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Page 3 of 7 Question # 3 You decide to get some actual on-site experience this s

ID: 377594 • Letter: P

Question

Page 3 of 7 Question # 3 You decide to get some actual on-site experience this summer by taking a job that will have you "in the trenches". You get yoer wish and find yourself working in a muddy trench installing 8" storm drain pipe. Your crew foreman neods to know some information about unit cost and productivity, since they are bidding on a similar job next week. He asks you to help him with determining the following, given the information below. Your crew consists of three labourers (8 hrs.) and one foreman for ½ day. You work with an excavator that stays on-site all day. The excavator digs the trench, moves the cage, brings sand into the excavation, and lifts pipe down to you and your workers in the trench. You work in a deep excavation, so a steel safety cage is required. Assume the trench is backfilled with native soil and any excess is stockpiled to be removed later. Assume the following: -Labourer earns $24.00/hr Foreman earns $28.00/hr -Work is 8hr /day, 5 days/week - Pipe costs $210.00 for a 10 ft. length of pipe -¼yd' of sand is needed per foot of pipe - Safety cage rents for $125.00/day -Overhead is 15% -The crew can install 20 lengths of pipe/day -Excavator rents@$100.00/hr. -No overtime Bedding sand costs $30.00/yd Plate Compactor rents for $175.00/day Payroll Burden/MERC's is 24% -Profit is 10% a) What is daily crew cost?

Explanation / Answer

TOTAL DAILY CREW COST CALCULATION:

(1) Cost of Labourers per day: 3 labourers x $24 per hour x 8 hours per day = $576

(2) Cost of Foreman per day: 1 Foreman x $28 per hour x Half a day or 4 hours = $112

Crew wages per day = $688

Payroll Burden of Crew cost (benefits/taxes etc.) = 24% of $688 = $165.12

TOTAL CREW COST PER DAY = 688+165.12 = $853.12

Adding 15% Overheads & 10% Profit Margin, Daily Crew Cost can be taken as = 853.12 x (1+15%) x (1+10%) = $1079.197