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 100 PERCENT INSPECTION
WORK REQUIREMENTS
PAYMENT CALCULATION
HOUSE
QUALITY
READY ON TIME
WORK
$1,200,000
$1,800.00
a.
Price for work requirement
b.
Population
30
30
$60.00
$40.00
c.
Price per service (a/b)
30
30
d.
No. of services sampled
5
4
e.
No services rejected
16.66%
13.33%
f.
Defect rate (e/d)*
2
g.
Services reworked by contractor
N/A
3
Services reworked by Govt. or others
h.
N/A
0
Net no. services to deduct at scheduled
i.
4
price (e-g-h)
j.
$0.00
$160.00
Net services to deduct at scheduled
price (c x i)
$450.00
Deduct for Govt. rework, actual cost **
k.
N/A
$0.00
or scheduled price (c x h)
N/A
$12.00
$16.00
Liquidated Damages on contractor
l.
rework [lO%xcx(e-h)]
$90.00
$0.00
m.
Liquidate Damages on Govt.
rework (20% x k)
$0.00
$0.00
n.
Other adjustments
$1,248.00
$1,024.00
o.
Total payment
(a-j-k-l-m+n)
Total payment for change of occupancy = $2,272.00
*
Defect rate for comparison with MADR.
** Actual costs are the amounts paid to Government personnel (wages,
retirement, and fringe benefits) plus materials or the actual costs
of other means by which the work is accomplished.
FIGURE 6-2 TYPICAL PAYMENT CALCULATION WHEN
100 PERCENT INSPECTION IS USED
120
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