CIBC 6014 Financial Administration for Construction Contracts (Sem 1, 2022)
EX. NO. 7 Variations (2) (Wednesday 13th April 2022)
Student name:
Selvin Pillay
Student ID: 1501896
(To qualify for assessment, submit the exercise only to Moodle Dropbox before 11:59pm
Wednesday 13th April 2022)
Total of 3 marks.
-------------------------------------------------------------------------------------------Q1. The balance of the work included in the Variation is to be determined from Net Cost. Value the
Variation. You must clearly show each calculation step.
Net Costs, Percentages and Working Day rates are as follows:



Materials
$2,500

Plant
$600

Labour
$1,200

On-site Overheads
7.5%

Off-site Overheads and Profit
10%

Working Day Rate
$100 per working day

Processing cost
$60 per hour
As a result of the Variation there have been 5 Working Days extension of time to the Due Date
for Completion of the Contract Works. (500)
One Contractor’s staff spend 6 hours to process this Variation. (360)
(STEP 1)
$0
(STEP 2)
$2,500 + $600 +1200 = $4300
(STEP 3)
$4300 + 7.5% = $4622.50
(STEP 4)
$4622.50 + 0 = $4622.50
(STEP 5)
(5X$100)=$500 – ( -322.50 + -462.25) = NEGATIVE
(STEP 6)
$4622.50 + (6X60) = 4982.50
Page 1
(STEP 7)
($4982.50)
Step 1
0
Step 2
100000+20000+50000 = 170000
Step 3
Page 2