Question
On a structural job to be bid, the contract documents call out certain quantities. Your takeoffs and estimates reveal certain differences as follows: Contract Estimated Quantity Actual Quantity Unit Price Item 3,000 $14,000 $2.50/cy $160/cy $10/sf $175/cy $300/ton $20,000 $25,000 L. S Clear site Demolition Dirt work Concrete footings (3000 PSI) 15,000 cy 12,000 cy 0,000 sf 900) 3,000 tons L. S L. S 19,500 cy 10,000 cy 12,000 sf 9,800 cy 2,000 tons Masonry walls (8" CMU) Concrete slab on grade Structural steel Landscaping Clean up and move off The unit price is the "true cost according to your company's record. You see a golden opportunity to increase your profit margin and help your project's cash flow. Huge dollar signs are flashing in front of your eyes. How do you do it? . How much more profit can you squeeze out? What is this procedure called?
Explanation / Answer
Item Contract Quantity Estimated Quantity Actual Per Unit Price Actual Contracting Amount in dollar Actual Estimated Amount in dollar Clear site l.s. l.s. 3000 3000 3000 Demoilition l.s. l.s. 14000 14000 14000 Dirt Work (cy) 15000 19500 2.5 6000 7800 Concete Footing (cy) 12000 10000 160 75 62.5 Masonry Walls (sf) 10000 12000 10 1000 1200 Concrete Slab (cy) 9000 9800 175 51.4 56 Structural Steel (tons) 3000 2000 300 10 6.7 Landscaping l.s. l.s. 20000 20000 20000 Clean Off and Move Off l.s. l.s. 25000 25000 25000 Total Amount in dollar 69136.4 71125.2 Difference in dollar (Profit) 1988.7