| |
|
Many construction projects suffer from preventable
financial problems. Underbids ask for too little money
to complete the project. Cash flow problems exist when
the present amount of funding cannot cover the current
costs for labour and materials, and because they are a
matter of having sufficient funds at a specific time,
can arise even when the overall total is enough. Fraud
is a problem in many fields, but is notoriously
prevalent in the construction field. Financial planning
for the project is intended to ensure that a solid plan,
with adequate safeguards and contingency plans, is in
place before the project is started, and is required to
ensure that the plan is properly executed over the life
of the project.
Mortgage bankers, accountants, and cost engineers are
likely participants in creating an overall plan for the
financial management of the building construction
project. The presence of the mortgage banker is highly
likely even in relatively small projects, since the
owner's equity in the property is the most obvious
source of funding for a building project. Accountants
act to study the expected monetary flow over the life of
the project, and to monitor the payouts throughout the
process. Cost engineers apply expertise to relate the
work and materials involved to a proper valuation. Cost
overruns with government projects have occurred when the
contractor was able to identify change orders or changes
in the project resulting in large increases in cost,
which are not subject to competition by other firm as
they have already been eliminated from consideration
after the initial bid.
|
| |
|
 |
|
|
|
| |
|
| |
| |
|
|
 |
|
Construction engage in the design of
temporary structures, quality assurance and
quality control, building and site layout
surveys, on site material testing, concrete
mix design, cost estimating, planning and
scheduling, safety engineering, materials
procurement, selection of equipment, and
cost engineering and budget control. |
|
 |
|
 |
The Construction industry in the United
States provides employment to millions with
all types and levels of education.
Construction contributes 14% of the US Gross
National Product. Construction engineering
provides much of the design aspect used both
in the construction office and in the field
on project sites.
|
|
|
|
