ties are respectively greater or less than the corresponding approximate quantities, thus fixing an amount to be termed the Revised Contractor's Estimated Cost.

"The Contractor, by attention to the work and efficiency in administration, may increase his profit while at the same time he reduces the expense to the Owner. On the other hand, although he is in a position where he probably will have small financial loss, he may suffer the loss of his time and attention to the work. The percentage fee to be named is limited to 10%, and the minimum fee above the Actual Cost to onethird of that amount, or not to exceed 33% of the cost of the work. It is estimated that this 33% will not more than cover the items specified as part of the Profit Fee. It is essential in such a contract to draw a very distinct line between what is to be the Actual Cost of the Work and what is to be covered by the Profit Fee and to exclude from the Actual Cost of the Work all indefinite charges or amounts which can not readily be checked by ordinary auditing."

"The Contractor shall be paid the Actual Cost of the Work plus a Profit Fee. If the Actual Cost of the Work is equal to the Revised Contractor's Estimated Cost, the Contractor shall be paid the Contractor's Profit Fee in full. If the actual Cost of the Work is less than the Revised Contractor's Estimated Cost the Contractor shall be paid the Contractor's Profit Fee, and in addition thereto, one-half of the amount which the Actual Cost of the Work is less than the Revised Contractor's Estimated Cost. If the Actual Cost of the Work is more than the Revised Contractor's Estimated Cost, the Contractor will be paid the Contractor's Profit Fee less onehalf of the amount which the Actual Cost of the Work is in excess of the Revised Contractor's Estimated Cost; but in no event shall the Contractor be paid less than the Actual Cost of the Work plus one-third of the Contractor's Profited by the U. S. Housing Corporation, in which Fee."

Next is defined "The Actual Cost of the Work" much as in Article 5 of the Agreement which accompanies this circular. The "Profit Fee" is then defined as follows:

"The Profit Fee paid to the Contractor shall be deemed to cover and include the Contractor's profit, the use of his organization, his skill, and energy, his overhead expenses, administrative expenses, services of Contractor's executives, expenses of Contractor's executives giving occasional attention to the work, services of the general superintendent devoting all his time to the work, all Contractor's legal expenses, interest on moneys used, taxes, all expenses of any office or offices of the Contractor other than the field office on the work, and all other expenses deemed by the Engineers not a part of the Actual Cost of Work as herein defined."

It is to be observed that the Contractor has to pay out of his "Profit Fee" much more than is required in Article 6 of the Agreement which accompanies this Circular.

In explanation of the operation of the particular contract above cited the following statement has been made:

Other methods have been used by which competitive bidding may be obtained on the costplus-fee basis, as for instance the method employ

the various bidders not only competed in the amount of their fee, but also were called upon to name their estimated total cost, their organization and the personnel available to handle the work in the field, the amount for which they would furnish the plant required for the work, and the estimated time needed for the work. A definite scale of values for the various items determined which was the low bid on the project as a whole.

NOTE ON GUARANTEE OF COST: The fundamentals of a cost-plus-fee contract make illogical any guarantee of cost. If an owner has a limited amount to spend which can not be exceeded he should adopt the lump-sum type of contract. A cost-plus-fee contract with a guaranteed limit is an attempt to secure for the owner the benefit that may accrue through the chance of a saving in cost and to put upon the Contractor the burden if the cost runs over. Such a contract has all the complications of a cost-plus-fee contract, with the attitude of mind of the Contractor as in a lump-sum contract. It involves, therefore, the undersirable elements of both forms with the advantages of neither.

CHAPTER XVI

PURCHASING MATERIALS, SUBCONTRACTS

1. Requisitions. An individual acting as purchasing agent handles the placing of material-orders and the award of subcontracts, except for small quantities of material that may be ordered directly by the job-superintendent. As a basis for material-orders the agent makes up a personal memorandum or, when the work is divided among different departments, he is furnished with a REQUISITION FORM as illustrated on page 441, giving the quantity and character of the materials required for the various portions of the work. For orders involving fabricated materials, illustrative drawings are usually prepared supplementing this information. The date of delivery for the different items is fixed by a speed-schedule; and the purchasing-agent, or the expeditingagent, is ordinarily responsible for getting the materials on the job at the proper time.

For all orders the net quantities are computed from the drawings, and expressed, as far as possible, in the same units used in the estimate-analysis from which the number of barrels of cement, cubic yards of crushed rock or gravel, and similar items are checked. The schedule of form-lumber is made from a study · of the drawings, in conjunction with sketches of the system of centering which it is desired to employ (see page 487), and gives the number of pieces of each different dimension, with the requirements in regard to planing. The number of pieces and lengths of the different sizes of reinforcing-steel or, in the case of stock lengths, the weight of each size, is computed from either the drawings or the steel-lists. Structural steel is classified under I's, channels, etc. of various weights and lengths. Brick is recorded in thousands, M. Terra-cotta and gypsum partition and furring block in square feet of block. Flue-lining and coping in linear feet.

When requisitions are used they should be made in triplicate, the original being turned over to the purchasing agent, one copy given to the job-superintendent, and one copy retained by the individual or department making the requisition. Under this system, the requisitions are numbered consecutively, and each is identified by reference to the particular contract-item which it covers. When more than one requisition is used for the same item, the subsequent ones are designated by the same numbers followed by a letter, a, b, c, etc., as Requisition No. 17a. Approximate requisitions made up for the purpose of obtaining quotations or subcontract-bids should be marked PRELIMINARY. Likewise, when a requisition includes only a portion of the material required for any particular contract-item, the term PARTIAL should be used. FINAL REQUISITIONS

should be so marked, and should be understood to complete, with those of the same number already forwarded, all the material required for any particular contract-item. When alterations in the work cause a change in the quantity or character of the materials already ordered, a SUPPLEMENTARY REQUISITION is made up, given the same number as the original, and marked REVISED.

2. Steel-Lists. All reinforcing-steel is listed from the drawings with particular reference to the requirements of the specifications, and can be conveniently divided into three classifications: (1) COLUMN-STEEL, (2) STEEL FOR THE SELF-SUPPORTING FLOORS AND ROOFS, and (3) MISCELLANEOUS STEEL, comprising that required for the remainder of the building. The first two classifications are subdivided by stories, and the different items of the last classification are listed separately, each under the name of that part of the building in which it is to be used, as footing-steel, stair-steel, etc.

The COLUMN-STEEL is listed on the FORM shown on page 442, which provides for the different items, including the vertical bars or rods, spirals, spiral-spacers, hoops, and bond-bars. In continuous columns the lengths of the vertical reinforcements should allow for lap-splices (see page 168), except when butt-splices or threaded connections are used. Where columns are not continuous, the vertical reinforcements are stopped 3 in below the top of the structural floor. Owing to the difficulty of keeping the column-hoops in place on plain steel, deformed bars or rods are to be preferred for the verticals in hooped columns. When vertical column-rods have threaded connections the joint between two rods of different sizes is made with reducing couplings. In computing the length of a column-hoop, an allowance should be made for two 3-in bends where the hoop is joined at one of the column-verticals. The required spacing of columnhoops, as called for on the drawings, should be considered to start one-half space above the top of the structural floor, and to extend to a height such that the upper hoop is within one space or less of the under side of the structural slab above.

In computing the weight of spirals (refer to tables and chart in chapter on estimating), it should be noted that the sizes of the gauges of the American Steel and Wire Company give a weight which is less by a small percentage than that of the corresponding sizes expressed as fractions of an inch. In all cases the weight of two complete turns of spiral should be included, in addition to the weight per linear foot, given in Tables VI to XII, pages 370 to 376, to allow for the material needed in finishing the spiral. The height of a spiral should be computed to extend to a point 9 in below the top of the structural floor. If a spiral is so closely wound that there is insufficient room to pass the straight bars in the bottom of a beam or girder between the spiral wires, the pitch may be doubled above the bottom of the beam or girder. Three or four spiral-spacers are needed for each spiral, and are made 6 in longer than the height of the spiral when erected. The lengths of vertical bars are given to the nearest 3-in unit of length. The lengths of hoops and spiral-spacers, and the heights of spirals are given to the nearest inch.

The STEEL FOR SELF-SUPPORTING FLOORS is listed on the FORM shown on page 444, which illustrates the arrangement of the different items, including