Many projects fail to submit their monthly valuations on time or fail to claim all the revenue they are entitled to. This usually results in the contractor having a negative cash flow which impacts the company's operations.
Where possible the projects should maximise the revenue claimed in the monthly valuations by:
1. making sure that all work is claimed
2. over-claiming where possible
3. ensuring milestones are met so that they can be incorporated in the payment
4. making the valuation date as late in the month as possible
5. ensuring that variations and claims are submitted and approved quickly so that they can be claimed
6. claiming for unfixed materials where applicable
7. claiming as much of the indirect costs or preliminaries as possible
Remember, it’s better for the contractor to have the money sitting in their bank account than in the client’s. However, when compiling cost reports, ensure the over-claims in the valuation are excluded from the revenue used in the report.
Copyright 2016 - The attached articles cannot be reproduced for commercial purposes without the consent of the author.
The opinions expressed in the attached articles are those of the writer. It should be noted that projects are varied and different laws and restrictions apply which depend on the location of the contractor and the project. It's important that the reader uses the supplied information taking cognisance of their particular circumstances. The writer assumes no responsibility or liability for any loss of any kind arising from the reader using the information or advice contained herein.
"I have what I consider some of the best books on construction management."
Books are available from:
Other retail stores
Available in paperback or on Kindle
"28 YEARS OF CONSTRUCTION PROJECT MANAGEMENT EXPERIENCE, DEVELOPING SUCCESSFUL CONSTRUCTION PROJECT MANAGERS AND BUILDING SUCCESSFUL CONSTRUCTION COMPANIES"