upr000160 22

m«rV9lr«» the prioti used were estimated to be •In Place* contract meet including contractors* overhead and profit* labor, material, freight and all other expense# which would normally be charged by • con treetor. Xn the ease of pipe lines, all pipe lines from 4* to 12* were assumed to be placed on a contrast basis and eosts include contractore* profit, etc., to which was added eoet of items which would normally be furnished by owner on the type of contract new being used by the Water Company. On pipe lines over 12*, each of toe elements of east were broken down separately and cost ef contractors* profit and overhead added as separate items* On all pipe line sstimates an item was added to include material yard expense, which is considered applicable to reproduction estimates due to toe large volume ef material which would have te be handled and accounted for during the construction period. the following percentages were added to t he estimated Oest Hew to cover elements of cost act included therein: (a) Ten percent was added to dost «f Reproduction Hew to cover administrative expenses Including such iteme as, * Organisation Expense, General Officer# and ileric, law Department Expense, stationery and Printing, Taxes, Other Expcnses-Gensral and ether Supervisory Expense net normally charged directly to toe work such as travel time, personal expenses, etc* Hr. Hulsleer in his lsttsr ef April 18, 1081, indicates lip for Overhead le toe high and that in his opinion only 1$» toonId be applied to toe base sect rer this item. Hie opinion is apparently based m the fact that the 100 In its reproduction of Railroad facilities and Oil Pips tines univer­sally Included an additive of t m applied to toe east plus Engineering.