Contractor commercial Management
You have just been hired as a new commercial manager for a reputable contracting firm, ACE Contracting. ACE Contracting is specialised in executing large scale commercial building projects. However, the firm has faced a significant reduction in its profitability in the past few years. An internal review was conducted on completed projects in the last 3 years and this revealed problems with the cost at which line items are delivered compared to what was allowed for in the
As the new commercial manager, write a comprehensive report to the commercial director that details how you intend to manage this problem. The report should cover the following:
1. Steps you would take to manage profitability issues in the current and future projects.
2. Using an exemplar cost value reconciliation (CVR) report, identify and explain pertinent information required to monitor profit and loss during construction projects.
3. Where losses or significant decreases in profit were recorded, discuss the possible causes of the variances.
4. Explain corrective actions to ensure profitability in the current and future projects.
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