Page 8 - Megaprojects Playbook

RISK MANAGEMENT + ACCOUNTING

MINIMIZING RISK, MAXIMIZING PROFIT

As Haskell continues its maturation process, we will be presented with larger and more complex opportunities.
Larger projects begin to aggregate more risk that, if not managed, can present a danger to the organization.
From a Risk Management and Accounting perspective the following areas should be considered as larger
projects have unique risk profiles and accounting management needs beyond the norm for smaller projects.
THINGS TO CONSIDER:

ü Engagement during contracting ü Cashflow, cashflow, cashflow (& cashflow)

ü Haskell bonding notifications and limits ü Special accounting requirements
ü Vendor prequalification ü Project specific policies / OCIPs / wraps
ü Subcontractor & vendor bonding and SDI ü Cost control & invoicing

1 ACCOUNTING CONSIDERATIONS

ENGAGEMENT DURING CONTRACTING

◆ Conduct a project specific meeting with accounting to establish job cost structure (including
billable rates) and define accounting roles on the project. Must include Controller, PAR
Supervisor and ProCore team. Also include project controller/coordinators as applicable.
◆ Consider project controllers/coordinators and/or dedicated PAR’s.
◆ Communication among all PMs (often there are different ones for each sub-job) is
crucial and can alleviate multiple requests for tax research of the same project.

CASHFLOW, CASHFLOW, CASHFLOW (& CASHFLOW)

◆ YES PLEASE! PUSH BACK ON EXTENDED CLIENT PAYMENT TERMS.
◆ Deviation from 30 day terms requires Group President authorization.
◆ Consider front-loaded schedule of values and/or advanced funding
from owner if extended payment terms are mandated.
◆ Request electronic payments from client.
◆ Consider requiring electronic payments to subs to reduce
workload on accounting and speed up payment.

SPECIAL ACCOUNTING REQUIREMENTS

◆ Dedicated PAR is necessary which could require an additional hire
(also consider whether a job-site PAR makes sense).
◆ Large projects may have separate performance obligations/large equipment
purchases that require different accounting rules and payment terms.

COST CONTROL & INVOICING

◆ Eliminate the need for rework – billings get super messy and complicated when constantly
revised. Project coordinator is necessary and needs to work closely with PAR.
◆ Include Project/Cost Controller position in the organizational chart as a separate function.
6 MEGA PROJECTS PLAYBOOK | 2021
CONTAINS CONFIDENTIAL AND PROPRIETARY INFORMATION. FOR INTERNAL HASKELL USE ONLY.