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9.2.4.3 Estimate Detail
Prepare all estimates, except the 15 percent submittal, in sufficient detail to permit
verification of quantities and pricing. Do not use "Lump Sum", "Job" or similar expressions
unless no alternative is possible or unless the cost is very minor. As an example of the
detail required, do not lump footing concrete with column concrete since labor costs for
concrete placement in these separate cases are most likely different. Cubic yard costs
including formwork, rebars, concrete placing, curing and finish for each concrete element
(footings, columns, etc.) may be acceptable for a 45 percent submittal but are not
acceptable for a 100 percent or Final Estimate. Cost engineering judgment, however,
does not require the breakout into finite detail of minor items which have little significance
in the total job cost. However, it does require an independent Government Estimate of
construction costs in the degree of detail the Government would pursue if it were
competing for the award of each proposed contract.
9.2.4.4 Unit Costs
After determining the type of contractor who will be in the best competitive position to
successfully bid the job, the various portions of the work can be allocated to one of the
following categories of contractors.
a. General Contractor and Sub-Contractors Unit Costs. General and
Sub-Contractor Unit Costs for materials and equipment include delivery and
applicable sales taxes less trade and payment discounts. Use a separate line for
equipment to separate material and equipment costs for those operations that
involve both costs and enter in the material column. Labor Unit Costs consist of a
manhour total cost of Base Rate plus taxable Fringe Benefits and applicable
Insurance Benefits for the appropriate labor classification divided by the productivity
in the units of work involved for one hour of work. Include subsistence, premium
portion of overtime (when required), travel expenses and similar costs in the
General Requirements, Division 1.
b. Mechanical/Electrical Unit Costs. The most comprehensive data on electrical
and mechanical labor costs are published in the form of man-hours required to
perform items of work. These are averages and may need adjustment. The
detailed estimate by specification section is to follow the same format as previously
described for the General Contractor unit costs, except that the
mechanical/electrical sub-contractor's overhead and profit are added to each unit
cost appropriate to the size, competitive climate and desirability of the job. Pay
particular attention to trade discounts which vary but may approach a 50 percent
reduction of list price for some items of mechanical and electrical materials and
equipment. When the mechanical or electrical contractor is the prime contractor, do
not add Overhead and Profit (OH&P) in unit prices.
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