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 CONTRACT REQUIREMENT: 001. Change of Occupancy Maintenance
Price from Schedule of Indefinite Quantity Work: Unit Price $100.00/Ea.
Population (Services performed): 30 EA for the month.
$100.00 x 30 = $3,000/month
WORK
% OF CONTRACT
PRICE OF WORK
REQUIREMENT
REQUIREMENT
REQUIREMENT
MADR
A. House ready
No defects
$1,200 (40% of $3,000)
40%
on time
B. Quality work
$1,800 (60% of $3,000)
60%
2%
Total for Contract Requirement = $3,000
INSPECTION RESULTS.
Population : 30
Number of Services Sampled (Sample Size): 30
DEFECTS
DEFECTS
DEFECTS
IN
REWORKED
REWORKED
WORK
BY CONTR.
BY GOVT.
REQUIREMENT
SAMPLE
A.
House ready
4*
NA
NA
on time
B. Quality work
5
2
3
Actual cost of rework (quality work) by Government = $450.00
* NOTE: In the above example, rework on one of the houses was completed
within the time-frame specified for the original work; therefore, only 4
defects are listed under work requirement A.
(b) Planned Sampling. The following data, obtained from the
performance requirements summary (PRS) and the schedule of deductions or the
performance requirements summary (PRS) and the schedule of indefinite
quantity work, is used to illustrate a typical payment calculation when
surveillance is by planned sampling.
When planned sampling is used, deductions are made for all observed defects
not completed (or reworked) in a satisfactory and timely manner. Liquidated
damages are applied to all defects in accordance with the contract
provisions. Figure 6-3 lists the step6 in the calculation.
CONTRACT REQUIREMENT: 002. Routine Service Calls
Price from the Schedule of Deductions: $l2,OOO/month.
WORK
PRICE OF WORK
% OF CONTRACT
REQUIREMENT MADR
REQUIREMENT
REQUIREMENT
A.
Response time
30%
$3,600 (30% of $12,000)
3%
B.
Classification
5%
$ 600 (5% of $12,000)
3%
C.
Cost accounting
5%
$ 600 (5% of $12,000)
3%
D.
Quality work
60%
$7,200 (60% of $12,000)
3%
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