QUESTION 4 Table 4.1 is the contractor's budgeted cost liabilities for a contract. The contractor will add a contribution mark-up of 8% to the estimated cost of each item in the bill of quantities. The contract conditions allow for monthly measures to be made and payment of the amount certified, less 10% retention, is made one month later. The retention money is repaid six months after the practical completion of the project. The weighted average delay between incurring a cost liability and making payment may be calculated from the information given in Table 4.2, which shows the cost and the delay associated with each cost element. (Each month may be assumed to be 4% weeks.) Determine (a) Contractor's monthly net cashflows. (9 Marks) (b) What is the maximum amount of cash needed in order to execute the contract? (1 Mark) Table 4.1 3 4 5 6 7 8 9 N Months No 1 Cost of work (a) Contractor's monthly net cashflows. (9 Marks) (b) What is the maximum amount of cash needed in order to execute the contract? (1 Mark) Table 4.1 Months No 1 2 3 4 5 6 17 00 9 Cost of work executed in 3 Months ($000) 3 6 6 8 6 4 2 Table 4.2 Cost element Total cost (%) Payment delays (weeks) Labour 25 1.12 Plant 25 8.20 Materials 50 4.00 (Note: You may use Microsoft Excel to solve this question and copy paste answers in your word document)