FINANCIAL MANAGEMENT IN CONSTRUCTI

Informationen zum Autor 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. Klappentext Financial Management in Construction Contracting Andrew Ross & Peter Williams This authoritative text provides a detailed insight into how construction companies manage their finances at both corporate and project level. It guides students and practitioners through the complexities of the financial reporting of construction projects within the constraints of accepted accounting practice. The book is written for non-accountants and from a contractor's perspective and is equally relevant to subcontractors and main contractors. The authors examine the relationship between the external annual accounts and the internal cost-value reconciliation process. CVR is covered in depth and the authors consider issues such as interim payments, subcontract accounts, contractual claims, final accounts, cash flow management and the reporting of the physical and financial progress of contracts. A broad perspective of all the financial aspects of contracting is taken along with related legal issues and the authors explain how things operate in the 'real world'. They describe good practice in financial control while at the same time being honest about some of the more questionable practices that can - and do - happen. The approach taken is unique as the financial management of construction projects is considered from the perspective of the contractor's quantity surveyor. The book deals with the real issues that surveyors have to address when using their judgment to report turnover, profitability, cash flow, and work in progress on projects and the financial problems faced by subcontractors are frankly and pragmatically explored. The payment and notice requirements of the Construction Act are explained in detail and relevant provisions of JCT2011, NEC3, ICC, DOM/1 and other standard contracts and subcontracts are also covered. Financial Management in Construction Contracting addresses the wide variety of external factors that influence how construction companies operate, including government policy, banking covenants and the financial aspects of supply chain management. Cost reporting systems are described and real-life examples are used to illustrate cost reports, accrual systems and how computerised systems can be employed to provide the QS with information that can be audited. This is the ideal core text for final year degree and ...

List of contents

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

Report

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

Product details

• Authors: David Hugill, A Ross, Andre Ross, Andrew Ross, Andrew (School of the Built Environment Ross, Andrew Williams Ross, Ross Andrew, ROSS ANDREW WILLIAMS PETER, Peter Williams, Peter (Consultant and Lecturer) Williams, Williams Peter
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Paperback / Softback
• Released: 11.01.2013
• EAN: 9781405125062
• ISBN: 978-1-4051-2506-2
• No. of pages: 456
• Subjects: Natural sciences, medicine, IT, technology > Technology > Structural and environmental engineering; Social sciences, law, business > Business > Business administration; Baubetrieb, Construction Management, Bauingenieur- u. Bauwesen, Civil Engineering & Construction, Massenermittlung u. Bauökonomie, Quantity Surveying & Construction Economics