Must be completed in an Excel Spreadsheet Format A contractor has a contract to
ID: 2529181 • Letter: M
Question
Must be completed in an Excel Spreadsheet Format
A contractor has a contract to construct the sanitary sewer, water line, storm drain, and street lighting for a new subdivision. The contractor uses the cost codes in Figure. The original estimate for the sewer was $25,000 and a $3,200 change order has been approved to add a manhole. The sewer work has been completed by the contractor at a cost of $27,365. The original estimate for the water line was $31,000 and no changes have been made to the budget. The costs to date for the water line are $31,300 and it is estimated that it will take another $450 to complete the water line. The water line is being installed by the contractor. The original estimate for the storm drain was $17,000 and no changes have been made to the budget. The contractor has paid $7,236 for materials and estimates that it will cost $9,764 to install the storm drain. The contractor will install the storm drain. The original estimate for the outside lighting was $23,600 and no changes have been made to the budget. The contractor has subcontracted the outside lighting for $23,600. The subcontractor has billed $11,230 for materials. Determine the total estimated cost at completion for the project and the variance for each cost code. FIGURE Sample Cost Codes for a Commercial ContractExplanation / Answer
Code
Description
Original Estimate
Change orders
Total Estimate'
Committed Costs
Committed Costs Invoiced
Non Commited Costs Invoiced
Total Costs
Estimated costs to Complete
Total Estimated Costs at Compltetion
Variance Over /(Under)
2400
Sanitary Sewer
25000
3200
28200
27365
27365
0
27365
-835
(27365-28200)
2450
Water Line
31000
0
31000
31300
31300
450
31750
750
(31750-31000)
2500
Storm Line
17000
0
17000
7236
7236
9764
17000
0
(17000-17000)
2900
outside Lighting
23600
0
23600
11230
12370
23600
0
23600
0
(23600-23600)
(23600-11230)
96600
3200
99800
65901
11230
12370
89501
10214
99715
-85
(99715-9800)
Code
Description
Original Estimate
Change orders
Total Estimate'
Committed Costs
Committed Costs Invoiced
Non Commited Costs Invoiced
Total Costs
Estimated costs to Complete
Total Estimated Costs at Compltetion
Variance Over /(Under)
2400
Sanitary Sewer
25000
3200
28200
27365
27365
0
27365
-835
(27365-28200)
2450
Water Line
31000
0
31000
31300
31300
450
31750
750
(31750-31000)
2500
Storm Line
17000
0
17000
7236
7236
9764
17000
0
(17000-17000)
2900
outside Lighting
23600
0
23600
11230
12370
23600
0
23600
0
(23600-23600)
(23600-11230)
96600
3200
99800
65901
11230
12370
89501
10214
99715
-85
(99715-9800)
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