managed to capture in many ways the essence of the industry, its conflicts, collaborations, power plays and team working. And if you are of the social networking generation there is even a website on which to hone your new found skills. Fully interactive, it provides detailed worksheets and schedules to further explain the lessons contained in the printed version.
--David Monaghan