Section 16.22 Contractor’s Pricing Problem

• Library: Construction Law 2016 Supp

B. (§16.22) Contractor’s Pricing Problem

Obtaining the contract alone costs the contractor money. This includes the cost of the order-processing apparatus when multiple delivery orders are expected under the contract. Costs also include the administrative time assisting in the preparation of individual delivery or task orders. The contractor is also required to work with a mixture of fixed costs for various job units, incorporated into burdened hourly labor rates, all based on an indefinite sales quantity...