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POST-CONTRACT FINANCIAL ADMINISTRATION

Semester 1, 2025

ASSIGNMENT TWO

INSTRUCTIONS:

QUESTION 01 - POST-CONTRACT CASH FLOW                  (30 MARKS)

Once the project was awarded to Hogwarts Construction, the Construction Manager asked you to prepare the cash flow forecasting for the project. The planning engineer has prepared the detailed construction programme, and the Table 01 data was passed on to you. In addition to that, the following details are from the contract document.

Retention                                                Retention is deducted according to the guideline in NZS 3910: 2023

Estimated profit of the project                   20%

Defects liability period                              3 months

Payment claim vs certified payment           Payment claims amount and the certified payments are the same, with no adjustments (GST is not required to be calculated)

Task 01 (5 marks) - Submission: Excel file

Using MS Excel, the above information calculate the following for the project from the 1st month to the final completion of the project. If any assumptions are required, please list them clearly.

a)  Cumulative budget

b)  Cumulative payment claims

c)  Cumulative revenue

d)  Cumulative expenditure

e)  Cumulative capital

Task 02 (4 marks) - Submission: Excel file

Looking at the calculations, the project team requested an advance payment to reduce the negativity of the cash flow at the beginning of the project. Therefore, using the advance payment information given below, recalculate the task 02 items.

Advance payment                   10% of the Contract Sum

Advance Recovery                   The Advance will be recovered 25% from each monthly payment before deducting the retentions. The advance payment recovery will not start until the overall progress reaches 10%

a)  Advance recovery

b)  Cumulative payment claims with advance

c)  Cumulative revenue with advance

d)  Cumulative capital with advance

Task 03 (6 marks) - Submission: Excel file

Looking at the material calculations for each month, the construction manager requested you to consider the material on-site and off-site to reduce the negativity on the cash flow even further. The following table shows the material cost for each month. Assume that these materials will be purchased in the previous month. You can include the material cost as an advance for the previous month's payment claim.

Month                Material cost for each month (NOT cumulative)

1                       63,344.32

2                       274,492.43

3                       443,410.27

4                       570,097.84

5                       654,555.14

6                       696,782,16

7                       696,778.92

8                       654,545.41

9                       570,081.62

10                      443,387.57

11                      274,463,24

12                      112,606.54

Using the above material costs, calculate the following:

a)  Cumulative payment claims with advance + material advances

b)  Cumulative revenue with advance + material advances

c)  Cumulative capital with advance + material advances

Task 04 (8 marks) - Submission: Excel file

Using the calculations in Task 01 and Task 02, create graphs to show the following:

a)  Cumulative budget curve

b)  Cumulative revenue curve

c)  Cumulative revenue with the advance curve

d)  Cumulative revenue with the advance + material advances curve

e)  Cumulative expenditure curve

f)   Cumulative capital curve (sawtooth diagram)

g)  Cumulative capital with the advance curve (sawtooth diagram)

h)  Cumulative capital with the advance + material advances curve (sawtooth diagram)

Task 05 (7 marks) - Submission: Word file

Using your answers for Tasks 01, 02, 03 and 04, explain the expected behaviour of the project cash flow. (100 - 200 words)

QUESTION 02 - POST-CONTRACT COST CONTROL           (20 MARKS)

The project reached the end of the 5th  month, and 30% of the project is completed.

Task 01 (5 marks) - Submission: Excel file

Using the information from question 01 above, calculate the following.

a)  Cumulative Planned value (PV) at the end of the 5th month

b)  Cumulative Actual Cost (AC) at the end of the 5th  month

c)  Cumulative Earned Value (EV) at the end of the 5th  month

d)  Cost Variance (CV) and Schedule Variance (SV) at the end of the 5th  month

e)  Cost Performance Index (CPI) and Schedule Performance Index (SPI) at the end of the 5th  month

Task 02 (3 marks) - Submission: Excel file

Draft the information into an S-curve chart to show the status of the project. Label the PV, AC, EV, CV, SV and BAC on the curve.

Task 03 (2 marks)  - Submission: Excel file

What is the expected completion date if Hogwarts Construction wants to maintain the same SPI and CPI for the remaining part of the project? (List any assumptions made)

Task 04 (2 marks) - Submission: Excel file

What is the expected estimate at completion (EAC) at the end of the project if Hogwarts Construction wants to maintain the same SPI and CPI for the remaining part of the project?

Task 05 (3 marks) - Submission: Excel file

What efficiency/ performance rate is to be maintained to finish the project (To Complete Performance Index)? You have to calculate all the possible options.

Task 06 (5 marks) - Submission: Word file

Using your answers for tasks 1 to 5, provide a cost update explaining the project’s current status and forecasting for the rest of the project. Evaluate all the TCPIs from task 5 and decide which is the most feasible option with an explanation.

QUESTION 03 - CLAIMS PREPARATION (VARIATIONS)      (20 MARKS)

The attached is the layout plan of the proposed house for Mr & Mrs Potter. The principal has suggested a few changes to the current design based on their requirements, as mentioned below. Contract Administrator Hermione issued a site instruction (SI no. 10) for variations as below. SI-10 is attached in Annexure A.

Task 01 (5 marks) - Submission: Excel file

•    Take off the quantities for the variation items. You may use either CostX or MS.

Excel. However, you need to show the quantities and how you measured them clearly.

Task 02 (10 marks) - Submission: Excel file

•    Prepare the valuation for the variation.

•    Clearly list out any assumptions you have made.

•    You may use the template attached with the brief.

•    Processing charges 一 2% of the aggregated additions and omissions without considering the negative signs.

•    The cost data required for these calculations is provided in the table below.

•    Clearly list out any assumptions you have made.

Task 03 (5 marks) - Submission: Word file

Using the above calculations, prepare a Variation Order (VO).

QUESTION 04 - CLAIMS PREPARATION (EOT)                   (20 MARKS)

The programming engineer has conducted the delay analysis for the variation under the SI-10 (question 03 above) and two other variations. According to the planning engineer, the delay is expected to be 20 working days in total for all three variations.

a)  Due to the SI-10 variation in question 03, the Delay affected the progress on site starting at the 29th week. Extension of time is for 9 working days granted under the variation order.

b)  Due to receiving revised ground levels that caused a delay in the start of the second week, extension of time was granted for 3 working days under variation order 01.

c)  Due to the late approval of the mechanical services subcontractor by the Contract Administrator, a delay occurred at the beginning of the 12th week. An extension of 12 working days was granted under the Variation order.

Task 01 (10 marks) - Submission: Word file

Prepare a  notice  of  delay to the  Contract Administrator  highlighting  the  relevant clauses from NZS 3910.

Task 02 (10 marks) - Submission: Excel file

Based on the Preliminary & General section of the BOQ attached in Annexure B, calculate the time-related cost claim for the Extension of Time.

QUESTION 05 - CRITICAL REFLECTION                             (10 MARKS)

Each group member should create a video to critically reflect to show their understanding of the assignment tasks done by each student. You are NOT required to make any PowerPoint presentations. ONLY a video in MP4 format is to be submitted. This should include the following.

a)  What is your involvement and role in the group assignment?

b)  What was your reflection on the work you did for the assignment?

•   You will get marks based on how you demonstrated your understanding of the work you did. If you just read a script through the  presentation, you may get less marks.

•   Video for each member should not exceed more than 5 minutes.

•   You may combine all the videos of the group members and attach them as 1 file using video editing software.

•   You MUST NOT use AI to create the video and voice recording. Your face and voice MUST be clear.

•    If you work alone on the assignment, you MUST still submit the presentation with your reflection.

Submission: MP4 file