Part 1

Question 1

What are the contractors cost?

Answer 1

Labour, plant, materials, vat, transportation overheads, establishment costs

Question 2

Clients cost or tender cost is

Answer 2

Contractors cost plus profit

Question 3

Advantages of hiring
,

Answer 3

1. Keep capital for other uses
2. Monthly casts line up with monthly payments
3. Only pay for active times
4. Not responsible for maintenance
5. May come with good labour
6. Competition ensures good price

Question 4

Disadvantages of hiring

Answer 4

1. Do not own the asset
2. Lose tax benefit
3. Pay for it during delays
4. Might not be available

Question 5

Statutory employment cost examples

Answer 5

Pension fund, holiday been, workman’s compensation ,. medical aid, training levy

Question 6

What is downtime

Answer 6

Rain delays, standing time, medical, safety inductions - time spent transporting wankers

Question 7

Hidden costs

Answer 7

Productivity, complexity of work, continuers or fragmented work, volume of work quality