BASICS OF COST CONTROL

(1)Internal Terms
(2)Cost Control Documents
(3)Budgetary Control Sheet

SHIMIZU CORPORATION
Cost Control Department
 Cost Control Documents

(1)Kettei G1 (NET)
(2) Basic policy
(3) Initial Budget
(4) Subcontract List
(5) Monthly P/L report (Kessan)
(6) Cash Flow Sheet
 What is “Cost Control” ?
7 Steps of Cost Control
(1)Setting up Cost Standard
(2)Conducting
(3)Recording the actual Cost
(4)Comparing the standard with actual
(5)Analyzing the difference
(6)Reporting to the management
(7)Improving the cost efficiency
 (1)Setting up Cost Standard
&
(2)Conducting
Goal of this stage

Making Budget based on target profit (CR1)

given by the management.
 (1)Setting up Cost Standard
&
(2)Conducting
3 documents to be approved

1. Kettei G1

2. Improvement Plan

3. Budget Form (+ Sub-con List)

 Kettei G1

Estimate Profit (NR)

Target profit (CR1)

&
Directions(Target
CR2 or whatever)

Submission Due Date

Approval of Management
Improvement Plan

Net Amount Method or Idea to compress S Amount

Q is indicated here
 Budget Form

Contract S Spot S
By Job Code
 SC own Budget

(1)JV Fund
(2)Maruko only
 What is “Cost Control” ?
7 Steps of Cost Control
(1)Setting up Cost Standard
(2)Conducting
(3)Recording the actual Cost
(4)Comparing the standard with actual
(5)Analyzing the variance
(6)Report to management
(7)Improving the cost efficiency
 (3)Recording the actual Cost

We have to check the ledger at least monthly.

That’s because…

1. Cost for other projects might be wrongly charged.

2. Paid amount is the basis of payable estimation.
 What is “Cost Control” ?
7 Steps of Cost Control
(1)Setting up Cost Standard
(2)Conducting
(3)Recording the actual Cost
(4)Comparing the standard with actual
(5)Analyzing the variance
(6)Report to management
(7)Improving the cost efficiency
 (4)Comparing the standard with actual
&
(5)Analyzing the difference
1. Compare the Budget/Payable with actual cost
2. Analyze the reason for the difference
3. Consider a plan to reduce Q & secure CR
4. Revise the payable according to the plan/reality

Essential Cycle of Cost Control

(4)Comparing the standard with actual
&(5)Analyzing the difference
Case1
Contract
Job S(a) S(b) Q S1 T T-S1=A B T-B=C D E=C+D
Code Job name Budget Budget Total Cost Budget Contract Profit Paid Balance Discrepancy Payable

06 Earthwork 1,000,000 1,000,000 900,000 800,000 900,000 100,000 400,000 500,000 500,000

Case2
Contract
Job S(a) S(b) Q S1 T T-S1=A B T-B=C D E=C+D
Code Job name Budget Budget Total Cost Budget Contract Profit Paid Balance Discrepancy Payable

06 Earthwork 1,000,000 1,000,000 1,100,000 800,000 900,000 100,000 400,000 500,000 200,000 700,000

Payable ≠ Budget - Paid

 What is “Cost Control” ?
7 Steps of Cost Control
(1)Setting up Cost Standard
(2)Conducting
(3)Recording the actual Cost
(4)Comparing the standard with actual
(5)Analyzing the variance
(6)Report to management
(7)Improving the cost efficiency
 (6)Report to management

Monthly reporting documents

Ie. Budgetary Control Sheet (BCS)

Provide the management with basic

information for decision making.
 (6)Reporting to management
We have to report to management monthly by
Contracted
submitting documents suchSpot
as To be contracted

Budgetary Control Sheet (BCS)

Budgetary Control Sheet (BCS)

 What is “Cost Control” ?
7 Steps of Cost Control
(1)Setting up Cost Standard
(2)Conducting
(3)Recording the actual Cost
(4)Comparing the standard with actual
(5)Analyzing the variance
(6)Reporting to management
(7)Improving the cost efficiency
 (7)Improving the cost efficiency

By following (1)～(6) steps,

We can take necessary actions to secure CR
as Shimizu group.
For example,
･Supporting by regional office, or HQ
･Supporting staffs from other country
･Procurement from other country
 The Point of “Cost Control”

Maintaining following 3 items regularly

1. Analyze the difference of S and actual payment.

2. Work out countermeasures (Plan)
3. Take countermeasures (Action)
 Cash Flow Schedule
Income Total Expenditure Accumulated
Singapore Expense Japanese Expense Cash
Currency S$ S$ S$ S$ 1000 Yen 1000 Yen Total Accumulated Balance
Fixed Ex.Rate ==> 65.00 Accumulated Income 65.00 Accumulated 1 Accumulated Expenditure(S$+Yen)
Subtotal FY2010 0 1,087,326 109,398
2011.04 0 0 135,413 1,222,738.81 1,650 111,048.355 2,931,175 -2,931,175
2011.05 0 0 722,005 1,944,743.73 4,947 115,995.503 3,729,290 -3,729,290
0 0 1,944,743.73 115,995.503 3,729,290 -3,729,290
0 0 1,944,743.73 115,995.503 3,729,290 -3,729,290
2011.6 12,728,386 12,728,386 607,600 2,552,343.73 1,602 117,597.603 4,361,538 8,366,848
0 12,728,386 2,552,343.73 117,597.603 4,361,538 8,366,848
0 12,728,386 2,552,343.73 117,597.603 4,361,538 8,366,848
2011.7 0 12,728,386 866,000 3,418,343.73 1,602 119,199.703 5,252,186 7,476,200
0 12,728,386 32,000 3,450,343.73 119,199.703 5,284,186 7,444,200
0 12,728,386 1,067,000 4,517,343.73 119,199.703 6,351,186 6,377,200
2011.8 2,658,739 15,387,125 85,000 4,602,343.73 1,602 120,801.803 6,460,833 8,926,292
2011.09 1,501,858 16,888,982 1,124,000 5,726,343.73 1,602 122,403.903 7,609,481 9,279,502
2011.10 1,414,261 18,303,244 874,000 6,600,343.73 3,718 126,122.103 8,540,684 9,762,560
2011.11 1,962,765 20,266,008 1,000,324 7,600,667.73 3,718 129,840.303 9,598,211 10,667,798
2011.12 1,326,461 21,592,469 1,047,363 8,648,030.73 3,718 133,558.503 10,702,777 10,889,693
2012.01 1,171,303 22,763,773 1,503,307 10,151,337.27 3,718 137,276.703 12,263,286 10,500,486
2012.02 1,357,236 24,121,009 1,363,376 11,514,713.47 3,718 140,994.903 13,683,865 10,437,144
2012.03 1,230,903 25,351,912 1,413,536 12,928,249.74 3,718 144,713.103 15,154,605 10,197,307
Subtotal FY2013 36,789,660 29,240,530 60,031
2014.04 0 113,433,691 1,042,306 101,613,014.09 2,116 264,892.003 105,688,276 7,745,415
2014.05 0 113,433,691 30,000 101,643,014.09 2,116 267,008.103 105,750,831 7,682,860
2014.06 0 113,433,691 30,000 101,673,014.09 2,116 269,124.203 105,813,386 7,620,305
2014.07 0 113,433,691 30,000 101,703,014.09 2,116 271,240.303 105,875,942 7,557,749
2014.08 0 113,433,691 30,000 101,733,014.09 2,116 273,356.403 105,938,497 7,495,194
2014.09 0 113,433,691 30,000 101,763,014.09 2,116 275,472.503 106,001,053 7,432,638
2014.10 0 113,433,691 30,000 101,793,014.09 2,116 277,588.603 106,063,608 7,370,083
2014.11 0 113,433,691 30,000 101,823,014.09 838 278,426.603 106,106,500 7,327,191
2014.12 0 113,433,691 30,000 101,853,014.09 278,426.603 106,136,500 7,297,191
2015.01 0 113,433,691 101,853,014.09 278,426.603 106,136,500 7,297,191
2015.02 3,182,096 116,615,787 2,311,158 104,164,171.62 278,426.603 108,447,658 8,168,129
2015.03 116,615,787 104,164,171.62 278,426.603 108,447,658 8,168,129
Subtotal FY2014 3,182,096 3,593,464 15,651
Estimated Final (1)
(This Month) 116,615,787 104,164,172 278,427 108,447,658 8,168,129
 取極状況一覧表（決算検討シート内訳資料） 工事名： AA工場新築工事 Regional GM PM 作成日　As of

Subcontract List(Project P/L Report Detail)

〈決算状況　Kessan 〉
Subcontract List
(Input cells)

〈取極状況集計欄 N-S-T Summary〉

Project
Name：
28-Jun-2012

UNIT：MYR
N(a) Vo(N) NET (N(b)) S(ｂ) which is breakdown of
T Ratio NET
S(b)
T T/N Disc. Q Q／Ｎ N-Q
M 15,000,000 3,240,000 18,240,000 18,240,000 S(b)/N

T 7,758,772 3,045,940 10,804,712 10,470,940

Contract Part in BCS.
Ｃ 1. 取極実績
64% 6,905,786 98% 6,735,200 5,837,577 85% 0 5,837,577 85% 1,068,209
Ｏ
Spot 5,355,449 5,355,449 5,355,449
Contracted
Ｓ
Ｔ
Contingency 1,046,620 1,046,620 1,046,620
2. 取極予定
36% 3,898,926 96% 3,735,740 3,930,547 101% 0 3,930,547 101% -31,621
TOTAL 14,160,841 3,045,940 17,206,781 16,873,009
To be Contracted

6% 6% 6% 7.5%
CR Total 100% 10,804,712 97% 10,470,940 9,768,124 90% 0 9,768,124 90% 1,036,588
839,159 194,060 1,033,219 1,366,991

１．取極実績 Contracted items

No.
Should tally with G1 and
Contract JOB Cost
Item Subcontractor Date(expected) of NET S(b) T T/N Discrepancy Q N-Q
Number CODE Factor Q／Ｎ
Cont.Award

(1) 0001
Budget Form
20 3 Origial-SC Design Davis & Church 4/13/2012 864,000
S(b)/N

100% 864,000 864,000 100% 864,000 100% 0

(2) 0002 01 3 CO#1-Survey Hayes, James & Associates 5/14/2012 900 720 720 -720

(3) 0003 06 3 Origial-SC earth work Bradcole construction 6/1/2012 2,963,386 94% 2,800,000 1,910,520 64% 1,910,520 64% 1,052,866

(4) 0004 23 4 Original PO-4D Simulation Pinnacle Infotech Inc 6/4/2012 7,000 90% 6,300 6,300 90% 6,300 90% 700

(5) 0005 19 3 Original PO-Quality Control PSI Kennesaw 6/5/2012 45,000 100% 45,000 39,987 89% 39,987 89% 5,013

(6) 0 0

(7) 0 0

N-S-T-Q for each contract

ORIGINAL

(8) 0 0

(9) 0 0

(10) 0 0

(11) 0 0

(12) 0 0

(13) 0 0

(14) 0 0

(15) 0 0

3,879,386 96% 3,716,200 2,821,527 73% 0 2,821,527 73% 1,057,859

(1) 19 Original PO-Survey PSI 1/27/2012 3,000,000 100% 3,000,000 3,000,000 100% 3,000,000 100% 0

(2) 19 Original PO-Survey Hayes, James & Associates 1/27/2012 15,400 93% 14,250 11,950 78% 11,950 78% 3,450

(3) 19 CO#1 PSI 2/17/2012 11,000 43% 4,750 4,100 37% 4,100 37% 6,900
VO

(4) 0 0

(5) Original & V.O. are input separately. 0 0

3,026,400 100% 3,019,000 3,016,050 100% 0 3,016,050 100% 10,350

Grand Total (Contracted) 6,905,786 98% 6,735,200 5,837,577 85% 0 5,837,577 85% 1,068,209
〈決算状況　Kessan 〉
N(a) Vo(N) NET (N(b)) S(ｂ)

M 1,886,175,719 0 1,886,175,719

T 1,391,005,000 0 10,804,712
Ｃ
Ｏ
Spot 291,151,000 291,151,000
Ｓ
Ｔ
Contingency 61,387,000 61,387,000

TOTAL 1,743,543,000 0 1,743,543,000

7.56% #DIV/0! 7.56% #DIV/0!

CR
142,632,719 0 142,632,719 0
Copy from G1 Copy from Budget
１．取極実績 Contracted items
 取極状況一覧表（決算検討シート内訳資料） 工事名： AA工場新築工事 Regional GM PM 作成日　As of

Subcontract List(Project P/L Report Detail) (Input cells)

Project 28-Jun-2012
Name：
〈決算状況　Kessan 〉 〈取極状況集計欄 N-S-T Summary〉 UNIT：MYR
N(a) Vo(N) NET (N(b)) S(ｂ) S(b)
T Ratio NET T T/N Disc. Q Q／Ｎ N-Q
M 15,000,000 3,240,000 18,240,000 18,240,000 S(b)/N

T 7,758,772 3,045,940 10,804,712 10,470,940

Ｃ 1. 取極実績
64% 6,905,786 98% 6,735,200 5,837,577 85% 0 5,837,577 85% 1,068,209
Ｏ
Spot 5,355,449 5,355,449 5,355,449
Contracted
Ｓ
Ｔ
Contingency 1,046,620 1,046,620 1,046,620
2. 取極予定
36% 3,898,926 96% 3,735,740 3,930,547 101% 0 3,930,547 101% -31,621
TOTAL 14,160,841 3,045,940 17,206,781 16,873,009
To be Contracted

6% 6% 6% 7.5%
CR Total 100% 10,804,712 97% 10,470,940 9,768,124 90% 0 9,768,124 90% 1,036,588
839,159 194,060 1,033,219 1,366,991

１．取極実績 Contracted items

Contract JOB Cost

No.
Number CODE Factor Item Subcontractor Date(expected) of NET S(b) T T/N Discrepancy Q
Q／Ｎ
N-Q
Cont.Award S(b)/N

(1) 0001 20 3 Origial-SC Design Davis & Church 4/13/2012 864,000 100% 864,000 864,000 100% 864,000 100% 0

(2) 0002 01 3 CO#1-Survey Hayes, James & Associates 5/14/2012 900 720 720 -720

(3) 0003 06 3 Origial-SC earth work Bradcole construction 6/1/2012 2,963,386 94% 2,800,000 1,910,520 64% 1,910,520 64% 1,052,866

(4) 0004 23 4 Original PO-4D Simulation Pinnacle Infotech Inc 6/4/2012 7,000 90% 6,300 6,300 90% 6,300 90% 700

(5) 0005 19 3 Original PO-Quality Control PSI Kennesaw 6/5/2012 45,000 100% 45,000 39,987 89% 39,987 89% 5,013

(6) 0 0

(7) 0 0

ORIGINAL
(8) 0 0

(9) 0 0

(10) 0 0

(11) 0 0

(12) 0 0

(13) 0 0

(14) 0 0

(15) 0 0

3,879,386 96% 3,716,200 2,821,527 73% 0 2,821,527 73% 1,057,859

(1) 19 Original PO-Survey PSI 1/27/2012 3,000,000 100% 3,000,000 3,000,000 100% 3,000,000 100% 0

(2) 19 Original PO-Survey Hayes, James & Associates 1/27/2012 15,400 93% 14,250 11,950 78% 11,950 78% 3,450

(3) 19 CO#1 PSI 2/17/2012 11,000 43% 4,750 4,100 37% 4,100 37% 6,900
VO

(4) 0 0

(5) 0 0

3,026,400 100% 3,019,000 3,016,050 100% 0 3,016,050 100% 10,350

Grand Total (Contracted) 6,905,786 98% 6,735,200 5,837,577 85% 0 5,837,577 85% 1,068,209
 Budgetary Control Sheet

Summary of Revised Budget (Payable sheet)

Budget Form

Revised Budget (Payable for each job-code)

Budgetary Control Sheet

S(a)=Budget Form

S(b)=S(a)+VO+Budget Shifting
S(b)=S1+S2+S3
S1:Budget
Q=Paidfor
+ Payable
Subcontracted Items

T: Subcontract Amount

T-S1: Positive=Loss, Negative=Profit

Paid amount for contracted items
Balance=T-Paid

Discrepancy=Payable-Balance
Difference between Q and T
Positive: Loss
Negative: Profit
Review Payable Amount for Contingency

1.Cost Control & Reporting Purpose

2.Tax Audit (Japan) Purpose

(Only for Shimizu direct projects)
 薄黄色のセルに入力してください。
(原価の内訳 / Breakdown of Q） その他のセルは数式が入っているので入力不要。
1. 取極実績 /Contract(T) 単位： IDR 1,000,000
工事名 業者名 原価ｺｰﾄﾞ 取極S1 取極T 取極差損益 取極差損益の理由
Job Code NET S1/N
Works Subcontractor Contract S Contract T T－S1 Reasons for Profit/ Loss
1 Temp Matl & Work Various 01A, B, C 8,440 93% 7,889 8,076 損 186
2 Equipment Various 02A,B,C,D 4,329 103% 4,439 5,425 損 986
3 Piling Various 03A,B,C 9,418 96% 9,058 10,078 損 1,020
5 Concrete Various 05A,B 7,378 90% 6,640 6,662 損 22
6 Earth Work Various 06C 5,876 89% 5,222 5,972 損 750
7 Form Work Legno 07C 1,842 95% 1,743 2,158 損 415
8 Rebar & steel Structure Various 08A, B, C 23,494 88% 20,775 26,411 損 5,636
10 Metal Roof & Cladding HBA 10C 9,168 83% 7,635 8,452 損 817
12 Tile Work KKI, Satyalanggeng 12C 709 90% 638 879 損 241
14 Door & Window Various 14C 2,995 89% 2,655 2,751 損 96
17 Brick & Plastering Kharisma 17C 1,112 160% 1,779 1,674 益 -104
18 Steel Paint Finish Cv. Keong 18C 1,099 90% 989 839 益 -150
19 Misscellaneous Work Various 19C 10,738 89% 9,518 9,848 損 329
20 M&E Various 20A 75,175 96% 71,861 73,913 損 2,051
21 Expenses Various 21,22,23 1,227 109% 1,341 1,390 損 49
計 Total 163,000 93% 152,182 164,528 損 12,345 S1/(S1+S3)＝ 95%
予備費の状況 / Contingency 差引増減 / Balance 0 0 0 0
※実行予算で設定した予備費の増減、及び現状を踏まえ必要な予備費項目を記載する。必要に応じて計算根拠を記載して下さい。
項目と設定根拠 予算 決算Q 増減 見込
No. N MIN MAX
Item, Reason S Q Ｑ－Ｓ MIKOMI

1 Original Contingency (Net) 3,567 3,567 3,567 0 3,567 3,567 3,567

2 Procurement Contingency 0 4,617 4,617 0 4,617 4,617 4,617

3 M&E ;Repair for completion & subcon claim

4 Repair for completion( Civil- Epoxy,etc)

合　計
Total
3,567 8,184 8,184 0 8,184 8,184 8,184
予備費の状況 / Contingency 差引増減 / Balance 0 0 0 0
※実行予算で設定した予備費の増減、及び現状を踏まえ必要な予備費項目を記載する。必要に応じて計算根拠を記載して下さい。
項目と設定根拠 予算 決算Q 増減 見込
No. N MIN MAX
Item, Reason S Q Ｑ－Ｓ MIKOMI

1 Original Contingency (Net) 3,567 3,567 0 -3,567 0 0 0

2 Procurement Contingency 0 4,617 600 -4,017 600 300 0

Additional Claim from Subcontractor

3
(Please specify name of work)
0 500 500 500 300 0

4 Repair work for completion (Epoxy,etc) 0 500 500 500 300 0

5 Labour for Cleaning before handing over 0 300 300 300 0 0

6
Add actual items
合　計
Total
3,567 8,184 1,900 -6,284 1,900 900 0
 AA Project As at End, Jan-15

Job Code : 99 Item : Currency： IDR

Supplier and/or Contr Budget(S) Discrepancy Contract(T) Discrepancy Revised Budget
No Sub-Contractor No Description Unit Qty Rate Amount T/S2/S3 T-S Q-T Contract Spot To Be Contr
0.00 0.00 0.00
0.00 0.00 0.00
Contingency 0.00 0.00 0.00
1 Original Contingency LS 1.0 3,567,000.00 3,567,000.00 S2 0.00 -3,567,000.00
2 Procurement Contingency LS 1.0 4,617,000.00 4,617,000.00 S2 0.00 -4,017,000.00 600,000.00
（Direct work × 10％） 0.00 S2 0.00 0.00
3 Additional Claim from Subcon LS 1.0 0.00 0.00 S2 0.00 500,000.00 500,000.00
・Concrete work T600→FA700 0.00 S2 0.00 0.00
・Miscellaneous T500→FA800） 0.00 S2 0.00 0.00
4 Repair work before completion LS 1.0 0.00 0.00 S2 0.00 500,000.00 500,000.00
5 Labour for Cleaning before handing over LS 1.0 0.00 0.00 S2 0.00 300,000.00 300,000.00

Total For 99 Other 8,184,000.00 0.00 -6,284,000.00 0.00 1,900,000.00 0.00

SHIMIZU internal terms for cost control

M Contract Sum Original contract sum + adjustments according to variation orders.

N Estimate Project Estimated project cost in relation to contract sum (M) at the time the
Cost contract scope is finalized.
(Net)
A working budget based on CR1 (S=M-CR1) broken down into job
S Initial Budget
codes, contract/spot, and currency.

Sub-Contract
T Amount
Contracted Sum to sub-contractors.

Profit/Loss The difference between Contract S and Sub-Contract amount.

S-T from Sub-Contract S-T = Initial Budget (S) - Sub-Contarct Amount (T)
Q = Paid amount + Payable amount
Q Project Cost During the construction period, Q fluctuates according to the estimation of
payable amount.
Estimated profit in relation to initial contract sum (M).
NR Estimate Profit
NR = Contract Amount (M) - Cost upon estimation (N)

CR = Contract Sum (M) - Project Cost (Q)

CR Profit
CR = CR1 + CR2

CR1 Target Profit Target profit (inclusive of NR) set by management.

CR2 Additional Profit Profits in addtion to CR1.

Fin