1. Using the labor rates that follow, prepare a preconstruction services estimate for a 5-

month preconstruction phase. Assume the contractor charges an hourly rate that has a

2.0 multiplier (billing rate of 2.0 times the actual hourly rate to cover corporate costs).

Assume the following team members and durations:

• Project Manager:

Chief Estimator:

.

Chief Scheduler:

• OIC:

.

Superintendent:

• Project Engineer:

.

Company Labor Rates:

.

.

1 day per week

8 hours (assume 120% wage of project manager)

8 hours (assume 80% wage of project manager)

No cost

12 hours

2 hours per week

Project Manager $25 per hour

Superintendent-$30 per hour

Project Engineer-$20 per hour

2. Draft a lump-sum preconstruction services contract for the amount indicated in exer-

cise 1.

3. Draft a time-and-materials preconstruction services contract for exercise 1.

4. Prepare a letter addressed to the Training Center offering to perform preconstruction

services for their project. Explain the advantages of employing a construction team

member during the schematic design phase. Explain why your firm is the best to per-

form this task. Explain to the owner why your choice of fee approach is the most ap-

propriate for this relationship and their project.