Cost Reporting Quiz

What is the purpose of cost reporting in a construction project?

• To calculate the profit margin for the quantity surveyor

• To inform the client of the likely outturn cost of the construction project

• To negotiate with the contractor for lower costs

• To track the progress of the construction workers

Tags

Project Finance

APC

QS

RICS

Commercial Management

What are the three basic levels at which costs can be reported in a construction project?

• Pre-construction, post-construction, ongoing

• Fixed costs, variable costs, provisional sums

• Construction, project, programme

• Lump sum, remeasurable, reimbursable

Tags

Project Finance

APC

QS

RICS

Commercial Management

What is the purpose of including risk allowances in the cost report?

• To negotiate with the client for additional funds

• To calculate the profit margin for the contractor

• To inform the client of potential cost overruns due to unknown factors

• To track the performance of the construction workers

Tags

Project Finance

APC

QS

RICS

Commercial Management

How often is it recommended to update and publish cost reports?

• Annually

• Quarterly

• Monthly

• Weekly

Tags

Project Finance

APC

QS

RICS

Commercial Management

What should the cost report exclude when reporting the impact of capital allowances?

• Direct works costs

• Loss and expense

• VAT

• Professional fees

Tags

Project Finance

APC

RICS

QS

Commercial Management

What should the cost report always state about the reported costs?

• All costs are exclusive of VAT

• All costs are exclusive of professional fees

• All costs are inclusive of capital allowances

• All costs are inclusive of VAT

Tags

Project Finance

APC

RICS

QS

Commercial Management

What should the quantity surveyor do if the claim received from the building contractor for loss and/or expense is insufficiently particularised?

• Consult with the client to determine the amount of the claim

• Exclude the claim from the cost report

• Request further information and details from the building contractor

• Include the claim in the cost report as is

Tags

Project Finance

APC

RICS

QS

Commercial Management

What should the cost report include when reporting the amount of fluctuation applied to the value of the work carried out to date?

• The amount of future fluctuation costs

• The amount of fluctuation for the entire project

• The amount of fluctuation for the previous month

• The amount of fluctuation for the work carried out to date

Tags

Project Finance

APC

RICS

QS

Commercial Management

What should the quantity surveyor do if the valuation of a contract instruction has not been agreed with the contractor?

• Base the cost report on the valuation determined by the quantity surveyor

• Exclude the valuation from the cost report

• Include the valuation in the cost report as is

• Consult with the client to determine the valuation

Tags

Project Finance

APC

RICS

QS

Commercial Management

What should the quantity surveyor do if the client has employed others to carry out work in conjunction with the contractor?

• Exclude the direct works costs from the cost report

• Include the direct works costs in the construction cost section

• Consult with the client to determine the treatment of direct works costs

• Report the direct works costs in a separate section of the cost report

Tags

Project Finance

APC

RICS

QS

Commercial Management