Consider the following items of a given project. Item 1 2 4 5 3 Unit m3...

 

Transcribed Image Text:

Consider the following items of a given project. Item 1 2 4 5 3 Unit m3 m3 m3 m3 L.S. Quantity Material Labor Cost Cost 150 180 40 60 Job 1,000 1,800 960 1,200 0 11,200 1,000 400 600 0 Equipme nt Cost 4,000 4,000 3,200 4,800 0 Sub- Contract or 0 O O 0 2,000 Site overheads = 8% of Direct cost. - General overheads = 12% of Construction cost. - Profit and risk = 25% of Total cost. It is required to: a) Develop a balanced tender price. b) Develop an un-balanced tender price (Early Income-Front loading). c) If you know that the quantity of the item No. 3 may be increased to 50 m3, while= the quantity of the item No. 4 may be decreased to 40 m3. How to make another unbalance bid to consider best advantages of this situation? Consider the following items of a given project. Item 1 2 4 5 3 Unit m3 m3 m3 m3 L.S. Quantity Material Labor Cost Cost 150 180 40 60 Job 1,000 1,800 960 1,200 0 11,200 1,000 400 600 0 Equipme nt Cost 4,000 4,000 3,200 4,800 0 Sub- Contract or 0 O O 0 2,000 Site overheads = 8% of Direct cost. - General overheads = 12% of Construction cost. - Profit and risk = 25% of Total cost. It is required to: a) Develop a balanced tender price. b) Develop an un-balanced tender price (Early Income-Front loading). c) If you know that the quantity of the item No. 3 may be increased to 50 m3, while= the quantity of the item No. 4 may be decreased to 40 m3. How to make another unbalance bid to consider best advantages of this situation?

Answer rating: 100% (QA)

a To develop a balanced tender price we need to calculate the total cost for each item and then add the site overheads general overheads and profit an... View the full answer