Construction Planning and Management
A contractor has two options;(l) : Invest his money in project A or (II) : Invest his money in project B. If he decides to invest in A, for every rupee invested, he is assured of doubling his money in ten years. If he decides to invest in B, he is assured of making his money 1.5 times in 5 years. If the contractor values his money at 10% interest rate, he

should invest in neither of the two projects
could invest in either of the two projects
should invest in project B
should invest in project A

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Construction Planning and Management
During the construction period, price variation clause in contracts caters to

Increase in rates of only important materials
Rate of inflation
Variation in total cost of the project on an ad hoc basis
Variation in cost in materials element, labour element and petrol-oil-lubricant element

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