Chapter 4, Problem 11P

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 4-13

During the buyout, the subcontracts shown in Figure 4-14 were signed and the purchase orders shown in Figure 4-15 were issued. No additional costs are expected tor the contracts in Figure 4-14 and the purchase orders in Figure 4-15. A purchase order has been issued for concrete for $116 per cube 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.

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 4-16. You have a meeting with project’s owner to discuss the financial status of the project. Using the committed cost worksheet from Problem 10, update the estimated cost at completion and determine if ne project is over or under budget. The supervision and temporary utility costs should be prorated over the life of the project. The pouring of the footings, foundations, and floor slab are complete.

Figure 4-16 Cost for Problem 10