Process 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“ Process of Building Order 8.4.2019 Financing of Building Order

Financial Strategy of Building Order Planning of cash-flows and sources for their coverage in time, optimization of the balance between equity and other sources Factors influencing the way of financing of the order: Condition agreed in the contract Number of sub-suppliers Number and the extent of realized orders in the same time period During the creation of the financial strategy of the order is also necessary to respect: Time plan Harmonogram of works 8.4.2019 Financing of Building Order

Financing of Building Order Time Planning Methods Generally there are three methods of time planning: Time harmonogram Milestones Network diagrams 8.4.2019 Financing of Building Order

Financing of Building Order Time Harmonogram Depending on the contract for work it determines the process of the building order form the time aspect Depending on the technical documentation of the building there are objectively and in time determined objects and activities, which are connected with technological and organizational bindings In the time harmonogram are defined milestones, which specify partial dates creating the deadline of the realization 8.4.2019 Financing of Building Order

Time Harmonogram and Milestones Activities Time Activities´ duration is displayed as a horizontal abscises Ends of abscise corresponds to a beginning term and finishing of the activity on the horizontal time axis Milestones time plan indicates key-activities on a project Project milestone is usually the important activity or time point during the building order realization 8.4.2019 Financing of Building Order

Financing of Building Order 8.4.2019 Financing of Building Order

Financing of Building Order 8.4.2019 Financing of Building Order

Financing of Building Order Network Diagrams We compose network diagram for time, costs and resources analysis Network analysis methods: represent a plan of project activities make possible costs valuation of project activities by the sequential costs cumulating method according to the work flow on a project make possible to use all resources most economical  Network diagram is a graphical model of the project, which represents the dependence among activities. 8.4.2019 Financing of Building Order

Basic Network Diagram Terminology Activities Network path Start node of the network diagram Finish node of the network diagram Arrow Separating node Merge node 4 3 2 1 Separation A B C 6 5 3 4 Merging F E D 8.4.2019 Financing of Building Order

Arrow Diagramming Method Arrow Diagramming Method represents Activities-on-Arrow (an activity name is displayed on an Arrow). Node in Arrow Diagramming Method represents Start and Finish of one ore more activities. A node doesn’t pose any claim on time and resources. Arrow in Arrow Diagramming Method represents activity. 8.4.2019 Financing of Building Order

Basic Rules of the Connection of Particular Activities The activity S can be started after the activity R R S T The activities R and T must be finished before starting of activities S and U U R S 8.4.2019 Financing of Building Order

Basic Rules of the Connection of Particular Activities The basic convention of the node realization: Any node of Arrow Diagramming Method is realized only, when a realization of all activities, which end in the node, ends. This characteristic is called Conjunction of Node enter A realization of any node (except the end of Network diagram) means that the realization of all activities that begin in the node begins. This characteristic is called Determination of Node exit 8.4.2019 Financing of Building Order

Basic Targets in the Case of the Network Diagram Making Maximum logic of the Network Good overview of activities and linkages Making easy of control and interpretation of the Network diagram A possibility of a division into phases at large Network diagrams 8.4.2019 Financing of Building Order

Phases of the Network Diagram Making Problem formulation Making of the first Network diagram Continuous formal adjustment 8.4.2019 Financing of Building Order

Financing of Building Order Problem Formulation The determination of the project targets and project drift PROJECT STRUCTURALIZATION The determination of project spread and details of dividing of the project into activities, definition of relations between activities PROJECT ORGANIZATION 8.4.2019 Financing of Building Order

Making of the First Network Diagram The first step is to create the work structure, the set of all activities of the project Either from the beginning We ask: “What is necessary to do further?” Or from the end We ask: “What must be done before?” First we must set the logical sequence of activities, which are in progress at the same time. Than we set all activities in the time sequence so, how they concur The logic of the Network, so the right setting of activities, is determined especially by technological and functional feasibility of bindings. Bindings can be: • Technological bindings • Organizational bindings • Time bindings We determine project milestones 8.4.2019 Financing of Building Order

Financing of Building Order Resources Analysis Allocation of the production forces (human resources) and other resources required for the realization of the activities in the time We distinguish following kinds of resources: Human resources Material resources Technological resources Financial resources We talk especially about two kinds of resources: (necessary for using the other resources) (financial evaluation of the activity contains human, material and technological resources) 8.4.2019 Financing of Building Order

Financing of Building Order Resources Allocation There are two reasons, why it is necessary to deal with the allocation of the resources in the case of the project management: Network diagram can show that there will be overmanning in the future period This information should call manager’s attention: obtaining of new orders to be able to use the manpower surplus plan of the changing-over of this workers Network diagram can show, that several activities in progress can require the same resources at the same time we have to remake Network diagram in order that the project will not be delayed. we have to use the slack time (time reserves) of some activity if it exists (i.e. the activity is not on the critical way) 8.4.2019 Financing of Building Order

Special Characteristics of Particular Types of Recourses Allocation The resource type – workers Workers are set in integer that is corresponding to the number of the required workers The pumping of this resource is equally spread into the operating period of the activity That means, that every activity that takes 2 weeks, than requires 5 workers. Every day work 5 workers on realizations of the activity The resource type – financial expenses. The financial expenses we can set by double way: the financial expenses for the whole activity the financial expenses for the time unit of the activity 8.4.2019 Financing of Building Order

Mass Curve and its Analysis the diagram that displays amount of particular type of resources (human resources or financial resources) needed in every time unit of the project 8.4.2019 Financing of Building Order

Methodology for Valuation of the Process of Building Order System of management APO is based on cyclically realized analysis of fulfillment defined aims of the building construction APO differs 3 aim parameters Actual aim parameter „A“ We suppose that construction will be realized directly according to the project documentation and valid contract Real costs for realized part + calculation of costs for remaining part according to the valid project documentation and contract Probable aim parameter „P“ Includes improvement in the area of costs, which we consider to be possible (high degree of certainty), if the building is realized according to the contract, in this aspect is improved aim parameter „P“ compared to „A“ Real costs of realized part + calculation of costs for remaining part including accepted operations for their improvement Optimal aim parameter „O“ In the area of revenues exists the supposition that all possible improvements will be realized in the frame of valid norms, in the area of costs all possible reductions are also supposed Real costs of realized part + calculation of costs for remaining part including accepted operation for their improvement + possibilities of increasing of the efficiency beyond valid project documentation 8.4.2019 Financing of Building Order