ing. The essential requirements of an ideal type of contract are as follows:

First. It must provide a means of sharing with the workmen on an

equitable basis the total net profit on the job.

Second. It must set some kind of a limit to the total cost of the work, so

as to prevent a careless, incompetent, or conscienceless contractor from

running up the expense to an outrageously great amount.

Third. It must reduce to a minimum the chance of the contractor's being

out of pocket on the completion of the work, unless such condition is

due to his own carelessness or lack of push.

Fourth. It must retain all the advantages of competitive bidding, so as to

give every capable and worthy contractor who is desirous of figuring

on the work an even chance of securing the contract.

Fifth. It must provide an incentive for the contractor and all his assistants

and workmen to use every legitimate effort to make the work as inex-

pensive as possible, without violating in any manner the requirements of

the specifications.

Sixth. It must provide a just and equitable basis of payment for a pos-

sible increase in the estimate of total quantities and for adjusting satis-

factorily to all concerned the reduction of payment due to a possible

diminution thereof.

Seventh. It must ensure that the owner will be acting for his own best

interests by aiding the contractor in every possible way to complete his

work quickly and inexpensively, provided, of course, that it is done in

such a manner as to guarantee the attainment of the owner's ultimate

purpose, as expressed in the specifications.

Eighth. Its provisions must be such as to keep constantly in good humor

every one connected with the construction.

Ninth. Its method of final settlement of accounts must be clear, simple,

and easy of application; and the keeping of them during the progress

of the work must be no more complicated or expensive than it would

be in the case of any ordinary "cost-plus" contract.

Description of the Ideal Method. Let the specifications, which should invariably be drafted by an engineer who is acknowledged to be an expert in the class of work covered in the proposed contract, be complete and thorough in every detail, recording all that is known concerning the governing conditions; pointing out all features about which there is any uncertainty; tabulating as accurately as possible the estimated quantities of all the materials that will probably enter, the construction; providing a justly-drawn clause for unclassified work and the payment therefor; calling for each bidder to submit in full detail his estimate of actual cost of doing the work  by  applying  to  all  quantities  of  materials  given  in  the  specifications,  unit- cost prices  (termed  Schedule  A),  each  price  containing  a  proportionate  share  of  any  contingency  allowance  that  may  have  been  made,  totaling  the  products  so  as  to  form  "Sum  A,"  and  adding  thereto  the  amount  of  profit