Quote:
Originally Posted by bomberjet
I do a lot of work, most of my work, with large public companies. They'll often release tenders for many millions knowing that the final number will change. You get the unit rates or whatever info you need and can adjust the project to suit. Scope is also not often 100% defined in those cases.
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Unit rates can be scary because often there are fixed costs built into them. If those units are diminished by a lot the contractor could lose money. Or it might wreck a season's schedule by freeing up crews after all the work has been tendered. Most jobs tend to be overstated by 10-15%. There is a nice simplicity to unit rates if tendered quantities are realistic. I am only speaking about local civil construction jobs. I guess I am trying to say that it is hard to account for all possible economies of scale in one unit rate and still be competitive.