On a structural job to be bid, the contract documents call out certain quantities. Your takeoffs and estimates reveal certain differences as follows:
|Clear site||L. S.||L. S.||$ 3,000|
|Demolition||L. S.||L. S.||$11,000|
|Dirt work||15,000 cy||19,500 cy||$ 2.30/cy|
|Concrete footings (3000 PSI)||12,000 cy||10,000 cy||$ 190/cy|
|Masonry walls (8” CMU)||10,000 sf||12,000 sf||$ 11/sf|
|Concrete slab on grade||9,000 cy||9,800 cy||$ 165/cy|
|Structural steel||3,000 tons||2,000 tons||$ 320/ton|
|Landscaping||L. S.||L. S.||$27,000|
|Clean up and move off||L. S.||L. S.||$24,000|
The unit price is the “true cost” according to your company’s record. You see a golden opportunity to increase your profit margin and help your project’s cash flow. Huge dollar signs are flashing in front of your eyes.
- How do you do it?
- How much more profit can you squeeze out?
- What is this procedure called?