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The contractor undertaking the project given in Problem 1 and would like you to prepare graphs of cumulative cost and monies received to date
The contractor undertaking the project given in Problem 1 and would like you to prepare graphs of cumulative cost and monies received to date against tiem for activities starting as early as possible, in order to establish a clearer picture of the financial implications of this contract. From these graphs calculate the net profit if interest is charged at 10% p.a. on outstanding monies. The gross profit margin is 10% of contract value and retention is 5% up to a maximum limit of 4500. C Activity Value (C) A 13500 D 22500 E 9000 F 30000 18000 27000 Measurement is made monthly with a payment delay of one month. Half of the retention is paid on practical completion and the remaining half six months later. Calculate the maximum amount of cash the contractor needs to execute this contract and when does the contractor require this amount?
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