FINANCIAL STATEMENTS

- For Design
o Balance sheet - provides a snapshot of a ▫ Aesthetics
firm’s financial position. ▫ Functionality
o Income statement – summarizes a firm’s ▫ Safety
revenues and expenses. ▫ Cost
o Statement of retained earnings - shows how - For Construction
much of the firm’s earnings were retained, ▫ Workmanship
rather than paid out as dividends. ▫ Integrity
o Statement of cash flows - reports the impact ▫ Completion time in the project according
of a firm’s activities on cash flows. to clients’ requirements
ASSETS o Quality Control (QC). To fulfill requirements for
o Current Assets: quality. To ensure a product or a service meets
- Cash specifications.
- Accounts Receivables o Quality Assurance (QA). All those
- Inventories planned and systematic actions
o Fixed Assets: necessary to provide adequate
- Land confidence that a product or service
- Buildings will satisfy given requirements for
- Vehicle quality.
- Furnishings/Equipment
- Equipment
LIABILITIES
o Short Term Liabilities:
- Accounts payables
- Notes payables (short term loan)
- Accrued expenses
o Long Term Liabilities:
- Loans payables (more than 1 yr.)
EQUITY
o Equity:
- Common Stocks
- Retained Earnings
CASH FLOW
o Cash-In Flow
- Sources of Funds
▫ Capital Investment
▫ Project Revenue
· Down payment
· Progress Billings
▫ Short term/Long term Loans
o Cash Out Flow
- Uses of Funds
▫ Operating
▫ Direct materials
▫ Direct Labor
▫ Equipment rental
▫ Project Overhead
- Financing
▫ Loan Payment
- Investing
▫ Purchase of Land
▫ Purchase of Equipment

CONSTRUCTION PROJECT QUALITY

MANAGEMENT

o Quality Management - is a method for ensuring

that all the activities necessary to design, develop and
implement a product or service are effective and
efficient with respect to the system and its
performance.
o Four Main Component of
Construction Project Quality Management
1. Quality Planning - Involves identifying which
quality standards are relevant.
2. Quality Assurance (QA) – provide confidence in a
product's suitability. To ensure that products
satisfy customer requirements.
3. Quality Control (QC) - ensure products or services
are designed and produced to meet or exceed
customer requirements.
4. Quality Improvement - These cover product
improvement, process improvement and people-
based improvement.
QUALITY CONCEPTS
o Quality. The totality of features and
characteristics of a product.