I saw a question in the Ballast practice test book about a desk that asks how much the change to the contract sum that should be recorded on the change order is. I got this question wrong because I added the labor and not sure why it shouldn't be included...
In the proposal allocated a $5000 allowance for the cost of the desk. The manufacturer of the said desk, the total cost of the desk was $7767.
"The contractor receives the desk at the site. Installing the desk and connections to power and data systems took two laborers 3 hours at $50 per hour. The Contractors overhead and profit rate is 15%"
So the easy math is $7767 - $5000 = $2767
Then $2767 x 0.15 = $415
$2767+$415=$3,182 at the correct answer.
I got this question wrong because I added the 3 hours of labor. So why isn't the correct answer $3,182+$150=$3332 ???
was this just extra information? I've seen questions from YoungArchitect where they do include this labor to the cost of the "change order sum" and then I see Ballast book questions where they do not include the labor and just add the Contractor overhead of in this case 15%
Is there a specific reason for when the labor would be added on or it just should not?
Appreciate any clarity on the issue. Thank you!
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