CPCCBC5002A - Task 1

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CPCCBC5002A 
Monitor costing systems on medium rise building and construction projects 
Student Assessment Booklet 
Task 1 
Table of Contents 
Table of Contents.............................................................................................................................. 1 About the unit of competency........................................................................................................... 2 Unit descriptor......................................................................................................................................2 Application of the unit ..........................................................................................................................2 Elements and Performance Criteria Pre-Content..............................................................................2 Instructions to Assessor .................................................................................................................... 3 Assessment instructions .......................................................................................................................3 Observation/Demonstration ............................................................................................................. 3 Group Activities................................................................................................................................ 4 Assessment Task 1 Cover Sheet......................................................................................................... 5 Assessment task 1: Written Questions............................................................................................... 6 (Knowledge-based Assessment) ........................................................................................................ 6 Written Questions (Knowledge-based Assessment) ........................................................................... 7 Question 1A ..........................................................................................................................................7 Question 1B...........................................................................................................................................7 Question 1C...........................................................................................................................................7 Question 1D ..........................................................................................................................................8 Question 2A ..........................................................................................................................................8 Question 2B...........................................................................................................................................8 Question 3A ..........................................................................................................................................9 Question 3B...........................................................................................................................................9 Question 3C...........................................................................................................................................9 Question 3D ..........................................................................................................................................9 Question 3E........................................................................................................................................ 10 Question 4A ....................................................................................................................................... 10 Question 4B........................................................................................................................................ 10 Question 4C........................................................................................................................................ 10 Question 4D ....................................................................................................................................... 11 Question 4E........................................................................................................................................ 11 Question 5A ....................................................................................................................................... 11 Question 5B........................................................................................................................................ 12
CPCCBC5002A Monitoring costing systems on medium rise building and construction projects Assessment Booklet – Task 1 
Version 2.0 July 2021, Approved Quality assurance & Compliance Manager 
Pan Bird Pty Ltd t/a Tr4in Right l RTO Code 22281 l CRICOS Code 03618G Page 1 of 14 Copyright © 2021 Tr4in Right 
About the unit of competency 
Unit descriptor 
This unit of competency specifies the outcomes required to monitor building or construction costing systems. The processes and practices involved in supervising and monitoring costing systems result in the ongoing maintenance of cost control and the production of expenditure schedules and other arrangements, which ensure contracts or projects remain on budget. 
In order to achieve the outcomes for this unit, knowledge of relevant legislation, codes and standards, industry estimating and costing systems, and financial principles is required. 
Application of the unit 
This unit of competency supports the needs of builders, senior managers in building and construction firms, and other construction industry personnel responsible for monitoring building or construction costing systems for medium rise building and construction projects. 
Pre-requisite units: nil 
Elements and Performance Criteria Pre-Content 
Elements describe the essential outcomes of a unit of competency 
Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide. 
Elements and Performance Criteria
	ELEMENT 
	PERFORMANCE CRITERIA
	1. Supervise the 
identification and 
classification of 
project costs.
	1.1. Staff members are supervised in their identification of building or construction costs and accurate estimates are made from project schedules. 
1.2. Definitive cost estimates are accurately translated into the correct cost centres appropriate to contract requirements. 
1.3. Cost centres are correctly identified and incorporated into a planned project cost network. 
1.4. Risk assessment is undertaken and estimated cost is compared with estimated risk. 1.5. Planning ensures compliance with relevant codes of practice, standards and legislative requirements.
	2. Manage the 
preparation of a 
schedule of project 
expenditure.
	2.1. Draft schedules of project expenditure are prepared with critical points identified. 2.2. Expenditure schedules are prepared using organisational processes, and hard copies are produced. 
2.3. Critical financial phases of the project are identified and cash flows are matched to expenditure.
	3. Prepare curves 
showing projected 
cash flow and 
payments.
	3.1. Interim payment claims and rise and fall calculations are prepared for the contractor and subcontractors. 
3.2. Projected S curve is prepared to show cash flow and resource control.
CPCCBC5002A Monitoring costing systems on medium rise building and construction projects Assessment Booklet – Task 1 
Version 2.0 July 2021, Approved Quality assurance & Compliance Manager 
Pan Bird Pty Ltd t/a Tr4in Right l RTO Code 22281 l CRICOS Code 03618G Page 2 of 14 Copyright © 2021 Tr4in Right 
	
	3.3. Projected cash flow and payments using time riskand cost risk are prepared and compared. 
3.4. Cash flows using early start and late finish for pessimistic or optimistic outcomes are compared. 
3.5. Pessimistic overdraft requirements are calculated.
	4. Maintain 
continuous checks 
on expenditure and evaluate outcomes.
	4.1. Cash flow and creditor payments are monitored daily. 
4.2. Budget cost of the network is compared to actual costs in the tender calculations. 4.3. Rise and fall clause calculations are undertaken and financial controller is advised of variations. 
4.4. Reasons for any cost variations are analysed and identified. 
4.5. Remedial action is taken and recorded as necessary to retain contract financial compliance.
	5. Prepare final cost report.
	5.1. Actual costs are compared with estimates at the completion of the job and a report is compiled detailing future actions. 
5.2. Organisational rates are adjusted as required, based on the final cost report and current movements in prices and rates.
Instructions to Assessor 
Assessment instructions 
For all assessment instructions, please refer to the Assessment Instructions which is a separate document but is a part of all documents related to this unit including this Student Assessment Booklet Assessment Task 1. 
Observation/Demonstration 
Throughout this unit, you will be expected to show your competency of the elements through observations or demonstrations. Your trainer/assessor will have a list of demonstrations you must complete or tasks to be observed. The observations and demonstrations will be completed as well as the activities found in this assessment booklet. An explanation of observations and demonstrations: 
Demonstration is off-the-job (applicable) 
A demonstration will require: 
⮚ Performing a skill or task that is asked of you 
⮚ Undertaking a simulation exercise. 
Observation is on-the-job (not applicable) 
The observation will usually require: 
⮚ Performing a work based skill or task 
⮚ Interaction with colleagues and/or customers. 
Your trainer/assessor will inform you of which of the activity tasks would require a demonstration. The observation/demonstration will take place in the training environment, depending on the task to be undertaken and whether it is an observation or demonstration. Your trainer/assessor will ensure you are provided with the correct equipment and/or materials to complete the task. They will also inform you of how long you have to complete the task. 
You should be able to demonstrate the skills, knowledge and performance criteria required for competency in this unit, as seen in the Learner Guide.
CPCCBC5002A Monitoring costing systems on medium rise building and construction projects Assessment Booklet – Task 1 
Version 2.0 July 2021, Approved Quality assurance & Compliance Manager 
Pan Bird Pty Ltd t/a Tr4in Right l RTO Code 22281 l CRICOS Code 03618G Page 3 of 14 Copyright © 2021 Tr4in Right 
Group Activities 
If activities have been completed as part of a small group or in pairs, details of the learners involved should be provided below: 
This assessment workbook has been completed by the following persons and we acknowledge that it was a fair team effort where everyone contributed equally to the work completed. We declare that no part of this assessment has been copied from another person’s work with the exception of where we have listed or referenced documents or work and that no part of this assessment has been written for us by another person. Learner 1: ____________________________________________________________ 
Signed: ____________________________________________________________ Learner 2: ____________________________________________________________ Signed: ____________________________________________________________ Learner 3: ____________________________________________________________ Signed: ____________________________________________________________
CPCCBC5002A Monitoring costing systems on medium rise building and construction projects Assessment Booklet – Task 1 
Version 2.0 July 2021, Approved Quality assurance & Compliance Manager 
Pan Bird Pty Ltd t/a Tr4in Right l RTO Code 22281 l CRICOS Code 03618G Page 4 of 14 Copyright © 2021 Tr4in Right 
Assessment Task 1 Cover Sheet 
Students: Please fill out this cover sheet clearly and accurately. Make sure you have kept a copy of your work. 
	Name: Vinicius Bulhoes 
	Date of submission: 23/07/2022
	Assessor to complete
	Assessment Requirements 
	Satisfactory/ Not 
satisfactory 
	Date
	Was this a 
re 
submission? Y/N
	If yes, what 
attempt?
	Assessment Task 1: Written Questions (Knowledge-based assessment)
	
	
	
	1st attempt ___
	
	
	
	
	2nd attempt ___
	
	
	
	
	Re-assessment ___
STUDENT DECLARATION 
I Vinicius Bulhoes___________________________________________ declare that these tasks are my own work. 
🗹 None of this work has been completed by any other person. 
🗹 I have not cheated or plagiarised the work or colluded with any other student/s. 🗹 I have correctly referenced all resources and reference texts throughout these assessment tasks. 
🗹 I understand that if I am found to be in breach of policy, disciplinary action may be taken against me. 
Student signature: Vinicius Bulhoes______________________________________________________ Student name: Vinicius Bulhoes_________________________________________________________
CPCCBC5002A Monitoring costing systems on medium rise building and construction projects Assessment Booklet – Task 1 
Version 2.0 July 2021, Approved Quality assurance & Compliance Manager 
Pan Bird Pty Ltd t/a Tr4in Right l RTO Code 22281 l CRICOS Code 03618G Page 5 of 14 Copyright © 2021 Tr4in Right 
Assessment task 1: Written Questions 
(Knowledge-based Assessment) 
TASK SUMMARY: 
To provide you with an opportunity to show you have the required knowledge 
for this unit. 
RESOURCES AND EQUIPMENT REQUIRED TO COMPLETE THIS TASK 
▪ Access to textbooks and other learning materials. 
▪ Access to a computer and the Internet (if you prefer to type your 
answers). 
WHAT NEEDS TO BE SUBMITTED? 
∙ Your answers to all questions. 
∙ Complete the Student’s Self-evaluation Checklist 
WHAT HAPPENS IF I GET SOMETHING WRONG? 
If your assessor marks any of your answers as incorrect, they will talk to you about resubmission. You will need to do one of the following: 
∙ Type the questions that were incorrect and resubmit. 
INSTRUCTIONS: 
For the assessments to be completed in class (either during online class or face-to-face class) or after class: 
▪ They are open-book assessments. 
▪ You must submit your answer electronically or via email to your trainer. 
▪ You must answer all questions in the tasks correctly. 
▪ One-word responses will not be accepted as a suffice answer. 
▪ Where word limits are indicated on certain questions, it is normally acceptable to be 10% above or below the indicated word limit, unless the trainer/assessor tells you otherwise. 
CPCCBC5002A Monitoring costing systems on medium rise building and construction projects Assessment Booklet – Task 1 
Version 2.0 July 2021, Approved Quality assurance & Compliance Manager 
Pan Bird Pty Ltd t/a Tr4in Right l RTO Code 22281 l CRICOS Code 03618G Page 6 of 14 Copyright © 2021 Tr4in Right 
Written Questions (Knowledge-based Assessment) 
Complete the following activities individually or in a group (as applicable to the specific activity and the assessment environment). 
A signed observation by the assessor will need to be included in these activities (via the Assessment Record Tool) as proof of completion. 
Write 300 words explaining your organisation’s resource supply system. 
Question 1A 
	Estimated Time Objective 
	30 Minutes 
To provide you with an opportunity to list costs relevant to a building or construction project and explain how project schedules can help to make accurate estimations 
1. Make a list of five (5) different costs relevant to a building or construction project. 
· Costs associated with human resources, including payfor direct workers and contractors. 
· Materials including bricks, concrete, bitumen, sand, aggregate, roofing, and reinforcing. 
· Overhead expenses, such as office supplies, electricity, lighting, housing, and rent.
· Plant and equipment lease or purchase, as well as operational expenses. Relevant laws, regulations, and codes.
2. Explain how a project schedule can help you to estimate the cost of a project accurately.
 You must start your estimations after identifying the prospective project costs. A project schedule is a crucial document that will assist you in identifying and estimating expenditures. A project schedule is simply an outline of the project, as you are probably already aware. A project schedule should include expected start and end dates for each activity as well as for the completed project. It will primarily focus on the milestones the project aims to reach. A project schedule should also enable you and your team to estimate the cost of the entire project with accuracy.
Question 1B 
	Estimated Time Objective 
	45 minutes 
To provide you with an opportunity to explain what a cost centre is and produce an example of a cost network diagram 
1. In no more than 50 words, explain what a cost centre is. Refer to specific examples within your answer. 
 A department or unit of an organisation that will increase organisational expenses but may or may not increase revenue is referred to as a cost centre. It is crucial to make precise projections of where specific expenditures will come from since tracking spending is the main purpose of identifying cost centres. For instance, if a graphic designer is needed for a building project, you should forecast how much this would cost, and this may then be delegated to the department where the graphic designer works.
2. Produce an example of a cost network diagram.
Question 1C
	Estimated Time Objective 
	30 Minutes 
To provide you with an opportunity to identify the purpose of undertaking a cost-risk assessment and list potential cost-related risks 
1. What is the purpose of undertaking a cost-risk assessment? Present your answer in no more than 40 words. 
 
 You may estimate any potential unforeseen expenses by doing a cost-risk analysis. This process phase is crucial because it will enable you to plan for any unforeseen events and put measures in place that seek to prevent the possibility of running out of money midway through a project. When estimating project costs on behalf of a client, it's critical to be open and honest about your assumptions and to explain to them which expenses pertain to which factors, including any reserves that have been made. 
2. List four (4) potential cost-related risks.
· Broken or damaged materials
· Fluctuating cost of materials 
· Staff shortages (prolonging the project) 
· Delays – in delivery of materials, or weather dependent work, for example
CPCCBC5002A Monitoring costing systems on medium rise building and construction projects Assessment Booklet – Task 1 
Version 2.0 July 2021, Approved Quality assurance & Compliance Manager 
Pan Bird Pty Ltd t/a Tr4in Right l RTO Code 22281 l CRICOS Code 03618G Page 7 of 14 Copyright © 2021 Tr4in Right 
Question 1D 
	Estimated Time 
	90 minutes
	Objective 
	To provide you with an opportunity to outline the codes of practice, standards and legislative requirements relevant to planning building and construction projects
	
	In no more than 300 words, outline the codes of practice, standards and legislative requirements which are relevant to planning building and construction projects.
codes of conduct
Codes of practise are guidelines that anyone practising a certain
profession must abide by. For construction work, Safe Work Australia,
for instance, establishes a Model Code of Practice.
The following details are highlighted in this model code of practise:
Particular responsibilities related to building work
How to control hazards associated with building work
Statements of Safe Work Methods
WHS management strategies for building projects
Information, education, training, and supervision.
Standards
For example, in the 2016 volume 1 of the BCA (Building Codes of
Australia) references to standards
include:
⮚ AS ISO 717:2004 Acoustics – rating of sound insulation in buildings
and building elements
AS/NZS 1170 Structural design actions
(2002 – Part 0 and 1, 2011 – Part 2
and 2003 – Part 3)
⮚ AS 1170 Structural design actions
(Earthquake actions in Australia)
⮚ AS1191:2002 Acoustics – method for
laboratory measurement of airborne
sound insulation of building elements
⮚ AS 1288:2006 Glass in buildings –
selection and installation
⮚ AS/NZS 1428:2009 Design for access and mobility.
Volume 2 of the BCA includes the following references to standards:
⮚ AS/NZS 1170 Structural design actions (2002 – Part 0 and 1, 2011 –
Part 2 and 2003 –
Part 3)
⮚ AS 1170 Structural design actions (Earthquake actions in Australia)
⮚ AS 1273:1991 Unplasticised PVC (UPVC) downpipe and fittings for
rainwater
⮚ AS 1289:1997 Methods of testing soils for engineering purposes
⮚ AS 1562:1992 Design and installation of sheet roof and wall cladding
⮚ AS 1668:2012 The use of ventilation and air conditioning in buildings.
Building legislation includes the following:
⮚ Victoria – Building Act 1993 and Domestic Building Contracts Act 1995
⮚ New South Wales – Home Building Act 1989
⮚ Australian Capital Territory – Building Act 2004, Construction
Occupations (Licensing)
Act 2004 and Building and Construction Industry Training Levy Act 1999
⮚ Northern Territory – Building Act
⮚ Queensland – Queensland Building and Construction Commission Act
1991
⮚ South Australia – Building Work Contractors Act 1995
⮚ Western Australia – Building Act 2011, Building Services (Complaint
Resolution and
Administration) Act 2011, Building Services (Registration) Act 2011,
Local Government
(Miscellaneous Provisions) Act 1960 and Home Building Contracts Act
1991
⮚ Tasmania – Building Act 2000 and Housing Indemnity Act 1992.
Question 2A 
	Estimated Time 
	60 Minutes
	Objective 
	To provide you with an opportunity to identify examples of project expenditure, list information which a schedule of project expenditure should include and demonstrate how to present an expenditure schedule
	
	A signed observation by either an approved third party or the assessor will need to be included in this activity as proof of completion. 
1. Identify four (4) examples of project expenditures. 
· Consumables, such as fuel and lubricants, electric power and water 
· Costs of pre-cast and on-site production of concrete components 
· Labour costs against estimated costs
· Labour hours consumed against estimates 
2. List three (3) pieces of information which a schedule of project expenditure should include. 
· Amount of payment 
· Details of the payee 
· Nature of the payment – it will be good to be specific here, so you know exactly what the payment is referring to
3. Demonstrate how to present an expenditure schedule.
Question 2B
	Estimated Time 
	60 Minutes
	Objective 
	To provide you with an opportunity to reflect back on a previous project and outline the critical financial phases, select one of the critical phases identified and break this down into smaller phases and explain why it is important to match cash flows and expenditures
	
	1. Reflect back to a previous project which you have worked on, outline the critical financial phases which were identified. 
2. Select one of the critical phases identified in the previous question and break this down into smaller phases. 
3. Why is it important to match cash flows and expenditure? Explain in no more than 40 words.
 Making ensuring that cash flows and expenditures are matched is the last step in creating a spending schedule. This relates to making sure that your incoming payments match up with your outgoing payments; a negative cash flow is the main issue you are trying to prevent. Wherever feasible, it could be a good idea to combineyour incoming and departing payments. As was said in the previous section, if you are working with an outside customer, they could pay you in instalments. In this instance, it would be a good idea for you to schedule your expenses around when these instalments would be paid. By doing this, you should be able to avoid using your own funds for payment and make sure that all of your payments are profitable.
CPCCBC5002A Monitoring costing systems on medium rise building and construction projects Assessment Booklet – Task 1 
Version 2.0 July 2021, Approved Quality assurance & Compliance Manager 
Pan Bird Pty Ltd t/a Tr4in Right l RTO Code 22281 l CRICOS Code 03618G Page 8 of 14 Copyright © 2021 Tr4in Right 
Question 3A 
	Estimated Time 
	90 Minutes
	Objective 
	To provide you with an opportunity to explain what interim payments are considering when they should be paid and the amount of payment, explain why it is beneficial for an organisation to include a rise and fall clause within a fixed price contract and identify reasons for rises or falls in the costs of a project
	
	1. What are interim payment claims? Consider when they should be paid and the amount of these payments within your answer. Explain in no more than 100 words. 
 A payment that will be made before the whole amount of the payment has been determined or satisfied is referred to as an interim payment claim. When a contractor or subcontractor needs partial payment to continue providing services, such as when they must pay labour rates before the project's completion date, interim payments are more likely to happen. When ought interim sums to be paid? In the majority of situations, it will likely be predetermined that interim payments will be given on specific dates. It will make sense to organise these dates in accordance with a project's milestones, or the times when specific phases are complete. For instance, you would pay the contractor the agreed-upon sum after the wiring of a building was finished. By following these steps, you'll be able to keep track of your payments more easily and remember when expenses are due. What should the interim payment amount be? The amount required to be paid will often be based on the value of work that has been completed up to that time, in accordance with the schedule of interim payments. In general, you shouldn't pay for work that hasn't been finished, but in specific circumstances, an advance payment may be a requirement of the contract between you and the contractor. 
2. Explain why it is beneficial for an organisation to include a rise and fall clause within a ‘fixed price’ contract. 
 The relationships that are in place for the project are likely to help you establish your accountability for rising and falling expenses. For instance, in a "fixed price" contract, as the name implies, the price stated in the contract is the final amount that will be paid; changes cannot be made. This indicates that your organisation will be liable for paying the difference between the price specified in the contract and the new prices of materials if prices do change, such as when the cost of materials increases.
3. Identify two (2) reasons for rises or falls in the costs of a project.
Due to the rise in cost of materials 
Due to rise in labour cost or shortage of labour
Question 3B 
	Estimated Time 
	45 Minutes
	Objective 
	To provide you with an opportunity to explain what an S curve is and create an S curve using the relevant resources
	
	A signed observation by either an approved third party or the assessor will need to be included in this activity as proof of completion. 
1. What is an S curve? 
A graphing technique called a S curve may be used to visually represent community expenditures and/or resources. An S curve is used to monitor a project's advancement over time.
2. Create an S curve using the relevant resources showing the expected cash flow or resource control of a project.
Question 3C 
	Estimated Time 
	30 Minutes
	Objective 
	To provide you with an opportunity to list examples of projected cash flow and payments and reflect back on a previous project and identify cost or time risks which were identified
	
	1. Make a list of five (5) examples of projected cash flow and payments. 
· Progress payments in for work completed 
· Progress payments out for work undertaken 
· Progress payments for supplies and materials 
· Penalties 
· Wages and salaries 
2. Reflect back on a previous project you have worked on and identify any cost or time risks which were identified.
 Time risks were identified because of covid-19 and due lockdown, our company was unable to work. 
Question 3D
	Estimated Time 
	60 Minutes
	Objective 
	To provide you with an opportunity to identify one reason why a project may start early and one reason why a project may finish late and demonstrate how to present a project schedule to help identify the effect of disruptions
	
	1. Identify one reason why a project may start early. 
The earliest day a project may start is referred to as a "early start." Before a project can start, there are probably a number of things that must happen. For instance, you could need licence. The entire project may go forwards if these tasks are finished earlier than expected. When determining start and end dates, a project timeline will be helpful; each step of the project should have a time limit set as well as anticipated dates. 
2. Identify one reason why a project may finish late. 
The same rules that apply to early starters apply to late finishers. The project's other stages will need to be advanced to make up for any unexpected delays in one step. Always keep in mind that a negative cash flow will often be related with late finishers. No of the cause, being late at any point throughout a project will probably result in late payment. Even if it is sometimes impossible to avoid late completion, you should be ready for an impact to your income flow! 
3. Demonstrate how you may present your project schedule to help you identify where disruptions might affect your cash flow.
 Your schedule will most obviously be impacted by early beginnings and late finishes when it comes to planned payments. For instance, if various contractors are responsible for finishing different phases, you probably won't pay them on time if the job hasn't been finished. Similar to this, if you are working for a customer, they are unlikely to pay you the agreed-upon sum before the task at hand is finished. More cynically, if your project starts earlier than expected, your client could be prepared to pay you earlier than expected. Juggling your project will include early starts and late ends, and you'll do your best to make sure that Everything is effortless. Drawing out a table that shows your desired timetable could be a good idea; this will make it simpler for you to see where alterations are necessary and how they might effect your cash flow.
CPCCBC5002A Monitoring costing systems on medium rise building and construction projects Assessment Booklet – Task 1 
Version 2.0 July 2021, Approved Quality assurance & Compliance Manager 
Pan Bird Pty Ltd t/a Tr4in Right l RTO Code 22281 l CRICOS Code 03618G Page 9 of 14 Copyright © 2021 Tr4in Right 
Question 3E 
	Estimated Time 
	45 Minutes
	Objective 
	To provide you with an opportunity to explain the purpose of an overdraft and calculate overdraft requirements for a given scenario
	
	1. In no more than 30 words, explain the purpose of an overdraft. 
The biggest benefit of using an overdraft over other forms of borrowing money is that you can only use it when you actually need it. Loans, for instance, often include a single payment of a greater sum of money. With an overdraft, though, you may plan for it to be there should you need it, but you also have the choice not to use it if the project turns out better than predicted. This implies that you won't have to pay any additional fees associated with an overdraft, howeverif you take out a loan, you will have to pay interest whether you use the money or not.
2. You have identified that you will be $120 short for an upcoming payment. You have an agreed overdraft in place which charges $2 for each day the account is overdrawn, and you will not be paying this off for 26 days. 
 Calculate the final amount of the payment showing your workings.
$52 charge plus $120= $172
Question 4A 
	Estimated Time 
	45 Minutes
	Objective 
	To provide you with an opportunity to explain why it is important to monitor cash flow and creditor payments on a daily basis and demonstrate how to monitor cash flow and/or creditor payments according to organisational protocols
	
	1. Why is it important to monitor cash flow and creditor payments on a daily basis? Explain in no more than 30 words 
 Projects are by definition brief bursts of effort that serve an organization's overarching objectives. A lot may happen in a day, so even though daily monitoring may seem excessive, it's not! You may assist to guarantee that any errors are fixed as soon as possible by regularly monitoring cash flow and creditor payments. Payments can be made, missed, or forgotten.
2. Provide an example of how you monitor cash flow and/or creditor payments in your organisation.
Question 4B 
	Estimated Time 
	30 Minutes
	Objective 
	To provide you with an opportunity to calculate the difference between given cost networks and tender calculations
	
	Calculate the difference between the following cost network and tender calculations. Cost network: 
⮚ Design - $1,200 
⮚ Labour - $3,500 
⮚ Materials - $5,000. 
Tender calculations: 
⮚ Design - $1,300 
⮚ Labour - $4,200 
⮚ Materials - $4,800
For design, we need $100 to fund from our pocket 
For labour, we got profit of $700 
For materials, we need $200 to fund from our pocket
 Overall, we got $400 profit from this job 
Question 4C
	Estimated Time 
	30 Minutes
	Objective 
	To provide you with an opportunity to carry out rise and fall calculations
	
	Carry out the following rise and fall calculations showing your workings:
CPCCBC5002A Monitoring costing systems on medium rise building and construction projects Assessment Booklet – Task 1 
Version 2.0 July 2021, Approved Quality assurance & Compliance Manager 
Pan Bird Pty Ltd t/a Tr4in Right l RTO Code 22281 l CRICOS Code 03618G Page 10 of 14 Copyright © 2021 Tr4in Right 
	
	1. Your estimated cost of materials was $2,500. The supplier has increased their prices by 5%. What will the new price of materials be?
5% of $2500 is $125 and new price will be $2500+ $125=$2625 
2. Your price for an electrician was estimated at $35.00 per hour, and you booked in 40 hours of work. The actual hourly rate is $31.00. What is the difference between the estimated and actual cost?
The estimated cost was $35*40= $1400 
The actual price is $31*40= $1240 
With profit of $160 
Question 4D 
	Estimated Time 
	30 Minutes
	Objective 
	To provide you with an opportunity to list examples of cost variations and explain why it is important to analyse cost variations
	
	1. List four (4) examples of reasons for cost variations. 
· Time overruns 
· Change of plans 
· Design discrepancies 
· Misinterpretation of project plans.
 2. Explain in no more than 30 words why it is important to analyse cost variations.
As was discussed in the previous part, while analysing cost variations, you will first try to pinpoint the causes of cost changes before computing the difference between your initial estimates and the newly discovered cost. You should determine the cost of the new materials being used and compare it to the cost of the original materials, for instance, if there has been a change in the design plan and the materials being utilised.
Question 4E 
	Estimated Time 
	60 Minutes
	Objective 
	To provide you with an opportunity to summarise remedial action, explain how remedial action helps to retain contract compliance, list steps to remedial action and identify tips for dealing with a difficult situation regarding remedial action
	
	1. Summarise remedial action. 
Reworking and mending something in order to maintain its efficacy is referred to as remedial activity. In this instance, it will relate to altering or updating a project's financial information to take the price change into account.
2. Explain how remedial action helps to retain contract compliance. 
As previously noted, taking corrective action will assist in making sure that the project's financial information accurately represent all applicable expenses, including any cost variances. Making the necessary adjustments should help to guarantee that the customer continues to accept the project's financial parameters.
3. List three (3)steps to remedial action. 
Making sure cost fluctuations are fixed; otherwise, there is no use in planning adjustments if prices might alter at any time. Make sure the price you have determined is the final, set pricing. 
Contacting the client - the client should, of course, be contacted right away if there are any cost changes. Ideally, you should have informed them about any deviations earlier. If not, you must make sure you are giving them all the relevant facts so they can grasp what is happening. 
Keeping a note of modifications; any cost fluctuations must be reflected in your own records. You don't want to be sending out bills based on incomplete information with outdated charges since your organisation can be held liable for any unpaid balance.
4. You have contacted a client to let them know about the remedial action you have taken in accordance with cost variations. The client is not happy with the situation and is saying that they will not pay the new price you have stated. 
Identify three (3) tips which will help you to deal with this situation.
Remain composed; maintaining composure under pressure will be essential. You're dealing with money, and it's typical for people to become irate if they feel ripped off. Stick to the facts; by doing so, you will improve the possibility that the other person will grasp the issue. You know what action has been done and why this has occurred. Listen to the other person. Regardless of the circumstance, feeling as though we are not being heard will always make a situation more tense. If a challenging situation arises, allow the person time to express their ideas and concerns before responding.
Question 5A
	Estimated Time 
	60 minutes
	Objective 
	To provide you with an opportunity to identify one way to compare actual and estimated costs and explain how this is useful, identify what elements of a project may be considered when trying to improve future actions and list procedures to follow when writing a report
	
	1. Identify one way to carry out a comparison between actual and estimated costs and explain why this chosen method is useful. 
 The method of creating a project's final expenses will be covered in the unit's last part. Comparing your real prices to the estimates you've made will be the initial stage in this procedure. It will be beneficial to complete this activity towards the end of a project since you can be sure there won't be any unforeseen charges or pricing modifications. Putting these data into a table or spreadsheet will make the comparison easier to do. You'll be able to plainly notice the difference between the two expenses as a result. This will also enable you to save the information for later use. 
2. Reflect on a previous project you have worked on. What elements of this project might you consider when trying to improve future actions? 
 Your method(s) for calculating expenses How you handled creating the project expenditure schedule Your technique for creating curves that display anticipated cash flow and payments The procedure for conducting ongoing audits of expenses and outcomes. 
3. List three (3) procedures which you should follow when writing a report. 
Follow organisational policies and procedures. Your organisationprobably has rules in place to make sure that all reports are consistent. You should get assistance from the appropriate person if you are unclear of any specific protocols you need to follow.
 Use comprehensible language; even if a report has all necessary information, it will be nearly useless if it is worded incoherently. It will be easier for you to tell if it flows smoothly if you try reading it aloud to yourself. 
Before making your finalised copy of the report, proofread it to search for any grammatical or spelling issues. Simple errors are frequent and simple to make, yet if left uncorrected, they can appear unprofessional.
CPCCBC5002A Monitoring costing systems on medium rise building and construction projects Assessment Booklet – Task 1 
Version 2.0 July 2021, Approved Quality assurance & Compliance Manager 
Pan Bird Pty Ltd t/a Tr4in Right l RTO Code 22281 l CRICOS Code 03618G Page 11 of 14 Copyright © 2021 Tr4in Right 
Question 5B
	Estimated Time 
	60 minutes
	Objective 
	To provide you with an opportunity to list information which should be included in a final cost report and explain why organisational rates should be reflective of current movement in prices and rates
	
	1. List five (5) pieces of information a final cost report should include. 
Cost-benefit evaluations of overtime compensation 
Exhaustive summary comparing actual costs to projections 
Information on labour and contracting out savings and cost overruns 
Information on cost-saving measures or underspending on goods and supplies
 Efficiency and performance data for equipment.
2. In no more than 100 words, explain why it is important that organisational rates are reflective of current movement in prices and rates.
 Previous discussions of price and rate movement have also focused on rises and falls, such as inflation or wage growth. Your organization's prices need to change to reflect this trend. No matter how hard a customer protests a 1% rise, your organisation cannot afford to purchase goods before the cost of living increases. You may avoid losing money because of varying, outside-of-your-control conditions by making sure that your organization's pricing match the current market. 
CPCCBC5002A Monitoring costing systems on medium rise building and construction projects Assessment Booklet – Task 1 
Version 2.0 July 2021, Approved Quality assurance & Compliance Manager 
Pan Bird Pty Ltd t/a Tr4in Right l RTO Code 22281 l CRICOS Code 03618G Page 12 of 14 Copyright © 2021 Tr4in Right 
	FOR STUDENT TO COMPLETE
	Assessment Task 1 : Written Questions 
	Student’s self-evaluation checklist
	In completing this assessment task, I have developed knowledge and understanding of the following key topics: (Tick if completed)
	◻ Ti 
ck or X 
	1.
	costs relevant to a building or construction project and explain how project schedules can help to make accurate estimations 
	x
	2. 
	cost centre is and cost network diagram 
	x
	3. 
	purpose of undertaking a cost-risk assessment and potential cost-related risks 
	x
	4.
	codes of practice, standards and legislative requirements relevant to planning building and construction projects 
	x
	5.
	project expenditure, list information which a schedule of project expenditure should include and demonstrate how to present an expenditure schedule 
	x
	6.
	critical financial phases, select one of the critical phases identified and break this down into smaller phases and explain why it is important to match cash flows and expenditures 
	x
	7. 
	interim payments 
	x
	8. 
	S curve is and create an S curve using the relevant resources 
	x
	9.
	projected cash flow and payments and reflect back on a previous project and identify cost or time risks which were identified 
	x
	10.
	reason why a project may start early and one reason why a project may finish late and demonstrate how to present a project schedule to help identify the effect of disruptions 
	x
	11. 
	
	x
	12. 
	purpose of an overdraft and calculate overdraft requirements for a given scenario 
	x
	13.
	important to monitor cash flow and creditor payments on a daily basis and demonstrate how to monitor cash flow and/or creditor payments according to organisational protocols 
	x
	14. 
	difference between given cost networks and tender calculations 
	x
	15. 
	carry out rise and fall calculations 
	x
	16. 
	cost variations and explain why it is important to analyse cost variations 
	x
	17.
	summarise remedial action, explain how remedial action helps to retain contract compliance, list steps to remedial action and identify tips for dealing with a difficult situation regarding remedial action
	x
	18.
	way to compare actual and estimated costs and explain how this is useful, identify what elements of a project may be considered when trying to improve future actions and list procedures to follow when writing a report
	x
	19.
	information which should be included in a final cost report and explain why organisational rates should be reflective of current movement in prices and rates 
	x
	Student Name: 
	Vinicius Bulhoes
	Student Signature:
	Vinicius Bulhoes
CPCCBC5002A Monitoring costing systems on medium rise building and construction projects Assessment Booklet – Task 1 
Version 2.0 July 2021, Approved Quality assurance & Compliance Manager 
Pan Bird Pty Ltd t/a Tr4in Right l RTO Code 22281 l CRICOS Code 03618G Page 13 of 14 Copyright © 2021 Tr4in Right
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