1. 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 „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
Financing of Building Order

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
Financing of Building Order

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
Financing of Building Order

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

6. 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)
Financing of Building Order

7. 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
Financing of Building Order

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
Financing of Building Order

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
Financing of Building Order

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
Financing of Building Order

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

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)
Financing of Building Order

13. 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
Financing of Building Order

14. 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
Financing of Building Order

15. 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
Financing of Building Order

16. 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
Financing of Building Order

17. 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
Financing of Building Order

18. 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)
Financing of Building Order