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Assignment 4 A construction company is negotiating on a construction project for a four-month duration. On the last day of each month, the construction
Assignment 4 A construction company is negotiating on a construction project for a four-month duration. On the last day of each month, the construction company may bill the owner for the work completed during the month. The owner pays the monthly bills one month after they are received. For example, the construction company receives payment for work completed during May on Jun 30. The owner also holds 5% retention. Final payment is expected one month after completion of the project and will include payment of retention. The construction company pays material suppliers, equipment, and project overhead in full when it receives payment from the owner. The construction company pays subcontractors when it receives payment from the owner but withholds 10% retention from the subcontractor's payment. Subcontractors may bill the construction company when they complete all their work. The construction company pays for labor biweekly. P&GOH is 8% of direct cost. Use the data in the table below to determine: 1- monthly cost loaded schedule (50 points) 2- monthly cash flows and the total cash generated by the project at the end of each month. (50 points) Hint: You may distribute the cost of supervision, trash, and temporary utilities over four months equally.
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