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Table Q3 shows a contractors project budget and profit distribution for a newly awarded contract. The conditions of contract allow interim measurements to be made
Table Q3 shows a contractors project budget and profit distribution for a newly awarded contract. The conditions of contract allow interim measurements to be made monthly and payment of the amount certified less 10% retention paid to the contractor one month later. Half the retention is released on practical completion and the other half is released six months later. The client is anxious to reduce administrative costs and has proposed to the contractor that measurements be made every two months, again with a delay of one month before the contractor receives payment. The contractor is equally anxious to reduce administrative costs but wishes to assess the financial implications. To assist the contractor to do this, prepare graphs of cumulative cash out and receipt of both monthly and two-monthly measurements. (All graphs to be on the same sheet). An average payment delay of one month between the contractor's cost liability and the outward cash flow may be assumed
In groups of 15, you are required to use Bills of Quantities to prepare a cash flow for the following people;
i. Contractor
ii. Client
Note: You are required to make reasonable assumptions.
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