40. A utility contractor is preparing a tender on a contract for the installation of a large pipeline. The work includes excavation of soil, laying a 10cm sand bed, placing 040cm concrete pipe, and backfilling to cover the pipe using excavated material on site. The trench depth is 1.10m and the width is 0.65m as illustrated in Figure 1. The engineer's quantities for bidding are based on 3km of pipe. The contractor's estimated costs, not including profit, are shown in Table 1 (23 points) Table 1: Estimated Cost 0.65m Estimated Cost Description $27.85/m3 Excavation $4.95/m3 Sand bed 040cm concrete pipe $390/m $3.00/m3 Backfill The contractor, if given a choice, will lower their bid as much as possible, but 0.40m they will still expect to make a 5% profit overall after everything is done (i.e., target profit: 5%) At bid stage, the contractor will never price anything below their expected costs. Figure 1: Trench Cross- Section The contractor would seek to agree a contract that would compensate them based on the agreed unit price for the actual work completed They will include more or less profit in certain specific estimate items (where they believe final quantities will differ from Engineer's) in order to present the best possible overall bid for the job. You are to seek optimum bidding strategy where you can achieve the 5% profit overall at the end of project while lowering the amount of your bid as much as you can. a) Fill in the bid unit prices as the contractor would be based on the form below. Soil Shrinkage Factor (SF) 0.73 from a contractor's preliminary test (16 points) Table 2: Bid unit price table Extension Engineer's Description Unit Unit Price Quantity ($) Excavation 2,145 m (bcm) m3 Sand bed 195 040cm concrete pipe 3,000 m m3 (bcm) 1,700 Backfill 1.1 0m 1.00m b) What is the amount of the bid? c) How much will the pipeline end up costing the owner, after everything is complete? (4 points)