5. Money :Money management is the process of
managing money, which includes
investment, budgeting, banking and taxes. It is also
called investment management.
Financial analysis of a project is divided into:
1.Estimation of capital cost requirement.
2.Source of financing.
The main elements of capital cost include:
•Engineering and project management cost.
•Construction materials, manpower , equipment cost
•Management and supervision during construction.
•Land acquisition including assembly holding &
improvement.
•Construction financing.
•Inspection & testing.
6. Sources of financing:
•Equity capital
•Preference capital
•Secured debentures
•Term loans
•Capital subsidy & development loans
7. Financial accounting systems : Accounting
information is generally used for three different purposes
•Internal reporting to the managers for day to day
planning monitoring and control
•Internal reporting to the managers for aiding strategic
plan
•External reporting to owners , governments , regulators
& outside parties.
8. Cost control :
• Cost control document serves the dual role of
recording financial transactions & also gives
managers an indication of progress & problems in
the execution of the project.
•Financial performance of the project can be known
& thus keeping the project under financial control.
•Information regarding materials used & labour
inputs within each job can be found out
9.
10. Materials: Materials are generally
classified into the following three groups
1. Cementing materials
• Lime
• Cement
• Mortar (etc)
2. Solid materials
• Stones
• Bricks
• Iron
• Timber (etc)
3.Protective material
• Paints
• Varnishes
• Plaster (etc)
11. Time of purchase:
•The purchase is mainly depend upon quality
specification ,quantity required ,timing of
requirement much in advance .
•Based on this information the purchasing
department will locate the suppliers, place the
orders ,procure the materials.
•Indents are generally prepared .The indent
should generally contain the item code ,
specification , quantity required , & time.
•The indents are generally checked by the store
personal . This will prevent the unnecessary
buying.
•Only authorized persons are eligible to the
requisition of purchase of materials as per the
delegated powers given in the purchase manual.
12. Transportation :
• The materials have to be transported from the buyers
premises to the sellers premises.
•Formalities like sales tax & octroi have to be completed
by filling the necessary forms.
•These forms have to be filled else the goods will be
stopped at the numerous check posts.
•The buyer have to co ordinate with the rail , road , ship to
obtain the materials at the lowest rates and at an earliest
time.
13. Delivery & distribution :
•The delivery & distribution is generally carried on by
the inspection.
•The buyer have to be satisfied by the quality of the
product.
•Checking is generally done by the quality control
department.
•There will be a delay in the distribution of the
materials if the materials do not give satisfactory
results in the inspection.
14.
15. Introduction
•Next to agriculture , the construction industry provides
maximum employment.
•There is no job security & the workers are hired when
required & fired when the work is over.
•Legislation is generally necessary for the following
reasons.
1.To fix the terms of employment.
2.To provide proper working conditions.
3.To provide social security.
16. Types of labour:
Skilled labour
• masons
• carpenters
• Painters
• electricians
• Plumbers
Unskilled labour.
• Majdoors .
• Beldars .
• Bhisti.
• House keeping labour.
• Helper.
• Material shifting labours.
17. General points regarding manpower:
•Safety manual regarding manpower has to be
maintained
•Trade unions should be established
•Safety department should check weather all the
workers are insured
•Workers should give proper training while dealing with
heavy machines
•Facilities should be provided such as drinking water ,
shelter if they are imported from other states , food
facilities etc.
18.
19. Purpose of machineries:
•Machineries are generally used to reduce the no of labour.
•To reduce time of the construction.
•To increase the effectiveness of the project.
Machinery selection is mainly depend upon:
1. Weather to purchase or to hire the equipment
2. Purchase is generally preferred when the equipment is
needed for the entire project.
3. Hiring is generally preferred when the cost of the
machinery is high to purchase.
4. It is better to use the equipment which is available at
the construction site
5. Use of standard equipment , availability of spare parts.
6. Suitability of local labour for operation.
21. Equipment management checklist: Management
checklist should generally contain :
•Mechanise selectively for economy of production ,
quality & speed of construction.
•Choose between buying , hiring & leasing
•Choose size & number of equipment including stand
by.
•Select the prime mover- petrol/diesel/electric.
•Check suitability for local conditions.
22. •Decide on mobile or stationary equipments.
•Arrange finance of purchase.
•Examine the warranties while purchase.
•Inform the manufacture of any deficiences.
•Insist on method statement for equipment used
•Use only trained personal for operation.
•Insist on regular preventive maintenance.
•Provide suitable access roads & foundation for
equipment.
