Construction Management

ENCE4331:

Cost and Price Examples Cont’d

Abdulhamid Mimi
Construction Management Lecture 8 1
Today’s Presentation Outline
• Examples

Construction Management Lecture 8 2

Example 4
Steel Reinforcement Operation:
Quantity of steel : 8 Tone
Material Unit cost: 950$/Tone
The composition of the crews and their output/day( 8 hours) is provided in the
Table below.
Labor Description Rate $/hr Equipment Rental $/hr Operational $/hr
L1 General Laborer 5 E2 5 10
L3 Steel Worker 12

Crew Description Output/Day Unit Composition

SC Steel Crew 1000 kg 3L1 + 2L3 + 2E2
The Steel crew will work 14hrs/day. The overtime rate will be 1.75 of the normal one and
the productivity during overtime is 80%. Find

1- The daily direct cost for steel crew

2- The unit price for steel reinforcement assuming the project overhead accounts a 15 % of
the total cost, the general overhead is $2,000 and the markup is 15% from the direct cost.
The total direct cost of the project is $20,000.

Construction Management Lecture 8 3

 Any Questions??

Construction Management Lecture 8 4