A group of fishermen (the client) has ordered a fishing boat.

A group of fishermen (the client) has ordered a fishing boat. They made a contract with a medium sized shipyard (the contractor), which has already proven its quality through fishing boats built for other fishermen. The shipyard has determined the work packages and developed the project network. The related data are given in the table below. The payment for a work package is made by the fishermen once the work package is finished. The mark-up is agreed to be 10%. The retainage is 8%. The fishermen have agreed to pay the (cost + mark-up – retainage) for a given month with a 1-month delay; for example, the payment for the first month is paid beginning of the third month. The retainage amounts are paid with the last payment but without any interest rate applied. The cost for a work package is incurred by the shipyard uniformly at the end of each period during the progress of the work package. For work package A, for example, the uniform cost spending rate is 6000 per month incurred at the end of the first and second months.

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The shipyard starts with 10,000 units of money on hand and draws from a bank at 2% interest rate per month. They pay the bank their debt at the earliest possibility. Draw the cash flow diagram over time for your solution and report the profit at the end of the project.

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Identify the DSM-5 diagnostic criteria that you notice in the case studies below and explain how the client meets the criteria.

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