Contractor Payment Calculations: Billing & Profit Analysis
School
University of Illinois, Urbana Champaign**We aren't endorsed by this school
Course
CEE 422
Subject
Management
Date
Dec 11, 2024
Pages
1
Uploaded by AdmiralUniverse15099
Question S [12 marks] The following are the terms and conditions of the main contract: Monthly interest rate is 1.6% Retainage is 9% Payment to Main Contractor by Owner is made 1 month after billing, There is no advance payment. The following are the terms and conditions of the subcontract (work during month 2 is subcontracted): = The subcontract price is $94,800 (i.e., the indirect cost is $5,200). = Payment to Subcontractor by Main Contractor is made — right away — after receiving payment from Owner (i.e., once the Main Contractor receives payment for the subcontracted work from the Owner, he pays the Subcontractor). = The indirect cost is committed when the work is done. = There is no advance payment, and there is no retainage. a) [10 marks] Show billing, payment, and other overdraft calculations in_the table (you are the Main Contractor). NO need to draw any graphs. b) [1 mark] What is the net profit (you are the Main Contractor)? ¢) [1 mark] What is the peak financial requirement (you are the Main Contractor)? Instructions: e Use integers for dollar values, NO decimal places needed. e Fill in the relevant blanks in the table. e State any assumptions you make. Cost ¥ud of Total Price Main to Main (before (deduct (add (deduct n Month ® Contractor | Contractor interest) interest) | payment by | payment to on Billing by Payment Overdraft | Overdraft | Overdraft | Overdraft 3 ® ) () ®) Owner) ($) | Subcon) (8) 300,000 | 360,000 : 100,000 | 120,000 AR
