On a structural job to be bid, the contract documents call out certain quantities….

On a structural job to be bid, the contract documents call out certain quantities. Your takeoffs and estimates reveal certain differences as follows:

Item Contract
Quantity
Estimated
Quantity
Actual
Unit Price
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?

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