Chulalongkorn University 2101454 Construction Management

2101454 Construction Management

Department of Civil Engineering
Chulalongkorn University
Academic Year 2018

Course Assignment 3
Project Cash Flow & Funding
Out: April 27, 2019
Due: May 8, 2019

Instructions:
1) This is an individual assignment.
2) Each student must complete all the problems yourself. If you copy or allow other
students to copy your answers, I will not grade your work (i.e., earn zero point).
3) Each student submits a hardcopy of your answers on the table in front of room 415,
Civil Engineering Building by Wednesday 8th May, 5 PM. Late submission will
not be accepted.

1. Base Case
Redo the project cash flow problem presented in Section 11.1 of the textbook, as
shown in Figure 11.1 (page 196). Perform overdraft calculations (as shown in Table 11.1)
and plot the cash flow and maximum overdraft graphs (as shown in Figure 11.4). Use the
results shown in the textbook to verify your answers.

2. Case 1: No Retention
From the Base Case, assume that there is no retention in this project. Perform
overdraft calculations and plot the cash flow and maximum overdraft graphs. Discuss
your results by comparing to the Base Case.

3. Case 2: Advance payment

From the Base Case, assume that the project owner provides an advance payment
with the amount of 20% of the total contract amount (i.e., total amount billed) at the
beginning of the project. The contractor must repay half of this advance payment at the
end of Months 1 and 2. Perform overdraft calculations and plot the cash flow and
maximum overdraft graphs. Discuss the results by comparing to the Base Case.

Even though you can perform all calculations manually, it is suggested that you use a
spreadsheet software (e.g., EXCEL) for this assignment.

If you have any questions regarding this assignment, contact Dr. Veerasak via email
(VeerasakL@gmail.com).