For the following data of a project, calculate the payment received by the contractor at different time
Question:
For the following data of a project, calculate the payment received by the contractor at different time periods. Also prepare
(a) the month-wise running account bill,
(b) the cash inflow diagram for the contractor, and
(c) the cash outflow diagram for the owner.
• Value of contract: ` 10,000,000 (one crore rupees)
• Time period: 4 months
• Payment schedule: First month 15% of the contract value, 2nd month 40% (cumulative), 3rd month 80% (cumulative) and 4th month 100% (cumulative)
• The owner makes an advance payment of ` 5 lakh, which is to be recovered in 4 equal instalments
• The owner also supplies materials to the value of about ` 3.2 lakh, which value is also to be recovered equally from each running account bill
• In addition, the owner will recover from the payments made to the contractor 2% of the value of the work done as income tax deducted at source, and deposit this amount with the Reserve Bank of India
Step by Step Answer:
Construction Project Management Theory And Practices
ISBN: 9789332542013
2nd Edition
Authors: Kumar Neeraj Jha