THE SURETIES 79 



THE CONTRACTOR'S CALCULATIONS 



These are made after all the necessary information has 

 been gathered in. Many contractors employ an engineer 

 to make their computations and to fill in and submit the 

 bid. Careful bookkeeping of costs and good system on the 

 part of a contractor and his engineer yield good financial 

 returns. Many contractors who do not take the trouble 

 to accumulate cost data think that they know what the 

 expense to them for various kinds of work will be, whereas 

 they do not. This is especially so in such matters as earth 

 excavation. Lack of system in preparing cost data on this 

 one item alone has led to failures and ruin. The cost of re- 

 moving a cubic yard of earth is a function of many 

 component items, such as superintendence, plowing, picking, 

 shoveling, carting, spreading, blacksmithing, etc. The cost 

 of each of these items for various classes of material should 

 be accurately known. 



THE SURETIES 



There are four ways of securing a proposal or contract, 

 and in addition there is another form of insurance called 

 Contractor's Liability Insurance, all of which will be 

 discussed. 



1. By the Bidder's Reputation. This may be said to 

 be no surety at all in the strict sense. In small places and 

 for unimportant work sometimes no bond is required. 

 Should a bidder refuse to accept a contract awarded him, 

 his reputation in that community is practically ruined and 

 his hopes of securing more work of that or some other kind 

 are practically destroyed. 



2. By Certified Check. For work of no great magnitude, 

 this method is often followed. Each bidder submits with 



