Don’t grieve. Anything you lose comes round in another form. Rumi
Idea Transcript
CE 401, Fall 2001
Construction Cost Example:
Adding Overhead, Profit, Contingency & Design Fee to Construction Costs Here is a simple example of the additional costs associated with a project where $10,000 is constructed directly by the contractor and $10,000 is constructed by a subcontractor to the contractor.
Subcontractor Construction Costs 5% overhead + 10% profit on $10,000 for subcontractor only Contractor Construction Costs Subtotal
$ 10,000 1,500 10,000 21,500
10% overhead 15% profit on contractor subtotal Subtotal
5375 26,875
5% contingency new work (use 10% for renovations) Subtotal
1350 28,225
10%* Engineering/Design (use 25% for renovations) Total
2825 31,050
* this percentage drops off on projects over $1 million. For example, the University is paying 3% for Engineering/Design for the Shelby Bldg ($52 million).