Generally, the cost of administering a contract is built into the fixed contract price. It is part of the contractor’s general and administrative overhead. Sometimes, however, government demands can necessitate extraordinary efforts by a contractor. In those cases, the cost of legal, accounting and consultant services are recoverable as extra work in the administration of a contract.
A recent example is a project in which flaws in the government design necessitated substantial revisions of the contract drawings. The government asked the contractor to prepare an itemized request for an equitable price adjustment. The government was not happy with the requested amount and demanded a DCAA audit, forcing the contractor to pay for even more accounting services. Read more.
Here's an interesting video of a Komatsu track off-road dump truck that has apparently been around a few years but we just learned of it. Although the truck doesn't hold as large a load as a traditional wheeled dump truck, it will travel in water, snow and mud, and the truck bed swivels, helping the truck get into position with minimal maneuvering. Half way in the video clip a smaller tracked dump is shown in action - demonstrating the utility of having a trackbed that can swivel and dump, i.e., acting as a side dump.
In this week's Blog Highlights article on project management, we learned of a useful report on construction safety. The 7-page Guide to Helping Predict Construction Accidents serves as a useful high level view of issues that cause accidents and suggestions for reducing them. For example, the Guide recommends integrating safety into work processes, which involves investigating, tracking, trending and learning from near misses. Click here for more information and to download the report.