文档介绍：Commercial Awareness
Preparing Budgets
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Introduction
WHAT … is financial control?
WHY … do we need it?
HOW … do we do it?
WHEN.. do we do it?
WHO … is involved?
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WHAT is financial control? A definition
The regular process of ascertaining
actual earnings
actual paring them against
planned earnings
planned costs
and projecting any trends to the end of the project
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essful financial control
To do this essfully both earnings and costs must be
identified
classified
allocated
recorded
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The Control Cycle
Control - a simple diagram
Action
Plan
Monitor
Measure
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WHAT is financial control?
‘PLAN THE SPEND’
SET the financial targets we want to achieve
MEASURE
the actual results as we go (regularly)
MONITOR
these against our targets (and project what will happen)
ACT - if necessary
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HOW do we do it? - a simple diagram
RESULTS
STANDARDS
VALUE
COSTS
TOTAL VALUE
TOTAL COST
S
ACTUAL PROJECTED TOTAL
COSTS COSTS
ACTUAL PROJECTED TOTAL
PROJECTED
ACTUAL
PROFITS
VALUE VALUE
PROFITS
PLANNED
indicates
a projection
indicates a
comparison
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WHO is involved?
Estimator sets cost/price in the first mercial managers produce budgets and codes
Production staff generate the data
mercial team measure/monitor
Production staff implement actions
In other words -just about everyone!
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Producing the Budget
where do we start?
The Tender
Tender Analysis
Price, cost, margin
The elements of cost
some plications
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Recasting the Tender as Project Budget
What are the problems in using the Tender?
Late mercial adjustments
Gross pricing
mistakes!
Outputs and methods used in the Tender may require review
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