Question: A contractor is building a pump station for a public utility. The complete price of the pumps, including purchase, fabrication, testing, transportation, installation, and commissioning,

A contractor is building a pump station for a public utility. The complete price of the pumps, including purchase, fabrication, testing, transportation, installation, and commissioning, is $

6

million. It will take one year from the start of the construction contract through the installation and acceptance of the pumps. Explain how you would pay the contractor the $

6

million over the one

-

year period.

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