CON/CNE383 ASU Labor Productivity Cash Flow and Cost Accounting Paper hello i want someone to help me with my assignment which is a Estimating class . i wi
CON/CNE383 ASU Labor Productivity Cash Flow and Cost Accounting Paper hello i want someone to help me with my assignment which is a Estimating class . i will attach everything that you need . CON/CNE 383
CONSTRUCTION ESTIMATING
FALL 2019
Cash Flow & Cost Accounting
Instructions
1. Submit your assignment in Excel workbook (.xlsx) format
2. The assignment is to be completed within your teams.
3. Submit your assignment through Critviz
4. Late submissions will be accepted till the end of the semester for a 75% grade deduction.
5. File naming format: Last Name, First Name Cost Acc HW
6. The assignment is valued at 15 possible points.
7. Show all calculations and formulas, state all assumptions.
8. Failure to follow instructions will result in deductions
Question 1
Below is a table with the forecasted costs for a general contractor for project. There is a 30-day
payment process cycle and the owner is retaining 10% of Month 1 and Month 2 costs, which will
be paid in the final month. Assume that all monthly costs are invoiced at the end of the month.
a) Determined the peak financial requirement for the GC.
b) If the peak financial commitment is borrowed from a bank, a line of credit, calculate the
total cost to the contractor (calculate the future value of the loan). Interest rate = 13.7%,
assume a four (4) month term.
c) Create at cash flow graph with Dollars ($) on the y-axis and Time (Days) on the x-axis.
Dr. Kenneth Sullivan
Page 1 of 2
CON/CNE 383
Item
Labor
Materials
Subcontractor
CONSTRUCTION ESTIMATING
FALL 2019
Month 1
$7,260.00
$6,200.00
$2,200.00
Month 2
$15,800.00
$14,790.00
$3,100.00
Month 3
$17,855.00
$6,400.00
$2,100.00
Total
$40,915.00
$27,390.00
$7,400.00
$725.00
$1,250.00
$580.00
$2,555.00
Field Office
$1,200.00
$1,200.00
$1,200.00
$3,600.00
Performance Bond
Main Office Utilities
$1,500.00
$120.00
$1,500.00
$180.00
$1,500.00
$140.00
$4,500.00
$440.00
Salaries of managers, clerical
personnel and estimators
$3,200.00
$3,200.00
$3,200.00
$9,600.00
$22,405.00
$41,020.00
$32,975.00
$96,400.00
Tools/Other Equipment
Totals
PLEASE USE THE TEMPLATE PROVIDED ON BLACKBOARD
Dr. Kenneth Sullivan
Page 2 of 2
CON/CNE 383
CONSTRUCTION ESTIMATING
FALL 2019
Labor Productivity
Instructions
1. Use 12 point Times New Roman Font with Single Spacing
2. Submit your assignment in excel workbook format
3. The assignment is to be completed within your teams.
4. Submit your assignment through Critviz and your team Google Drive Account
5. Late submissions will be accepted till the end of the semester for a 75% grade deduction.
6. No handwritten solutions will be accepted.
7. File naming format: Last Name, First Name Labor HW
8. The assignment is valued at 20 possible points.
9. Show all calculations and formulas, state all assumptions.
10. Failure to follow instructions will result in deductions
Question
Gray Matter Inc. is a structural concrete contractor that has just been awarded a contract to cast
and pour the beams, columns, and slabs for a five-story commercial building. The client has
requested a cost analysis of two alternatives:
A) The cost to perform the work under straight-time normal working conditions.
B) The cost to perform the work under a combination of straight-time and a
second shift.
In preparing your analysis you arrived at the following numbers:
1. Under straight-time hours the workforce works at an average rate of 10.42 labor-hours/CY
of concrete. This includes all tasks: forming, reinforcement, placement, and finishing.
(Assume no stripping cost.)
2. The building has 32 columns at 11x11x12 per floor, 1570 LF of 9 x 10 beam per floor
(assume roof deck has same design as a standard floor), and 17,250 sf of 4 slab per floor,
with the slab on grade at a 6 depth. Add 15% to the total CY for the foundation.
3. The crew consists of a foreman, five carpenters, four laborers, four rodmen, two concrete
finishers, one crane operator, one oiler, and an 80-ton crane. The average base cost for the
crew is $98.10 per labor-hour. Assume, on-average, the entire crew is needed each
workday.
Dr. Kenneth Sullivan
Page 1 of 2
CON/CNE 383
CONSTRUCTION ESTIMATING
FALL 2019
4. Second shift work rates are 7.5 hours at 8 and a 10% shift differential.
5. Assume no productivity drop.
6. The second shift requires an extra cost of $1200/day for lighting, administrative costs, etc.
7. The client estimates an opportunity cost of $5300/day for every day the building is under
construction
Assume 8 hour shifts. Materials and construction pattern make curing time a non-issue.
Determine the best alternative and justify your answer with a narrative explanation. Also, calculate
the % Differential and % LH Growth in your analysis.
Dr. Kenneth Sullivan
Page 2 of 2
Cash Flow and Cost Accounting Solution
Name
1
2
3
4
5
6
7
8
Item
Labor
Materials
Subcontractor
Tools/Other Equipment
Field Office
Performance Bond
Main Office Utilities
Salaries of managers, clerical personnel and
estimators
Month 1
Month 2
Month 1
Month 2
A. Calculations-
A
B
Beginning Carrying Balance
Monthly Project Cost (Outflow)
Peak Monthly Outflow
C
D
Customer Invoice
Invoice Retainage
E
F
G
Invoice Payment (Inflow)
Retainage Payment (Inflow)
End Carrying Balance
A. Peak Financial Requirement
Please create your cashflow chart on the other sheet
Month 3
Total
B. TVM Calculation
Month 3
Month 4
Peak Outflow
# of months Peak Outlfow needed
Annual Interest
Monthly Interest
FV
Month
Month Day #
Total Day # Day Spent
Sum Gross
Day Rev
Assume 22 working days per month
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