As a bank loan officer, you are required to asses a request for a construction overdraft from Malvern Constructions. Malvern Constructions has a contract to build new student residences at a regional university to reduce the shortage of affordable student accommodation. The design has been signed off and all necessary approvals are in place. Malvern Constructions has been set a deadline of 14 (fourteen) months to complete the project, and she can start nearly immediately.

The total contract price is $165,000,000 which includes a profit margin of 15 (fifteen) percent.

You can assume costs that will be spread evenly over the life of the project. Labour costs will be 60 (Sixty) per cent of total costs.

Interim certificates will be issued on a monthly basis and you client will be paid one month after the first interim certificate is issues.

As Malvern Constructions is well established in this industry with a 10 (ten) year operating history, you can assume that she will have no difficulty in obtaining one-month credit terms for the project.

As is usual for projects of this type a retention fund of seven and a half (7.5) percent of the contract value has been set up. Twelve (12) percent of each payment will be set aside in the retention fund until the retention fund value is seven and a half (7.5) percent of the contract value.

Assume that the first payment is delayed by one day. What are the builders total out of pocket expenses before the first payment is received?

Round your answer to whole dollars, with no decimal places.