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CONSTRUCTION MANAGEMENT CIVIL

IV/II

Tutorial:

1. The network and durations given below shows the normal schedule for a project. You can
decrease (crash) the durations at an additional expense. The Table given below summarizes the
time-cost information for the activities. The owner wants you to you to finish the project in 110
days. Find the minimum possible cost for the project if you want to finish it on 110 days.

2. From the given network and Data below, Find the least cost schedule. Indirect expenses for
project is 300 per week.

Activity Path/Node Duration(weeks) Cost(Rs)


Normal Crash
A 1-2 9 4 4500 6000
B 2-3 5 2 3000 4200
C 2-4 7 3 7000 7800
D 3-4 4 2 2000 2400

Er. Manoj Sharma Wagle


Date of Submission: July 15, 2018 Page 1
CONSTRUCTION MANAGEMENT CIVIL
IV/II

3. Consider the data of project as shown in table below:


Activity Immediate Normal Normal Crash Crash
predecessor time(week) cost(Rs.) Duration(Week) Cost(Rs.)
A - 8 2000 5 2300
B - 10 4000 8 4300
C A 6 3000 5 3125
D A 9 5000 6 5225
E B 10 2500 9 2700
F B 13 5000 13 -
G D,E 5 1000 3 1700
If the indirect cost per week is Rs 2000, find the optimal Crashed project completion time and
corresponding minimum cost.

4. From the following details draw a plan for ABC control.


Item Unit(Number) Unit Cost(Rs/unit)
1 7000 5
2 24000 3
3 1500 10
4 600 22
5 38000 1.5
6 40000 0.5
7 60000 0.2
8 3000 3.5
9 300 8
10 29000 0.40
11 11500 7.1
12 4100 6.2

5. A building Construction project needs 20000 bags of cement per year for the concreting
purpose. Each bag of cement contains 50 kg and purchased price per kg is Rs. 18.It cost 20% for
holding the inventory of cement in stock per year, ordering cost per order is Rs. 300.The project
required 5 days of lead time to receive the order placed and required maintaining 10 days
consumption in safely stock. Find
i. What is the EOQ ?
ii. What is maximum Inventory level of cement?
iii. What is total inventory cost?
iv. What is average inventory level of cement?
v. What is ROL of cement?

Er. Manoj Sharma Wagle


Date of Submission: July 15, 2018 Page 2
CONSTRUCTION MANAGEMENT CIVIL
IV/II

6. NPS, a leading power company needs 4000 units of D-iron for the transmission and distribution
of line, The cost of placing an order is Rs. 200. The cost of holding an inventory is Rs 1 per D-iron
in inventory. Five days lead time is required for delivery for goods ordered from supplier.
Determine
i. EOQ of NPS?
ii. Maximum inventory of NPS?
iii. Average Inventory be?
iv. Re-order level or reorder point?

7. Er. Saroj was responsible for 125m3 of concreting in 10 days with the expenditure of Rs.
1250000.At the end 3rd day he managed to complete 40 cum of concreting work with expense of
Rs 375000.Perform EVAa and comment on his performance.

8. A building having 1500 m3 was constructed 15 years ago on a free hold land measuring
1000m2.The building fetched a rent of Rs. 12000 per month. What amount will recommend for
advancing a loan on a property against the Mortgage .If the rate of land in that area is Rs. 700
per sq. meter? The building has following expenditure headings:
Insurance premium Rs 6000 per annum
Repair and maintenance 8% of gross rent
Taxes 25% of gross Rent
Management Collection charges 5% of Gross rent
Redemption of Capital 5% and rate of interest 8% net yield
Assume future life of building be 50 years.

9. Workout the valuation of a Cinema house with the following data:


Cost of land for life period=Rs. 120000
Gross income per year=Rs. 750000
Expenses per year:
To run cinema including staff salary, electric charges and municipal taxes 30% of gross income
Repair and maintenance 5% of their Capital Cost Rs 950000
Sinking fund for Machinery and plants at 4% with service life 25 years with Scrap value 10%
Insurance Premium Rs. 10000 per year
Assume years purchase for 60 years at 8% and redemption of capital at 4% with annual repair
2% on gross income.

10. Calculate the value of a 10 roomed building built 10 years ago having a plinth area of 600m2
constructed on a land of 1500 m2 .Current value of land is Rs 20000 per m2 and rate of building
Rs.40000 per m2.
If Life of building is 75 years and salvage value be 10%, find the standard rent of building as 5%
per annum of present value of Building.

Er. Manoj Sharma Wagle


Date of Submission: July 15, 2018 Page 3

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