SUBCONTRACTED WORK

In construction, specialty items such as plumbing, heating, electrical, roofing, plastering, and tile work are usually more effectively performed by subcontract. With so many specialties being performed, subcontract work becomes a very significant portion of the total costs of construction. Since each estimate should be prepared as practically and as realistically as possible, subcontract costs become a necessary consideration. Technical Data used in the field explained in quantity surveyor courses in Rawalpindi.

Parts of Work to be Subcontracted:

The cost engineer must first determine those parts of the work that will probably be subcontracted. When the work to be subcontracted has been determined, those items will be identified in the estimate. The appropriate subcontractor overhead and profit costs should be applied to subcontractor direct cost items in addition to the appropriate prime contractor overhead and profit. Some more details of quantity surveyor courses in Rawalpindi are as under.

Cost of Subcontracted Work:

The cost of subcontracted work is the total cost to the prime contractor for the work performed. Subcontractor's costs include direct labor, materials and supplies, equipment, second tier subcontracts, mobilization and demobilization, transportation, set-up, and charges for overhead and profit. Particular attention should be given to large items such as turbines, generators, and incinerators. The total subcontract cost is considered a direct cost to the prime contractor.

Construction Contractual Methods:

The cost engineer should be aware of the type of contractual method for which the solicitation is being issued. Limited competition contractual procurement methods may result in multiple compounded levels of subcontracted work, e.g. compounded subcontractors’ markups passed on to the prime contractor. Some examples of limited contractual procurement methods are 8-A Sole Source RFP, MATOC sole source task order, POCA sole source task order, etc. The prime contractor is required per the contract to perform a minimum amount of work, but all the remaining work may be performed by subcontractors. Particular attention should be given to the workload capacity and workforce capability of the prime contractor. If the prime contractor already is at full capacity in performing other work, or their own workforce resources are at maximum usage, then the prime contractor will likely subcontract to the maximum extent allowable. Also, the same scenario would occur for the subcontractors if they are at their maximum capacities.

USE OF QUOTATIONS

The cost engineer may utilize quotes for the expected subcontracted work when reviewed and verified as reasonable. In lieu of a quotation, each task of the subcontract should be priced as a direct cost with an appropriate rate of subcontractor's overhead and profit added. TSK Training for Skills and Knowledge is the best institute in Rawalpindi Islamabad for Pakistani Students who wants to join quantity surveyor courses in Rawalpindi.

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