| ECONOMICS IN CONTRACT LETTING | 351 |
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and the employees' bonus would be: $203,200 - $162,560 = $40,640. which is exactly 25% of $162,560. In respect to the division of this last amount between the contractor and the owner, its ratio to total cost is: $162,560 ÷ $1,100,000 = 0.148, or 14.8%. From the diagram for profit division (Fig. 33a) we find the division of this percentage to be: Contractor......................... 8.9% Owner.............................. 5.9% This makes the total payment by the owner to the contractor: $1,100,00O X 108.9 = $1,197,900. Let us now take a case where there is a diminution in the estimated quantities of materials. Using the same case as before in respect to estimated quantities and tender, we shall assume the following actual quantities of materials: |
| Earthwork | 1,050,000 cu. yds. |
| Loose rock | 50,000 " |
| Solid rock | 20,000 " |
| Concrete | 8,000 " |
| Wooden trestle | 1,800 lin. ft. |
| Steel work | 450,000 lb. |
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The cost of the unclassified work was $20,000, as in the preceding case. The revised estimate is, therefore, as follows: |
| Earthwork | 1,050,000 cu. yds. @ $0.625= $656,250 |
| Loose rock | 50,000 " @ 1.25 = 62,500 |
| Solid rock | 20,000 " @ 1.875 = 37,500 |
| Concrete | 8,000 " @ 25.00 = 200,000 |
| Wooden trestle | 1,800 lin. ft. @ 62.50 = 112,500 |
| Steelwork | 450,000 lb. @ 0.10 = 45,000 |
| Unclassified work | $20,000 X 1.3 = 26,000 |
| Summation, or "Sum D" | = $1,139,750 |
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The difference between "Sum D" and "Sum C" equals $1,139,750 - $1,250, 000 = - $110,250.
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