20 credits at level HE6
to demonstrate how commercial management aspects of an organisation’s activities drive the corporate and operational planning processes;
develop in the student a critical awareness of the co-ordinated systems necessary to ensure that the costs incurred by trading and operational activities are identified, planned, monitored, recorded and stored as data to follow analysis and as information for future planning;
to develop student cognisance of how the techniques of cost management, control and analysis should be related to the systems within an organisation and not dealt with in isolation;
to extend the student knowledge base of cross-functional approaches, such as materials management and sub-contract management etc, and their treatment as inherent parts of a cost system.
to evaluate best practice initiatives in a commercial and procurement context
Budgeting in organisations, including those not in construction.
Budgets and cost control -v- cashflow
Cashflow projections for clients and contractors; interest on late payment
NJCC code of procedure for selective tendering. Contractor’s decision to tender – cover prices
Composition of contractors’ bids: contractors’ fixed/variable costs, the influence of method statements and tender programmes, provisional sums, PC sums, special attendance, general attendance dayworks – RICS schedules, daywork culture, project bonds, retentions, fluctuations, preliminaries, subcontractors – nominated, named, domestic, labour only, operational analysis, tender summary sheet, tender adjudication meeting
Tender evaluation: arithmetical errors, pricing errors, bill of reduction, addenda bills, winning bid criteria. The successful bid: spread of money. Bidding strategies.
Cost control for contractors – weekly, monthly, end of project. Target costs and programmes
Valuations and final accounts. Valuation of variations, valuation for provisional sums, PC sum adjustments. Payments to subcontractors – the Construction Act. Disputes
Cost control for clients. Cost control and budgeting for consultants
Profit and loss accounts, Balance sheets, accountancy ratios
Indicative Learning Hours: Lectures 40 hours
Tutorials 15 hours
Debate/Seminars 20 hours Total Class Contact 75 hours
Group Work 10 hours
Coursework Preparation 15 hours
Self Study 50 hours
Total 150 hours
when you have successfully completed this module you will:
to demonstrate that you have achieved the learning outcome you will:
|1.||Be able to synthesize the elements of co-operatively managing an estimate, and the running of an commercial management office||
Use information from service department to build up estimates
|2.||Be critically aware of the work of departments which relate to commercial management within a contracting organisation, including planning; purchasing; quantity surveying and contracts||
Appraise the contribution of service departments to the commercial management function
|3.||Be able to assess bidding performance and price levels||
Consider and describe the function of the tender adjudication process
|4.||Be thoroughly conversant with current cost management systems and be able to critically appraise these.||
Provide evidence of reading in written discussion
|5.||Understnad the analyse the effects of the differing types and timings of projects on cash flow||
Illlustrate cashflow variables in sawtooth diagrams;
|6.||Know how to manage the finance of clients and contractors during the pretender and construction phases||Use cost control systems, comparing actual performance against cost.|
|7.||Be able to synthesise project estimates on behalf of clients and contractors.
||Provide accurate estimates with no missing cost items.|
|8.||Be able to organise the commercial management function within a construction team.
||Analyse the type of work to be carried out and propose organisational structures.|
Your achievement of the learning outcomes for this module will be tested as follows:
|Description||Discussion piece integrating commercial management with better practice initiatives; approximate 2000 words, excluding references||3 hour end-of-module unseen examination|
Before taking this module you must have successfully completed the following:
You cannot take this module if you are taking or have taken:
Ashworth, A. (1996) Pre-Contract Studies. Longman/CIOB.
Calvert, R.E., Bailey, G.J., and Coles, D.C.H. (1995) Introduction to Building Management. 6th Edition, Oxford. Newnes.
Harris, F. and McCaffer, R., (2000) Modern Construction Management. 5th Edition. Oxford. Blackwell.
Jennings, A.R. (1995) Accounting and Finance for Building and Surveying. Basingstoke. MacMillan.
Kwakye, A. A. (1997) Construction Project Administration in Practice. Longman/CIOB.
Pilcher, R. (1994) Project Cost Control in Construction. Oxford. Blackwell.
Ramus, J. (1996) Contract Practice for Surveyors. 3rd Edition. Oxford. Laxtons.
Smith, A.J. (1995) Estimating, Tendering and Bidding for Construction. London. MacMillan.
CIB (1997) Code of practice for the selection of subcontractors. London. Thomas Telford.
CIOB (1997) Code of Estimating Practice. Ascot . CIOB.
CIOB (1989) Code of Estimating Practice. Supplement No 3 Management Contracting. Ascot . CIOB.
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