FEL

S
Simon Peter Cordner 👤 Member for 20 years 2 months

I think you’re referring to the practice of over-stating the costs of early activities of construction on the project’s schedule of values.



The idea is that since the early activities are paid out first, the Contractor can give himself some more operating capital through by inflating the price of excavation, trenching, and concrete work. He’ll be able to pay out his early subtrades (minus holdback) and use the leftover as an operating contingency.



This is all assuming that we’re talking about the same thing.

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