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Assignment (2) Fall 2020

This document contains questions regarding cost estimation and financial management for construction projects. It includes questions about: 1) Submitting cost proposals in different contract forms including lump sum, unit price, cost plus percentage, and cost plus fixed fee. 2) Constructing a unit price contract from cost data and finding the labor cost of an item. 3) Preparing a balanced bid form and recap sheet from an unbalanced bid form. 4) Developing balanced, unbalanced, and profit-maximizing bid forms from cost data. 5) Determining maximum profit possible from corrected quantity data and comparing to the lowest bid.

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64 views

Assignment (2) Fall 2020

This document contains questions regarding cost estimation and financial management for construction projects. It includes questions about: 1) Submitting cost proposals in different contract forms including lump sum, unit price, cost plus percentage, and cost plus fixed fee. 2) Constructing a unit price contract from cost data and finding the labor cost of an item. 3) Preparing a balanced bid form and recap sheet from an unbalanced bid form. 4) Developing balanced, unbalanced, and profit-maximizing bid forms from cost data. 5) Determining maximum profit possible from corrected quantity data and comparing to the lowest bid.

Uploaded by

ascom as
Copyright
© © All Rights Reserved
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Download as DOC, PDF, TXT or read online on Scribd
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Technology & Maritime Transport

Advanced Management Institute


MBA Program

Course Project cost estimation and financial management


Ass. (1)
Course code: PMD 912
Instructor: Prof. Ibrahim Abdel Rashid

Assignment (2)

 Question No. (1).


The following table presents the recap sheet for pricing a small construction project:

Item Item Unit Quantity Labor Material Equipment Subcont Direct Price
no. Cost Cost Cost cost cost
1 Excavation m3 1000 15000 − 5000 −
2 Foundation m3 250 15000 50000 12500 −
3
3 Skeleton m 5000 75000 100000 50000 −
4 Brick work m3 2000 40000 50000 − −
3
5 Finishing m Job − 150000 − 200000

Overhead = 10%
Factor = Taxes = 5%
Mark up = 15%
Total bid

Required:
a) Submit a proposal to the client in each of the following forms:
 Lump sum.
 Unit price.
 Cost plus percentage.
 Cost plus fixed fee.
b) Unbalance the bid to obtain greater early income.

 Question No. (2).


Given the bid items and cost elements for a small construction project:

Item no Unit Quantity Material Labor Equipment Subcont


Cost Cost Cost Cost
1 m3 200 2000 1500 500 −
2 m3 100 1000 3000 800 −
3 L.S 150 600 ?? 500 −
4 L.S 80 500 600 − −

 Job overhead = 13%


 Tax = 2%
 Mark up = 15%
 Bond = 1%
For the above project, construct a unit price contract and find the labor cost of item
No.3. If the Total Project Price is 19000.

 Question No. (3)


The unbalanced bid form to obtain greater early income of a small concrete building
is given below.
a) Prepare the balancing bid form, considering that the variations in items 1, 4
and 5 are  10% of their bid prices.
b) Prepare the recap sheet, considering the following items:
 Job overhead = 15% , Tax = 3% , Mark up = 10% and Bond = 1%
 Material cost = 40% , Labor cost = 25% ,and Equipment cost = 35% of
direct costs.

Item Description Unit Quantity Unbalanced Total


Unit Price Price
1 Concrete footings m3 100 400.00 40000.00
2 Concrete columns and slab (1st floor) m3 70 400.00 28000.00
3 Concrete columns and slab (2nd floor) m3 65 420.00 27300.00
4 Concrete columns and slab (3rd floor) m3 60 425.00 25500.00
5 Concrete columns and slab (4th floor) m3 50 420.00 21000.00
Total 141800.00
 Question No. (4)
The following bid form for a project contains the work items, their estimated
quantities, and the direct costs from summary sheets:
Work Item Unit Estimated Quantity Direct Cost/Unit
Clearing Acre 50 1,500.00
&grubbing
Rock excavation CY 50,000 12.44
Common CY 200,000 1.05
excavation
Select fill CY 300,000 1.90
Paving CY 100,000 15.00
Structures L.S. Job 36,000.00
Landscaping L.S. Job 40,000.00

Total job indirect cost and markup = L.E. 670,000.

Develop:
a) A balanced bid.
b) An unbalanced bid to obtain greater early income.
c) An unbalanced bid for convenience in costing excavation
d) An unbalanced bid to maximize profit, if you have reasons to think that rock
excavation quantities are considerably less than estimated in the bid form
while common excavation is higher.

 Question No. (5)


Given the bid form for Engineering project. The markup for this project is 10%.

Activity Unit Quantity Unit Price


A m3 2,000 8.00
B m3 2,450 1.50
C m3 1,200 2.50
D no. 400 3.00
E m2 L.S. 3,600.00

a) You have known that the correct quantities of activities A and C are 500 m3 and
2,700 m3 respectively. Determine the maximum profit that can be achieved.
b) You have information that the lowest bid is L.E. 24,000. What should be your
decision regarding this bid? Explain!

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