Scheduling Flashcards
Given working conditions of 9/2/5 and overtime at time and a half calculate
Day Shift, week day: 5x (8.0 + (1x1.5)) = 47.5 hours paid Hours worked = 9 x 5 = 45 hours
Swing Shift, wee day: 5 x (8.0 +(1.5 x 1.5)) = 51.25 hours paid Hours worked = 9 x 5 = 45 hours
Total hours paid = 47.5 + 51.25 = 98.75 hours
Actual Hours worked = 90 hours
%premium = (Hours Paid - Hours worked)/(Hours worked) = (98.75 – 90) / 90 = 9.72%
Over the course of a 4 year project year 1 direct labour tares ($30.00/hr) are expected to
i) remain unchanged for the first year of the project
ii) rise by 6% after the first year of the project
iii) rise a further 5% two years into the project
i) remain unchanged for the first year of the project
What 4 costs are included in the EOE category of cost?
Direct Cost, Indirect Cost, Total Cost, Escalation
This is from bid summary spreadsheet
Name vertical costs?
Direct Cost, indirect cost, total cost, escalation, interest, contingency, markup, bond
At the end of the first month of a project, a contractor’s total cash outlay has steadily climbed to 3.5 million, including the purchase of 1 million worth of new equipment. The annual interest rate on borrowed funds is 4.5%
i) What is the contractor’s borrowing cost for the first month?
ii) Why would an owner consider making a 1 Million $ mobilization payment to the contractor at the beginning of the project for the purchase of new equipment?
i) Monthly interest = 4.5% / 12 = 0.375%
Interest in one month = 3.5m x 0.375 / 100 = $13,125
ii)The owner might consider bankrolling the GC’s cost of purchasing new equipment (1 million) to reduce the GC’s accumulated interest, reducing their cash outlay from 3.5m to 2.5m. This might be in the owner’s interest since it reduces the chance of the GC going bankrupt and resulting in financial hardships later on as the debt steadily climbs.
After conducting a unit-price adjustment what two options does a contractor have for deciding the final bid price to submit to the owner?
The contractor has the option of adjusting the unit-price by considering the inclusion of contingencies and mark-ups. These are additional costs embedded to provide some breathing room in case of productivity issues, other adverse events, or unforeseen costs.
The other option is to not include those extra costs and submit the bid as is to make the bid more competitive.
Why is the material category separated between two categories? Provide an example to support your answer.
Material costs are separated into two categories mostly because of the associated risks. Permanent materials (PM) can be accurately quantified and carry an inherently low risk since they are not productivity-related.
Expendable materials (EM) on the other hand, have a potential for high risk due to their dependency on productivity and inability to be quantified with certainty. In some projects, they can be highly volatile.
An example from class would be the construction of a high-rise building. The permanent materials would be outlined in the architectural and structural drawings. The expendable materials would be all the refuses(bricks, stones, lumber), trimmings (wires, pipes, steel studs, etc.), and formwork
Two broad categories of contingency are Identified and Unidentified. Describe the types of contingencies of Identified?
Identified: Something that can be seen far away, and a potential solution could arise. For example, if weather delay is not accounted for, before submitting the bid they can add in a portion of the budget to go toward this, and in the event, it happens they have some money aside.
What 3 items are generally included in the Markup?
Risk coverage, Home Office (G&A), Overhead, and profit
Identify two methods for pricing out the direct cost of construction activity. What is the essential difference between the two methods?
Individual method: a breakdown based on the amount of work performed on an individual basis
Crew method: a breakdown based on the number of hours a crew has worked.
List the 5 categories of indirect costs.
- Salaried Payroll —————————————Supervisors
- Time-related overhead expenses————-Rental of Office Trailer
- Non-time-related overhead expense———Garbage Cans/furniture
- Insurance and Taxes
- Mobilization
List the three different options for supplying equipment to your project.
- 3rd party rental / O&M Operated and Maintained
- In house rental from another division within the company
- If two or more companies link up and share resources and equipment
Identify each of the 6 levels of estimate prepared over the course of a project
• Pre-award estimates
o Conceptual
o Alternative design
o Owners / Engineers Estimates
o Contractors bid Estimate
• Post Award Estimate
o Contractors Alternative design
o Contracts change or estimate claims
Name and define two categories of material cost, producing example(s) of each
Permanent Material: Quantities that fall within the “paid lines” that are specified by the owner.
Expendable Material: Quantities that are still done on the job, but are not inside the “paid lines”
An example of permanent material would be a trench that needs to be dug. The material that is removed to make up the trench would be permanent, but to dig a trench the trench would need to be dug in a way that is safer, therefore bigger. This might end up removing more dirt and the extra dirt that has been removed would be known as Expendable material.
In pricing out the direct cost what is the pro-rate factor and how is it applied?
The pro-rate factor is the ratio between the amount of work the contractor believes the project requires vs how much the owner wants to be done for the bid item. This prorate factor is used to convert the amounts the contractor has calculated for each cost (labor, EOE, R, Etc.) and convert those values corresponding to the amount of work the owner has asked for his bid item. Making it easier for the owner to compare many different offers. Total take off/total Bid item.
