1. Process 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“
Process of Building Order
Financing of Building Order

2. 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
Financing of Building Order

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

4. 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
Financing of Building Order

5. 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
Financing of Building Order

6. Financing of Building Order
Financing of Building Order

7. Financing of Building Order
Financing of Building Order

8. 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.
Financing of Building Order

9. 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
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10. 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.
Financing of Building Order

11. 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
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12. 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
Financing of Building Order

13. 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
Financing of Building Order

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

15. 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
Financing of Building Order

16. 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
Financing of Building Order

17. 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)
Financing of Building Order

18. 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)
Financing of Building Order

19. 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
Financing of Building Order

20. 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
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21. 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
Financing of Building Order