Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1913-04-17
AWARDING CONTRACTS. "
OF Methods" Second Ar
tcIe Inv Frank II. Jones, T.. NJ.

"COmparisOn OF MetnOus, Second Ar
ticIe by Frank II. Jones, E. NJ.
In n former article we explained the
method Of awarding contracts NV a
Lump Sum Bid" and showed some of
the difficulties and inefficiency and extra
cost of such method.
In an attempt to get away from those
difficulties there was tried method on
the basis of cost plus percentage for
the services of the contractor.
This was quite an improvement on the
old Lump Sum Bid" method, but was
objected to on the ground that Il would
be to the contractors interest to allow
the cost to run up and thus Increase the
amount of his remuneration, and II was
found not so good as the new method
which has been developed and Is called
the Cost Plus a Fixed Sum method.
This system is very simple in its oper-
alton. The contractor takes the plans
and specifications and makes up his es-
innate of the cost of the building or other
construction work, and basing his charges
on this estimated cost fixes his charge
at, say 10 per cent, thereof, depend some
what on the size of the job, and offers
to furnish the plant and equipment and
do all the work Of buying and assembling
the materials and overseeing the work.
men and all other work necessary ,o tho
! completion of the job, for a fixed amount
for his services.
The owner pays all bills for material
and ali nav-rolla for workue, aftor how
| ing been approved by the contractor.
The advantages of this method become
apparent AZ onco as we evapino tnt,, ~
In tho ors+ riaco tho irtorosts - tho
owner and contractor arc mutual ara
| identica, and tbis establishes thor, M
| friendly terne and both strive 70 oc.
| comn,ieb tho sa,,o res,,lt ,,or,oi,, .. 90
cure the host materials and worknansb,r
for tbo 1ovost cost
# is or ma necu,iarv beroGt to tbo nan
,r.o.o, >. .,a-. o., &C.,. - 49,
tcrials than lie sncctsed ae II would M,
affect. In any ,yav. his compensation
| which has already been fixed
1t is to his interest for the sake OF fu.
| ture business IN hue all materials n, the
most favorable market and to make the
best bargain nossible lust as If no were
buyine for bimao,f
On tbe otber hand n ,bo owner do.
sires to make anv minor changes IN m,
nIan he can do So at the actual cost =,
materials and labor. and avoids the usua
souabbIe with the contractor
| or co,,rso II, ceee of exto,ei,,o obor,o,
In the n,ane INVOLVING q longor +i,,oo >,
conplete the work q reimbursement of N,
amount to ba Maid n tba contractor ,vou1e
he necessarv
There are several charges under tn.
old method which are charged arains
the owner whom tho contractor is maxim,
IN his estimate witch ara on+irel, aIi,,
mated under tho new svstem,
First-There will no no foo for ~,
bonding companv.
Second-There will he M cbarga IN
Third-The interest cherge will ba omit
ted
Again. II allows mon of natural abi,itie
for the work ~ contracting hu+ ~ lin,
ted means. who are NOW harred ont h,
lack of ca pital. To enter tho fold
The eouipnent or nlant and tools 70
ouired for tho construction ,re furrisbo,
by the contractor and the owner is no
required tn nav for Thorn
It might be said against This svster
that the contractor could cbeot hv az
ceptinr commissions from tho sunni,
houses. but such continpancv nresr,n
poses the simultaneous existence of
dishonest business man onerat1np tn
supply house and a dishonest contracto,
In these DAYS of an awakened mora
sense amongst business mon sucb q co