1. Service Departments © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 1

2. Service Departments – Estimating departments Decision to tender – Factors » Current and future workload » Capacity of the estimating and planning department » Extent of risk » Likelihood of success » Availability of suppliers and subcontractors © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 2

3. Supply chain prices © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 3

4. Getting market cover © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 4

5. Preliminaries – Method related charges Time related – Programme sequence – Establishment and staff-major items – Subject to commercial pressure to reduce Fixed – e.g. enabling works Value related – Attendances © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 5

6. Measured items – Who measures Responsibility for accuracy and completeness Linkage to drawings and specification Use of measured items for valuation – Implications for packaging subcontract works Interfaces Attendances on subcontracts Design liability Drawing comparisons © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 6

7. Estimate to tender – Tender submission Single form, period of time open for, basis of tender – Tender Margin Expressed as a percentage Commercial opportunity Strategy for recovery discussed at tender committee meeting Formal record of reports – Qualifications © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 7

8. Final adjustments Bills called Front loading Back loading Rate loading – Computer aided estimating systems Conquest Causeway – Money moved within tender Production of allowance bills which act as budgets for activities © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 8

9. Costs, information and reports – Definition: that expenditure which has been incurred in the normal course of business in bringing the product or service to its present condition and location (SAPP9, para 17) – Cost reports Project level Supplier level Resource level – Company wide accounting information systems © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 9

10. Company Ledgers – Definition: that expenditure which has been incurred in the normal course of business in bringing the product or service to its present condition and location (SAPP9, para 17) – Cost reports Project level Supplier level Resource level – Company wide accounting information systems © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 10

11. Costs, information and reports and ledgers © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 11

12. Ledgers and reports © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 12

13. Information flows © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 13

14. Cost information flows © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 14

15. Costs reports – Timing Cost cutoff Cash cutoff Accruals – Work in progress – Cumulative and period reporting – Cost provisions © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 15

16. Costs report example © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 16