TWO KINDS OF CONTRACTS 75 



By the other method, the work could be carried on 

 satisfactorily if the foreman were free to discharge an 

 inefficient workman. But this often is not the case, and 

 the foremen themselves are frequently employed on the 

 recommendation of some official or prominent citizen. 



Nevertheless the day labor method is coming more 

 and more into vogue and appears to be giving good results 

 when politics can be eliminated, as is often the case. The 

 claim is made that the work can be done cheaper by day 

 labor than by contract, since by the former method there 

 is no profit to be included. Furthermore the park superin- 

 tendent, by offering permanent employment in one locality, 

 is able to attract to his force a class of steady labor to whom 

 the contractor's inducements do not so strongly appeal. 



TWO KINDS OF CONTRACTS 



Park contracts are let either by the lump-sum or by 

 the unit system. 



1. The Lump-sum System. By this method but one 

 price is stated in the bid; namely, the cost for the entire 

 work. This system is inelastic, but is used when the work 

 hi exact nature and amount is fully known before the con- 

 tract is let. If the work is not fully known beforehand 

 there will surely be claims for extras on the part of the con- 

 tractor. 



2. The Unit System. This is the method usually 

 employed in engineering. The work to be done is divided 

 into different parts, such as earth excavation, sewers, cast 

 iron, macadam pavements, etc. Approximate figures rep- 

 resenting the amount of work to be done under each item 

 are stated beforehand and each bidder submits his bid on 

 the price per cubic yard of earth excavation, the price per 

 lineal foot of sewers, the price per pound of cast iron, the 



