You are to be the Contract Administrator on a project for a new facility of a five story Girne American University dormitory that houses 850 students. The engineer suggests that in the case of cost-plus contract 18, 10,3 and 10 percent should be added to the actual labor, Renewing the roof coverings, materials, and Internal alterations costs respectively. In the case of the cost plus fixed fee contract, the fixed fee should be 40,000. In the case of the cost-plus sliding fee contract, the fee should be 14%, 12%, 10% for resulting total cost in the ranges of 300,000 to 350,000; 350,000 to 375,000 and 375,000 to 425,000 respectively. For the cost plus guaranteed ceiling price contract, the fee should be 50,000 less 35% of any actual cost above the target cost 350,000. The expected cost for superstructure and the installation of new equipment is 192,000. Cost-plus Cost-plus Cost-plus Target % of the cost () Fixed fee (E) Sliding Fee (E) Cost (E) Labor 150,000 150,000 150,000 150,000 Renewing the roof 25,000 25,000 25,000 25,000 coverings Materials 144,000 154,000 156,000 155,000 Internal alterations 60,000 60,000 60,000 60,000 a) Calculate the expected total cost of the project. b) Which of the above negotiated contract to you recommend to be used? Why? You are to be the Contract Administrator on a project for a new facility of a five story Girne American University dormitory that houses 850 students. The engineer suggests that in the case of cost-plus contract 18, 10,3 and 10 percent should be added to the actual labor, Renewing the roof coverings, materials, and Internal alterations costs respectively. In the case of the cost plus fixed fee contract, the fixed fee should be 40,000. In the case of the cost-plus sliding fee contract, the fee should be 14%, 12%, 10% for resulting total cost in the ranges of 300,000 to 350,000; 350,000 to 375,000 and 375,000 to 425,000 respectively. For the cost plus guaranteed ceiling price contract, the fee should be 50,000 less 35% of any actual cost above the target cost 350,000. The expected cost for superstructure and the installation of new equipment is 192,000. Cost-plus Cost-plus Cost-plus Target % of the cost () Fixed fee (E) Sliding Fee (E) Cost (E) Labor 150,000 150,000 150,000 150,000 Renewing the roof 25,000 25,000 25,000 25,000 coverings Materials 144,000 154,000 156,000 155,000 Internal alterations 60,000 60,000 60,000 60,000 a) Calculate the expected total cost of the project. b) Which of the above negotiated contract to you recommend to be used? Why