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
each project. lulng committed costs and estimating the cost at 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 Status, thblled committed costs n the invoiced costs in the job cost ledger and the est mated project's must be included ger and the esti- cost at completion needs to be projected. 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 itted to pay. These costs may or may not be recorded codes may or may not be separated by cost type-labor, ma- 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 are ent Often tered in Column B. The origi nal estimated cost for each cost Total Esimated Total Varnanoe Non- and Non Estimated Total Committed Committed! Committe Cost 1 at To Costs F+H) 4 Costs Costs Original Change Estimate Orders (C+D) e Committed (K E) Comp Costs 6 Code Description 51 FIGURE 4-1 Committed Cost Worksheet to spread Code Description 01100 Supervision 01700 Temporary Ultilities 01900 Cleanup 03300 Footing and Foundation-Labor 03400 Footing and Foundation-Concrete 03450 Concrete Pump 03500 Slab/Floor-Labor 03600 Slab/Floor-Concrete 03900 Rebar 04100 Masonry 05100 Structural Steel 05300 Joist and Deck 05900 Erection 06110 Rough Carpentry 06120 Lumber 07200 Insulation 07500 Roofing 07700 Roof Specialties 08110 Metal Doors and Frames 08400 Store Fronts 08700 Hardware al estimate s have been e water line ke another ine is being stimate for s have been $7,236 for Budget 12300 36,000 21100 6,700 22100 4,600 23100 3,400 26100 3,500 31100 1,700 32100 2,100 33100 6,800 33200 44,000 FIGUR 1 the storm ghting was 4- th $11,230 for t at comple- h cost code. Yo th replace the office build- xisting land- ding around te sidewalks e cost codes l of the work 9,500 all the re 09200 Ceramic Tile 09300 Acoustical Treatment 09400 Carpet and Vinyl 09800 Paint 10400 Signage 10800 Toilet & Bath Accessories 12300 Cabinetry and Countertops 21100 Fire Sprinklers 22100 Plumbing 23100 HVAC 26100 Electrical 31100 Grading and Excavation 32100 Asphalt 32200 Site Concrete-Labor 32300 Site Concrete-Concrete 32500 Landscaping 33100 Sanitary Sewer 33200 Water Line emove some $33,562. The and a 24,000 23,000 Th $17,500 ding costs to complete has for the labor have 17,000 05100 t 1,000 06120 1,000 07700 1,000 08110 1,000 08700 32,000 10400 346,600 10800 changes ubcontracted received a bill for the en made. The estimates that Profit and Overhead ncrete FIGURE 4-12 Budget for Problem 10 FIGURE More Construction Accounting 59 een has Code Description Contract Amount 42,136 8,200 1,802 8,875 9,100 6,898 1,999 6,995 5,354 8,000 9,865 7,000 22,115 23,850 17,825 6,150 17,569 1,359 1,125 the 04100 Masonry the 05900 Erection 07200 Insulation 07500 Roofing ion xed 08400 Store Fronts u 09100 Drywall yo 09200 Ceramic Tile 09300 Acoustical Treatment 09400 09800 Paint in Carpet and Vinyl get 12300 Cabinetry and Countertops 00 21100 Fire Sprinklers 00 22100 Plumbing 00 23100 HVAC 00 26100 Electrical 00 31100 Grading and Excavation 32100 Asphalt 33100 Sanitary Sewer 33200 Water Line 00 00 00 0 FIGURE 4-13 Subcontracts for Problem 10 0 0 0 0 0 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 Fiaure 4-14. A purchase order has been issued for con- financial status of the project. Using the commit- the ted 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. 11. The project in Problem 10 is expected to take 9 months to complete. The costs for the project at the end of the second month are shown in Figure 4-15. You have a meeting with project's owner to discuss the financial sta- tus of the project. Using the committed cost worksheet from Problem 10, update the estimated cost at comple- tion and determine if the project is over or under budget. The supervision and temporary utility costs should be PO Amount Code 05100 05300 06120 07700 08110 08700 10400 10800 Description Structural Steel Joist and Deck Lumber Roof Specialties Metal Doors and Frames Hardware Signage Toilet & Bath Accessories 10,250 15,500 875 945 2,725 1,864 486 965 FIGURE 4-14 Purchase Orders for Problem 10 each project. lulng committed costs and estimating the cost at 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 Status, thblled committed costs n the invoiced costs in the job cost ledger and the est mated project's must be included ger and the esti- cost at completion needs to be projected. 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 itted to pay. These costs may or may not be recorded codes may or may not be separated by cost type-labor, ma- 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 are ent Often tered in Column B. The origi nal estimated cost for each cost Total Esimated Total Varnanoe Non- and Non Estimated Total Committed Committed! Committe Cost 1 at To Costs F+H) 4 Costs Costs Original Change Estimate Orders (C+D) e Committed (K E) Comp Costs 6 Code Description 51 FIGURE 4-1 Committed Cost Worksheet to spread Code Description 01100 Supervision 01700 Temporary Ultilities 01900 Cleanup 03300 Footing and Foundation-Labor 03400 Footing and Foundation-Concrete 03450 Concrete Pump 03500 Slab/Floor-Labor 03600 Slab/Floor-Concrete 03900 Rebar 04100 Masonry 05100 Structural Steel 05300 Joist and Deck 05900 Erection 06110 Rough Carpentry 06120 Lumber 07200 Insulation 07500 Roofing 07700 Roof Specialties 08110 Metal Doors and Frames 08400 Store Fronts 08700 Hardware al estimate s have been e water line ke another ine is being stimate for s have been $7,236 for Budget 12300 36,000 21100 6,700 22100 4,600 23100 3,400 26100 3,500 31100 1,700 32100 2,100 33100 6,800 33200 44,000 FIGUR 1 the storm ghting was 4- th $11,230 for t at comple- h cost code. Yo th replace the office build- xisting land- ding around te sidewalks e cost codes l of the work 9,500 all the re 09200 Ceramic Tile 09300 Acoustical Treatment 09400 Carpet and Vinyl 09800 Paint 10400 Signage 10800 Toilet & Bath Accessories 12300 Cabinetry and Countertops 21100 Fire Sprinklers 22100 Plumbing 23100 HVAC 26100 Electrical 31100 Grading and Excavation 32100 Asphalt 32200 Site Concrete-Labor 32300 Site Concrete-Concrete 32500 Landscaping 33100 Sanitary Sewer 33200 Water Line emove some $33,562. The and a 24,000 23,000 Th $17,500 ding costs to complete has for the labor have 17,000 05100 t 1,000 06120 1,000 07700 1,000 08110 1,000 08700 32,000 10400 346,600 10800 changes ubcontracted received a bill for the en made. The estimates that Profit and Overhead ncrete FIGURE 4-12 Budget for Problem 10 FIGURE More Construction Accounting 59 een has Code Description Contract Amount 42,136 8,200 1,802 8,875 9,100 6,898 1,999 6,995 5,354 8,000 9,865 7,000 22,115 23,850 17,825 6,150 17,569 1,359 1,125 the 04100 Masonry the 05900 Erection 07200 Insulation 07500 Roofing ion xed 08400 Store Fronts u 09100 Drywall yo 09200 Ceramic Tile 09300 Acoustical Treatment 09400 09800 Paint in Carpet and Vinyl get 12300 Cabinetry and Countertops 00 21100 Fire Sprinklers 00 22100 Plumbing 00 23100 HVAC 00 26100 Electrical 00 31100 Grading and Excavation 32100 Asphalt 33100 Sanitary Sewer 33200 Water Line 00 00 00 0 FIGURE 4-13 Subcontracts for Problem 10 0 0 0 0 0 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 Fiaure 4-14. A purchase order has been issued for con- financial status of the project. Using the commit- the ted 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. 11. The project in Problem 10 is expected to take 9 months to complete. The costs for the project at the end of the second month are shown in Figure 4-15. You have a meeting with project's owner to discuss the financial sta- tus of the project. Using the committed cost worksheet from Problem 10, update the estimated cost at comple- tion and determine if the project is over or under budget. The supervision and temporary utility costs should be PO Amount Code 05100 05300 06120 07700 08110 08700 10400 10800 Description Structural Steel Joist and Deck Lumber Roof Specialties Metal Doors and Frames Hardware Signage Toilet & Bath Accessories 10,250 15,500 875 945 2,725 1,864 486 965 FIGURE 4-14 Purchase Orders for Problem 10
