Your company has been hired to act as a construction manager for the construction of a bookstore for a fixed fee of $32,000. When the design was 90% complete, you prepared a budget for the project, which is shown in Figure 4-12.

During the buyout, the subcontracts shown in Figure 4-13 were signed and the purchase orders shown in Figure 4-14 were issued. No additional costs are expected for the contracts in Figure 4-13 and the purchase orders in Figure 4-14. A purchase order has been issued for concrete for $115 per cubic yard. This price is 4% below the costs used in the budget.

You have a meeting with the project's owner to discuss the financial status of the project. Using the committed cost worksheet in Figure 4-1 of the textbook, update the estimated cost at completion and determine if the project is over or under budget.

lulng committed costs and estimating the cost at each project. Status, thblled committed costs cost at completion needs to be projected. itted to pay. These costs may or may not be recorded codes may or may not be separated by cost type-labor, ma- n the invoiced costs in the job cost ledger and the est mated project's must be included ger and the esti- completion can be done with a simple spreadsheet similar to the one shown in Figure 4-1. Each project is done on a sepa- rate spreadsheet. Let's look at how to use this spreadsheet to include the committed costs and project the cost at comple- Committed costs are those costs that the company has tion for a project. Each cost code is entered on a separate line. The cost se. This occurs when the company issues a pur- terials, equipment, subcontract, and other. Thecost co an expense. der or signs a subcontract for a known amount. a company hires subcontractors for a major portion and other. The cost codes ered in Column A with the associated description en nal estimated cost for each cost are ent Often tered in Column B. The origi Total Esimated Total Varnanoe Non- and Non Estimated Total Committed Committed! Committe Cost 1 at To Costs F+H)Complete 4 e Committed Costs Costs Original Change Estimate Orders (C+D) (K E) Costs 6 Code Description 51 FIGURE 4-1 Committed Cost Worksheet