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
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- Discuss overlap and underlap of subcontracted work and the problems associated with each condition.5. Assume a project where all possible receipts and payments, including the retention, are due one month after the project ends. For this project, the total amount of cash generated one month after the project have been received and all bills have been paid) will be equal to a. Gross profit b. Net profit c. Project contract amount d. General overhead over (when all payments3.. Negotiations is one of the methods for tendering procedures in selecting the main contractor to execute of the proposed construction project. a. Briefly explain the criteria, advantages and disadvantages of this method. b. Explain the following: i. ii. iv. Advance payment Interim payment Final payment Give ONE (1) example of interim payment by using percentage work done.
- QUESTION 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 aboveThe 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…Alpha Associates has the following details: Fixed cost = Rs.20,000,000 Variable cost per unit = Rs. 100 Selling price per unit = Rs. 200 Find (a) The break-even sales quantity. (b) The break-even sales (c) If the actual production quantity is 60,000, find contribution; and (i) (ii) margin of safety by all methods. IT
- Discuss “Contract System” of CNW KPK for civil construction work from inviting of tender to allotment of workSuppose you are an engineer in the real estate department of a foreign bank. The bank desire to give financial support for an energy power plant, but it has no idea on the Turkish construction industry. The construction investment department of the bank has recently formed, the personnel have no any experience in the market. Therefore, the amount of construction cost, the size of work are not exactly known and time is lacking to prepare plans. Select the type of the contract (pricing), Number of prime (principle) contractors, Method of procurement Bidding process (open, prequalified or negotiation etc.)Suppose you are an engineer in the real estate department of a foreign bank. The bank desire to give financial support for an energy power plant, but it has no idea on the Turkish construction industry. The construction investment department of the bank has recently formed, the personnel have no any experience in the market. Therefore, the amount of construction cost, the size of work are not exactly known and time is lacking to prepare plans a Select the type of the contract (pricing), b. Number of prime (principle) contractors, c. Method of procurement d. Bidding process (open, prequalified or negotiation etc.)
- 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)?Q2 The details of production costs and revenues of project are as under: Total Cost Fixed Cost Sales (8,000 units) Rs. 65,000 Rs. 25,000 Rs. 80,000 Find the BEP in terms of no. of units.What should be the output if the profit desired is Rs. 20,000?The following cash flows result from a potential construction contract for Erstwhile Engineering. 1. Receipts of $500,000 at the start of the contract and $800,000 at the end of the fourth year. 2. Expenditures at the end of the first year of$400,000and at the end of the second year of $900,000. 3. A net cash flow of zero at the end of the third year. Using an appropriate rate of return method, for a MARR of 25 percent, should Erstwhile Engineering accept this project? Answer the following question: Erstwhile Engineering should/should not accept the project because the rate of return is (enter your response here) percent, which is less/greater than the MARR.