CLASSWORK ASSIGNMENT

COURSE
CENG151
CODE:
COURSE Project Construction
TITLE: and Management

MODULE NO.: MODULE 1

CONTINGENCIES/T
TOPIC: AXES/PROFIT/MAR
K-UP

TABLE OF CONTENTS
CLASSWORK ASSIGNMENT NO. PAGE
ASSIGNMENT NO. 9 3

STUDENT INFORMATION
Full Name: ORLANDO S. VALLE
Year Level: BSCE 5A
Course: CIVIL ENGINEERING

CONSTRUCTION CONTINGENCY;

Based on what I read, A construction contingency is the amount of money allocated

to pay for additional or unexpected costs during the construction project. Typically, a 5-
 10% calculation of the construction budget should be allocated to your construction
contingency. This construction contingency is a key aspect of your risk management
protocol to ensure that your construction project can remain viable. Think of it as
insurance in the event of surprise costs or delays, allowing you to still meet your project
commitments.

VALUE ADDED TAX FOR A CONSTRUCTION PROJECT;

The rate of VAT to charge on Construction and Development Projects can often
cause confusion as the supply may be chargeable at the standard rate (20%), reduced rate
(5%), zero rate (0%), or the supply may be exempt. This article aims to summaries the
underlying rules that determine which rate of VAT should be used. The rates, exceptions
and rules. The VAT legislation states that supplies of land and property are exempt
supplies, subject to a number of exceptions detailed below. Construction services
themselves are never VAT exempt, but the VAT rate can vary depending on the work
being done and the type of property.

PROFIT

In construction projects, profit and overheads are normally referred to in relation

to contractors. In terms of individual projects, profit can be defined as the money
the project makes after accounting for all costs and expenses. The
percentage profit a contractor might apply to their tender price will vary according to risk,
workload and economic climate. It can also relate to the turnover of capital employed for
each project; the more times a contractor can turnover its capital on a project the more it
can afford to cut margins. Overheads are often priced proportionately

MODULE / PART COURSE CODE:

MODULE 1
: CENG151
CLASSWORK ASSIGNMENT COURSE TITLE:
CONSTRUCTION AND
NO.: ASSIGNMENT NO.9 MANAGEMENT
 MARK-UP
Against a project and are the calculated costs of running the company contracted to
carry out a project. Often these costs are described as head office administrative costs (in
some cases there may be factory or manufacturing overheads). Mark up refers to the value
that a player adds to the cost price of a product. The value added is called the mark-up.
The mark-up added to the cost price usually equals retail price.

MODULE / PART COURSE CODE:

MODULE 1
: CENG151
CLASSWORK ASSIGNMENT COURSE TITLE:
CONSTRUCTION AND
NO.: ASSIGNMENT NO.9 MANAGEMENT