Question

Consider a single activity “Precast Wall Panels” of a certain project. Assume that the quantity of this activity is 2000 ft2 of 8’ X 8’ X 4” wall panels. Assume that crew C-11 will be used for this activity and that this crew is composed of one foreman, 6 workers, one equipment operator, and one 150-ton crane. Use the following data to estimate the unit price and total price of this activity and the time needed to finish the activity: - The daily output for crew C-11 is 320 ft2 . - Direct hourly rates for crew C-11 are as follows: - Foreman: $45 per hour. - Worker: $40 per hour. - Equipment operator: $60 per hour. - 150-ton crane: $235 per hour. - Material cost is $20/ft2 . - Total direct cost for this project: $1,000,000. - Project overheads: $100,000. - General overheads to be distributed over all company projects: $2,000,000. - Total direct cost for all projects: $10,000,000. - Assume 10% profit. - Assume 8 work hours per day..

Answer 1

Hi,

Solution as follows:

STEP 1: Calculation of percentage of project overheads:

Given Data:

• Total Direct costs for this project = $1,000,000
• Project overheads = $100,000

STEP 2: Calculation of percentage of general overheads:

Given Data:

• General overheads = $2,000,000
• Total Direct costs for all projects = $10,000,000

STEP 3: Calculation of direct cost of crew for one hour:

Given Data:

• Crew C-11 Size = 1 foreman + 6 workers + 1 operator + 1 crane
• Rate of foreman = $45 per hr
• Rate of worker = $40 per hr
• Rate of operator = $60 per hour
• Rate of Crane = $235 per hour

Hourly cost of crew calculated in below table:

Sl. No.	Particulars	Unit Rate	Unit	Quantity	Cost
1	foreman	$45	per hour	1	$45
2	worker	$40	per hour	6	$240
3	operator	$60	per hour	1	$60
4	Crane	$235	per hour	1	$235
	Total cost per hour				$580

STEP 4: Calculation of required working hours of crew:

Given Data:

• Total Quantity = 2000 sq.ft
• Daily output of crew = 320 sq.ft per day
• Working hours = 8 hours per day

STEP 5: Estimation of unit price and total price for the activity:

Given Data:

• Total Quantity = 2000 sq.ft
• Material cost = $20 per sq.ft
• Profit = 10%
• General overheads = 20% [Calculated above]
• Project overheads = 10% [Calculated above]
• Required time = 50 hours[Calculated above]
• Crew rate = $580 per hour[Calculated above]

Total price and unit price calculated in below table:

Sl. No.	Particulars	Unit Rate	Unit	Quantity	Cost
1	Material Cost of Panels	$20	sq.ft	2000	$40,000
2	Labor Cost of Crew C-11	$580	per hour	50	$29,000
	Total Direct Costs	A			$69,000
	General overheads @ 20%	B	=	Ax20%	$13,800
	Project overheads @ 10%	C	=	Ax10%	$6,900
	Total Costs (Direct + Indirect)	D	=	A+B+C	$89,700
	Profit @ 10% of total costs	E	=	Dx10%	$8,970
	Total Price for the activity	F	=	D+E	$98,670
	Total Quantity (Sq.ft)	G			2,000
	Unit Price (Per sq.ft)	H=F/G			$49.34

Answers:

Total time = 50 hours i.e. 6 days 2 hours

Total price = $98,670

Unit price = $49.34 per sq.ft