Line Item Bid Amount Actual Cost Underrun/(Overrun)

Labor for formwork, placing and finishing concrete $3,300,000 $4,210,500 ($910,500)
Material: forms, concrete, rebar, etc. $1,100,000 $1,067,000 $33,000
Subcontracts: piling, electrical, paving, etc. $1,600,000 $1,583,000 $17,000
Construction equipment $1,000,000 $1,087,000 ($87,000)
Engineering and design $300,000 $323,000 ($23,000)
Site supervision and administration $400,000 $553,500 ($153,500)
Total Project Costs (excluding G&A) $7,700,000 $8,824,000 ($1,124,000)
CONTRACT COST UNDERRUNS AND OVERRUNS
Line Item Amount
Extended home office costs $79,500
Extended jobsite overhead costs $47,580
Labor disruption and inefficiency costs $910,500
Additional construction equipment costs $121,256
Subtotal $1,158,836
Profit @ 10% $115,884
Total amount claimed $1,274,720
Plus withheld liquidated damages $120,000
Total claim request $1,394,720
Herb's Curb and Gutter Company - Claim Summary
Name: Date: Revision 12 - 1/1/11
CASE STUDY 5
SUMMARY OF EVENTS THAT RESULTED IN DELAYS AND DISRUPTIONS
RESULTS OF SCHEDULE ANALYSIS
Calendar
quarter ending
Event - Identify the specific
event(s) from the case study and
list each in the appropriate
calendar quarter Start Date End Date Duration
# days
Excusable/
NOT
Compensable
# days NOT
Excusable/ NOT
Compensable
# days
Excusable/
Compensable
Total Days
Claimed
3/31/1991 0
0
6/30/1991 0
0
0
9/30/1991 0
; 0
12/31/1991 0
0
3/31/1992 0
0
6/30/1992 0
0
9/30/1992 0
0
12/31/1992 0
0
Total Days based on schedule
analysis of causation 0 0 0 0
Delay Days (Round all numbers to the nearest "5" - thus, 89 days becomes 90 days)
Name: Date: Revision 12 - 1/1/11
Line Item Claimed Amount Adjustments Adjusted Claim Amount
Extended home office costs $79,500 $79,500
Extended jobsite overhead costs $47,580 $47,580
Labor disruption and inefficiency costs $910,500 $910,500 EXTRA CREDIT
Additional construction equipment costs $121,256 $121,256
Subtotal $1,158,836 $0 $1,158,836
Profit @ 10% $115,884 $0 $115,884
Total amount claimed $1,274,720 $0 $1,274,720
Liquidated damamages $120,000 $120,000
Total claim request $1,394,720 $0 $1,394,720
Enter adjustments in the YELLOW (shaded) boxes.)
Enter INCREASES in Adjustments as a POSITIVE number.
Enter DECREASES (or DEDUCTIONS) in Adjustments as a NEGATIVE number.
Accuracy required is within +/- $750 of the correct number
Herb's Curb and Gutter Company - Claim Summary
Name: Date: Revision 12 - 1/1/11
Discussion of Extended Home Office and Overhead Costs
Note: Herb has decided to use an Eichleay (total cost) type formula to calculate home office costs even though other methods are available.
Line Item (from 2/1/1991 to 12/30/1992) Amount Adjustment Amount approved Explanation of adjustment
Officers salaries $502,300 $502,300
HC&G Europa, Inc. costs $298,900 $298,900
Executive department - other $41,900 $41,900
Corporate engineering $43,700 $43,700
FICA on home office employees $144,100 $144,100
Unemployment and disability taxes $46,200 $46,200
Major medical group plan $88,000 $88,000
Employee pension plan $168,100 $168,100
Corporate office utilities $54,200 $54,200
Repairs and maintenance on buildings $141,900 $141,900
Rent $399,600 $399,600
Stationery and printing $17,500 $17,500
Telephone $229,500 $229,500
Advertising $7,600 $7,600
Promotion $43,800 $43,800
Entertaining (including Orioles and Ravens Tickets) $75,500 $75,500
Office supplies $31,200 $31,200
Postage $8,900 $8,900
Dues and subscriptions $65,100 $65,100
Contributions $20,100 $20,100
Data Processing $81,600 $81,600
Equipment rental - home office $62,200 $62,200
Company airplane $34,700 $34,700
Depreciation on Project machinery and equipment $77,800 $77,800
Repairs on Project machinery and equipment $18,100 $18,100
Estimating department salaries $186,000 $186,000
Estimating department supplies $13,400 $13,400
Contract administration salaries $333,600 $333,600
Contract administration supplies $31,500 $31,500
Purchasing department salaries $104,200 $104,200
Purchasing department supplies $5,300 $5,300
Accounting department salaries $400,800 $400,800
Accounting department supplies $9,700 $9,700
General office salaries $59,600 $59,600
TOTAL HOME OFFICE OVERHEAD COSTS $3,846,600 $0 $3,846,600
Total revenue from ramp contract $10,000,000 $10,000,000
Total revenue received from 2/1/1991 to 12/30/1992 $41,650,000 $41,650,000
Ratio of ramp contract revenue to total revenue 24.01% 24.01%
Total Home office overhead x ratio $923,553 $923,553
Days between 2/1/1991 and 12/30/1992 698 698
Daily Overhead Rate $1,323.14 $1,323.14
Claimed Overhead (Daily Overhead Rate x period of delay) $79,389 $0
Claimed Days Delayed 60 days
Approved Days Delayed days
2/1/1991
12/30/1992
TOTAL ADJUSTMENT (Enter on Final CS Worksheet)
Name: Date: Revision 12 - 1/1/11
Discussion of Extended Jobsite Overhead Costs
Additional site support cost due to extension of contract performance period (time-related costs)
Line Item (from 2/1/1991 to 12/30/1992) Amount Adjustment Amount approved Explanation of adjustment
Project Manager $96,000 $96,000
General Superintendent $90,000 $90,000
Assistant Superintendents $72,000 $72,000
Field Engineer $31,500 $31,500
Purchase of Project Manager vehicle $11,300 $11,300
Purchase of trailer $54,000 $54,000
Trucking expense $19,300 $19,300
Telephone (fixed=$500; variable=$6500) $7,000 $7,000
Field office supplies $825 $825
Concrete testing $4,500 $4,500
Compaction testing $2,600 $2,600
Inspection and other testing $3,600 $3,600
Travel expenses to and from home office $5,800 $5,800
Photographs $100 $100
Winter weather protection $6,100 $6,100
Temporary heat $8,000 $8,000
Temporary water $2,400 $2,400
Purchase of water cans $100 $100
Temporary power and light $1,500 $1,500
Temporary toilets $1,600 $1,600
Temporary elevator operation and maintenance $4,200 $4,200
Dust control $1,600 $1,600
Inspectors $46,200 $46,200
Purchase of trailer $20,400 $20,400
Repairs to equipment and tools $25,400 $25,400
Miscellaneous small tools $4,500 $4,500
Fuel and lubricants $12,700 $12,700
General clean up $5,700 $5,700
Final clean up $4,600 $4,600
Trash pickup $2,200 $2,200
Safety supplies $3,000 $3,000
Purchase of street barricades $4,000 $4,000
$0
$0
TOTAL JOBSITE OVERHEAD COSTS $552,725 $0 $552,725
Days between 2/1/1991 and 12/30/1992 698 698
Daily Jobsite Overhead Rate $792 $792
Claimed Overhead (Daily Overhead Rate x period of delay) $47,512 $0
Claimed Days Delayed 60 days
Approved Days Delayed days
2/1/1991
12/30/1992
TOTAL ADJUSTMENT (Enter on Final CS Worksheet)
DISCUSSION OF ADDITIONAL CONSTRUCTION EQUIPMENT COSTS Revision 12 - 1/1/11
HERB'S CURB AND GUTTER CONSTRUCTION EQUIPMENT CLAIM
Costs claimed for 2 months (60 days) of delay.
Quantity Description
Useful Life
(months)
Ownership
Costs over
Useful Life (per
unit)
Published Monthly
Rate
Months of
delay
Amount
Claimed
Amount
Approved
2 Concrete pumps 60 $145,000 $4,673 2 $18,692 $0
2 Cranes with buckets 120 $425,000 $11,364 2 $45,456 $0
2 Compressors 60 $60,000 $1,133 2 $4,532 $0
2 Generators 60 $13,000 $1,072 2 $4,288 $0
2 Scaffold sets 120 $130,000 $2,100 2 $8,400 $0
2 Conveyor sets 72 $55,000 $3,022 2 $12,088 $0
2 Fuel Pumps 60 $10,000 $290 2 $1,160 $0
2 Truck and trailer rig 72 $31,000 $3,360 2 $13,440 $0
6 Pick up trucks 72 $14,000 $1,100 2 $13,200 $0
Total $121,256 $0
CONSTRUCTION EQUIPMENT COSTS WORKSHEET C= A/B E= C*D
A B C D E
Quantity Description
Ownership
Costs over
Useful Life
Useful Life
(months)
Estimated monthly
cost of ownership
Actual
additional
useage
period
Estimated
additional
equipment
costs Adjustment
2 Concrete pumps 0 $18,692
2 Cranes with buckets 0 $45,456
2 Compressors 0 $4,532
2 Generators 0 $4,288
2 Scaffold sets 0 $8,400
2 Conveyor sets 0 $12,088
2 Fuel Pumps 0 $1,160
2 Truck and trailer rig 0 $13,440
6 Pick up trucks 0 $13,200
Approved days of delay Total Equipment Adjustment (Enter on Final CS Worksheet)
Discussion of Labor Disruption & Escalation Issues
Planned and Actual Craft Jobhours and Concrete Quantities
Period 1 2 3 4 5 6 7 8
Period Ending 3/31/1991 6/30/1991 9/30/1991 12/31/1991 3/31/1992 6/30/1992 9/30/1992 Subtotal 12/31/1992 Total
Quantities
Estimated concrete to be placed 0 500 2,000 3,000 2,000 2,000 500 10,000 0 10,000
Actual concrete placed 0 200 2,000 3,000 1,400 1,000 1,700 9,300 700 10,000
Difference 0 -300 0 0 -600 -1,000 1,200 -700 700 0
Unit Rates-concrete in place
Estimated jobhours per CY 0 10 10 10 10 10 10 10
Actual jobhours per CY* 0 11 11 11 13 14 13 11
Estimated jobhours 0 5,000 20,000 30,000 20,000 20,000 5,000 100,000 0 100,000
Actual jobhours 0 2,200 22,000 33,000 18,200 14,000 22,100 111,500 7,700 119,200
Difference 0 -2,800 2,000 3,000 -1,800 -6,000 17,100 11,500 7,700 19,200
Actual craft wage rate (by quarter)** $35 $35 $35 $35 $35 $35 $35 $40
Wage rate per bid $33 $33 $33 $33 $33 $33 $33 $0
Difference $2 $2 $2 $2 $2 $2 $2 $40
Total Actual Labor Costs $0 $77,000 $770,000 $1,155,000 $637,000 $490,000 $773,500 $3,902,500 $308,000 $4,210,500
*Include all concrete related hours for formwork, placing and finishing
**Wage rate is fully burdened to include base wage, additives, taxes, worker's comp, union dues, travel and subsistence.
Also included is a mark up related to certain variable or activity related costs such as small tools, consumables and personnel testing
LABOR DISRUPTION & ESCALATION SUMMARY
Estimated Labor
Origninal
Scope
jobhours
Disrupted
jobhours (pre-
11/1/1992)
Disrupted
jobhours (post
11/1/1992) Totals
Concrete Jobhours 100,000 100,000 11,500 7,700 19,200
Estimated wage rate $33 $0 $0 $0 $0
Actual wage rate $0 $35 $35 $40 $0
Total ESTIMATED labor cost $3,300,000 $0 $0 $0 $3,300,000
Total ACTUAL labor cost $0 $3,500,000 $402,500 $308,000 $4,210,500
Total HC&G labor claim $200,000 $402,500 $308,000 $910,500
LABOR DISRUPTION AND ESCALATION WORKSHEET
Disruption Period Actual Unit Rate
Unimpacted
Unit rate Difference
Quantities
Installed Jobhours Wage Rate
Allowable
Additional
Labor Cost
Period 6 0 $0
Period 7 0 $0
Wage Escalation Period
Period 8 $0
Total $0
LABOR DISRUPTION AND EXCALATION SUMMARY
Totals Adjustment description/ expalanation
Total Labor Claim $910,500 Hints (all are deducts):
Adjustment 1 Difference between Bid and Actual Wage Rates on bid hours only
Adjustment 2 Difference between estimated unit rate and unimpacted unit rate (Difference x CY x Actual wage rate)
Adjustment 3 Labor inefficiencies during period 5 (1Q92) non-compensable (Actual UR-Unimpacted UR x CY x Actual wage rate)
Allowable Adjusted Labor Cost $910,500
TOTAL LABOR ADJUSTMENT (Enter on Final CS Worksheet)
NOTE:
Actual Labor Cost