The table given below summarizes the main items included in a certain construction project. For each...

  
 

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The table given below summarizes the main items included in a certain construction project. For each item, the direct cost, expected total cost set by the contractor, and the probability of occurrence of such expected total cost is shown. Item No. Probability of Occurrence (%) Direct Cost ($) Expected Total Cost ($) 420,000 950,000 640,000 260,000 550,000 1,300,000 720,000 330,000 1 15 40 3 20 4 70 Site Overheads = 10 %, Company Overheads = 5%, Mark-Up = 10% (a) Determine the amount and percentage of the "project reserve contingency". (b) Determine the "Cost Baseline" of each item and for the project The table given below summarizes the main items included in a certain construction project. For each item, the direct cost, expected total cost set by the contractor, and the probability of occurrence of such expected total cost is shown. Item No. Probability of Occurrence (%) Direct Cost ($) Expected Total Cost ($) 420,000 950,000 640,000 260,000 550,000 1,300,000 720,000 330,000 1 15 40 3 20 4 70 Site Overheads = 10 %, Company Overheads = 5%, Mark-Up = 10% (a) Determine the amount and percentage of the "project reserve contingency". (b) Determine the "Cost Baseline" of each item and for the project

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Project Cost Estimates are the aggregated costs for the work packages or activities of the project w... View the full answer