In a construction contract assigned to a contractor, according to the table shown below. The contractor's estimates for the price submitted by him included a profit guarantee of 20% of the total cost of the work. The terms of the contract between the two parties included that the client would credit the contractor with an advance payment of 10% of the contracted amount deducted in the form of two sequential monthly re-payments. The first re-payment should be deducted from the amount of the fourth monthly payment that the contractor is actually entitled to receive where the first re-payments amount is equivalent to 75% and the second 25% of the advance payment amount, respectively. The work has to be done in accordance with the general contracting conditions in Iraq. Note that the procedures of organizing, auditing and paying of the monthly payments takes one month between the due date and the date of actual receipt of the amount by the contractor.
In a construction contract assigned to a contractor, according to the table shown below. The contractor's estimates for the price submitted by him included a profit guarantee of 20% of the total cost of the work. The terms of the contract between the two parties included that the client would credit the contractor with an advance payment of 10% of the contracted amount deducted in the form of two sequential monthly re-payments. The first re-payment should be deducted from the amount of the fourth monthly payment that the contractor is actually entitled to receive where the first re-payments amount is equivalent to 75% and the second 25% of the advance payment amount, respectively. The work has to be done in accordance with the general contracting conditions in Iraq. Note that the procedures of organizing, auditing and paying of the monthly payments takes one month between the due date and the date of actual receipt of the amount by the contractor.
Chapter8: Budgets And Bank Reconciliations
Section: Chapter Questions
Problem 1.3C
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In a construction contract assigned to a contractor, according to the table shown below. The contractor's estimates for the price submitted by him included a profit guarantee of 20% of the total cost of the work. The terms of the contract between the two parties included that the client would credit the contractor with an advance payment of 10% of the contracted amount deducted in the form of two sequential monthly re-payments. The first re-payment should be deducted from the amount of the fourth monthly payment that the contractor is actually entitled to receive where the first re-payments amount is equivalent to 75% and the second 25% of the advance payment amount, respectively. The work has to be done in accordance with the general contracting conditions in Iraq. Note that the procedures of organizing, auditing and paying of the monthly payments takes one month between the due date and the date of actual receipt of the amount by the contractor.
Transcribed Image Text:Indicate the date of the last deficit that
occurred during the contracting period.
Time (Month)
Budget* 1000$
4.5
1
8.5
3
4
4
33
5
10
6.
20
At the end of sixth month
At the end of seventh month
At the end of fifth month
O At the end of fourth month
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