3. Property damage and public liability insurance should be considered as part of the cost of a project and must therefore be included in job overhead along with other insurance costs. The premiums of this insurance will depend upon the limits of the policy as well as the state in which the work is being done. Products liability should also be included in this coverage.
2.37. Fringe Benefits
Money paid to local unions or to employees in the way of fringe benefits must also be taken into account. These are not insurance premiums or tax items, but they can be very costly. It will pay well for the estimator or manager to investigate these elements of cost very carefully through the local union headquarters. These fringe benefits are such items as welfare and pension funds, apprentice training funds, etc. Payment into these funds is usually made on the basis of the number of direct hours worked and may vary from zero in some localities to 25 cents per hour or more in others.
2.38. Sales Tax
Sales tax is an item which will depend upon state and local laws. Space is provided on the summary if it is needed.
2.39. The Bid Summary
Refer to sheet 3 of the plumbing summary (Fig. 3.4) and sheet 5 of the heating and piping summary (Fig. 5.6). Each of these sheets gives a tabulation of items of expense, following the above list. A revision of this list may be required to suit local conditions. Space is provided for such revisions and additions.
Plumbing Estimate and Bid Summary
3.1. General Discussion
The plumbing bid summary is made up of four or more sheets (Figs. 3.1 to 3.5). The heading of the first sheet gives the essential information concerning the project, bid date, etc., and should be filled in completely before the estimate is begun. The headings of all sheets other than the first incorporate only such information as may be required to ensure that they can be reattached to the proper summary, should they ever become separated.
The first principle, which should be thoroughly understood in the use of this method, is that the summary actually becomes the guide for making the estimate. The summary is made up, in a progressive manner, of the elements which go into the complete plumbing system. Proceeding in this way, it will be found that the estimator actually will be guided upward through the installation of the system in an orderly manner. This will preclude the skipping around from item to item with the inherent likelihood of the omission of some important element of the estimate. It is quite possible that a preliminary survey of the plans and specifications of a particular project will reveal systems which are not listed in this prepared summary. As an example, Vacuum Cleaning Systems are not included in the summary because they occur so infrequently.