Determine the % of risk that has been transferred to sub-contractors given the following information: Materials = $150,000 Labor = $158,000 Equipment = $22,000 Bonded Sub-contracts = $400,000 Other Sub-contracts = 100,000 Overhead = 70,000 a. Risk cannot be transferred or mitigated 40% 50% 60% b. C. d.
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- 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. What is the maximum amount of cash the contractor needs to execute this contract and when does he require this amount? No. Activity Duration (months) Predecessors Overlap Value (LE) 10 20 30 40 50 60 Excavation Concrete bases Erect frames Concrete floor slab Fix cladding Install plant 2 3 1.5 1 1.5 1 - 10 20 20 30 40, 50 - 1 1 1 1 - 9000 12000…247. To determine a subcontractor's probable financial stability, which of the following would be the most relevant area for inquiry? A. Bonding rate and capacity. B. Cost of general liability insurance. C. Experience of their project managers. D. History of completed projects. 248. The most effective procurement system includes which of the following? A. Submittal log maintained weekly. B. Management system which tracks the number of submittals still outstanding. C. Log system which tracks how long the design team takes to review each submittal. D. Log which maintains fabrication, estimated and actual delivery, and installation dates. 249. Which stage of the management process has the greatest impact on the success of a project? A. Staffing. B. Planning. C. Monitoring. D. Implementing.What means are available to a contractor bidding a unit-price project for recovery of “General Conditions Work” (mobilization, bonds, insurance, cost of permits, and other preconstruction expenses)?
- A contractor wishes to participate in the bidding for a government project and submitted documents for eligibility screening or pre-qualification. The ABC for the project to be bid is P328,644,200.20 with a duration of 20 months. The document submitted by the contractor showed that the largest single project similar to the project to be bid undertaken by the contractor in the last 3-years has a value of P163,866,528.45. Will the contractor be qualified to participate in the bidding for the project? Why?Question 14: What is a key characteristic of the preconstruction stage? o walkdown of the site o procurements o turnover o industry review Question 15 An advantage of Unit-Price Contract is that the owner will be responsible for the [additional costs for underestimating quantities.] (True/False) Question 16: In which phase is the idea for a project evaluated to determine if it will be done? a. Execution b. Closing c. Definition and planning d. Concept and initiationQUESTION 23 Costs that include items that cannot be readily charged to any one project, but represent the cost of operating the construction company are known as overhead: a. Field O b. Home office OC. project O d. All of the above
- Explain how an estimate is priced in two phases.The first progress payment received by the contractor is signifiedby the first vertical segment of the income curve inFigures 4.1, 4.2, and 4.3. Why is this first payment shown atthe end of the second month instead of at the end of the firstmonth?What is the company's working capital? TABLE P3.3 Balance Sheet, Peachtree Construction (31 December 2016) Assets Current assets Cash $243,146 Accounts receivable Trade accounts 201,573 Retainage 42,147 Total accounts receivable 243,720 Material inventory 1,873 76,142 Work in process (costs and estimated earnings in excess of billings) Prepaid expenses 6,148 Other current assets 782 Total current assets 571,811 Fixed assets 542,173 Machinery and equipment Cars and trucks 49,214 Furniture and fixtures 5,812 Total depreciable assets 597,199 Less accumulated depreciation 291,314 Net fixed assets 305,885 Total assets 877,696 Current liabilities Accounts payable 236,144 Retainage payable 21,312 Notes payable 84,211 Accrued liabilities 15,827 Work in process (billings in excess of costs and estimated 5,163 earnings) Other current liabilities 1,421 Total current liabilities 364,078 Long-term liabilities 138,481 Total liabilities 502,559 Capital stock 15,000 360,137 Retained earnings Total net…
- The tabular information of a certain engineering project is shown below: REVENUE AND COST ESTIMATES BD 60,000 BD 25,000 BD 9,000 BD 20,000 Capital investment Annual revenue Annual operating cost Salvage value Study period 5 MARR 20% Using the information above, make a cash flow diagram.A client plans to construct a manufacturing plant that involves multiple engineering disciplines. Calculate the total engineering fees including taxes based on the following: Mechanical Works, $1,540,000 Electrical Works, $1,780,000 Earth Works, $950,000 Civil Works, $2,125,100 Environmental Works, $1,325,000 Basis B fees = 14% There are no office feesDo not include the Contractor payment in the engineering fees. Taxes = 13%Advantage of Measured or Unit rate Contract اختر أحد الخيارات a. the tender sum tells him the exact cost of the project. Sometimes the employer will be working within a tight margin of budget O b. The employer pays for the actual work executed Ⓒ c. No conflicts will be anticipated as to extras or omissions d. Both parties need a smaller number of staff for book-keeping accounting and measurement