make 12 units of a new product. Engineering analysis indicates that the nature of this product and its manufacturing processes resemble those for the firm’s current model, so the firm decides to base its bid on the 85 percent learning

make 12 units of a new product. Engineering analysis indicates that the nature of this product and its manufacturing processes resemble those for the firm’s current model, so the firm decides to base its bid on the 85 percent learning

Fundamentals Of Construction Estimating

4th Edition

ISBN:9781337399395

Author:Pratt, David J.

Publisher:Pratt, David J.

Chapter12: Pricing Masonry, Carpentry, And Finishes Work

Section: Chapter Questions

Problem 7RQ

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Concept explainers

Bid Package

A bid package is a set of all documents, often known as bid documents necessary to be submitted by a general contractor before participating in a competitive construction bid to receive tender of execution of any construction project.

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A firm must make a bid on a contract to make 12 units of a new product. Engineering analysis indicates that the nature of this product and its manufacturing processes resemble those for the firm’s current model, so the firm decides to base its bid on the 85 percent learning rate it experienced on that model. If engineers estimate that the first unit will require 10 hours of labor, how many hours will the 12 unit require? How many hours will the firm take to make all 12 units?

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