Iowa City

Posts Tagged ‘Project’

work done by having automatic triggers built in. It should be able to monitor costs as the work progresses at least monthly and indicate the amount of losses or gains being made, anticipating any cash-flow problems. There should be limitations in the system that prohibit any changes to the work in excess of a given amount without the authority of senior management. Similarly, certain personnel may have restrictions on the amount they can spend without recourse to a senior person. It should be transparent and understood by all those whom it affects, whether in-house, suppliers or subcontractors.

The client needs a system that does not permit any alteration to the tender cost of the contract without authorisation by either the client or representatives. The client or representatives should agree any changes made which affect the tender sum above a certain limit before the instruction is given to the contractor. Any likely overspend from the agreed budget should finance the excesses or rein back expenditure to the initial budget.

The system should be such that the client can monitor, on a monthly basis, the current financial state of the project. It should be readily understood by the client, representatives and the contractor.