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Prepare and monitor costs and accounts in construction

Reference
H/505/9996
Level
Level 4
Credit Value
15
Guided Learning Hours
50
 
Aim
This unit is about implementing cost systems, collecting information, analysing information and using information to prepare accounts. You will need to implement control systems to monitor performance and collect, use and present information. You will need to identify and investigate variations and recommend corrective action. You will also need to identify cost savings and make recommendations regarding them. You will need to value work in progress based on contract requirements, value variations and prepare and submit accounts, keeping records of information and calculations. You will need to obtain, collate and calculate information regarding claims and present them, keeping records of information and calculations. You will also need to analyse opposing grounds.


Assessment guidance and/or requirements
The following ranges apply:
Learning Outcomes 1 and 2
• Contract quantities and cost monitoring systems:
- contractual procedures and meetings
- organisational procedures and meetings
- open book accounting
- electronic recording
• Quantities and cost data:
- materials
- plant
- people
- sub-contractors
- dayworks
- periodic valuations
- retention sums
- forecasts of expenditure
- performance information
- contract programme and progress
• Decision makers:
- the client
- contractors
- consultants
- sub-contractors
- suppliers
- internal management
• Commercial corrective action:
- re-negotiating prices and fees
- re-negotiating payment conditions
- agreeing additional costs
- changing suppliers
- carrying out a value engineering exercise
- considering off-site construction
- considering standardisation
- regulating expenditure to conform with budgets
- agreeing additional costs
- making a contract claim
• Opportunities for cost saving:
- modify project management structure
- reduce waste
- use new technology
- manage energy consumption
- use recycled materials
- seek permission to use alternative materials and/or source of materials
- reduce plant/labour resources
- apply lean construction processes
Learning Outcomes 3 and 4
• Valuing work in progress:
- measure quantities
- suppliers' accounts and valuations
- project records
- inspection of works
- agreed variations
- by invoice
• Contract - type:
- main contract
- sub-contract
- partnering
- lump sum
- design and construct
- schedule based
- prime cost based
- hybrid
- firm price
- fluctuating price
- labour and materials
- labour only
- material supply only
- service contracts
- design warranties
• Variations:
- costs
- quantity
- quality
- progress
Learning Outcomes 5 and 6
• How payments for contracts will be made with:
- clients
- within the organisation
- external auditing
- legal requirements
• Income:
- agreed fees
- quantification of work completed
- agreed recoverable expenses
- VAT
• Expenditure:
- employment costs
- capital plant and equipment
- materials
- liabilities
- subcontract costs
- consumables
• Records may be:
- documents
- electronic
Learning Outcomes 7 and 8
• Contractual parties:
- client
- sub contractors
- suppliers
- statutory authorities and utilities
• Contract - type:
- main contract
- sub-contract
- partnering
- lump sum
- design and construct
- schedule based
- prime cost based
- hybrid
- firm price
- fluctuating price
- labour and materials
- labour only
- material supply only
- service contracts
- design warranties
• Additional costs - resulting from:
- re-measurement
- valuation of variations
- loss and expense arising from breaches of contract
- agreed extensions of time
- damages arising from extra-contractual consideration including legal judgements
- additional resources
• Information sources:
- contract documents e.g. specifications, quantities, drawings
- revised contract documents
- variations issued
- site records including photographs
- agreed rates of payment
- agreed method of calculation
- legislation e.g. tax and NI payments, minimum wage
- company accounts
• Analyse:
- claimants analysis
-respondents analysis
This unit must be assessed in a work environment, in accordance with the ConstructionSkills‘ Consolidated Assessment Strategy for Construction and the Built Environment.
Assessors for this unit must have verifiable, current industry experience and a sufficient depth of relevant occupational expertise and knowledge, and must use a combination of assessment methods as defined in the Consolidated Assessment Strategy.
Workplace evidence of skills cannot be simulated.

Qualifications offering this unit

Reference Title Sector Level