@ cash out ( s-curve ) cash in [ direct cost + indirect cost } [ direct cost + indirect cost + profit } - Direct cost : " itis a cost assosciated to an activity " + fie = pod! Wher 5 SI OLS Gets 4) ab - Indirect cost : "itis a general cost not assosciated to a certain activity " it includes : site overhead - taxes - insurance - risks. EXAMPLE (7) f Duration Estimated |Reg. No. of crews per week Activity | (yeeks) [Predecessor] direct cost cae Sreeraaereeaeaeeey | per activity] _ Normal Minimum A 2 4 10000 4 4 B 3 A 12000 6 3 c 6 A 12000 18 18 D 5 A 15000 15 10 E I B&C 5000 3) 3 F 6 D&E 18000 6 6 72000 -— Total direct cost - It is required to :- Draw the cash flow diagram ( Cash In and Cash out ), if the indirect cost estimated as $1000 per week, and the profit margin is assumed to be 10%, and the periodic payments are recieved one month after billing.Activities $5000, -—Direct cost per week — —Ditect cost per activity _ A Duration a $4000 a ! $2000 a $3000 j i 0) Z ool eer $3000 | F | te { pe Time 123 4 5 6 7 8 9 10 it i2 13 14 15 | Cost ; 00 |] | 80000 70000 60000 50000 40000 30000 20000 va 10000, a 72 s 5= : 99000 000 + $1000 x15 [87000 a) cash in = —+—+ — — Time 123 4 5 6 7 8 9 10 11 12 13. 14 15 One Month = 4 WeeksDuration Estimated | a (weeks ) [Predecessor beara | A 2 - 4000 | B 3 : 3000 a 6 A | 6000 D 4 B 5000 E 1 cap | 2000 F 6 | £ | 1500 G a E 1000 - Job overhead cost : ( 10% ) i - Tax.: (5%) - Bond : (1% ) | - Profit : (15% ) - Payments will be recieved two weeks after billing. It is required to : 1) Draw the bar chart. 2) Draw the cash flow diagram ( Cash In and Cash out).Use wh ~ Indirect cost includes : Job overhead cost, taxes, and Bond. +. Total Indirect cost = (10% + 5% + 1%) Total direct cost Total Indirect cost = 16% Total direct cost Total direct cost = Activity (aes Predecessor] je direct cast per Week activit A 2 z 4000 000 B 4 7 3000 | 9000 c 6 A | 6000 36000 D 4 B 5000 20000 | E 1 cep | 2000 2000 F ecm 1500 9000 | #% 2 E 1000 2000 Total direct cost ~4 86000 -. Total Indirect cost = 16% * 86000 = 13760 . Indirect cost per week = Total indirect cost Project Duration 13760 Indirect cost per week = 15 = 917.3310 11 Cost 100000 90000 80000 70000, 60000 } 50000 40000 30000 20000 10000 mas : | ot sige meee eae Ww 12 13 14 15 12 13 14 15 + Time TimeEXAMPLE (9) . | Activity | PCH [Predecessor eee A 2 : 400 B lo A | 3000 | | c 7 | a | 2800 | D 1s B | 6000 7 5 B | 3000 la 6 ic 3000 Go 3 D&E 2400 | uw | 4 F&G 4000 | 7 [ 24600 +—Total direct cost ~- Given :- i - Job overhead cost : ( 15% ) ~ Tax.: (3% ) - Bond : (1%) Hl - Risks : (5% ) - Profit : ( 20% ) - Mobilization cost = 1500 L.E - 10% retention will be kept by the owner. - Payments will be recieved one week after billing. - It is required to :- 1) Draw the bar chart. 2) Draw the cash flow diagram ( Cash In and Cash out ) .* Indirect cost includes : Job overhead cost, taxes, Bond and Risks. . -- Total Indirect cost = (15% + 3% + 1% + 5% ) Total direct cost Total Indirect cost = 24% Total direct cost Total Indirect cost = (24% ) ( 24600 ) = 5904 L.E * Mobilization cost = 1500 L.E It will be added to cash out from the beginning of the project. Cost cash out, ~~ ec i ITS * Cash out = cummulative total cost slid! asda le * Cash in = Cash out (1 + profit )= Cash out (1 + 20% ) BB aep WLS Lacdy 9 ULM Js! laa GU) Slaldioall Ge Gavel Leylake Hey 10% will be kept by the owner. Js] eotiy pabine JS AS Go [ Whll pay Jeti alba JS Lad Ge Ae WL pba Gl * Cash in = 1.2 * Cash out * 0.9 = 1.2 * Cash out * 0.9 = 1.08 * Cash out300, | 1000 —_. ; Time 1 | \ L 10 11 12 13 14 £5 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Bar Chart Cash flowTF=3 z : ct 2 [2014 S217 FR=1 TF=1 TE=1 [102 2 Bolt (1273 3215 TR=4 FF=0 FF=1 TE=2 TR=2 Big 4 TE= daats [Ss is0l7 7 [s0L1i TTT | T1219 TAT TE=0 (e139 FF=0 FF =2 FF=0 TE=0. TE +15 [60]7 I(T 01TH} + 4 1 1 to 7 Be wat FE=0 FF=0 TR=4 TR=4 13 [7017 7 foo 13) ao Tern tee | | {tr=4 0 [i6|10 aaa mao | | 20 7 OT7| 171 [8 EB=0 FF=0 eee Precedence network diagram