ABSTRACT
Subtotal 124,610 Take 50% as an average [1] 62,305 Stores and unfixed materials on site 10,000 Work done but not paid for 2 1/2 months at £373,034 (see table above) [2] 932,585 Less retention at 5% [3] 46,629 885,956 Retention (5% with limit of 3%) Average retention [4] 3% of £4476410 (see table above) 134,292
Subtotal 1,167,553 Deduct Advance payment by client NIL Bill loading [5] 150,000 Creditors (suppliers) 360,000 510,000 Average contract investment £ 657,553
£657,553×say 12% ×1 year = say £ 78,906
£ £ Preliminaries and General Items (from part 2) Contractor’s site oncosts-time related 483,794 Contractor’s site oncosts-non time related 116,986 Employer’s requirements-time related 66,738 Employer’s requirements-non time related 6,165 Other services, charges and fees NIL Temporary works not included in unit costs 38,230 Plant not included in unit costs 148,764 860,677
Allowance for fixed price contract 6% on labour (assumed to be £1050000) 63,000 4% on materials (assumed to be £1900000) 76,000 4% on plant (assumed to be £300 000) 12,000 5% on staff, overheads etc. (assumed to be £3000) 15,000 166,000 Sub-contractors (net) 1,070,000 Prime cost sums 21,000 Adjustments made at Management Appraisal price adjustments, add say 25,000 risk evaluation, add say 10,000 35,000 Subtotal 4,996,224 Head office overheads and profit at 9% 449,660 Finance costs (from two pages earlier) 78,906 Provisional Sums 65,000 Dayworks Bill 65,000
Subtotal 5,654,790 Employer’s contingencies add 2.5% 141,370 £ 5,796,160
