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CME703 Advanced Project Planning And Control

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Question:

Reading Questions

 Answer following questions.

  1. (4 pts) Assuming you are working for a construction company and your boss asks you to develop a one-page handout of cash flow panning for construction projects, which is being used by various managers and staff in the company to follow, what are major items should be included on it and why you think they have to be included?
  1. (10 pts) Following your considerations for Questions 1 above, please design such a one-page handout in a separate file. Be creative! You need to consider both information and layout for the handout.

Problem Solving –

3.(15 pts) The activities involved in the construction of a small building are given below. The price of the work contained in each activity is listed in the table.  The contractor undertaking this project would like you to prepare graphs of cumulative expense and income to date against time for activities starting as early as possible. The mark-up is 10% of tender value and retention is 5%.

Measurement is made monthly with a payment delay of one month. The retention is paid at the end of the contract. To simplify the calculations, you may assume that all costs must be met by the end of the month in which they are incurred.

ID

Activity

Durations (Mon)

IPA

Lag (Mon)

Cost ($)

10

Excavation

2

-

0

9,000

20

Concrete bases

3

10

-1

12,000

30

Erect frames

1.5

20

-1

18,000

40

Concrete floor slab

1

20

-1

15,000

50

Fix cladding

1.5

30

-1

6,000

60

Install plant

1

40, 50

0

20,000

  1. What is the overall project duration?
  2. Produce a cumulative value forecast for the complete project and an assessment of the contractor’s working capital requirements for each month of the project period.
  3. What is the maximum amount of cash the contractor needs to execute this contract?
  4. When does he require this maximum amount?
 
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