Balance Cost To Complete Report

Quantity ValueActual

QuantityActual Cost Quantity

forecast Cost

A B C D E F G=D+F H=B - G

Remarks:This report shows an expected outcome of a project in terms of meeting cost targets set at the bid level.Any negative variations will be further analysed.

BOQActual Progress upto

Sept-2010 Balance to CompleteBOQ Item/WP/Cost Center

Total Projected

Cost

Diff in Bid Cost and Actual

expected cost

Cash Operating Cycle of a Project Jan-10

No of Days required to receive Progress Invoices 80No of days Material is in Stock 15No of days to pay labour 35*14% -4.9No of days to pay Subcontractors 50*60% -30No of days to pay other expenses and purchases 35*26% -9.1Cash Operating Cycle of a project 51 days

Remarks:

Developed by:Abdul Kashif

This report shows that it takes 51 days to convert our periodic investments into the projects to be returned back into our bank accounts with profit. Therefore, we must be able to finance 51 days through our own capital or through external financing. An increase in Cash Operating Cycle due to any reason e.g. Client is delaying payment, will require us to make arrangements of additional financing.

Project wise return on Investments

Project-1 Project-2 Project-3 Project-4 Project-5 Project-6(Millions)

Material on Site 80Accounts Receivables 400Advances to suppliers 150Other current assets 300Fixed Assets 600Total Assets 1530

Accounts Payables 150

Net Investments 1380

Gross Profit 90

Return on Investments 6.52%

Remarks:

The solution can be:Either increase profit margin by decreasing costDecrease investments such as reduction in receivables, obsolete materialsIncrease Payables as an alternative of decrease in investments.Through above three choices Return on Investment on a Project can be increased.

Any project which is earning less than the desired Return on Investment will be analysed further for causes of lower profitability

Proportion of Cost Elements in Total Cost

Amount %age Amount %age Amount %age Gen. Req. 13 15 11 Labor 4 15 16 Subcon (Apply Only) 5 5 5 Material 14 20 25

Others 1 2 1

Equipment 2 2 2 Subcon (S&A) 61 41 40

Total Cost 100% 100% 100%

Remarks:

Actual amounts deleted from the original report

Developed by:Abdul Kashif

Original Budget Jan-10 Sep-10

Cost Items

This table and accompanied graph shows how cost structure is deviating from the budget. In the above case Subcontractor (S&A) is decreasing while Material cost is increasing-this means we are taking jobs from Subcontractors and doing them ourselves.

0

10

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60

70

1 2 3

General Requirements

Labor

Subcon (Apply Only)

Material

Others

Equipment

Subcon (S&A)

Historial analysis of Revenue and CostPeriods Revenue Total Cost Gross Profit

Jan-10 700 735 -35

Feb-10 800 856 -56Mar-10 850 807.5 42.5May-10 900 819 81Jun-10 950 883.5 66.5Jul-10 1010 858.5 151.5

Aug-10 970 776 194Sep-10 950 760 190

(Figures are hypothetical)

Remarks: This table highlights historical performance of a particular project and describe different phasis of its profitability cycle. Management may be interested to explore more any sharp deviations in a particular period.

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1000

1200

Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10

Revenue

Total Cost

Gross Profit

Historial analysis of Revenue and Cost

Periods Revenue Material Labour SubcontracTotal Cost Gross ProfitJan-10 700 257.25 36.75 441 735 -35Feb-10 800 299.6 128.4 428 856 -56Mar-10 850 282.625 201.875 323 807.5 42.5Apr-10 825 262.7625 225.225 262.7625 750.75 74.25

May-10 900 286.65 245.7 286.65 819 81Jun-10 950 309.225 247.38 326.895 883.5 66.5Jul-10 1010 300.475 214.625 343.4 858.5 151.5

Aug-10 970 271.6 186.24 318.16 776 194Sep-10 950 266 197.6 296.4 760 190

Remarks:This table and accompanied graph shows how components of Total Costs are moving during the period.Subcontract cost decreased while labour cost increased.

Perhaps now project is coming down from its peak activity. Is there any chance to further reducethe labour and over head expenses?

This and similar analysis will provide an opportunity to look into the future requirements of the project

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200

400

600

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1000

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Revenue

Material

Labour

Subcontract

Gross Profit

Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10Cash InflowCash Outflow

Excess (Shortfall)Opening BalanceClosing Balance

Remarks:

This is a very simplified version of actual Rolling Cash Flow of a project. Based on future Revenue and expenses, a projected Cash Statement is prepared to enable Management to arrange necessary finances at appropriate time; or withdraw excess funds.

Planning QuantitiesAssumptionsWorking Hours/Day 16

Data

Crusher (O&M) 100 Rs/cum

Generator POL Consumption

Diesel Consumption 78.1 ltr/hr RsDeisel Rate 38.1 Rs/hrOil change 1 change per 550 hr 11,000 Oil filter change 1 change per 550 hr 2,100 Air filter change 1 change per 1000 hr 20,000 Fuel filter change 1 change per 1100 hr 1,835

Lease Cost 1,200,000 Rs/monthManpower Crew Cost 1,010 Rs/hr

Other Equipment

DumpersQty 20 UnitsRent 95,000 Rs/monthDiesel Consumption 10 ltr/hr

ExcavatorQty 2 UnitsRent 150,000 Rs/monthDiesel Consumption 10 ltr/hr

LoaderQty 2 UnitsRent 160,000 Diesel Consumption 10 ltr/hr

Raw Material 275 Rs/dumper

Description Qty Units RemarksTotal Qty Required (Planning) 125,534 cumProduction 95 cum/hrHours Required 1,321 hrMonths 4 months 16 hrs/day

250 TPH Crusher PlantCost & Benefit Analysis

This Capex analysis were made to establish Crush Plant for a road project. In organizations where Capex decisions are regularly made, this template can expedite and improve decision-making process

COSTS RsPOL (500 KVA) 3,992,109 Other Equipment

Dumpers 7,600,381 Excavator 1,200,381 Loader 1,280,381

Lease 4,800,000 #REF!Raw Material 3,797,404 Crusher (O&M) 12,553,400 6Manpower 1,334,625 #REF!Total 36,558,680

Decision:291.23 Rs./cum We should

8.25 Rs./cft establish our514.00 Rs./cum own plant

14.55 Rs./cft

Savings 27,965,796 Rs

DEL Rate

Market Rate