Base Costs

The base costs, also known as direct costs, includes labour and equipment. These factors directly affects the construction progress.

Total Costs

The total cost includes the base and indirect cost. Indirect costs include engineering fees, permits, insurance, overhead and profits (O & P), and surety bonds.

Engineering fees, including mechanical and geo-technical, are calculated as $100 CAD per hour. The estimated working time is half of the entire project.

Since the basic cost for this project is more than $300,000.00 RMB, permit is needed. For estimation purposes, the average permit ranges from $1,000.00 CAD to $6,000.00 CAD. Since this project is a medium sized construction, the permit is estimated to be $3,000.00 CAD.

The O & P costs will follow GLMR's standard fix rates for labour and equipment.

For surety bonds, it is ranges between 1 - 15%, and is based on the company’s credit score. With GLMR's reliable credit history, the bond is estimated for 5%.

Finally, the contingency accounted for this project is based on the risk rating level. Usually for this type of earthwork project, contingency accounts for 15% of the total cost estimate.

Shown below is our cost estimation breakdown.