Assessment -1:
You are working for a local builder, who has just sold a new house which is to be constructed.
The home is a large 3 bedroom house that includes a large open plan living area, accessible from the rumpus, bedrooms and courtyard. This house is a quality home for an affordable price.
The home payment structure follows a standard HIA Victorian New Homes Contract, and is as follows:
|
Deposit
|
5%
|
$13,274
|
|
Base Stage
|
10%
|
$26,546
|
|
Frame Stage
|
15%
|
$39,819
|
|
Lock-up Stage
|
35%
|
$92,912
|
|
Fixing Stage
|
25%
|
$66,366
|
|
Completion
|
10%
|
$26,546
|
Total Contract Price (Excluding Variations) $265,463
For this assessment, you are required to prepare a budget for the construction of this house. You are required to research appropriate costings to ensure the budget is relevant to current expected construction expenses. You will need to use your building and construction knowledge for this task to ensure all stages are covered, including:
- Expected Site Costs
- Security of premises (fencing)
- Surveying
- Plumbing / Electrical
- Base Stage - Foundation ("M" Class Slab)
- Framing
- Lock-up - External wall cladding, Roof coverings, Flooring, External Doors / windows
- Fixing - Internal cladding, architraves, skirting, doors, built in shelves, baths, basins, troughs, sinks, cabinets, cupboards
- Completion (Refer to provided fixture list)
Be sure to
- Undertake discussions with stakeholders (Your instructor will role play these parts) to determine
any specific budget objectives and set milestones and / or performance indicators
- Discuss and review assumptions and budget parameters - review these during the budget process as needed.
- Clearly details any Cash, expenditure and revenue items
- Ensure your budget objectives are clear & conform with the business' expectations
- Include milestones and performance indicators to monitor financial performances
- Include a detailed break down of your annual budget into stages as required by the business
- Identify any financial risks and incorporate protection strategies according to business
Details Students should keep the following points in mind when creating the budget
- Identify the non-current asset requirements and consider er alternative asset mane
- Prepare cash flow projections to enable business operation in accordance with business plan strategies
- Relevant taxes such as GST and BAS should d also be inc a Ilea
- Select budget targets to enable ongoing monitoring of financial performance
Relevant taxes such as GST and BAS should also be included.
Students must ensure that estimates of future cash flow, costs and revenues are realistic in context of the available information at the time of creating the budget. Changes in circumstances should be anticipated as best as possible with particular emphasis on financial risks and creating protection strategies in accordance with organisational procedures. Any liaison with the proprietor of the business to determine milestones, policies, goals etc. should be carried out with your instructor, who will role play the relevant parts.
Assessment -2:
This information is to be handed to each student to outline the assessment requirements
For this assessment, your assessor will provide you with costings relevant to your submission in Assessment 1. The costings will provide up to date figures showing a total of expenses relevant up to lock-up stage.
Part 1: Prepare an 800 word written report discussing the following:
- How has your budget matched up with actual figures?
- What figures have been overestimated / underestimated?
- What business milestones have been met or have fell short?
Part 2: You must now adapt your original budget to incorporate and respond to the information given to you by your builder. Undertake the following tasks:
- Give a detailed comparison of budgeted forecasts and actual figures for project commencement to lock-up stage period - include comparison trends and other graphs as required to demonstrate the information dearly and demonstrate validity of analysis.
- Prepare and analyse the budget variances
- Prepare a recommendation to your builder regarding his business' performances and
- Complete a reviewed cu get takit4 into account the latest figures. Your builders goals are skill the same - is he on track? If net, what needs to be dome for your builders project to get back on track? Are his goals too unrealistic? Complete a feasibility report answering these questions.
- Prepare a report to give to your builder (instructor) with your recommendations.