Assume a GC has the following expenses for month one of their project. Will they be in
Question:
Assume a GC has the following expenses for month one of their project. Will they be in the red or black when they receive payment, less 10% retention but including a 5% fee, on the 10th of month two and by how much?
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Direct labor of $40,000 committed to evenly throughout the month; Short-form PO direct material received and invoiced on the 15th for $20,000; Long-form PO materials are received and invoiced on the 15th for $40,000; $100,000 worth of subcontracted work performed and invoiced on the 20th which include a matching 10% retention clause. Subcontractors are paid ten days after the GC is paid; Indirect labor at $30,000 per month payable half on the 22nd of month one and the second half on the 7th of month two; and Indirect material costing $10,000 and invoiced on the 30th of the month.
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To determine if the general contractor GC will be in the red a deficit or black a surplus on the 10th of month two we first need to calculate the tota...View the full answer
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Related Book For
Cost Accounting And Financial Management For Construction Project Managers
ISBN: 9781138550650
1st Edition
Authors: Len Holm
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