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Question: a contractor is bidding on a lumpsum contract in which...

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A contractor is bidding on a lumpsum contract in which the bid items have a total direct cost of $38,930. For this project, the contractor only needs to consider the following field related project overheads: (1) the site office expenses, the temporary site installations were estimated to be $2,000 in total; and (2) hiring the site supervisor was $1,000 per month. The total project duration was scheduled to be six months. The contractor set his profit and contingencies to be 10% of the total cost and assumed that the corporate overhead for this project is $2,000. Calculate the total bid price of the project.

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