Your welding company has been asked to submit a bid for a local service company. They are seeking a manufacturer to produce 5 service truck decks complete with a fuel tank and 2 storage cabinets for tools.
Provide bid for the client (includes all costs, a profit margin of 10% and 5% GST).
The local service company has supplied you with blueprints for the deck, headache rack, fuel tank and cabinets. Your suppliers have provided you with lists of materials and costs. Your shop rate is $110/hour.
All material must be ordered in 20 foot lengths for structural shapes, and 4 feet by 8 feet for all plate material. Material cannot be spliced.
Labour rates are to be calculated by the amount of material ordered, not just used.
You do not have the plate rolls for the fuel tank, but you have found a sub-contractor who will do it for $68.50 per shell. The fuel tanks also require a leak test in house, so extra labour must be accounted for. They take on average, 1.5 hours to test per fuel tank.
Painting and sandblasting costs run at a rate of $45.00 per hour. It takes 1.5 hours to sandblast, 1 hour to prime, and 1 hour per finished coat per completed unit (truck deck with headache rack, tool boxes, and fuel tank).
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