Complete the attached worksheet. Additionally, consider the case where you have made an error on...
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Complete the attached worksheet. Additionally, consider the case where you have made an error on your pay application #2. Instead of receiving the payment for Period 2 on time in Period 3, you will receive the payments for the work in Period 2 and Period 3 in Period 4 (Put in a zero for Period 3 receipts, however the total receipts for the project does not change). Describe all changes in the project cashflow as a result of your pay application error. **....**ASSUME 10% Percent Retainage, No Retainage on Subs ******** For Project Receipts Cost Payout Accum. Period L+E+M Sub Overhead Profit Pay to Sub Bill to Owner Retainage Net 1 1000 500 2 2000 1000 3 2000 0 4 2000 500 closeout sum of L+E+M+subs+OH+P % Profit %ROI % Mark up profit = total profit / bid, bid = total amount billed to owner ROI= profit / (sum of positive nets), add positive numbers in net col Mark up = (OH+P)/direct costs Max draw = biggest postive net Min loc=biggest positive accum Max Draw Min LOC Complete the attached worksheet. Additionally, consider the case where you have made an error on your pay application #2. Instead of receiving the payment for Period 2 on time in Period 3, you will receive the payments for the work in Period 2 and Period 3 in Period 4 (Put in a zero for Period 3 receipts, however the total receipts for the project does not change). Describe all changes in the project cashflow as a result of your pay application error. **....**ASSUME 10% Percent Retainage, No Retainage on Subs ******** For Project Receipts Cost Payout Accum. Period L+E+M Sub Overhead Profit Pay to Sub Bill to Owner Retainage Net 1 1000 500 2 2000 1000 3 2000 0 4 2000 500 closeout sum of L+E+M+subs+OH+P % Profit %ROI % Mark up profit = total profit / bid, bid = total amount billed to owner ROI= profit / (sum of positive nets), add positive numbers in net col Mark up = (OH+P)/direct costs Max draw = biggest postive net Min loc=biggest positive accum Max Draw Min LOC
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