Book description
This book is concerned with financial aspects of contracting from the
perspective of the authors' combined experience in the industry of
some 70 years. The aim is to explain 'how things operate' in the 'real
world' of contracting to those who wish to understand and if this
means opening the 'black box' of financial practice both good and bad
then so be it. The book is not intended to be an exposé of the 'evils'
of the industry but is meant to illustrate good practice in financial
control whilst at the same time being honest about some of the
questionable practices that can and do happen. This text is unique as
it considers project financial management from a contractor's quantity
surveyor's perspective. It deals with the real issues that surveyors
have to take into account when using their judgement to report
turnover, cash flow, profitability and work in progress on projects.
The book considers the wide variety of external factors that
influence how construction companies operate, these include changes to
construction markets driven by government policy, how government
legislation influences contract conditions and banking covenants.
Companies are required to have systems and procedures that comply with
accounting regulations and also that provide management with
information upon which to base future decisions regarding marketing,
tendering and resource allocation.
The textbook considers the financial aspects of supply chain
management and how organisations seek to minimise their cash needs.
Cost reporting systems are described and real life examples of cost
reports are used to illustrate cost reports, accrual systems and how
computerised systems provide the QS which information that can be
audited. The text also uses examples drawn from practice which
demonstrate how work in progress is reported. Cost value
reconciliation reports which include adjustments for overmeasure,
undermeasure and WIP clearly identify the processes that contractors
use when analysing external valuations. The text also considers newer
approaches such as earned value analysis to project reporting.
Andrew Ross is Head of Postgraduate Programmes in the School of
the Built Environment, Liverpool John Moores University. He teaches
construction project financial management to undergraduate and post
graduate students and has successfully supervised many PhD students as
well as acting as 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.
