COST PLUS. Reasons for Cost-Plus Can’t agree on a price Specialty work Notice of Changed Conditions.

Slides:



Advertisements
Similar presentations
CONTRACT A binding agreement between two or more parties for performing, or refraining from performing, some specified act(s) in exchange for lawful consideration.
Advertisements

Construction Engineering 221 Cost Estimating and Bidding II.
Construction Cost Estimation Michael Mincic Civil Engineering Technology Department 22 February 2007.
Chapter 8 Pricing General Expenses. Introduction The direct costs of a building project include the cost of labor, material, equipment, and subtrades.
Hardhat Job Cost Accounting Software  The Hardhat Job Cost Accounting Software provides you with the necessary tools to accurately track Job Costs. 
CSRS and FERS Overview. Retirement Systems 2 Civil Service Retirement System (CSRS) 1.4 Million annuitants*
Wrap Rate Technique Chapter Introduction The Wrap Rate technique is a method used to allocate profit and other overhead costs to actual.
Appendix on Payroll Accounting
11-1 Skyline College Chapter The payroll register provides information about wages subject to payroll taxes. Payroll Taxes.
11–1 1-1 Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.
Cost Planning & Scheduling CTC-415. Bid Estimate Becomes the project budget upon signing of contract Can cost load the schedule –Effective means of cost.
Online Industry Market Research Presented by Janet Harrah, Director Center for Economic Development & Business Research, Wichita State University.
Job Order Costing Systems
Managing your Personal Finances Unit 1: Calculating Gross Pay, Deductions and Net Pay Mr. Eleuteri C114.
Setting the Right Price. “Underpricing is one of the most common mistakes home-based businesses make.” SLIDE 1 Setting the Right Price.
© 2014 Cengage Learning. All Rights Reserved. Learning Objectives © 2014 Cengage Learning. All Rights Reserved. LO1 Explain the relationship between the.
Chapter 9 Pricing Construction Equipment. Objectives Upon completion of this chapter, you will be able to: –Identify the three main equipment categories.
The Labor Market and Potential GDP The Supply of Labor –The quantity of labor supplied is the number of labor hours that all the households in the economy.
Tax 2014/15 Personal tax allowance – £10,000 Basic rate tax (20%) – £10,000 - £31,865 Higher rate tax (40%) – £42,285 - £150,00 The Personal Allowance.
EM15 – Contractors COST MANAGEMENT
8 - 1 The Employer’s Tax Responsibilities: Principles and Procedures Chapter 8.
2004 TEA Conference, Mobile, AL Ingredients for a Cost-based Estimate $ $ $ $ $ $
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
X © 2010 The McGraw-Hill Companies, Inc. All rights reserved.
Copyright © 2001 by Houghton Mifflin Company. All rights reserved. 1 Economics THIRD EDITION By John B. Taylor Stanford University.
PAYROLL ACCOUNTING: EMPLOYER TAXES AND REPORTS
C H A P T E R C H E C K L I S T When you have completed your study of this chapter, you will be able to Define GDP and explain why the value of production,
March 2005 UMORS 1 UMORS Vander Kooi and Associates, Inc Ultimate Multiple Overhead Recovery System.
If the funder provides specific guidelines related to format or contents of your budget… FOLLOW THEM! Otherwise, your proposal may not make it out of.
State Auditor’s Office Change Order Pricing Practices Performance Audit of Eight Local Governments Puyallup City Council February 7, 2012 Chris Cortines,
© Mcgraw-Hill Companies, 2008 Farm Management Chapter 9 Cost Concepts in Economics.
27-1. Job Order Cost Accounting Section 1: Cost Accounting Chapter 27 Section Objectives 1.Explain how a job order cost accounting system operates. McGraw-Hill©
On Target Group Coaching for Painting Contractors November 6, 2014.
Procedural Requirements For Force Account Work on Federal and State Projects 2015 ACCA Conference Orange Beach, Alabama.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Measuring Domestic Output and National Income
Equipment Costing: What You Don’t Track Can Hurt You (The Devil is in the Details)
DETERMINING AND PAYING THE PAYROLL
1 The types of companies: 1. Understanding The Business Service Company: A company that provides intangible services, rather than tangible products Merchandising.
Salary vs. Hourly Wage What is a Salary? What is an Hourly Wage? Is it the same in all states?
Measurement and Payment. Construction Progress Payments –Contractor gives a bill for progress to RPR Outlines what bill is for Give details as needed.
Copyright © 2008, The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin Chapter Five Cost Behavior: Analysis and Use.
Measures of Employment. What agency measures the unemployment rate?
0 Unit 2 Test Review The Components of GDP Real versus Nominal GDP Inflation The Consumer Price Index (CPI) Real Interest Rate Business Cycles Unemployment.
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Volvox Understanding the Budget Angela Pettit – Contracts Officer.
Prof Awad S. Hanna Equipment Costs and Sources of E QUIPMENT C OST.
Budgeting and Cost Estimation Objective: – Introduce some simple concepts regarding developing project budgets and cost projections.
The Decision Maker. Managing a Profitable Company.
Advanced AV Production Practicum The History of AV Production and Associated Technologies Calculating a Bid Copyright © Texas Education Agency, All.
Gross Income the total amount of money one earns Ex. $6.15 an hour Multiplied by 40 hrs. per week_______________ Multiplied by 52 weeks per year________________.
Measurement and Payment
What is the difference between a wage and a salary?
Budget Notes Gross Income: the total amount of money one earns Ex. $7.25 an hour Multiplied by 40 hrs. per week______________ Multiplied by 52 weeks per.
Business Acceleration Program Fall 2015 Session 10 November 19, 2015.
Collaboration of Entitlement and Cost Efforts in Claims Analysis Rubino & McGeehin Consulting Group June 27, 2005.
Markup vs. Margin Margin is the amount of gross profit, net profit, or overhead, compared to volume of work. (Expressed as a percentages) Markup is the.
GLENCOE / McGraw-Hill. Payroll Taxes, Deposits, and Reports.
Taxes & Spending Calculating Gross Earnings 4.01A – Explain taxes on income. “We make a living by what we get; we make a life by what we give.” Sir Winston.
GLENCOE / McGraw-Hill. Payroll Computations, Records, and Payment.
PALESTINIAN LABOUR LAW Ahmed T. Ghandour.. NINTH CHAPTER WORK INJURIES AND OCCUPATIONAL DISEASES.
Copyright © 2006, The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin 11 th Edition Chapter 5.
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Is There a Proper Accounting for Indirect Costs?
Activity-Based Costing and Management
ARCH 435 PROJECT MANAGEMENT
Generation and allocation of income accounts
DDS Presentation to CT Nonprofits January 21, 2010 Why are we moving to Utilization Payments? Connecticut continues to have economic issues that started.
Activity-Based Costing and Management
Presentation transcript:

COST PLUS

Reasons for Cost-Plus Can’t agree on a price Specialty work Notice of Changed Conditions

FORCE ACCOUNT WORK TC63-11

FORCE ACCOUNT EXAMPLE

Force Account Work - Labor Force Account Work A) Labor. For all labor and for foremen in direct charge of the specific operations, the Department will pay the Contractor: 1) the actual cost of wages paid, but at rates not to exceed those for comparable labor currently employed on the project, as the Engineer determines; 2) an amount equal to the sum of the products of established labor burden percentages and the actual cost of wages. The amounts determined by the established labor burden percentages constitute full compensation for the cost of workers’ compensation insurance, social security taxes, unemployment compensation insurance, public liability insurance; and any other taxes or insurance which are added to labor costs; and 3) an amount equal to 25 percent of the actual cost of wages and the other costs identified above. This amount is full compensation for office overhead and general superintendence. Actual Cost = hourly rate plus + overhead

Equipment Rates Force Account Work C) Equipment and Tools. For any machinery or special equipment that the Engineer has authorized for use and the Contractor has used, the Department will pay the rental rate stated on the rental company invoice for the actual agreed time and rate that such equipment is required on the work and will add an amount equal to 15 percent of the rental sum as full compensation for fuel, lubricants, and filters. The Department will pay for equipment that the Contractor is already using on the project, and which is not obtained specifically for the force account work based on an hourly rate. The Department will determine the hourly rate by taking the Blue Book monthly rental rate, adjusted for age and geographic region, dividing it by 176 and adding the Blue Book estimated operational cost. The Department will pay rental rates for equipment required to be on standby at one half the normal rate, excluding operational cost, and pay for standby time for a maximum of 8 hours per day and 40 hours per week. The Engineer will measure the rental of equipment by time in hours of actual working time and the necessary traveling time of the equipment within the limits of the project, unless the Engineer has ordered special equipment in connection with force account work, in which case the Engineer will also include travel time and transportation to the project. The Department will not pay rental rates or percentages for the use of small tools and manual equipment.

Equipment Rental Rates

Equipment Watch Login Districts 1-4 – – PW: kentuckyrain0515 Districts 5-8 – – PW: w34zvtwtj9 Districts 9-12 – – PW: racehorse0515

Atlas Copco SB 150

IHI 45NX

Gehl Skid Steer

Materials INVOICES/RECEIPTS

TC 63-10