1 September 1997
subcontract cost is considered a direct cost to the
9-2. Use of Quotations
a. In construction, specialty items such as
The cost engineer may utilize quotes for the expected
plumbing, heating, electrical, roofing, plastering, and
subcontracted work when reviewed and verified as
tile work are usually more effectively performed by
reasonable. In lieu of a quotation, each task of the
subcontract. With so many specialties being
subcontract should be priced as a direct cost with an
performed, subcontract work becomes a very
appropriate rate of subcontractor's overhead and
significant portion of the total costs of construction.
profit added. Subcontractor installed cost is shown
Since each estimate should be prepared as practically
in the UPB "Unit Cost" column. The "Unit Cost"
and as realistically as possible, subcontract costs
must be a direct cost column in the MCACES cost
becomes a necessary consideration.
estimate, or the "Unit Costs" will not be included in
the project cost.
b. The cost engineer must first determine those
parts of the work that will probably be subcontracted.
9-3. Civil Works Program Specific
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
On major rehabilitation projects, such as dams, locks,
direct cost items in addition to the appropriate prime
or power generating facilities, the cost engineer must
contractor overhead and profit.
access to site, tear down or demolition work,
c. The cost of subcontracted work is the total
contractor markup is included with the subcontractor
cost to the prime contractor for the work performed.
costs or added to the prime contractor. This is
Subcontractor's costs include direct labor, materials
particularly important for rebuilt or replacement of
and supplies, equipment, second tier subcontracts,
turbines for previously constructed projects, where
ancillary costs, in addition to the rebuilt costs can
up, and charges for overhead and profit. Particular
attention should be given to large items such as