Contract Administration
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TABLE OF CONTENTS PAGE
1 STANDARD OPERATING PROCEDURES (SOP) 2 1.1 Introduction 2
2 ROLE OF THE CONTRACT ADMINISTRATOR 3
2.1 Role and Responsibilities of the Contract Administrator 3
3 PAYMENT PROCESS 4
3.1 AS 4000 - 1997 4
3.2 JCC –C 1994 5
3.3 AS 2124 - 1997 5
4 THE PROCESS OF CASH FLOW IN THE CONSTRUCTION INDUSTRY 6
4.1 The meaning of Cash Flow 6
4.2 Cash Flow Concept 6-7
4.3 S Curve cash Flow model 8
5. SECURITY 8
5.1 Cash Retention 8-9
6. INTERCONNECTION RELATIONSHIP BETWEEN CASH FLOW/PROGRESS PAYMENT/SECURITY 9
6.1 Discussion and Diagram between Cash Flow/Progress Payment/Security 9-10
7. CONCLUSION 10
8. REFERENCE 11-12
9. APPENDIXES 13
9.1 Appendix A 13-14
9.2 Appendix B 15
1. STANDARD OPERATING PROCEDURES (SOP) 1.1 Introduction
A construction [company] is focusing on becoming a mid -tier commercial building producer in Victoria. The Company has recently employed a contract administrator to prepare and develop standard operating procedures (SOP). The standard operating procedures will be a document that outlines the business practices that are approved by the company board and administered by the contract administrators. It will intend to be used as a reference manual by administrators, and other management staffs that have budgetary/financial responsibilities. Its purpose is to provide an efficient cost control and accountability system that will help assure appropriate use of financials funds.
This report has been prepared to provide general information about the role and responsibilities of a contract administrator in a construction [company] and will detail the
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TABLE OF CONTENTS PAGE
1 STANDARD OPERATING PROCEDURES (SOP) 2 1.1 Introduction 2
2 ROLE OF THE CONTRACT ADMINISTRATOR 3
2.1 Role and Responsibilities of the Contract Administrator 3
3 PAYMENT PROCESS 4
3.1 AS 4000 - 1997 4
3.2 JCC –C 1994 5
3.3 AS 2124 - 1997 5
4 THE PROCESS OF CASH FLOW IN THE CONSTRUCTION INDUSTRY 6
4.1 The meaning of Cash Flow 6
4.2 Cash Flow Concept 6-7
4.3 S Curve cash Flow model 8
5. SECURITY 8
5.1 Cash Retention 8-9
6. INTERCONNECTION RELATIONSHIP BETWEEN CASH FLOW/PROGRESS PAYMENT/SECURITY 9
6.1 Discussion and Diagram between Cash Flow/Progress Payment/Security 9-10
7. CONCLUSION 10
8. REFERENCE 11-12
9. APPENDIXES 13
9.1 Appendix A 13-14
9.2 Appendix B 15
1. STANDARD OPERATING PROCEDURES (SOP) 1.1 Introduction
A construction [company] is focusing on becoming a mid -tier commercial building producer in Victoria. The Company has recently employed a contract administrator to prepare and develop standard operating procedures (SOP). The standard operating procedures will be a document that outlines the business practices that are approved by the company board and administered by the contract administrators. It will intend to be used as a reference manual by administrators, and other management staffs that have budgetary/financial responsibilities. Its purpose is to provide an efficient cost control and accountability system that will help assure appropriate use of financials funds.
This report has been prepared to provide general information about the role and responsibilities of a contract administrator in a construction [company] and will detail the
References: 1- Prokscha, Susanne (2007) Practical guide to clinical data management, (2nd edition) Boca Raton, Fla. : CRC/Taylor & Francis 2- Phillip, Charles S 11- Oxley, R. and Poskitt, J. (1996) Management techniques applied to the construction industry, 5th Edition. Blackwell Science, London 12- Department of Industry, Technology and Commerce, Cash Flow – Cash Management C.J 15- Cooke, B. and Jepson, W.B. (1986) Cost and Financial Control for Construction Firms. London: Macmillan Educational Ltd 16- Mawdesley, M., Askew, W 17- Peer, S. (1982) Application of cost flow forecasting models. Journal of the Construction Division ASCE, 108, (CO2) 18- Singh, S 19- Kaka, A.P. and Price, A.D.F. (1993) Modelling standard cost commitment curves for contractors’ cash flow forecasting. Construction Management and Economics 20- Marcus S [ 2 ]. Phillip, Charles S. 1999 Construction Contract Administration [electronic resources] Littleton: SME 1999 [ 3 ] [ 4 ]. Greg Goldfayl and David Picken (2004) Construction Contract Administration Published by Deakin University Press, Geelong Victoria, 3217 Australia [ 5 ] [ 6 ]. Australian Standards (1997) General Conditions of Contract (AS4000-1997) Published by Standards Australia 1 The Crescent, Homebush, NSW 2140 [ 7 ] [ 10 ]. Australian Standards (1992) General Conditions of Contract (AS2124-1992) Published by Standards Australia 1 The Crescent, Homebush, NSW 2140 [ 11 ] [ 16 ]. Mawdesley, M., Askew, W. and O 'Reilly, M. (1997) Planning and Controlling Construction Projects: The Best Laid Plans… Addison Wesley Longman and The Chartered Institute of Building, Essex. [ 18 ]. Kaka, A.P. and Price, A.D.F. (1993) Modelling standard cost commitment curves for contractors’ cash flow forecasting. Construction Management and Economics [ 19 ] [ 20 ]. Greg Goldfayl Construction Contract Administration (1999) Published by Deakin University Press, Geelong Victoria, 3217 Australia [ 21 ] [ 22 ]. Greg Goldfayl Construction Contract Administration (1999) Published by Deakin University Press, Geelong Victoria, 3217 Australia [ 23 ]