Monthly costs for a Bridge Rehabilitation Project

Month	1	2	3
Monthly cost*	$200,000	$400,000	$270,000

* Direct cost + indirect cost

1. Calculate the peak financial requirement

Assumptions:

• The markup for this project is 10%
• Finance charge is 1 % per month
• All expenses are paid at the end of the month (In this situation, to minimize your financial costs, you may assume that you borrow money to pay the monthly expenses on the last day of each month and your interest payment will take place at the end of the next month. Also assume that as soon as you receive payment from the owner, the payment can be immediately available for reducing your debt.
• Retainage is 10% throughout the project
• Payments are billed at the end of the month, and are received one month later