Wroclaw University of Technology

CONSTRUCTION PROJECT MANAGEMENT lecture

Lecturer: Andrzej Czemplik, PhD

Students name:_______________________________________
Final semester quiz

June 6, 2013

Task 1 (4 points)

For the following chart (cost amounts in thousands Euro):

(a) present the financial progress protocol (called also payment certificate draft or handing-over protocol for
works completed) for the end of third month,
(b) make the sketch of the cumulated budget (PV or BCWS according to the Earned Value vocabulary).
WORK

MONTHS

A
B
C
D

30

30
40
60
30

40
60
60

40
30
100

10

10

Task 2 (6 points)

For the following CPM net:

(a) present all the time characteristics,
(b) present the critical path,
(c) make the Gantt chart based on the net.

DAYS
7

a
b
c
d
e
f
g
h
i
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10

11

12

Wroclaw University of Technology

CONSTRUCTION PROJECT MANAGEMENT lecture

Lecturer: Andrzej Czemplik, PhD

Students name:_______________________________________
Final semester quiz

June 6, 2013

Task 3 (2 points)

Complete the table presented below,

using the Value Added Tax fundamental rules:
Net price

PHASE 1
PHASE 2
PHASE 3
PHASE 4

tax due
(output tax)

VAT rate = 10%

accrual tax
tax to be paid
(input tax)
to the
government

Producer and the seller of the rough material

Producer and the seller of the final product
Whosaler
Retailer
TOTAL:

5
5
5
5
20

Task 4 (3 points)

For the situation presented below, present the S-curve, and indicate the period during which BUDO will not have
enough money received from INVO, to cover all costs of materials, labor and equipment.
The Client INVO has employed the construction company BUDO for construction of the industrial house.
Terms of the contract are:
Duration of construction works
12 weeks
Cumulated value of the project after 4 weeks
1 m. EUR
Cumulated value of the project after 8 weeks.
3 m. EUR
Cumulated value of the project after 12 weeks.
6 m. EUR
BUDO should issue the invoices for works every 4 weeks
INVO should pay the BUDO according to an invoice in 2 weeks after the invoice is issued
Cost value of materials+labor+equipment is equal 50% of the project value.
BUDO should pay for the materials, labor and equipment, after 5 weeks from date of service.
Task 5 (3 points)
Calculate the NPV value for the project financially characterized on the sketch below (initial investment=20 mil EUR,
next three years profits are 10, 10, 3, respectively).
Assume the re-investment rate 10%.

The future value (FV) and present value

(PV) formulas are:

Answer the following question (presenting a short comment to the answer):

Which formula is true for the above project: IRR > 10% or IRR < 10% ?

Task 6 (2 points)

Explain shortly (max page), what is the EPC contract ? In what kind of projects is good to apply it ? Present some
strengths and some weaknesses of the EPC contract in construction.
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