Project Management
Tutorial 4 – Project budget and cashflow planning
Project budget
1.1 Give one (1) example of a project and perform the following:
(a) Choose two (2) activities of that project and
(b) Set up direct costs, indirect costs and contingency for the 2 chosen activities
Project cashflow
2.1 Discuss the various “Cash-inflow” and “Cash-outflow” sources for the following stakeholders of a condominium development project:
(a) Sub-contractor
(b) Main-contractor
(c) Developer
2.2 Based on the Earliest Schedule, and the following assumptions, determine the Accumulated Net Cashflow of the
Main Contractor with the following payment terms:
- Main contractor pays the suppliers and sub-con monthly and start at Month 2 after the commencement with value of 85% of the awarded sum;
- Main contractor receives payment from Client monthly and start at Month 3 after the commencement;
Activity
E
F
G
H
I
J
K
L
M

Demolition and clearing
External works
Internal works
Mechanical and engineering
Painting and redecoration
Other external improvements
Clean up
Fitting of equipment
Completion and handing over
Prelims (Monthly payment)

Immediate
Predecessors
E
E
G
F, G
F
I, J
K
L

Duration (months)

Awarded Sum ($)

2
6
4
2
3
2
1
1
1

5,000
30,000
80,000
20,000
10,000
15,000
2,000
30,000
10,000
15% of the total above

Cost option study
3.1 What considerations project owner should think of when making decision to choose between various design alternatives cost options?
Cost control
4.1 Based on the Awarded value of Q 2.3, it’s now Month 6 of the schedule and for the last 6 month the Contractor’s performance is as below:
Month 1, 2, 3: 90% of actual
Month 4,5: 85% of actual
How many % of works accumulatively has he completed by end of Month 6? What should be the accumulative % of work that he is