Iii Estimated Total Cost

I—Interest. This may be ordinarily as sumed as a fair average at 6 per cent per annum, or per cent per month. In times of financial stress, or in certain parts of the United States where money is scarce, the rates will be higher than this. For a year or two after a panic, and on good collateral, money can often be borrowed for as low as 4 per cent.

Cost

s. The best way to get a good estimate on the preparatory costs is to interview the man who is going to take charge of the job on the ground, and go over with him in detail how many men he is willing to under take to get into full operation with, and how long it will take him to organize.

This is an overhead charge depending upon the policy of the manager.

R—Repairs. The estimator must use his best judgment on this difficult and perplexing item.

Insuranc

e. This, like fire in surance, will depend upon local conditions and the state of mind of the insurance companies.

For private dwellings, 1909, the rates in some companies are $12.50 per thousand dollars per year, or per cent per year. Where it is not thought advisable to purchase burglary insur ance, the estimator should nevertheless realize that theft is possible if not likely, and it is wise to allow about per cent of the value of the constant stock of small tools and supplies on the work for this item.

Express, et

c. This must depend upon the class of material handled, the distance to be hauled along the railroad, and the amount of competition between roads. It will be more in sparsely settled country than where there is much competition.

Insuranc

e. Insurance against accident to both employees and outsiders, on work of normal risk, will cost about as follows: Masonry 3 per cent of the pay-roll, Ornamental Iron Work 3 44 44 44 Ci 44 44 Excavating (no blasting) 3 " 44 44 44 44 44 Carpentry 2 25 " cc cc cc cc cc Private dwellings 1 85 " CC 44 Li ,C CC Plumbing 1 25 " 44 44 44 44 44 Painting 1 25 " CC 44 44 44 44 When the risk is great, these items may run as high as 8 or 10 per cent. Insurance on build ing wrecking runs as as 13 per cent.

On some reservoir pipe line in New Jersey, the insurance was per cent; and insurance of this kind has been obtained as low as 1 per cent or even sometimes less, on such work as road construction where there was practically nothing that could happen. On aqueduct work with a rock tunnel, a rate less than 4 per cent has been obtained. In deep trench work, accidents to the men are likely to be frequent; and accident insurance companies, when the work is to be done in certain kinds of soil, will usually refuse to insure the men on this sort of contract.

From a well-known indemnity company, in 1909, when a bond is in favor of New York City and is for 50 per cent or more of the contract price, of 1 per cent of the bond is charged. When it is less than 50 per cent, of 1 per cent is charged. The minimum charge is $10.00. All other bonds cost 1/2 of 1 per cent of contract price. Bonds on contracts for fur nishing supplies only (no labor) cost of 1 per cent of contract price.