3. (50 points) The following project information shows the cost information for a small water filtration system installation project. Contract amount: $157,500 Design-bid-build project using a lump sum contract and progress payments Markup of 5% for profit and overhead included in contract amount The project has a total duration of 32 days (Consider the project is continuous for 32 straight days including weekends) Retainage is 10% of each payment application. Retainage will be paid back with the final payment for the project Each pay period is 8 days. That is, the contractor will submit a payment every 8 days throughout the project for a total of 4 payment applications The Owner will make a payment every 8 days and receipt of payment is delayed one payment period Based on this information, complete each of the following: a. The table below includes cost information taken from the cost-loaded baseline schedule for this project. Calculate the cumulative costs (expenses) for this project and plot the expenses curve. You may draw your plot by hand or use Excel or another computer graphing program. b. Calculate the markup amount for each payment period. c. Calculate the retainage for each payment period. d. Calculate the billed less retainage amount for each payment period. e. Determine the total billed amount for each pay period (Hint: Remember to add the retainage to the final payment period) f. Plot the total billed amount for each pay period on the same plot as the expenses curve. (Hint: This is the income curve that looks like "Steps") g. Create a Cash Flow Schematic Diagram. h. Based on the Cash Flow Schematic Diagram, what is the maximum working capital needed and when is this amount needed? Pay Period # 1 xpenses $5,000 Pay Period # 2 Expenses $5,000 Pay Period #3 Pay Period # 4 Expenses Day Day Day Day Expenses 1 17 $4,000 25 $3,000 $4,000 2 $5,000 $3,000 10 $5,000 18 26 3 $5,000 11 $5,000 19 $4,000 $4,000 27 $3,000 4 $5,000 $6,000 12 $5,000 $8,000 20 $3,000 $3,000 $3,000 $1,000 28 5 13 21 $4,000 29 $6,000 $7,000 14 $8,000 $8,000 22 S4,000 $4,000 $4,000 30 7 15 23 31 $7,000 16 $8,000 24 32 $1,000 3. (50 points) The following project information shows the cost information for a small water filtration system installation project. Contract amount: $157,500 Design-bid-build project using a lump sum contract and progress payments Markup of 5% for profit and overhead included in contract amount The project has a total duration of 32 days (Consider the project is continuous for 32 straight days including weekends) Retainage is 10% of each payment application. Retainage will be paid back with the final payment for the project Each pay period is 8 days. That is, the contractor will submit a payment every 8 days throughout the project for a total of 4 payment applications The Owner will make a payment every 8 days and receipt of payment is delayed one payment period Based on this information, complete each of the following: a. The table below includes cost information taken from the cost-loaded baseline schedule for this project. Calculate the cumulative costs (expenses) for this project and plot the expenses curve. You may draw your plot by hand or use Excel or another computer graphing program. b. Calculate the markup amount for each payment period. c. Calculate the retainage for each payment period. d. Calculate the billed less retainage amount for each payment period. e. Determine the total billed amount for each pay period (Hint: Remember to add the retainage to the final payment period) f. Plot the total billed amount for each pay period on the same plot as the expenses curve. (Hint: This is the income curve that looks like "Steps") g. Create a Cash Flow Schematic Diagram. h. Based on the Cash Flow Schematic Diagram, what is the maximum working capital needed and when is this amount needed? Pay Period # 1 xpenses $5,000 Pay Period # 2 Expenses $5,000 Pay Period #3 Pay Period # 4 Expenses Day Day Day Day Expenses 1 17 $4,000 25 $3,000 $4,000 2 $5,000 $3,000 10 $5,000 18 26 3 $5,000 11 $5,000 19 $4,000 $4,000 27 $3,000 4 $5,000 $6,000 12 $5,000 $8,000 20 $3,000 $3,000 $3,000 $1,000 28 5 13 21 $4,000 29 $6,000 $7,000 14 $8,000 $8,000 22 S4,000 $4,000 $4,000 30 7 15 23 31 $7,000 16 $8,000 24 32 $1,000
