Let us assume that a project owner puts out a projected $1,000,000 project for bid to 10 potential general contractors and that each of these 10 submits a bid. However, none of the potential general contractors can perform all the projected construction work. Each general contractor plans to subcontract one-half of the work to specialty contractors. This subcontracted work is to be awarded through 10 separate specialty subcontracts. In other words, the project will be built by a general contractor and 10 specialty contractors. To find the lowest-cost subcontractors, each general contractor solicits, from a separate group of contractors, 3 subcontractor bids for each of the 10 subcontracts.
Using a general guideline that each $100,000 of construction work requires 20 hours of time for quantity takeoff, pricing and other steps necessary to preparing an estimate, and assuming that each person-hour of estimating equates to a $20 cost, calculate the total time and cost of estimating by all contractors involved.
Recently Asked Questions
- Distinguishing between a rental and a financed purchase is difficult in practice. Initially the FASB instituted bright line tests which firms then used to
- A regression equation is ŷ(predicted) = 1.213 - 2.267x The original(raw) data showed: y(observed) = -3 when x(observed) = 2. Calculate the residual value for
- Simon recently received a credit card with an 20% nominal interest rate. With the card, he purchased an Apple iPhone 5 for $300. The minimum payment on the