Construction Management
5th Edition
ISBN: 9781119256809
Author: Daniel W. Halpin, Bolivar A. Senior, Gunnar Lucko
Publisher: WILEY
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Chapter 13, Problem 4RQE
To determine
Calculate the effective interest rate using the architect’s estimate cost.
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Determine the monthly payments for a five-year, $10,000 loan at an interest rate of 8% compounding monthly.
In January of 2018, the appropriate construction cost index had a value of $4,260. In January of 2005, the value was $2,746. In January 2010 you received a bid for a structure of 7.25 million. Another building (virtually identical) is planned for a bid opening in January 2020. Estimate the new building bid.
11.25 million
12.03 million
10.61 million
Referring to the example in Figure 13.2(a), suppose the market rent for a two-bedroom unit is $550 per month and for a three-bedroom unit is
$650 per month. If the going cap rate is 10%, rework the pro forma calculations for the apartment project of Figure 13.2. Then determine the lender's
interest rate assuming the developer's interest rate as 12%. What is the new breakeven vacancy factor assuming that the debt service is the same?
Market rent for subject property (unfurnished) 55 two-bedroom A, B,
or C units-1167 sq ft @ 41.0 cents/sq ft = $478.47/mo or $480 x 55 $
20 three-bedroom A, B units–1555 sq ft @ 37.3 cents/sq ft = $580.00/
mo $580 x 20
26,400.00
11,600.00
Total estimated monthly income
Other income: Coin laundry, vending machine
38,000.00
150.00
%24
457,800.00
38,150.00
x 12 = annual total
Less vacancy factor of 5% (based on historical data)
-22,890.00
Adjusted gross annual income
Less estimated expenses @ 29.45%
434,910.00
-128,080.00
Net income before debt service
$…
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Construction Management
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- Project Z has a current budget of $20 million. The project is working on a 20-month schedule. After month 6, the following performance data is available: Actual Cost (AC) = $6.5 million; Planned Value (PV) = $6.8 million; Earned Value = $7.1 million. What would be the Estimate at Completion, assuming that current cost performance will continue for the rest of the project?arrow_forwardA contractor wishes to participate in the bidding for a government project and submitted documents for eligibility screening or pre-qualification. The ABC for the project to be bid is P328,644,200.20 with a duration of 20 months. The document submitted by the contractor showed that the largest single project similar to the project to be bid undertaken by the contractor in the last 3-years has a value of P163,866,528.45. Will the contractor be qualified to participate in the bidding for the project? Why?arrow_forward. Determine the exact simple interest on P1,000 for the period from January December 31, 2012 at 12% interest rate.arrow_forward
- •1 You are planning to build a new home with approximately 2,000–2,500 gross square feet of living space on one floor. In addition, you are planning an attached two-car garage (with storage space) of approximately 450 gross square feet. Develop a cost and revenue structure for designing and constructing, operating (occupying) for 10 years, and then selling the home at the end of the 10th year. 176arrow_forwardQUESTION 12 A major dam project is taking place in central Africa. Your company is bidding on the project and you have been able to obtain estimates from three subcontractors each for these major elements of the project. The bids are given below. Estimate the total median cost for these 3 unit cost subcontracts using Monte Carlo methods. Bid 3 $15.1M $16.4M $16.8M Bypass Tumel Construction $18.4M $19.1M $20.2M Railroad Spur Construction $12.4M $14.3M $14.8M Task Bid 1 Bid 2 Powerhouse Construction $49.0M $49.1M $49.2M $49.3M $49.4M $49.5M $49.6Marrow_forwardThere is a building that has 15 floors, a grocery store and a gym, the rent for the floors 1-5 is 3000 per month, for the floors 6-10 is 4000 per month, for the floors 11-15 is 5000 per month, for the grocery store the rent is 6000 per month, for the gym the rent is 6500 per month, the effective gross income is 12%, the operating expense is 8% and the capital expedinture is 6% and the annual market increase is 4%. Find the value of the building and the net operating income?arrow_forward
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