1. Based on the 'Hudson's formulae' provided in the reading material prepare an S-curve and a cash flow of the Challenge Works project based on a contract value of 1,650,000 and a contract period of 12 months. Compare this cash flow with the Challenge Works cash flow prepared using the proposed programme and spreadsheet included in the reading material. The cash flow spreadsheet needs to be extended to show the value of work carried out at the end of each month adjusted to take account of retention at 3%, payments made the subsequent month and a six month defects liability.

Key considerations	1	2	3	4
The application of Hudsons formula to produce a cash flow forecast and S-curve
A comparison of the S-curve produced with the more detailed cash flow based on the proposed programme.
Development of the cash flow to show the value of works carried out each month with adjustment to take account of retention and payments made the subsequent month

Part 1 requires the application of Hudsons formulae to produce a cash flow and graph and the comparison to an actual cash flow prepared from a preliminary contract programme. Secondly the cash flow prepared from the contract programme needs to be completed to show the expected monthly payments.