What is the minimum fee, in both dollars and percentage of construction contract, a general contractor would
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What is the minimum fee, in both dollars and percentage of construction contract, a general contractor would need on an upcoming $10 million bid project? Assume the following parameters:
• $100 million expected yearly corporate volume.
• 3% home office overhead budget.
• Owner’s equity is $4 million.
• This project is estimated to have $1 million in direct craft labor.
• This project is expected to last 12 months.
• There is a full-time project manager and superintendent without a project engineer.
• Cost accounting is performed out of the home office.
• Construction company equity owners expect a 15% return on equity.
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Related Book For
Construction Cost Estimating
ISBN: 9780367902681
1st Edition
Authors: John E. Schaufelberger, Len Holm
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