Auckland University Competition 2016

Transcription

1 Auckland University Competition 216 COMPARATIVE ASSESSMENT OF TEAMS REPORT FINANCE OVERHEADS PROCUREMENT JOB PROGRESSION THE FUTURE No. Name No. of periods in charge % chg in Comp Value % chg in Share Price % Market Share IND Marketing Department % Market Share (By Sector) B&C TRA ENE W&S No. Jobs Bid For No. Jobs Won No. Jobs Lost % Bid Sucess Rate Profitability (% of Job Costs) 1 WIN-gineers m 2.5% 2 Joy Division m 3.3% 3 Verit m 3.3% 4 STAAG Construction m 2.7% 5 Consulting Consultants Compan m 2.9% 6 Momentum m 3.2% 7 Civil AdMINT m 3.2% 8 PRETTY COOL m 3.4% 9 Upper Construction Ltd m 2.9% 1 Engeniuses m 3.% 11 Sagacity Construction m 3.1% 12 Tiko and Co. Construction m 3.1% 13 GMC m 3.1% 14 TKTS m 2.8% 15 Dirty Mike and the boys m 2.5% 16 MCJAG Consultants Ltd m 3.9% 17 Anchor Construction m 2.8% 18 United Construction Group m 2.6% 19 Treehuggers m 2.6% 2 Wildcats m 3.2% 21 Civil Investment Ventures (CIV) m 2.5% 22 biznis m 3.1% 23 Pacific Rim Construction m 2.6% Job Profit O/Head Costs Oper Profit F/wd W/load F/wd Margin Page 1 of 28

2 24 Hugh Jass Construction m 3.4% 25 IDS (Infrastructure Developmen m 2.7% 26 CEWA m 2.8% 27 Jaan m 2.9% 28 The Foundation! m 2.8% 29 SinoS International Construction m 2.9% 3 Global Contractors m 3.1% 31 Tomacco m 3.1% 32 Iridium Engineering m 3.7% 33 AQOF Inc m 2.9% 34 Burden and Co m 2.5% 35 Prestige Worldwide m 3.4% 36 Livepool m 3.1% 37 Limitless Ltd m 2.7% 38 Shadows Construction m 3.1% 39 Indigo Construction m 3.1% Page 2 of 28

3 FINANCIAL MANGEMENT: Company Value 7 COMPANY VALUE 6 5 % change Increasing the value of the business is the prime objective of the management team. Page 3 of 28

4 FINANCIAL MANAGEMENT: Turnover 18M TURNOVER 16M 14M Average each period 12M 1M 8M 6M 4M 2M M Identifying and securing new work ensures that the turnover (monies earned) across all jobs progressed is healthy. Page 4 of 28

5 FINANCIAL MANAGEMENT: Profitability PROFITABILITY % of job cost Managing jobs as profitably as possible, and keeping overhead costs under control, are both key drivers in ensuring that the company s operating profit is as healthy as possible. This ultimately feeds into the cash account, and affects company value. Job profit Overhead costs Operating profit Page 5 of 28

6 FINANCIAL MANAGEMENT: Capital Base 6K CAPITAL BASE 5K Average each period (m) 4K 3K 2K 1K K Expanding the company s capital base (infrastructure) enables more work to be underaken, and potentially more growth. Page 6 of 28

7 FINANCIAL MANAGEMENT: Capital Employed 1 CAPITAL EMPLOYED 8 Average % The Capital Employed measures how much of the company s capital base (infrastructure) is being utilised through winning and progressing work. Page 7 of 28

8 FINANCIAL MANAGEMENT: Share Price 14 SHARE PRICE % change The company s share price is one of the key performance indicators in measuring the success or failure of the company, with a rising share price signifying increasing industry confidence in the fortunes of the company. The share price is influenced by the level of dividend paid to the shareholders, the value of the company, the future profitability of the company and the debt burden (gearing ratio) of the company. Page 8 of 28

9 FINANCIAL MANAGEMENT: Dividend Paid 2 DIVIDEND PAID 1.6 % of job cost The level of dividend paid to shareholders should be in line with what the company can afford, and not exceed the operating profits of the business. Page 9 of 28

10 OVERHEAD MANAGEMENT: Market Share (Overall) 35 MARKET SHARE (OVERALL) 3 % of market identified Developing an effective marketing strategy, and identifying new work in different sectors and locations (UK/Overseas) is critical to enable the business to grow by securing jobs through competitive bidding. Page 1 of 28

11 OVERHEAD MANAGEMENT: Market Share Split (By Sector) 12 MARKET SHARE SPLIT (BY SECTOR) 1 8 % Industrial Building & Commercial Transport Energy Water & Sewage Page 11 of 28

12 OVERHEAD MANAGEMENT: Market Share Split (By Location) 1 MARKET SHARE SPLIT (BY LOCATION) 8 6 % 4 2 UK Overseas Page 12 of 28

13 OVERHEAD MANAGEMENT: Overhead Staffing OVERHEAD STAFFING % of required level Efficient overhead management has a significant impact on operating profitability. 1% is the required level. Anything lower indicates understaffing, with an adverse affect on costs (Head Office and QHSE) or value (Measurement). Head Office QHSE Measurement Page 13 of 28

14 PROCUREMENT: Jobs Won And Lost 35 JOBS WON AND LOST 3 25 Number of jobs Jobs won Jobs lost Page 14 of 28

15 PROCUREMENT: Type Of Jobs Won 1 TYPE OF JOBS WON 8 6 % 4 2 Build only Design & Build Page 15 of 28

16 PROCUREMENT: Bidding Success 1 BIDDING SUCCESS % of jobs bid for that were won Every job that is bid for incurs a bidding cost putting the tender together, which increases overhead costs. High bidding success keeps bidding costs to a minimum. Page 16 of 28

17 PROCUREMENT: Type Of Jobs Won 1 REASON FOR JOB LOSS 8 6 % 4 2 Too many jobs in progress Capital base workload limitation Bid too low Bid too high Page 17 of 28

18 JOB PROGRESSION: Margins 7 MARGINS 6 5 % of cost In the bid On jobs progressed Page 18 of 28

19 JOB PROGRESSION: Job Completion JOB COMPLETION Number Early job completion earns a bonus from the client, frees off resources, and improves client relationship. Conversely, late completion incurs a penalty charge, and can significantly damage client relationship. Early On Time Late Page 19 of 28

20 JOB PROGRESSION: Labour Management 1 LABOUR MANAGEMENT Job completion efficiency Completing jobs as efficiently as possible in terms of labour resourcing is key to maximising job profits. The efficiency rating is from to 1, where 1 is the optimum level. Page 2 of 28

21 JOB PROGRESSION: Risk Management 1 RISK MANAGEMENT Risk cost incurred as % of contingency An effective risk management policy is crucial to keeping projects as profitable as possible. Before mitigating actions After mitigating actions Page 21 of 28

22 JOB PROGRESSION: Targeted Investments 1 TARGETED INVESTMENTS % reduction in job costs Targeted investments can reduce job costs, such as build and risk costs, significantly. Reduction in build costs Reduction in risk costs Page 22 of 28

23 JOB PROGRESSION: Project Manager Performance 1 PROJECT MANAGER (PERFORMANCE) 8 Average weighting A project manager with well-matched experience for a particular type of job will handle available resources more efficiently, whilst a project manager with inappropriate experience will impair contract efficiency. Project managers are weighted from 1 (Poor) to 1 (The best possble). Page 23 of 28

24 JOB PROGRESSION: Subcontractor Usage 2 SUBCONTRACTOR USAGE 16 % of total labour Subcontractor costs vary from country to country. Excessive use of subcontractors can have an adverse affect on the morale of the company's own labour. Page 24 of 28

25 JOB PROGRESSION: Project Manager Bonus Affect 28K PROJECT MANAGER (BONUS AFFECT) 24K 2K Net gain 16K 12K 8K 4K K Paying a bonus to project managers not only prevents them from resigning, but can improve their productivity, with a potential net monetary gain (job profit). Page 25 of 28

26 FUTURE OUTLOOK: Forward Workload 6M FOWARD WORKLOAD 5M 4M (m) 3M 2M 1M M As well as past performance, the future outlook in terms of forward workload is key to the future prosperity of the business. Page 26 of 28

27 FUTURE OUTLOOK: Forward Margin 4 FOWARD MARGIN 3.5 % of Forward Workload Forward workload needs to be profitable, and the forward margin measures this. Page 27 of 28

28 MISCELLANEOUS: CLIENT RELATIONSHIPS 6 CLIENT RELATIONSHIPS 5 4 Number Building strong client relationships can be crucial in securing new work. Poor or worst Satisfactory Fairly good to Extremely good Excellent or better Page 28 of 28