Chip Eng Seng

[Curiousparty]

Since the TOP for TM project has been deferred to a much later date (at least 1 yr later??), about 50% of the projected profits from this project has been wiped out?

Is this correct? tks.

You would need someone experienced with construction delays and costs to estimate the amount. Either that or find examples of developers who had projects delayed and the subsequent cost to their bottomline.


only cost that i can think of calculating directly would be interest cost which should be mentioned in AR or QRs.

CES issue bonds at 4.5% recently.

for illustration only...
if delayed 1 year its 4.5% profit gone, 2 years 9% profit gone.(interest costs)
if arbitarily take 5% for staff and overhead cost of delay, over 2 years another 10% gone. since profit is usually 20%, i would guess 2 years delay would wipe out profit and maybe even in the red after that.

in australia labour super expensive, so delays can be much more costly than in singapore...