LACK OF COMPETITIONLACK OF COMPETITION

VOLITILE MATERIAL COSTVOLITILE MATERIAL COST

LACK OF FUNDINGLACK OF FUNDING

CONTRACTOR TAKING ADVANTAGE OF LUMP SUM CONTRACTOR TAKING ADVANTAGE OF LUMP SUM ITEMS AND ERRORS IN PLANSITEMS AND ERRORS IN PLANS

INCREASE IN NUMBER AND COST OF CONTRACT INCREASE IN NUMBER AND COST OF CONTRACT MODIFICATIONSMODIFICATIONS

Reviewing the plans for constructibility will create Reviewing the plans for constructibility will create better plans and will result in better prices.better plans and will result in better prices.Increase Credibility of the DepartmentIncrease Credibility of the DepartmentReview and Verify bid Quantities and SpecificationsReview and Verify bid Quantities and SpecificationsMarket AnalysisMarket AnalysisMaterial Cost AnalysisMaterial Cost AnalysisReview Contract Documents from Consultant Design Review Contract Documents from Consultant Design FirmsFirmsAssist in the defense of claimsAssist in the defense of claimsAbility to question contractors bidding practicesAbility to question contractors bidding practicesTrain MDOT designers and construction personnelTrain MDOT designers and construction personnelAssist Residents in validating contract modificationsAssist Residents in validating contract modifications

Eliminate Existing 600

mm CMP

Cost Estimate Report

The additional estimated cost of using PGAB 58-34 in lieu of the traditional PGAB 64-28 for a MDOT project located in Jackman and Long Pond TWP, Maine.

February 2006

AN EXAMPLE OF A SUBTLE UNBALANCE BID;A $10 MARK-UP COST $30,000THE 3,000 HRS OVER-RUNS 37% TO 4,167 HRSTHE $30,000 INVESTMENT RESULT IN A $41,670 RETURN

206.061 Structural Exc-Below Grade;

5,850 cy @ $8/cy = $46,800