Lump Sum Examples and Calculation Details
The following examples use three different types of lump sum items and one regular item, and demonstrate a typical progression from the preliminary estimate through the final estimate.
These items are bid on and bid price is distributed back to the project items:
|
Item Type |
Qty |
Price |
Ext. Amount |
Description |
|
Regular |
10.000 |
4.00 |
40.00 |
2 regular items, which do not have to have the same price or quantity |
|
Regular |
30.000 |
2.00 |
60.00 |
|
|
Lump sum |
1.000 |
10.00 |
10.00 |
Different prices |
|
Lump sum |
1.000 |
20.00 |
20.00 |
|
|
Fractional LS |
0.400 |
100.00 |
40.00 |
2 fractional, whose quantity must add to 1.0 (at the proposal level) and price must be the same |
|
Fractional LS |
0.600 |
100.00 |
60.00 |
|
|
Hybrid LS |
40.000 |
1.00 |
40.00 |
2 hybrids whose quantity and price do not have to be the same |
|
Hybrid LS |
60.000 |
2.00 |
120.00 |
|
|
TOTAL |
390.00 |
|
||
Proposal items when rolled up (like items are combined into single proposal item):
|
Item Type |
Qty |
Price |
Ext. Amount |
Description |
|
Regular |
40.000 |
2.50 |
100.00 |
Regular items sum the estimated quantity and weight the price by the sum of the product of the estimated price times the ratio of the item QUANTITY by the summed total QUANTITY (4*10/40) and (2*30/40) = 1+1.5 = 2.5 |
|
Lump sum |
1.000 |
30.00 |
30.00 |
Lump quantity remains 1.0, but the price is summed, so the extended amount is the same as the sum of the project item extended amounts. |
|
Fractional LS |
1.000 |
100.00 |
100.00 |
Quantity must be 1.0 (sum of all estimated quantities) and price is the same as estimate. |
|
Hybrid LS |
1.000 |
160.00 |
160.00 |
Quantity is converted to 1.0 and price is the sum of the extended amounts of the estimate items. |
|
TOTAL |
390.00 |
|
||
Bids for proposal items:
|
Item Type |
Qty |
Price |
Ext. Amount |
Description |
|
Regular |
40.000 |
6.00 |
240.00 |
|
|
Lump sum |
1.000 |
60.00 |
60.00 |
Proposal level |
|
Fractional LS |
1.000 |
200.00 |
200.00 |
|
|
Hybrid LS |
1.000 |
200.00 |
200.00 |
|
|
TOTAL |
700.00 |
|
||
Final estimate using bid prices (distribution of bid price back to project items):
|
Item Type |
Qty |
Price |
Ext. Amount |
Description |
|
Regular |
10.000 |
6.00 |
60.00 |
Estimated quantity times bid price |
|
Regular |
30.000 |
6.00 |
180.00 |
|
|
Lump sum |
1.000 |
20.00 |
20.00 |
Bid extended amount is distributed back based on ratio of estimated price (1/3 (10/30) to first item and 2/3 (20/30) to second item). |
|
Lump sum |
1.000 |
40.00 |
40.00 |
|
|
Fractional LS |
1.000 |
80.00 |
80.00 |
Estimated fractional quantity times the bid price, but display should be quantity of 1.0 and price of the fractional quantity times the bid price. The price reflects the ratio of the original quantity split. |
|
Fractional LS |
1.000 |
120.00 |
120.00 |
|
|
Hybrid LS |
1.000 |
50.00 |
50.00 |
Bid amount is distributed back to price as the bid extended amount times the ratio of estimated item extended amount/ summed estimated extended amount (200* 40/160) and (200* 120/160). |
|
Hybrid LS |
1.000 |
150.00 |
150.00 |
|
|
TOTAL |
700.00 |
|
||
