Good commercial management does not happen once a month.
While monthly reports, CVRs and formal valuations are important, the best Quantity Surveyors do not wait until month-end to understand what is happening on their project. They stay close to the numbers every week.
A QS should never be surprised by their own project. By tracking the right items regularly, problems can be identified early, risks can be managed properly, and the commercial position can be protected before issues become expensive.
Here are six things every QS should be tracking weekly.
1. Variations and Compensation Events
Change is one of the biggest commercial risks on any construction project.
Whether you are working under JCT, NEC or another form of contract, variations and compensation events need to be tracked carefully. It is not enough to know that a change has happened. A QS should know exactly where each item sits commercially.
Every week, you should be asking:
- Has the change been instructed?
- Has it been notified correctly?
- Has it been priced?
- Has it been submitted?
- Has it been agreed?
- Is it included in the forecast?
Unresolved change can create major cash flow problems. If variations are not priced and agreed early, they can quickly build up in the background and become difficult to recover later.
2. Subcontractor Accounts
Subcontractor costs can move quickly.
A project may look commercially healthy at main contract level, but the position can change if subcontractor accounts are not properly controlled. QSs should regularly review subcontractor applications, payments, variations, contra-charges, disputed items and forecast final account positions.
The key question is simple:
- Are we paying the subcontractor in line with progress, entitlement and the subcontract terms?
Overpayment can damage cash flow and weaken your negotiating position. Under-assessment can create disputes and damage relationships. The aim is to be fair, accurate and commercially aware.
3. Cash Flow
A project can be profitable on paper but still struggle if cash is not being managed properly.
QSs should track what has been applied for, what has been certified, what has been paid and what has been withheld. They should also understand the payment timetable, including due dates, payment notice dates, pay less notice dates and final dates for payment.
Cash flow is not just about money coming in. It is also about money going out.
A QS should be asking:
- What have we applied for?
- What has been certified?
- What has actually been paid?
- What has been reduced or withheld?
- Are we paying subcontractors before receiving payment ourselves?
Good cash flow management means being proactive. Submit applications on time, support them properly, chase notices and deal with disputed items quickly.
4. Forecast Cost
The forecast should not be a monthly surprise.
A QS should regularly review the forecast cost of the project, including labour, plant, materials, subcontractors, preliminaries, design costs and risk allowances.
If the forecast is moving, you need to understand why.
- Is it because of instructed change?
- Is it because a subcontract package has increased?
- Is it because preliminaries are running longer than planned?
- Is there a productivity issue?
- Has a risk now become a real cost?
Weekly forecasting does not always need to be complicated. The aim is to keep the forecast live and realistic. A forecast that is only updated once a month can quickly become outdated, especially on fast-moving projects.
5. Commercial Risks
Risks should not sit forgotten in a spreadsheet.
Every week, QSs should review the key commercial risks on the project. These might include scope gaps, design issues, access constraints, procurement delays, programme risk, disputed variations, inflation, poor records or potential contra-charges.
The important question is:
- What could still hurt the project commercially?
If a risk is likely to happen, it may need to be included in the forecast. If it is uncertain, it still needs to be tracked and managed.
A good QS does not just report risk. They help the project team reduce it. That might mean chasing missing information, clarifying scope, securing instructions, agreeing rates, improving records or escalating an issue before it becomes a dispute.
6. Programme Impact
Cost and programme are closely linked.
If the programme changes, the commercial position often changes with it. Delays, resequencing, restricted access, inefficient working, late information and extended preliminaries can all have a cost impact.
QSs should therefore stay close to the programme, not just the cost report.
Every week, ask:
- Has the completion date moved?
- Are works being delayed?
- Are subcontractors being disrupted?
- Are preliminaries likely to increase?
- Are there events that need to be notified?
- Is there evidence to support a time or cost claim?
Programme impact is especially important when dealing with loss and expense, prolongation, disruption or compensation events. Without clear records and programme evidence, it can be very difficult to prove entitlement later.
Final Thoughts
The best QSs do not wait until month-end to understand their project.
They track the key commercial items every week:
Variations.
Subcontractor accounts.
Cash flow.
Forecast cost.
Commercial risks.
Programme impact.
This does not need to be overcomplicated. A clear tracker, regular project conversations and disciplined record keeping can make a huge difference.
Good commercial management is about staying close to the detail.
Because the earlier you spot a problem, the more options you have to deal with it.
Find out how we can help you at metroun.co.uk
