The terrain and slopping of the area will also determine the construction expenses. A sloppy or highly mountainous area will require a deeper tunnel which will be expensive to construct, unlike a gentle sloppy area where the tunnel will be easy to construct, ad will be less costly. The construction materials will also determine the construction cost. Locally available materials will be cheap. However, other materials may require importation or may be generally expensive. The mode of construction of the tunnel will also determine its expenses. Shallow tunnels are easy and to construct, unlike deep underground tunnels which will require stronger materials and highly skilled personnel.
The nature of the area under construction will also determine the machinery to be used. Rocky areas will require strong machinery which will add to the construction cost. Constructions of tunnels under deep waters will also be costly (Hemphill, 2013). The size of the tunnel is another aspect that will determine its procurement. Large tunnels which are wide and extents along large areas will add on the materials to be used, making this expensive and more costly.
Short and narrow tunnels are easy and cheap to construct. The technology used in the construction work will be another determinate factor. The contract price of the construction project is determined uponthe evaluation of the nature of the tunnel, required materials of construction and the labour to be employed. The price should cater for the machineries to be used, whether for purchase or hire. Long term construction will require purchase of machinery, while a short term contract may involve hire of the machines. The pricing of the equipment and construction materials should be based on the current market price, and should cater of unforeseen contingencies such as breakdown, failure or cases of theft (European agency for safety and health at work, 2004). Upon the establishment of the construction cost, the monitoring of the cost is the responsibility of the contractor.
The contractor is solely responsible of assessing the amount of money allocated for the project, its flow infrom the funding department and the flow out, I terms of purchase of materials and settling t of the labour expenses. This is detailed showing expenditure for each individual item over the period of the project. The monitoring of cash flow and project cost can be doe through the use of the cash flow charts.
The cashflow charts enables the project manager to foresee and prevent any case of liquidity problem.
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