Replacement Cost

d. The Estimated Direct Cost (EDC) shall consist of the following:

    (1) Current market cost of materials to be used in doing the work item called for, which shall include the following:
    (a) Cost at source including processing, crushing, stockpiling, loading, royalties, local taxes, construction and /or maintenance of haul roads, etc.;
    (b) Expenses for hauling to project site;
    (c) Handling expenses;
    (d) Storage expenses;
    (e) Allowance for waste and/or losses, at five percent (5%) of materials requirement.
    (2) Current market cost of labor to be used for;
    (a) Salaries and wages, within the limits authorized by the Department of Labor and Employment; and
    (b) Fringe benefits, such as vacation and sick leaves, benefits under the Workmen's Compensation Act, Social Security System (SSS) contributions, allowance. 13th month pay, bonuses, etc.
    (3) Equipment Expenses;
    (a) Rental of equipment - usually based on the current Associated Construction Equipment rental rates are preferred to the bare rental rates as the former includes operator's wages, fringe benefits, fuel, oil, lubricants and equipment maintenance.
    (b) Mobilization and demobilization - at one percent (1%) of the EDC of the civil work items.



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