YOU ASK
My appointment fee is paid at the start. In ARGUS Developer, should I spread it using the same S-curve as construction?
propfessor.Companion exampleThe short answer
Choose a distribution that represents when this particular fee is paid. An S-curve may suit a pattern of construction expenditure; that does not make it the right default for an appointment fee due at the start. Check the fee’s timing and its distribution separately from the construction line.
£60k FEEM1M2M3
At appointment
£60k
£0
£0
Even spread
£20k
£20k
£20k
Both total £60k. Only one matches payment at appointment.
Work through it
- Confirm the fee’s payment terms and the period in which it is due.
- Inspect its start, duration and cost distribution in the appraisal.
- Use the appropriate timing for that fee and inspect the period cash flow. Then review any resulting funding change.
| £60,000 fee (illustration) | Month 1 | Month 2 | Month 3 |
|---|---|---|---|
| Paid at appointment | £60,000 | £0 | £0 |
| Spread evenly (also wrong here) | £20,000 | £20,000 | £20,000 |
The second row is an even spread, not an S-curve. Both rows total £60,000; only the first matches the stated payment terms.
WHAT YOU CAN DO NOW
You can challenge a plausible total using the actual payment pattern.
If the total is unchanged, why bother?
Timing changes when cash is needed. Finance costs may change too, depending on the funding model. A correct total is not sufficient evidence of a correct cash flow.
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