6) The total amount certified for payment to the contractor by the client/employer is 6,750,000
7) The retention percentage is 10% prior to practical completion (for the main contract)
8) The amount received from the client to date is 5,850,000
9) The total amount certified for payment to package contractors is 5,800,000
10) The total value of package contracts let is 7,500,000
11) There are no retentions held against package contractors-however the current amounts certified but outstanding (i.e. unpaid) to them is 300,000
12) The cladding package contractor to whom the contractor owes 100,000 (including in the 300,000 above) has just become insolvent. The cladding is complete but no warranties have yet been received
13) The current certified installment is one month overdue for payment from the client/employer whose shares have halved in value during the last year
14) We have no other contracts with this client/employer
15) There has been exceptionally inclement weather for the last three months
16) The contract is currently expected to be completed three weeks late
17) Liquidated and ascertained damages are set at 30,000 per week
18) Claims by package contractors currently stand at 200,000
19) Counter-claims package contractors currently stand at 75,000
20) There was an accident on site last month in which a package contractor's employee lost a leg. The Health and Safety Executive are currently investigating this accident.
21) In the last month there has been a two week strike by the Professional League of Plumber (PLoP) which affected the Mechanical, Electrical and plumbing package contractor on the site
22) We calculate that the value of uncertified work carried out is 300,000 of which...
These factors would relate to profits of the project, company mission and objectives, the financial issues in the company, the contractual obligations, commercial aspects and marketing procedures, and also the raw materials used by the contractor. Recommendations are provided on how the contractor should control its commercial department and what are the points that should be emphasized to report on the financial status of the company.
This report is on the examination of the contract No. 205 for construction of offices and yards for Russ Ting metal Stockholders plc. The report will consider the factors that have to be taken into account for determining the current financial and commercial status of the project. In this report I would consider how these factors will affect the financial status of the project. For this all the financial elements are considered in accordance with the following points.
23) The architect's drawing (correctly) showed doors of width 920mm but the