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CASE STUDY
InteractiveConstruction WIP & Project Forecasting Model
A 12-project construction portfolio model covering IFRS 15 WIP, estimate at completion, cash, bonding capacity and covenants.
Business challenge
A contractor needed reliable WIP and margin reporting across its project portfolio, early warning of margin fade, and a view of cash and bonding headroom.
Outcome
Leadership spots fading margins and cash pressure project by project and knows how much new work the business can bond and fund.
Overview
A 12-project construction portfolio model covering IFRS 15 WIP, estimate at completion, cash, bonding capacity and covenants. Inside: IFRS 15 WIP schedule and movement; estimate at completion and margin fade; project drilldown and schedule variance; billing, retention and 24-month cash flow; bonding capacity and lender covenants; three scenarios. How to use this model: on the Dashboard sheet, use the drop-down in cell D6 to pick the scenario: Base, Upside or Downside. On the Project Drilldown sheet, use the drop-down in cell D6 to choose any of the 12 projects (P-101 to P-112).
Approach
Project budgets, costs to date and forecasts drive cost-to-cost revenue, over and under billing, EAC and margin movement. Change orders, claims, retention and procurement feed a 24-month cash flow with a revolver, the three statements, bonding capacity and lender covenants.
Capabilities
Skills
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