Week 2 Flashcards
Lump sums
“How much will you charge me to build this”
Measure and value
Price me up for all the materials you need for it
Cost reimbursement
I’ll pay you whatever you paid for plus a percentage for some profit
Difference between lump sum and measure & value
Lump sum will have a design and one price for it. The builder will see what materials they need and what they will do for it. If the builder needs 10hrs of painting then that will be included in the lump sum.
For measure and value- you give the amounts yourself of what you think you need. For measure and value there is no end price. You can still add stuff up.
Lump sum is committed to only one price and its gonna cost you if there is any changes (cost reimbursement).
If you don’t what the price is going to be, and want to keep paying as bills come then cost reimbursement is the way to go.
What does GMP stand for?
Guaranteed maximum price. GMP means you can’t pay any higher.
Contractor’s bond?
If the contractor goes broke, there is a bond that can help them as long as they can guarantee the work.
Principal’s bond?
If the owner goes broke because too many materials, etc then they can use principals bond.
Bonds in NZS3910
Provide performance bond within 2 months of tender acceptance.
No contract payment due until bond in place.
What is a Construction Cost Estimate?
The determination of probable costs of any given project. And estimate is prepared before the actual delivery of a project.
probable?
- supported by evidence strong enough to establish presumption but not proof
- likely to be or become true or real
Estimate components. What are the accuracy factors?
Quantity and cost of: construction materials, labour and equipment
Monetary factors: Base Wage rates?
The hourly rate you receive
Monetary factors: Fringe benefits?
includes the person needing equipment like cars and tools
Monetary factors: Wage premiums?
Time and a half pay
T or F? Labour cost is one of the most accurate aspects of estimating
F. Labour productivity rates in the construction industry vary from individual to individual, day to day, and project to project. Labourers being unpaid reduces productivity
Contingency?
Contingency is that amount of money added to an estimate to cover the unforeseen needs of the project, construction difficulties, or estimating accuracy.
