This paper develops 0($n^3$) algorithm to construct a cut-tree generated by Gomory-Hu algorithm. The algorithm only requires node sets defined by the minimal cut in each of the (n-1) maximal flow determinations. Merging computerized facility layout procedure that uses cut-tree concept to generate design skeletons with our algorithm requires less storage space than merging it with Gomory-Hu algorithm. Also, the cut-tree can easily be modified when the (n-1) minimal cut-sets are updated due to changes on arc capacities.