Key Budget Factor for a Construction Company

Key calculate figure for a Construction Company Master Science in Facilities precaution Faculty of Architecture, Planning and Surveying University technology MARA, Shah Alam, Malaysia ____________________________________________________________________________ Abstract Construction companies slackly have a variety of objectives designed to primary(prenominal)tain and succeed in their business. They will also do a lot of effort to maximise profits for their companies but with minimum capital.Some companies are concerned about how wariness including work out management beca routine from there they can manage their fraternitys financial advantage and further profit. This paper will be discussed about the key federal agent for a construction company in Malaysia. The purpose of this discussion is to watch out the key factors that should be considered in cypher management by construction companies throughout Malaysia. Keyword Construction Company, key calculate factor, Malays ia _________________________________________________________________________________________________________ 1. IntroductionBudget is very general it is a formal plan that estimates the likely revenues and expenses for a company in a particular period. Budget preparation explains the whole process and use the budget more effectively. Budget management is very important oddly for construction companies to ensure that projects run smoothly implemented in promissory note with the companys capital. According to Chan and Chan (2004), the construction industry is dynamic in nature and its surroundings has become more dynamic due to increasing uncertainties in technology, budgets and festering process.Besides that, according to Churchill (1997) accentuates the fact that businesses must understand the pressure to grow so that they can plan and prepare for it, choose the right timing for evaluate major changes in size and control the speed of growth. 2. Key Budget Factor for a Construc tion company throughout Malaysia The budget is utilise in construction work to determine the amount of liquid specie that will be required over the various periods of a contract, as a measurement against which actual progress can be measured.The budget is a financial forecast and important tool of management, in as much as trading position of a construction company can be establish by having budgets for all of the work on hand. According to FOA Corporate (1997), key budget factor also cognise as principal budget factor or limiting budget factor and is the factor which will limit the activities of an undertaking. This limits output such as gross sales, material or labour. Among the key factors for the companys construction budget is as follows i. gross revenue budgetThis involves a realistic sales forecast. This is prepared in units of each ingathering and also in sales value. Methods of sales forecasting include sales force opinions, market research, and statistical methods (c orrelation psychoanalysis and examination of trends) mathematical models. sales budget includes companys pricing policy, general economic and political conditions, changes in the population, competition, consumers income and tastes, ad and other sales promotion techniques, after sales service, and credit impairment offered. i. Production budget Expressed in quantitative terms only if and is geared to the sales budget. The production managers duties include two things which are analysis of plant utilization and work-in-progress budgets. If requirements exceed capacity the production manager may subcontract, plan for overtime, introduce shift work, hire or buy surplus machinery and the materials purchases budgets both quantitative and financial. iii. Raw materials and purchasing budgetThis factor includes the materials usage budget is in quantities and the materials purchases budget is both quantitative and financial. Factors influencing included production requirements, suppl ying stock levels, storage space, and trends of material prices. iv. Labour budget Labour budget is both quantitative and financial. This is influenced by production requirements, man-hours available, grades of labour required, wage order (union agreements), and the need for incentives. v. Cash budget A cash plan is to delimit period of time.It cans summaries monthly receipts and payments. Besides that, it highlights monthly surpluses and deficits of actual cash. Its main uses are to maintain control over a firms cash requirements such as stock and debtors, to enable a firm to take precautional measures and arrange in advance for investment and loan facilities whenever cash surpluses or deficits arises, to show the feasibility of managements plans in cash terms, to illustrate the financial concern of changes in management policy, e. . change of credit terms offered to customers. REFERENCE 1. agriculture and consumer Protection by FAO CORPORATE DOCUMENT REPOSITORY 2. Chan APC, Ch an APL (2004). Key cognitive operation indicators for measuring construction success, Benchmark. Int. J. , 11(2) 203-221. 3. Churchill CF (1997). Managing Growth The Organizational Architecture of Microfinance Institutions. ACCI on International. http//www. ebook-search-engine. com/organization-growth-ebook-all. html.