You are the Construction Manager overseeing the construction of Project 8168, a multi-storey multi use building. You are monitoring and reporting costs for the project to the project manager.

There are number of different report sheets required for the project that you must complete as part of the management of the project.

The company has standard templates for cost management that include the allocation of trade work packages, cost centres, cashflow monitoring including providing comparisons of project estimates and actual costs. The reporting also requires comparisons of estimated costs and actual costs in graph form.

When completing this activity, you must take following into the account:

• The project tender price is inclusive of costs and overheads (such as office staff salaries and insurances etc) for the off-site operations of the company
• The Costs Estimates from contractors and suppliers have been approved and allocated. These have been included in the reports
• All Tender Cost Breakdown 'A' items will be calculated as at a reduced margin of 5%. This was agreed during tender negotiations
• All other Tender Cost Breakdown items will be calculated at a margin of 15%
• All Overheads will be calculated at a margin of 10%
• All Variations will be calculated at the maximum rate of 10%
• The project Retention rate is 5%
• The company's policy is to pay all creditors, invoiced before the end of the calendar month, paid on 30-day terms
• The company invoices progress payments for work completed at the 28^th day of each month, paid on 30-day terms

For these activities, you will be required to access and refer to the following documents provided:

• M3 Project Costs Template (Click here to download)Download M3 Project Costs Template (Click here to download)

The M3 Project Costs Template consists of the following spreadsheets:

• Cost Centre Activity
• Tender Costs
• Progress Claims
• Forecast Cash Flow
• Actual Costs
• Actual Cash Flow

NOTE

For this activity, you are required to complete ALL six (6) parts of this activity (A to F) before submitting the completed M3 Project Costs Template

 

PART A

What do I need to do?

Referring to the scenario above, you are now required to access the Cost Centre Activity spreadsheet within the M3 Project Costs Template and complete the following:

• Calculate the Tender Price for each item
• Calculate the Tender Price Sub Totals Tender Price for each Tender Cost Breakdown
• Apply the Margin Rate for each item
• Calculate the Profit by Cost Centre
• Calculate the Profit Sub Totals for each Tender Cost Breakdown

 

PART B

What do I need to do?

Transfer the following calculations from Cost Centre Activity to Tender Costs:

• The Tender Cost Breakdown
• The Internal Cost Centre
• The Tender Price
• The Margin Rate
• The Estimated Profit/Loss

 

PART C

What do I need to do?

On the Progress Claims spreadsheet, complete the following calculations;

• Check the Tender Price from sheet Cost Centre Activity is correct
• Calculate the Progress Claim Value amount at the Progress Claim % rate specified.
• Calculate the Retention Amount at the rate stated in the scenario
• Calculate the Claim Value

 

PART D

What do I need to do?

On the Forecast Cash Flow complete the following calculations

• Allocate each Expenditure item for the Sub Contract Package to the appropriate month
• Target Completion Date
• Cost Estimate

 

PART E

What do I need to do?

On the Actual Costs spreadsheet, complete the following;

• Transfer
• The Tender Cost Breakdown
• The Internal Cost Centre
• The Tender Price
• The Margin Rate
• Calculate the Variation Totals using the contract Variation Margin Rate
• Calculate the Total Revenue
• Calculate the Total Costs
• Calculate the Total Profit

 

PART F

What do I need to do?

Last item to be completed is the Actual Cash Flow spreadsheet. Refer to the previous spreadsheets to complete this section. Please complete the following calculations:

• Allocate each Expenditure item to the appropriate month including the Sub-Contract Package details
• Completion Date
• Total Cost