EXAMPLE: BUILDER
A
one page report for a construction project for one month is shown. Comments
are made on the month's results, and final forecast (updated for this
month's results) compared with the budget.The Operations Statement concentrates
on physical progress, measured by direct labour hours. The Cost Statement
compares costs by major categories. Year to Date is not shown in this
example, but would usually be included. The Cashflow Statement compares
progress payments in with cashflow out.
Two graphs show trends in physical progress and total costs: physical
progress is below budget every month, and final forecast costs are expected
to substantially exceed budget, following the traditional S-curve. A more
sophisticated graph would be to plot cumulative costs on the Y-axis directly
against physical progress on the X-axis.
|
Source of Information: |
Cost engineering records of ABC Builders P/L |
|
Major Assumptions in Forecasts: |
One month slipage in physical completion: 20% cost increases in equipment lease and materials. |
|
Check on Forecasts: |
ABC controller has reviewed and agreed cost engineer's estimates. |
|
Responsibility for Forecasts: |
Construction Manager |
(c) GLW Software Pty Ltd 1995,1996,1997,1998,1999. US Patent 08/771611
