Past papers

February 05, 2012,

Question 03 (Section II)

With reference to Sri Lanka, discuss the role of the construction sector in infrastructure
development and in the national economy in the last decade. How does compare with the present
situation?

Ans :-

Since Sri Lanka became an independent nation in the year 1948 our economy most instances
suffered deficit since independence it was necessary met Sri Lanka build an infrastructure namely;
Roads, power supply, water supply and agricultural development to become self-sufficient in food
commodities.

In the forties Sri Lanka was most economically developed country in the region. The country was
in zero debt and infrastructure was carried out with funds generate internally and very little debt
financially was required.

In the decades infections prevail in the country brought down its economy in the country brought
down its economic capabilities. The most economically important provisions like north and east
were not contributing to the national economy. During this period very little investments brought
into the country and the locally generated funds were spent on internal conflicts at large. The
speed and the momentum by Sri Lanka since Sri Lanka embarrassed market economy in the year
1977 did not bear truth. During the period 2002 to 2012 only since 2009 the construction industry
raised its heads as a result of new opportunities since construction of the internal conflict in the
year 2009. Unfortunately the western economics suffered downturn in these year and the western
countries could not support post conflict development in the north and eastern provinces.
However the government borrow development funds from dorner agencies specially in China at
the higher interest rates to conduct development activities in the north and east, it was also
required to develop infrastructure in the south which was untouched due to paucity of funds
during the past decade apart from other essential development activities basic infrastructure like
roads, power supply, water supply and sanitation is now taking place in all over the country.

At the present government is suffering from economic difficulties as a result of long drought
prevailed during the period 2011 to 2012 and the subsequent heavy rain and the flood which
devastated the agricultural crops, notwithstanding stated about governments borrowing is
keeping the economic moving creating more opportunities in infrastructure development. Major
part of infrastructure development facilities as being built by local contractors and construction
industry has recently become as important contributor to the national economy.
Past papers

February 05, 2012,

Question 04 (Section II)

(a) Discuss the factors to be considered in converting a financial cost estimate for projects into a
project budget compatible with an organization’s cost accounts.
(b) Discuss suitable progress monitoring techniques and explain “monitoring” and
“information systems” you would on a project preferably in a construction project to
monitoring the progress.

Ans (a)

In the cost centre of the Accounting department of the company, the cost estimate is established as
follows: The cost of material cost of man power and the cost of machines of an activity is known as
the prime cost. The overhead component added to the above price is known as the contribution.
The profit decided by the company added to the contribution as known as the standard cost of the
particular activity. In this case the accounting department maintains a cost budget based on the
parameters described the above. In the BOQ submitted with the tender document indicates the
income receivable for the each & every activity described in the project. The financial inputs
required to run the project can be calculated from the cost sheet prepared by the quantity surveyor
at the time of preparing the bid for submission. The cost budget of the project could be calculated
based on the requirement material, man power and machine hours required to execute the
particular activity. The cost estimate prepared in this way in respect of each activity of the project
can be superimposed on the construction programme prepared using Ms Project, Primavera
package, it will be best to prepare the programme on an Excel programme to evaluate prime
resources of the project. This will well fit in to the cost unit maintain by the accounts department
thus the monthly activities came up for each month form a cost estimate for the project.