6012.4 Profit Center Reporting (Division Manager)

  1. Complete a final forecast on the Overhead Project. If the project takes the format of a responsibility overhead, be sure to complete the Project Contribution Report, noting that Contribution to date is a negative expense which is offset against income from construction projects within the Profit Centre [c,m,g]

  2. Review Cost Reports on all Projects [c,m,g]

    Evaluate cost report and enter Project Contribution (7.08), “Management interpretation”

    1. Projected Gross Contribution from project [in early stages reduction of Gross Contribution by 2% of uncommitted contract value (as a rule of thumb) should cover unforeseen] [c,m,*]

    2. Contribution earned in line with company take-up/Tax policy but think carefully about taking up contribution on funds not yet received from the client.

  3. Liquidity Current & Future [c,m,*]

    Check current Liquidity Report for all projects (7-12-1).

    Well run projects for external clients should create positive cashflows. These funds are often utilised to fund internal projects, or in some cases, long term assets. However, these can create major liquidity crises should there be a reduction in turnover. It is important to forward plan future liquidity cash flow.

  4. Cash Flow Forecast:

    1. Review expected cash flow for the Overhead project

    2. Review the consolidated cash flows for all projects

  5. Projects Contribution [c,m,*]

    Confirm the consolidated details

  6. Labour Relations

    Due to the nature of our business and historical impact employees and Union activity have on projects, it needs to be addressed as a separate subject

  7. Loss Control Management

  8. Where are we going? Forward workload

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