MK is a builder and will complete one construction for its customer. It has ten months to complete the building. The total contract price is $247 million. It is estimated that MK will make a profit of 25% of the contract value. Labour costs and material costs are expected to be 70% and 30% of the construction costs, respectively. As this is a relatively straightforward project for MK, it is safe to assume that construction progress will be spread evenly over the life of the project. Salary will be paid out in the middle of each month. Interim payment certificates will be issued at the end of each month, and the corresponding payments received from its customer will occur two months after the issue of the progress certificate. Therefore, the builder will receive the first monthly payment at the end of the third month. At the beginning of the project, the limit retention fund of MK should have 12% of the total contract value. Additionally, MK has to set up a retention fund which will require retentions at the rate of 1.1% of the monthly payments. As a well-established construction company, MK expects no difficulties in obtaining three-month credit terms from the suppliers of the necessary construction materials. What's the min financed required for this builder? MK is a builder and will complete one construction for its customer. It has ten months to complete the building. The total contract price is $247 million. It is estimated that MK will make a profit of 25% of the contract value. Labour costs and material costs are expected to be 70% and 30% of the construction costs, respectively. As this is a relatively straightforward project for MK, it is safe to assume that construction progress will be spread evenly over the life of the project. Salary will be paid out in the middle of each month. Interim payment certificates will be issued at the end of each month, and the corresponding payments received from its customer will occur two months after the issue of the progress certificate. Therefore, the builder will receive the first monthly payment at the end of the third month. At the beginning of the project, the limit retention fund of MK should have 12% of the total contract value. Additionally, MK has to set up a retention fund which will require retentions at the rate of 1.1% of the monthly payments. As a well-established construction company, MK expects no difficulties in obtaining three-month credit terms from the suppliers of the necessary construction materials. What's the min financed required for this builder