Talk:Cash flow in construction - Revision history

80.71.4.209 at 08:26, 1 May 2019

2019-05-01T08:26:19Z

← Older revision		Revision as of 08:26, 1 May 2019
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		+	Cash flow is the movement of income into and expenditure out of a business over time. If there is more money going out than in, this is negative cash flow.

−	~~What is the procedure for payment s where extras at incurred due to design change or how is this documented and agreed between parties and does it have to~~ be ~~agreed before the work commences is the a procedure for agreeing the terms after the work is compleatedo~~	+	Possible cash flow problems may be:

−	-~~---~~	+	* Fee agreements that are tied to work stages rather than monthly invoicing so there is not a regular income attached to the project
		+	* The firm may not be charging for variations to the brief or scope of works
		+	* The firm may be holding too much ‘work in progress’ stock that has yet to be invoiced for
		+	* The clients might be slow-paying or disputing invoices to delay payment
		+	* The firm may have expanded too quickly, hiring more staff and renting larger offices, without the means to support them

−	~~Have a look at~~ the ~~article about variations - hopefully~~ that ~~should help.~~	+	To minimise the risks of future cash flow problems, the firm could establish a financial system that includes:

−	~~[http://www~~.~~designingbuildings~~.~~co.uk~~/~~wiki/Variations_in_construction_contracts http://www~~.~~designingbuildings.co.uk/wiki/Variations_in_construction_contracts]~~	+	* A long term-plan (3 to 5 years) that establishes the direction, ambitions and targets for the practice, including a budget of income and expenditure
		+	* Monthly forecasting and monitoring to allow preparation for shortfalls or increases in cash.
		+	* Monthly management account that shows how the practice actually performed against the annual budget and previous month’s forecast for income, cost and profit.
		+	* Cash collection report monthly setting out details of each invoice rendered and when it is/was due for payment – senior staff to agree a level of debtor days before more severe action should be taken
		+	* Weekly monitoring or timesheets against projects so that performance can be monitored in both cost and time terms
		+	* Daily monitoring and records for fee invoices paid, suppliers’ invoices settled, fee invoices raised, invoices received from suppliers and petty cash utilised
		+	* Other reports – annual audited accounts, VAT returns and bank reports.

Designing Buildings at 10:42, 15 October 2015

2015-10-15T10:42:38Z

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−	Have a look at the article about variations - hopefully that should help.	+	Have a look at the article about variations - hopefully that should help.

−	[http://www.designingbuildings.co.uk/wiki/Variations_in_construction_contracts~~&nbsp~~ http://www.designingbuildings.co.uk/wiki/Variations_in_construction_contracts]	+	[http://www.designingbuildings.co.uk/wiki/Variations_in_construction_contracts http://www.designingbuildings.co.uk/wiki/Variations_in_construction_contracts]

Designing Buildings at 10:41, 15 October 2015

2015-10-15T10:41:53Z

← Older revision		Revision as of 10:41, 15 October 2015
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	What is the procedure for payment s where extras at incurred due to design change or how is this documented and agreed between parties and does it have to be agreed before the work commences is the a procedure for agreeing the terms after the work is compleatedo		What is the procedure for payment s where extras at incurred due to design change or how is this documented and agreed between parties and does it have to be agreed before the work commences is the a procedure for agreeing the terms after the work is compleatedo
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		+	----
		+
		+	Have a look at the article about variations - hopefully that should help.
		+
		+	[http://www.designingbuildings.co.uk/wiki/Variations_in_construction_contracts&nbsp http://www.designingbuildings.co.uk/wiki/Variations_in_construction_contracts]

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2015-10-15T07:42:11Z

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What is the procedure for payment s where extras at incurred due to design change or how is this documented and agreed between parties and does it have to be agreed before the work commences is the a procedure for agreeing the terms after the work is compleatedo