Building Order Costs Management

1. Building Order Costs Management

2. Information for 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 Building Order Costs Management

3. 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 Building Order Costs Management

4. Building Order Costs • Overhead costs Phase: trading, preparative, realization, guarantee • Production costs Phase: realization Building Order Costs Management

5. 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) Building Order Costs Management

6. 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 Building Order Costs Management

7. 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 Building Order Costs Management

8. 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 Building Order Costs Management

9. 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 Building Order Costs Management

10. Realization Phase – Overhead Costs Overhead costs in CZK • Planed • Real according to the evidence Building Order Costs Management

11. 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) Building Order Costs Management

12. 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 Building Order Costs Management

13. 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 Building Order Costs Management