Project Cash Flow Example 1- Your construction company bills the owner for the work completed during the month and receives the payment one month after they the bills are received. The projected monthly material, labor, and subcontractor costs, as well as the amount you company will bill the project's owner each month, are shown in the next slide. Retention is 10% and will be received with the final payment one month after completion of the project. 4 You pay material suppliers in full when you receive payment from the owner. You pay subcontractors when you receive payment from the owner but withhold 10% from the subcontractor's payment. You pay for labor weekly. Determine the monthly cash flows and the total cash generated by the project at the end of each month and just before each payment is received from the project's owner. Month 1 2 3 5 6 Total Costs Materials (S) 36,500 65.500 85.600 36,900 31,200 20,200 275,900 Labor (S) 39.100 52,900 79,600 36,800 32,500 16,300 275,200 Sub. (S) 60.800 140,100 141,200 115,600 71,400 49,900 597,000 Bill to Owner (S) 156,800 298.500 325,600 200,000 143,300 91,600 1,215,800

oject Cash Flow Example 1- Your construction company bills the owner for the work completed during the month and receives the payment one month after they the bills are received. The projected monthly material, labor, and subcontractor costs, as well as the amount you company will bill the project's owner each month, are shown in the next slide. Retention is 10% and will be received with the final payment one month after completion of the project. You pay material suppliers in full when you receive payment from the owner. You pay subcontractors when you receive payment from the owner but withhold 10% from the subcontractor's payment. You pay for labor weekly. Determine the monthly cash flows and the total cash generated by the project at the end of each month and just before each payment is received from the project's owner. 2- Your construction company acts as the owner on the previous example and sells the project for $1,430,000 at the end of the seventh month. You have a total of $270,600 initial soft costs. You pay material suppliers and subcontractors in full on the last day of the month following the month the materials were supplied to the project. Construction Finance - Module 10 You withhold 10% from the subcontractor's payment which will be paid to the subcontractors at the end of the seventh month. You pay for labor weekly. Determine the monthly cash flows and the total cash generated by the project at the end of each month and just before each payment is received from the project's owner