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Bids were calculated by estimating the cost of each
individual job that was necessary to complete the entire project.
The bid price of most of the individual jobs was calculated on a
per-unit basis. For instance, in arriving at a total bid for the
reconstruction of a street in the City of South Euclid,
petitioner bid $28 per square yard to install 9-inch reinforced
concrete pavement, and $5 per linear foot to install 6-inch
drainage conduit, and separate amounts for numerous other items.
The bid price for some individual jobs was calculated on a per-
item basis (for instance, $23 per each 9-foot guardrail post) or
on a lump-sum basis (for instance, $60,000 for clearing and
grubbing a certain area indicated in the project plan). The bid
calculation also included the estimated number of units or items
that the project required. However, petitioner would bill the
customer on the basis of the number of units or items actually
used on the project, not the number shown in the bid. In some
cases, petitioner was required by the customer to state
separately the cost of materials (i.e., without labor), and when
so required, petitioner did so on a per-unit or per-item basis.
Even if two jobs used the same amount of material, the amount of
the bid could have differed substantially, due to different cost
of labor and equipment. For instance, to maintain traffic flow,
petitioner might be limited in the amount of work it could
complete in one day, thus increasing costs of labor. Petitioner
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Last modified: May 25, 2011