Methods
Three Registers for Cost, Measurement and Payment
Three linked registers carry cost, quantities and payment status through a marine project. Field definitions, a month-by-month cash-flow example and an omission calculation give teams a practical starting point for their own contract records.
Registers through the project
Use the same project, contract and work-package identifiers across these registers. Each entry needs a document reference, date, author and version. State currency and tax treatment. Enter deadlines from the actual contract and applicable rules.
Register 1: cost and risk
| Field | Required entry |
|---|---|
| Bid basis | Scope, quantity, source-data dates, tax, currency and exchange assumptions |
| Production | Plant, material, pumping or haul distance, cycle and time basis |
| Revenue quantity | Measurement rules, conversion assumptions, re-siltation and overdepth |
| Cost structure | Mobilisation, installation, people, plant, fuel, maintenance and demobilisation |
| Price revision | Previous and revised price; resource or method change; evidence and approval |
| Risk allocation | Trigger, controlling party, clause, cost and time treatment |
| Funding | Expected and delayed receipts, facility, drawdown conditions and peak date |
| Term mismatch | Upstream/downstream pricing, payment, standby, reduction and termination |
Register 2: changes and measurement
| Field | Required entry |
|---|---|
| Event identifier | Link to package, plant log, survey and notice |
| Instruction | Issuer, authority, date, original text and confirmation |
| Scope | Addition, omission, resequencing, condition or interface; original scope retained |
| Quantity | Submitted, agreed and disputed; datum, boundary and calculation reference |
| Rate | Original or new basis, adjustments and each party's position |
| Time | Calendar period, vessel-days and operating hours separately |
| Cost change | Incurred, saved, continuing and additional costs |
| Next decision | Information owner, assessor, decision-maker, date and escalation |
Register 3: payments and retention
| Field | Required entry |
|---|---|
| Amount identifier | Contract, package, period and application or invoice |
| Original amount | Principal, tax, deductions and currency |
| Primary status | Unmeasured; unpriced; certified not due; due unpaid; disputed; retention |
| Split items | Separate amounts where status differs; avoid double counting |
| Dates | Submission, complete information, measurement, certification, due and receipt |
| Due-date basis | Clause, applicable rule, triggering event and period |
| Dispute | Issue, competing amounts, undisputed part, notice and next process |
| Receipt allocation | Principal, tax, interest or other allocation; remaining balance |
| Retention | Basis, accumulated amount, cap, condition, eligibility and release |
| Downstream link | Related supplier account, due amount and actual payment |
Cash-flow example: every monthly movement
Amounts below are CNY million. Each of four construction months produces 20 of billable work and costs 17 in cash. Mobilisation costs 4 in month 0. Progress receipts are 95% of value; total retention is 4. There is no advance, tax, interest or defect expenditure. Cash movements occur at month end.
| Month | Cost | Receipt: one-month lag | Cumulative balance | Receipt: two-month lag | Cumulative balance |
|---|---|---|---|---|---|
| 0 | 4 | 0 | -4 | 0 | -4 |
| 1 | 17 | 0 | -21 | 0 | -21 |
| 2 | 17 | 19 | -19 | 0 | -38 |
| 3 | 17 | 19 | -17 | 19 | -36 |
| 4 | 17 | 19 | -15 | 19 | -34 |
| 5 | 0 | 19 | 4 | 19 | -15 |
| 6 | 0 | 0 | 4 | 19 | 4 |
Both sequences receive 76 in progress payments. Later release of 4 retention brings total receipts to 80 against 72 cost, leaving 8 before finance and tax. Peak funding is 21 or 38. Intra-month peaks may differ.
Omission example
Fixed cost: CNY 10 million. Variable cost: CNY 20 per cubic metre. Original quantity: one million cubic metres. Original average cost: CNY 30 per cubic metre.
With 600,000 cubic metres remaining and all fixed costs retained, total cost is CNY 22 million, averaging CNY 36.67 per cubic metre. Actual omissions require an assessment of cancellable commitments, changed material and resources.
Use the records through the job
Register 1 supports bid approval. Register 2 records instructions, quantities and valuation. Transfer recognised amounts into register 3, allocate receipts and update balances. At each review, focus on unresolved entries, the responsible person and the next date. Retain prior versions.
Subject index
Related subjects
These subject pages bring together related projects, technical articles, reports, and evidence methods.
Sources used
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The Price of Winning: IMWO research and calculations
IMWO, 2026-10-15
Original illustrative calculations; assumptions and monthly movements appear in this working tool.