Option #2: Managing the Construction Project Budget

Assume you are managing a construction project with a schedule as shown in the textbook's Figure 3.5b. A budget of $24M has been assigned to it and you have distributed this budget among the project activities as follows:

	Percent of Budget Allocated (%)
Utilities and Site Work	0.13
Structure	0.35
Envelope	0.15
Finishes	0.08
Systems	0.25
Closeout	0.04

Assuming that each project activity will consume it's budget uniformly throughout its duration, develop a cost flow diagram that shows the project budget expendable (per month) and the cumulative amounts (per month) in the form of a histogram that shows the values over time with monthly time periods.

Assuming that project funds will be allocated per the below schedule, develop a cash flow diagram that shows the total funds received and the cumulative amounts in the form of a histogram that shows the amounts received over time with monthly time periods.

	Amount of funds allocated at the beginning of period
December	$5,420,168
March	$3,551,597
April	$4,361,267
May	$7,759,354
September	$2,907,615