Finance-AW772

Finance-AW772 Online Services

 

Contractor’s Cash flow

 
A developer has accepted the quotation from your company to carry out the works to lock up stage for construction of a precast concrete warehouse and Office illustrated on the attached drawing Nos. 1002, 1003A and 1004.
 
The works include demolition of an existing house and removal of a large steel framed shed:
The contract has been signed and has the following requirements:
 
Contract Price: One Million Seven Hundred and Three Thousand Dollars $ 1,703,000
Time to complete: 20 months
 
You have immediate and unrestricted access to site.
 
You are the project engineer for this job and report to the company General Manager Construction, who has control of the allowances, contingency and profit margin (i.e. 15% mark up included in the Contract Price).

How it Works

How It works ?

Step 1:- Click on Submit your Assignment here or shown in top menu of every page and fill the quotation form with all the details. In the comment section, please mention product code mentioned in end of every Q&A Page. You can also send us your details through our email id tutorspedia.expert@gmail.com with product code in the email body. Product code is essential to locate your questions so please mentioned that in your email or submit your quotes form comment section.

Step 2:- While filling submit your quotes form please fill all details like deadline date, expected budget, topic , your comments in addition to product code . The date is asked to provide deadline.

Step 3:- Once we received your assignments through submit your quotes form or email, we will review the Questions and notify our price through our email id. Kindly ensure that our email id tutorspedia.expert@gmail.com  must not go into your spam folders. We request you to provide your expected budget as it will help us in negotiating with our experts.

Step 4:- Once you agreed with our price, kindly pay by clicking on Pay Now and please ensure that while entering your credit card details for making payment, it must be done correctly and address should be your credit card billing address. You can also request for invoice to our live chat representatives.

Step 5:- Once we received the payment we will notify through our email and will deliver the Q&A solution through mail as per agreed upon deadline.

Step 6:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.

Features

Features for Assignment Help

 Zero Plagiarism
We believe in providing no plagiarism work to the students. All are our works are unique and we provide Free Plagiarism report too on requests.
Relevancy
We believe in providing perfect, relevant and 100% accurate solutions to the student as per questions asked. All our experts are perfect in providing that so as to give unique experience to the students.
Three Stage Quality Check
We are the only service providers boasting of providing original, relevant and accurate solutions. Our three stage quality process help students to get perfect solutions.
100% Confidential
All our works are kept as confidential as we respect the integrity and privacy of our clients.

Related Services


The chief financial Officer of the company has issued you with the following budget for which you are to control expenditure for the project
 
Project Budget: $1,407,290 (for works excluding Prime Cost Items)
 
You also have to control expenditure and invoicing of Prime Cost subcontracts listed in Table 1.
 
Total Subcontractor Prime Cost payments due
$ 73,710
Debtor
Ecco Farms
(remove shed)
Demon Demos
(Demolish
House)
PowerCorp
(Power line
protection)
Local Council
(Driveway
crossover)
Payment Due Month 4 8 0 20
Amount Due -$ 2,000 $ 15,000 $ 1,500 $ 5,000
Debtor Geoff Jones Plumbing
Payment Due Month 8 12 16
Amount Due $ 4,688 $ 9,375 $ 4,688
Debtor Downtha D rain Constructions
Payment Due Month 4 8 12 16
Amount Due $ 3,546 $ 7,092 $ 10,638 $ 14,184
 
Table 1: Prime Cost Payment Schedule
 
Prime Cost (PC) expenditures are for the values and at the intervals indicated in Table 1 above. PC sums are paid by your company to the subcontractor in the month shown in Table 1. Those amounts are then claimed by your company from the Owner in the month due (Table 1) and your company receives payment one month later.
 
The expected expenditure for the project (without the PC items) follows an ‘S’ Curve (Sigmoid function) with the characteristics listed in Table 2.
 
The contractor starts work on site at date zero (month 0). At the end of the first month the amount of work completed is measured and agreed with the owner’s representative, a claim is then made for that value of work. Payment of that claim is received by the contractor at the end of the following month. This pattern of doing the work and claiming at monthly intervals continues each month until all contract works are completed. The schedule for the monthly payment claims is set out in Table
 
2. Prime Cost subcontract payments (not shown in Table 2) form part of the cashflow graph required.
 
Assignment Requirements – What You Need to Do
 
Prepare a brief (2 pages) report in Memorandum format to the Construction Manger explaining the Cash
flow expected for this project including the following information
 
1. Notification of the maximum amount of bridging finance required to cover negative expenditure
and the month at which that will occur.
2. The month in which you expect the project to commence a positive cash flow.
 
3. Contractors expenses and income as ‘S’ curves on a single graph.
4. Contractor’s Cumulative Cash flow as a graph and in an attached table.
 
You are working for a construction company and in this assignment you are required to calculate the planned cashflow for a contract. The cashflow will be used by the finance department to arrange project finance from a lender to cover the maximum expenditure. The finance manager also needs to advise the lender (bankers) when that will occur. The lender will also wish to know at what time the project will start to make a profit and how much that will be. Refer to the assignment question for details.

product code: Finance-AW772

Looking for Finance-AW772,please click here

Summary
User Rating
5 based on 1 votes