CVEN349HW3-BENMOORE
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School
Texas A&M University *
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Course
349
Subject
Civil Engineering
Date
Apr 3, 2024
Type
Pages
4
Uploaded by PrivateBeePerson667 on coursehero.com
1
T
EXAS A&M U
NIVERSITY Z
ACHRY D
EPARTMENT OF C
IVIL E
NGINEERING CVEN 349: C
IVIL E
NGINEERING P
ROJECT M
ANAGEMENT
Spring 2024 Assignment 3
TOTAL POINTS: 100 DUE: February 29, 2024
OBJECTIVES
Become familiar with financial decision making, contract documents, and construction project bidding concepts. DELIVERABLES Submit this assignment. RESPONSIBLE PARTIES This is an individual assignment. Part I (
50 points
) 1.
The job outlook for civil engineering engineering graduates is rosy. As a result, the city of College Station must plan for a new aluminum recycling plant because of the alarming rise in craft beer consumption packaged in aluminum cans and the resulting waste stream impacts. The city has asked you to review two proposed recycling plant designs and construction and annual maintenance costs as shown below. Year (t)
Design No. 1 ($1000s)
Design No. 2 ($1000s)
0 1-20(each yr)
1,250 100 (O&M)
1,030 135 (O&M)
Both designs will be constructed by March 2025, last 20 years, and because of the wear and tear of the recycling process, the facilities have no salvage value. The Federal government will subsidize 50% of the initial capital cost, and has a policy to subsidize 8% of the annual maintenance cost of capital recycling costs incurred by local governments. The City of College Station will seek a loan to finance 25% of the initial capital cost at a borrowing rate of 8% with 20 equal annual payments including principal and interest. The MARR for this type of project is 15% reflecting its operating risk (Hendrickson chapter 6; http://pmbook.ce.cmu.edu/
) a)
What is the uniform annual revenue that must be collected in the next 20 years to make each of the two designs worthwhile from the view of the City of College Station? (
20 points
) DESIGN A -
INITIAL COST (P = 1,250) Federal Subsidy
50% .5 * P = 625 LOAN
25% .25P(A/P,8%,20) = 31.8
2 Initial Payment
25% .25P(A/P,15%,20) = 49.9 -
OM (A=100) Federal Subsidy
8% .08A = 8 Atot = (100-8) + 31.8 + 49.9
173.7 DESIGN B -
INITIAL COST (P = 1,030) Federal Subsidy
50% .5 * P = 625 LOAN
25% .25P(A/P,8%,20) = 26.2 Initial Payment
25% .25P(A/P,15%,20) = 41.1 -
OM (A=135) Federal Subsidy
8% .08A = 10.8 Atot = (135-10.8) + 26.2 + 41.1
191.5 b)
Which design has a lower cost from this perspective? (
20 points
) -
Design A has the lower cost from this perspective because it has the lower annual revenue needed to make the project profitable. c)
Should the City give consideration to the idea that the job market may significantly change before March 2024? In other words, what happens if beer drinking in Paris goes way up or way down? (
5 points
) -
Future considerations should be made. -
If aluminum becomes scarce or increases in price, then the consumption of beer in aluminum cans will decrease defeating the need for this project -
The revenue decreases if consumption decreases and increases if consumption increases. -
Beer consumption directly correlates to the viability of this project and since the lifetime is 20 years considerations for the future must be made to ensure that the project can/will be profitable. d)
What other ways could the worth of the above project be financially assessed? (
5 points
) -
Annual average rate of return (IRR) o
IRR > MARR (viable project) o
IRR < MARR (not viable) o
IRR = MARR (breakeven) -
Net Present Value (NPV) o
NPV > 0 (viable) o
NPV < 0 (not viable)
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Related Questions
In the execution of any project, the contractor's role and responsibility is to:
Oa. maintain safety and adhere to the schedule
b. manage the construction site
Oc. Both (a) and (b)
odinitiate and finance the project
A Click Submit to complete this assessment.
wN x
*. AR
DELL
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Provide complete solutions and comple Z.A.V table
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General Contractors working an a project that requires several months to complete typically request payment from the Owner on a monthly basis. They submit what is referred to as a Pay Application. What do GC's typically ask for payment of?
Group of answer choices
A)Ordered materials and equipment
B)Installed materials and equipment
C)Materials and equipment stored on site
D)A & B only
E)A & C only
F)B & C only
G)All of the above
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Manual solution please. No excel solutions!
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Figure 2-2 shows the project organization chart for a Design-Bid-Build project delivery method. Assume the same project is to be delivered through design-build method - Project Architect (John James) and Western Construction Co. formed a partnership and competed for the project against other design-build teams and won the project. Prepare a project organization chart for the design-build delivery method. All design sub-consultants and subcontractors remain the same.
arrow_forward
Question 1
A. On a project, the contractor failed to complete the project on time
and the project was terminated. Because of the urgency involved to
complete the project, another Contractor 'B' was asked to immediately
takeover and proceed with the works without going for a tender or
entering into a written contract. Assuming you are the contract manager
for the Contractor 'B', what advice would you give to your company on the
following: Offer, Acceptance, Consideration, Mutuality of obligations,
Competency and capacity before proceeding to start working?
arrow_forward
Q4: Explain the role of computers in “Estimation and Tender Documentation Preparation”. Explain Time Scheduling of different construction activates for the execution of the projects.
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Give me right solution according to the question..
Don't copy from websites.
List FIVE (5) duties of the consultant quantity surveyor from the initial stage to tender stage to the construction stage.
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If you were bidding on a project in your own town, which of the following activities are not important when preparing the estimate:
O a. Your commute time to the office
O b. Bid our sub-contractor work
OC. Visit the project site
Od. Considering contingency
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If the specifications are silent on the subject, but a contractor asks you, as the Resident Project Representative or inspector, how to perform the work, which of the following is the recommended procedure?
a. Be ready to help by telling the contractor your opinions,because as a member of the construction team,it is your responsibility.
b. Politely decline because construction means andmethods are the sole prerogative of the contractor.c. Direct the contractor how to perform the workbecause you know that if the contractor asked you,it meant that he or she did not know how to execute the work, and the project may otherwise suffer delays or failures.
arrow_forward
Q1/ Answer by true or false (Tor F) of TEN of the following;
It is better not to use traditional approach when client wishes to appoint designers separately.
1-
2-
3-
4-
5-
6-
7-
8-
9-
Due to the high risk in turn-key approach that only contractor bears, thus the contract in such
approach may require higher cost.
The cost of depreciation does not depend on the maintenance cost.
When the no. of hours for changing oil increases, then the oil consumption will increase too.
The equipment can be considered standard if it is familiar and can be used in several projects.
For economic purposes, one should always make a trade-off and comparisons among different
types of equipment.
In general, soil stabilization methods try to reduce porosity, increase density and capacity.
The salvage value of standard equipment is always higher than for special ones.
The horsepower of the engines is inversely proportional to the height at which it is operated.
arrow_forward
1. True or False? A payment bond provides the construction contractor a guarantee that they will receive timely payment for properly completed work
2. True or False? The terms price and cost are the same thing as it applies to a construction estimate.
3. From the following list, which item is least governing when interpreting a contract requirement?a. The Contract Agreementb. Amendments to the Contract Agreementc. Section view drawingsd. Specifications
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Q: Draw the allocation of resources chart
on the earliest and latest start time for the
project that its information shown below,
and identify the most reasonable of them
and why?
D EFG
Activities
A
K
Events
1-2
1-3 2-4
2-5
3-4
4-7
4-8
5-6
6-9
7-9
8-9
Duration
5
4
3
2
1
4
resources
3
5
4
2
6
1 Add file
6.
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Distinguish thoroughly the two-envelope system involves in the
submission of a technical proposal for bidding.
lir
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Question 14: What is a key characteristic of the preconstruction stage?
o walkdown of the site
o procurements
o turnover
o industry review
Question 15
An advantage of Unit-Price Contract is that the owner will be responsible for the
[additional costs for underestimating quantities.] (True/False)
Question 16: In which phase is the idea for a project evaluated to determine if it
will be done?
a. Execution
b. Closing
c. Definition and planning
d. Concept and initiation
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29. Since the owner has little day-to-day involvement, he is
in all matters by the construction
manager.
30. Decisions concerning project strategies during the design phase of the project are made by the
31. The design-build delivery method is a single-source procurement for the owner, consisting of
and
32. The design-build firm acts as a facilitator for designers and constructors to eliminate the
relationship that can exist between such parties in a traditional delivery method.
33. The four types of design-build organizations are:
34. A final type of delivery method introduced by the instructor is IPD - aka,
35.
is a logical platform for IPD.
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The following information belongs to a target cost contract: Target cost = $250 M Target band = $230 M and ends $270 M Target contractor fee = $10.5 M Cost saving share = 55/45 by owner Cost increase share = 65/35 by contractor Contractor minimum fees =$5 M The GMC = $320 M Minimum expected project cost = $ 200 M Calculate the contractor fee, if the project cost is 280 M?
Select one:
a. 6 M
b. 3 M
c. 4 M
d. 5 M
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6. Match the following terms with the most correct explanation
Term
Explanation
Payment Bond
Provides the owner with an amount to cover the
damages/costs if the apparent low withdraws
Bid Bond
Provides the owner with a means for completing the
work if the contractor cannot complete it.
Lien
Protects suppliers, subcontractors and employees
Non-payment by the General Contractor
Performance Bond
Used primarily in private contracting; the General
contractor and first-tier subcontractors place a debt
upon the facility if they haven't been paid.
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Please Provide clear solution thank you I'll rate!
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Part 2- Estimate Build Costs
The land you are planning to buy for the brewery is for sale for $100,000. You are planning on contracting out the parts of the job yourself. From the various specialties you receive the following cost ranges:
Specialty
Optimistic Cost
Most Likely Cost
Pessimistic Cost
Site Preparation & Foundation
$15000
22500
31000
Structure
400000
525000
600000
Utilities
30000
37000
40000
Equipment Install
150000
200000
275000
Finishing
50000
70000
100000
Using three-point estimation, determine the cost estimate to build the brewery.
Note:-
Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.
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47. The amount of money paid to the contractor by the client after
the agreement and before the execution of work is known as:
A) Mobilization
B) Advance
C) Payment of first running bill
D) Security money
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Q5: Explain difference between “Escalation and Liquidated Damages”. Write how site conditions affecting tender price.
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Is it advisable to use cost-loaded CPM for progress payments to the contractor on unit-price contracts?
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Evaluation of the contractor’s schedule submittal should be limited to what three principal concerns?
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Show solutions pls. Thanks
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Discuss “Contract System” of CNW KPK for civil construction work from inviting of tender to allotment of work
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What is meant by the following terms?a. Yellow-dog contractb. Agency shopc. Subcontractor clause
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SEE MORE QUESTIONS
Recommended textbooks for you
Fundamentals Of Construction Estimating
Civil Engineering
ISBN:9781337399395
Author:Pratt, David J.
Publisher:Cengage,
Related Questions
- In the execution of any project, the contractor's role and responsibility is to: Oa. maintain safety and adhere to the schedule b. manage the construction site Oc. Both (a) and (b) odinitiate and finance the project A Click Submit to complete this assessment. wN x *. AR DELLarrow_forwardProvide complete solutions and comple Z.A.V tablearrow_forwardGeneral Contractors working an a project that requires several months to complete typically request payment from the Owner on a monthly basis. They submit what is referred to as a Pay Application. What do GC's typically ask for payment of? Group of answer choices A)Ordered materials and equipment B)Installed materials and equipment C)Materials and equipment stored on site D)A & B only E)A & C only F)B & C only G)All of the abovearrow_forward
- Manual solution please. No excel solutions!arrow_forwardFigure 2-2 shows the project organization chart for a Design-Bid-Build project delivery method. Assume the same project is to be delivered through design-build method - Project Architect (John James) and Western Construction Co. formed a partnership and competed for the project against other design-build teams and won the project. Prepare a project organization chart for the design-build delivery method. All design sub-consultants and subcontractors remain the same.arrow_forwardQuestion 1 A. On a project, the contractor failed to complete the project on time and the project was terminated. Because of the urgency involved to complete the project, another Contractor 'B' was asked to immediately takeover and proceed with the works without going for a tender or entering into a written contract. Assuming you are the contract manager for the Contractor 'B', what advice would you give to your company on the following: Offer, Acceptance, Consideration, Mutuality of obligations, Competency and capacity before proceeding to start working?arrow_forward
- Q4: Explain the role of computers in “Estimation and Tender Documentation Preparation”. Explain Time Scheduling of different construction activates for the execution of the projects.arrow_forwardGive me right solution according to the question.. Don't copy from websites. List FIVE (5) duties of the consultant quantity surveyor from the initial stage to tender stage to the construction stage.arrow_forwardIf you were bidding on a project in your own town, which of the following activities are not important when preparing the estimate: O a. Your commute time to the office O b. Bid our sub-contractor work OC. Visit the project site Od. Considering contingencyarrow_forward
- If the specifications are silent on the subject, but a contractor asks you, as the Resident Project Representative or inspector, how to perform the work, which of the following is the recommended procedure? a. Be ready to help by telling the contractor your opinions,because as a member of the construction team,it is your responsibility. b. Politely decline because construction means andmethods are the sole prerogative of the contractor.c. Direct the contractor how to perform the workbecause you know that if the contractor asked you,it meant that he or she did not know how to execute the work, and the project may otherwise suffer delays or failures.arrow_forwardQ1/ Answer by true or false (Tor F) of TEN of the following; It is better not to use traditional approach when client wishes to appoint designers separately. 1- 2- 3- 4- 5- 6- 7- 8- 9- Due to the high risk in turn-key approach that only contractor bears, thus the contract in such approach may require higher cost. The cost of depreciation does not depend on the maintenance cost. When the no. of hours for changing oil increases, then the oil consumption will increase too. The equipment can be considered standard if it is familiar and can be used in several projects. For economic purposes, one should always make a trade-off and comparisons among different types of equipment. In general, soil stabilization methods try to reduce porosity, increase density and capacity. The salvage value of standard equipment is always higher than for special ones. The horsepower of the engines is inversely proportional to the height at which it is operated.arrow_forward1. True or False? A payment bond provides the construction contractor a guarantee that they will receive timely payment for properly completed work 2. True or False? The terms price and cost are the same thing as it applies to a construction estimate. 3. From the following list, which item is least governing when interpreting a contract requirement?a. The Contract Agreementb. Amendments to the Contract Agreementc. Section view drawingsd. Specificationsarrow_forward
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SEE MORE QUESTIONS
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Recommended textbooks for you
- Fundamentals Of Construction EstimatingCivil EngineeringISBN:9781337399395Author:Pratt, David J.Publisher:Cengage,
Fundamentals Of Construction Estimating
Civil Engineering
ISBN:9781337399395
Author:Pratt, David J.
Publisher:Cengage,