FINANCIAL

MANAGEMENT

FINANCIAL STATEMENTS
In all businesses, financial statements
are important for reflecting the financial
health of a company. The construction
industry is without exception. Among
various financial statements, two of
them are the most important ones.
They are INCOME STATEMENT (or
called PROFIT & LOSS STATEMENT)
and BALANCE SHEET.

INCOME STATEMENT
An income statement shows the profit
made or the loss incurred by a
company in a period of time (usually
one year), and that is why it is
sometimes also called a profit and
loss account. The purpose of the
income statement is to show whether
or not a companys business is
profitable.

BALANCE SHEET
A balance sheet shows a companys
financial position as at a point of time
(usually the last date of the companys
fiscal year), like a snap shot picture of
the companys financial situation at
that particular time point. There are
three major items in a balance sheet:
ASSETS, LIABILITIES, and EQUITY ( or
called NET WORTH).

PROJECT
RECORDS AND
FILES


FILING SYSTEMS FOR
CONSTRUCTION PROJECTS
A well-developed filing system is a crucial
element of good construction project
management. For this reason, most
construction companies adopt a standard
file identification and coding system or
uniform filing system. A coded system
makes file management significantly
easier and facilitates communication
between interested parties.

HOW TO MANAGE FILING

SYSTEMS FOR CONSTRUCTION
PROJECTS?
1.ESTABLISH

A FRAMEWORK

2.SET

THE SCOPE

3.FILE

MANAGEMENT PROCESS

4.MAINTAINING

SECURITY

SUCCESS
INDICATORS

PERFORMANCE
MEASUREMENT
Performance measurement is an integral
part of business management. By
championing key company and project
aims, managers are more likely to achieve
success. But the only way of knowing
whether those goals are being delivered is
by identifying indicators of their success
and using them to keep an eye on the way
the business is performing. We call
theseKEY PERFORMANCE INDICATORS.

BENCHMARKING
Performance measurement
demonstrates whether you're
achieving continuous improvement.
But particularly when you're new to
measurement, it can be hard to know
whether the scores you're achieving
are any good or not. Benchmarking
provides a 'yardstick' by which to
judge your performance.

SAMPLE KPI'S

O CLIENT SATISFACTION
O DEFECTS
O CONSTRUCTION TIME & COST
O PRODUCTIVITY
O PROFITABILITY
O EMPLOYEE SATISFACTION