Comparison of Planned and Real State of Building Order

1
Lecture was elaborated with the help of grant
project of Ministry of Education, Youth and
Sports, FRVŠ n. 2005 Innovation of Subject
Financing of Building Order

• Comparison of Planned and Real State of Building
  Order

2
Principle of Comparison
Managerial operations
Planned state
Analysis of defferences
Finding out of real state
Comparison of plan and realty
3
Principle of Building Order Costs Management

• Plan of building order
• Documentation of building order realization
• Identification of differences between plan and
  realty in in advance defined indexes (costs,
  outputs, returns, profit)
• Note For possibility of management it is
  necessary to have the same structure of planed
  and real information

4
Phases of Building Order Management

• Trading phase
• Searching for orders on building market, creation
  of offers, attendance in selection procedures,
  obtaining of orders
• Preparative phase
• Preparation of order for realization, assurance
  of productive sources, harmonogram of works
  (horizontal bar chart)
• Realization phase
• Realization of building order
• Guarantee phase
• Handover of finishes building objects to
  investor, guarantee based on legislation

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Building Order Costs

• Overhead costs
• Phase trading, preparative, realization,
  guarantee
• Production costs
• Phase realization

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Realization Phase Production Costs

• Costs on order arise for works realized by
• Own employees
• Indicator of costs is in the form of amount of
  consumption of planed productive sources
• Direct material for production (m.u.)
• Outputs of employees in the production
• Outputs of working machines and machinery
• Sub-suppliers
• indicator are total costs for sub-supply
  (delivery)

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Realization Phase Production Costs (realized
by own employees)

• Indicators of costs for production material
• Amount of material consumption in m.u.
• Planed consumptions of particular materials
  defined according to the norms of consumption
• Consumptions of particular materials according to
  the operative evidence of inventory (trade
  invoice)
• Unit prices of materials in CZK/m.u.
• Purchase prices purchase prices from price
  catalogues or order from suppliers unit
  purchase costs
• Price invoiced in trade invoices by suppliers to
  investor

8
Realization Phase Production Costs (realized
by own employees)

• Indicators of costs for production wages
• Amount of outputs in productive hours
• Planed for realization, defined according to the
  normative base in productive hours per m.u. of
  output (building work)
• Real amount of outputs in productive
• Wage tariff in CZK/h
• Planed according to the firm's tariffs
• Paid to particular productive workers

9
Realization Phase Production Costs (realized
by own employees)

• Indicators of costs for production machines and
• machinery
• Amount of machines outputs in productive hours
• Planed for realization of outputs (from normative
  base)
• Real outputs in productive hours
• Hour tariffs of machines run in CZK/m.u.
• Hour tariffs of costs planed
• Hour tariffs of costs real

10
Realization Phase Production Costs (realized
by sub-suppliers)

• Indicators of costs for sub-supplies
• Planed costs for sub-supplies including costs for
  their assurance defined according to the
  contractual settlements with sub-suppliers
• Real costs from invoices from sub-suppliers and
  costs connected with department ensuring
  sub-supplies

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Realization Phase Overhead Costs

• Overhead costs in CZK
• Planed
• Real according to the evidence

12
Outputs on Building Order

• Indicators of outputs on building order
• Kinds of building works
• Amount of outputs (amount of building works, vice
  works)
• Delivery times (fulfillment of time harmonograms)
• Fulfillment of quality (technical standards,
  technological standards)

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Outputs on Building Order

• Indicators of amount of output realized on
  building
• order
• Physical amount of realized works in m.u.
• Found out from documentation of building order
  that will be realized
• Found out by direct measuring of realized
  constructions
• Unit prices of building works in CZK/m.u.
• Planed on order
• Invoiced to investor

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Result of Costs Management

• Result of management is achievement of planed
  profit on order
• Plan
• price planed costs profit
• Reality
• returns from sale real costs profit

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Controlling

• Possible to express as supervision, monitoring,
  management (mainly from economic and financial
  aspect)
• In the frame of various particular building
  orders
• In the frame of the whole company
• Includes several partial phases
• Obtaining of relevant information needed for next
  valuation
• Transformation of this information into next
  information areas or forms
• Documentation of this information into tables,
  templates or models
• Suggestion of operations for improvement
• It is possible to differentiate following kinds
  of controlling
• Financial
• Economic
• Technical

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Financial Controlling

• Main aim is monitoring, controlling and next
  management of cash-flow in the area of financial
  and capital structure
• Based on particular indexes of financial analysis
  it is possible to monitor
• Payment ability of a company, its payment
  morality or payment morality of debtors for
  assurance of financial circulation
• Management of efficient indebtedness rational
  indebtedness from the aspect of more efficient
  production, control of the amount of debts from
  the aspect of the payment ability of the company
  in the period of repayments of foreign financial
  sources
• Controlling of profitability of inserted
  finances, profitability of the whole capital or
  profitability of revenues

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Cost Controlling

• The main objective is complex monitoring of costs
  of
• Company
• Monitoring of costs from the aspect of their
  amount related to the economic result
• Departments of the company
• In relation to the production direct and
  indirect costs, fixed and variable costs
• Building order
• Continuous controlling of costs during the
  realization of the building order comparison of
  preliminary calculated costs with costs arising
  in the real situation

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Technical Controlling

• Control of terms and milestones
• On the level of particular building orders from
  two aspects
• Technical/constructional monitoring of
  particular building parts based on following
  documents site diary, documentation of real
  realization
• Payment deducibility of just realized payments,
  control of terms of maturity of invoices
• Quality control
• Assurance of quality according valid norms and
  standards (ISO 9001, 9002)