Presentation

by

Sandesh Pangerkar MRICS, AMIE, LME

to

Indian Institute of Quantity Surveyors

14 November 2014

Commercial
Management
of Construction

a presentation focused on the topics to be covered as per Royal

Institution of Chartered Surveyors (RICS) - Assessment of
Professional Competence (APC) Reading List

AGENDA
4
Questions & Answers

3
2
1

RICS APC Reading List

Role of a Commercial Manager

Why Commercial Management?

1. Why Commercial Management?

Need for Effective Cost Control System
Identifying Past Trends and Forecasting Future
Identifying Deviations from Budget
Risk Management
Late Completion
Cost Over Run
Suspension
Termination

2. Role of a Commercial Manager

With Contractor
Review and Verification of Estimates, Preparation of / Response to Tenders / Commercial
Proposals, Drafting Contractual / Commercial Correspondence, Identification & Management
of Commercial Risks, Linking with Procurement Team, Contract Administration & Negotiation
of Changes, Analyzing Costs & Profit for Project / Business, Cost Control, etc.

With Consultant
Estimating, Cost Planning, Budget Preparation, Risk Management, Value Management, Value
Engineering, Benchmarking, Life Cycle Costing, Procurement, Tender Evaluation, Change
Control, Assessment of Variations / Claims, Preparing Financial Statements, Cash Flow
Forecasts, Cost Control, Reconciliations, Interim Valuations, Final Account, etc.

With Client
Managing Budgets, Change Control, Preparation and Management of Tender / Procurement
Process, Identification and Management of Commercial Risks, Contract Administration, Cash
Flow Forecasts, Payment Certification, Final Account, etc.

3. RICS APC Reading List

3.1 Estimating and Establishing Budgets
3.2 Cash Flows
3.3 Reporting Financial Progress
3.4 Procurement of Labour, Plant and Materials
3.5 Procurement of Sub-Contracts
3.6 Financial Management

3.1 Estimating & Establishing Budgets

Components of Budget / Estimate
Effect of the Design and Construction Processes on the Cost
Estimating Techniques
Unit Method
Superficial Method
Elemental Cost Plan
Comparative Cost Plan
Approximate Quantities
Operational Estimate
Estimators Report

3.2 Cash Flows

Types of Cash Flow Forecasts
Use of Cash Flows
Preparing Cash Flows
Effect of Valuation Methods
Effect of Contractual Procedures
Curves & Formulae
Adjustments to Cash Flow Forecasts
Monitoring, Analysing, Reporting and Advising on Cash Flows
Financial Implications and Appropriate Management Actions

LetsDAVID
Have a Break!
ADAMSON

GROUP

Coffee Time!

3.3 Reporting Financial Progress

Techniques to Reconcile Cost against Income
Collecting of Data for Reports
Preparing Reports
Cost to Complete (CC)
Cost Value Reconciliations (CVR)
Contract Variance
Earned Value Analysis (EVA)
Monitoring, Analysing, Reporting and Advising on Profitability
Financial Implications and Appropriate Management Actions

Earned Value Analysis (EVA)

3.4 Procurement of Labour, Plant and Materials

Supply Chain
Labour Costs
Material Costs
Plant Costs
Overhead & Profit
Units of Measurement in BoQ

3.5 Procurement of Sub-Contracts

Domestic Sub-Contractors
Named Sub-Contractors
Nominated Sub-Contractors
Techniques to Financially Manage Sub-Contractors /
Suppliers

3.6 Financial Management

Efficient Data Management
Efficient Change Management
Value Management / Value Engineering
Efficient Management of Sub-Contractors & Suppliers
Risk Management
Cash Flow Management
Effective Cost Control

4 Questions & Answers

THANK YOU ANY QUESTIONS?