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Homework answers / question archive / An equipment installation job in the completion stage can be completed in 40 days of 8 hour day work with 40 men working
An equipment installation job in the completion stage can be completed in 40 days of 8 hour day work with 40 men working. With the contract expiring in 30 days, the civil engineer contractor decided to add 10 men on the job, overtime not being permitted. If the liquidated damages is P2,500 per day of delay and the men are paid P270 per day, will the engineer be able to complete the job on time? How much would he save with the addition of workers?
Time required to complete the job
= 40*40*8
= 12,800 hours
Time available to complete in 30 days with 10 men added
= 30*50*8
= 12,000 hours
Therefore eventhough with the increase in men the engineer will not be able to complete the job as the time available is less than the time required to complete.
2)
With the addition in labour he will save
If the additional men were not added total cost will be
= 40*270*40
= 432,000
Delay cost = 10*2,500 = 25,000
After adding the men
Time taken to complete
= 12,800/50*8
= 32 days
Total cost
= 50*32*270
= 432,000
Delay cost
= 2,500*2
= 5,000
Therefore money saved
= 25,000 - 5,000
= P20,000
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