Comparison of Planned and Real State of Building Order 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

Principle of Comparison Managerial operations Planned state Analysis of defferences Finding out of real state Comparison of plan and realty 19.2.2019 Financing of Building Order

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 19.2.2019 Financing of Building Order

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 19.2.2019 Financing of Building Order

Financing of Building Order Building Order Costs Overhead costs Phase: trading, preparative, realization, guarantee Production costs Phase: realization 19.2.2019 Financing of Building Order

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) 19.2.2019 Financing of Building Order

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 19.2.2019 Financing of Building Order

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 19.2.2019 Financing of Building Order

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 19.2.2019 Financing of Building Order

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 19.2.2019 Financing of Building Order

Realization Phase – Overhead Costs Overhead costs in CZK Planed Real according to the evidence 19.2.2019 Financing of Building Order

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) 19.2.2019 Financing of Building Order

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 19.2.2019 Financing of Building Order

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 19.2.2019 Financing of Building Order

Financing of Building Order 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 19.2.2019 Financing of Building Order

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 19.2.2019 Financing of Building Order

Financing of Building Order 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 19.2.2019 Financing of Building Order

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) 19.2.2019 Financing of Building Order