Task 1 – cashflow

Task 1 – cashflow:

Prepare

a cash flow forecast in a tabular form with reference to the following information:

Contract Sum: $$6,587,400 (excl GST)

Contract Period -12 months

Defects Liability Period – 12 months

Retention: 10% from each interim payment (5% maximum of the contract sum)

 Half released at the practical completion

 Other half released at the end of defects liability period

An advanced payment of 10% of contract sum is paid on two installments as follows:

 5% at the beginning of the project  5% at the end of third month

Advance payment is recovered (deducted) as follows:  6th month: $213, 210

 8th month: $221, 650  10th month: $ 223, 880

provide the 10 steps