ABSTRACT
The financial control of any construction project commences at inception and continues until the issue of the final certificate. The time from the signing of the contract until the final certificate is termed the post-contract phase. The method used for controlling costs will depend on the following circumstances:
account ■ Whether the control is being exercised for the contractor or the client ■ The role of the quantity surveyor in respect of budgeting and accounting
The methods used for contractor selection and price determination are constantly under review and change. While the client’s and contractor’s needs are similar, their objectives are different. Both wish to restrain their costs, but the aims of contractors are to increase their profits, while those of clients are to secure the highest possible value for money. Post-contract cost control includes the following:
The responsibilities in respect of post-contract services will vary depending on the terms of appointment of the surveyor and the provisions within the contract conditions. The following are some of the activities involved:
quotations and invoices and making recommendations ■ Advising on contractual implications ■ Negotiation ■ Confirmation of payments to nominated subcontractors ■ Advising on the implications of extensions of the contract period ■ Preparation of special reports on cost implications ■ Completion of documentation which may be required for some clients,
particularly government departments ■ Working with auditors
21.2 MEASUREMENT CONTRACTS
The first duty of the quantity surveyor on the receipt of tenders is to examine them for any arithmetical or technical errors. This is then followed by the preparation of a written report on the tenders received and the quality of pricing applied in the contract documents. Advice will be offered on which contractor should be selected, and how any errors in the documents will be dealt with. These activities are strictly pre-contract, since the contractor and client will not yet have signed the appropriate documents. Post-contract activities tend to fall within two categories.
