Contract costing

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Please help me in this question as i am lacking in it . please see to it  and try to give solution of it .

 

A contract for construction of building is governed by escalation clause in respect of prices of steel,

cement, and stone aggregate.The prices ruling on the date of tender for building and actual prices paid by the contractor  were  as follows:

                                                       On date of tender            actual      

 Steel per ton                              610                                          675

Cement p                                 100                                          105

Stone aggregate per 100 cft  40                                             38

3,00,000 c.ft. of reinforced  cement concrete was laid in the building.If 100lbs of steel , 2400lbs of cement  and 90c.ft. of stone are net quantity required to cast 100c.ft. of RCC  and wastage are 5,3 and 10 % respectively. Calculate the difference in selling price according to estimate clause (1 ton = 2,240 lbs).Assume the wastage % based on net quantity of material.

Replies (1)
Originally posted by : student
Please help me in this question as i am lacking in it . please see to it  and try to give solution of it .
A contract for construction of building is governed by escalation clause in respect of prices of steel,
cement, and stone aggregate.The prices ruling on the date of tender for building and actual prices paid by the contractor  were  as follows:
                                                       On date of tender            actual      
 Steel per ton                              610                                          675
Cement p                                 100                                          105
Stone aggregate per 100 cft  40                                             38
3,00,000 c.ft. of reinforced  cement concrete was laid in the building.If 100lbs of steel , 2400lbs of cement  and 90c.ft. of stone are net quantity required to cast 100c.ft. of RCC  and wastage are 5,3 and 10 % respectively. Calculate the difference in selling price according to estimate clause (1 ton = 2,240 lbs).Assume the wastage % based on net quantity of material.

Eg:-

1000 kg

+ 10% wastage ------> 12%

 = 1100 kg consumed
.
10% = normal wastage

12% = increased wastage

2% = extra wastage (abnormal wastage)
.
Note: Escalation claim is based on input of material

 [output + normal wastage (abnormal wastage not to be considered)]
.
Solution:-

Particulars

Steel

Cement

Stone

(Net Qty)

100 cft RCC

 

100 lbs

 

2400 lbs

 

90 cft

(Net Qty)

300000 cft RCC

 

300000 lbs

 

7200000 lbs

 

270000 cft

Gross Qty

+ 5% wastage

+3 % wastage

+ 10% wastage

300000 cft RCC

315000 lbs

7416000 lbs

297000 cft

 

/ 2240

/2240

 

 

= 140.625 tons

= 3310.71 tons

 

 

*65
(675-610) UP

*5

(105-100) UP

*0.02 (2/100)

(38-40) DOWN

 

=9140.625

=16553.55

=5940

9140.625+16553.55-5940 = 19754.175 (Escalation claim)

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