cash flow diagram needed (cost and payment curves)

SCHOOL OF CONSTRUCTION

BCN 4703 – MGMT OF CONST PROJECTS

SPRING 2017

Homework Assignment #4 02/10/2017 Page 1| 3

Homework Assignment #4 (Due 02/17/2017 @5:00PM)

Table 1 provides some information regarding the cost and schedule of a small project. In addition, you

know that there is no advance payment, 11.5% job overhead (excluding tax and bonds), 4.5% tax, 6.5%

office overhead, 14% profit, and 1.5% bonds. Also, as per the contract agreement, payments to the

Contractor are made two months later with 10% retainage. Accordingly, you are required to draw the cash

flow diagram (cost and payment curves), and determine the maximum cash-out-of-flow.

Notes and Hints:

 The Contractor commits the cost of bonds and mobilization at beginning of month 1.

 The Contractor bills the owner for the mobilization at end of month 1.

 For pricing (and consequently billing), the cost of bonds is spread over all items.

 Payment by Contractor is made to the Subcontractor on a back-to-back basis (i.e., the Contractor pays the Subcontractor once he/she is paid by the Owner) – without retainage.

 You already developed the CPM precedence diagram to determine the early start and finish dates of each activity, see Figure-1. You will use an early start schedule.

 You already developed the recap sheet to determine the costs and prices of activities, see Table-2.

 Soft copies of the tables are available on Blackboard

SCHOOL OF CONSTRUCTION

BCN 4703 – MGMT OF CONST PROJECTS

SPRING 2017

Homework Assignment #4 02/10/2017 Page 2| 3

Figure -1

SCHOOL OF CONSTRUCTION

BCN 4703 – MGMT OF CONST PROJECTS

SPRING 2017

Homework Assignment #4 02/10/2017 Page 3| 3

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