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The following information belongs to a certain construction project: Target (estimated) cost = $ 10,000,000 (Without the contractor fee) Contractor fee = $1,000,000 Target (estimated)
The following information belongs to a certain construction project: Target (estimated) cost = $ 10,000,000 (Without the contractor fee) Contractor fee = $1,000,000 Target (estimated) duration = 24 months Contractor bonus for early completion = $10,000 per month Contractor penalty for late completion = $15,000 per month Contractor bonus for cost below target cost = 50% of the saving Contractor penalty for cost above target cost = 75% of the excess If actual cost $ 10,400,000 (Without the contractor fee) and actual duration 20 months. 1) How much the total amount paid by the owner? 2) How much the total amount received by the contractor
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