My appointment fee is paid at the start. In ARGUS Developer, should I spread it using the same S-curve as construction?
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.
See the steps and a follow-up question
- 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.
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.
Read the complete worked example