I have similar concerns as Maria described earlier, and I would really appreciate some advice on how to calculate material costs in a case where a sub-contractor is performing concrete works on-site with a lump sum compensation policy, i.e. costs of labour, material, equipment and transportation are all invoiced with one sum.
The problem here is how I should determine the material costs of the concreting works. And if I understood correctly the 0.45 default multiplier can only be used for determining the total material costs of the project, so using this method is not eligable for calculating material costs in a separate sub-contract.
How can I proceed in determining the material costs for the on-site concrete works, when the sub-contractor is not able to specify material costs of the works? Any advice is much appreciated!
Susan Walter
HDRLEEDuser Expert
1299 thumbs up
July 26, 2011 - 5:19 pm
Go back to the subcontractor and ask him! This will require a private conversation between the main contractor, the sub and the LEED project manager. Don't do this in a general sub meeting. You will have to assure him that this is for LEED only and that the contractor will not share or shop his product cost around. You may even have them submit that number to you directly and leave the general contractor out of it if their fear is high enough. Hopefully, this is reluctance is short term and as the sub contractor works on more and more LEED projects, they will realize that this cost information is normal.
Alexander Aaltonen
Analyst, Real Estate ConsultingRamboll
26 thumbs up
July 27, 2011 - 5:45 am
Thanks Susan, I guess there's no way around this one then... simply have to get the required material cost information regardless of the sub's reluctance.