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Plumbing Heating And Piping

5.10. Total Direct Costs

Totals of direct cost such as miscellaneous cost, material cost, man-hours, and labor amount should be entered at the bottom of sheet 4, 4a, or 4b, as the case may be. These figures should be entered on sheet 6, as will be explained later in Art. 5.13.

5.11. Subcontracts—Sheet 5

Sheet 5 of the summary gives a listing of the possible subcontracts which may be contemplated. Space is provided for others if required. In this case the table is different from those preceding; it allows space for the subcontractor's name, the amount of his proposal, and the percentage and amount of markup to be added to cover the cost of handling the subcontract. It also allows space for the total amount to use in the final bid, which is the sum of the subcontract and the amount of the markup desired. The total of all subcontracts should be entered in the appropriate place at the bottom of this table.

5.12. Job Overhead—Sheet 6

Sheet 5 also includes a table or listing of probable job overhead items which may be required for the project. All these items will be necessary for the completion of any sizable project and definitely should be considered. The total of these items of cost should be entered at the bottom of the table. Refer to job overhead covered in Arts. 2.25 to 2.39 which give an explanation of these items.

5.13. Bid Recapitulation—Sheet 6

Sheet 6 is the final recapitulation of all totals of preceding sheets, as well as the final bid figure. Total miscellaneous cost, total material cost, and total labor cost are brought forward from sheet 4, 4a, or 46, as the case may be, and entered in the appropriate place. A subtotal of these three items of direct cost is brought down. The general or home office overhead is to be computed on a percentage basis and entered. Job overhead total from sheet 5 is entered. A subtotal is then obtained as shown.

The next step is to determine the percentage of profit desired and compute the amount. This figure should be entered in the place provided. The total selling price of all subcontracts is then entered from sheet 5 and another subtotal obtained. This last subtotal should be the basis of computation of the cost of bond, if required. This bond cost added to the last subtotal will give the total amount of the bid.