Common use of Freight on materials Clause in Contracts

Freight on materials. The compensation as herein provided shall be accepted by the Contractor as payment in full for all labor, including fringe benefits as hereinafter set forth, equipment and materials used for force account work. The amount shall also represent payment in full for profit, superintendence, general expense, overhead, and the use of small tools and equipment for which no rental is allowed. An additional one (1) percent compensation will be allowed to the Contractor when the work is performed by a Subcontractor. General Xxxxxxx and Superintendents shall be classified as management and shall not be considered as a separate cost item for force account purposes. The force account percentage for labor or wage rates paid by the Contractor to its employees shall cover any possible costs for bond premium, workmen's compensation insurance, personal injury public liability and property damage public liability insurance, unemployment compensation, federal social security payments, payments required to be made to employer and employee trusteeships and fringe benefits which by way of illustration, but not by limitation, include health and welfare, vacation and holidays, etc., required to be paid by the employer, the proceeds from which inure exclusively to the benefit of the employee, and will be made at forty percent (40%) of the labor costs as determined by the hourly rate times the number of hours worked. In addition to this sum, six percent (6%) will be added for any and all other possible cost items aforementioned, for a total forty-six percent (46%) of the labor costs.

Freight on materials. The compensation as herein provided shall be accepted by the Contractor as payment in full for all labor, including fringe benefits as hereinafter set forth, equipment and materials used for force account work. The amount shall also represent payment in full for profit, superintendence, general expense, overhead, and the use of small tools and equipment for which no rental is allowed. An additional one (1) percent compensation will be allowed to the Contractor when the work is performed by a Subcontractor. General Xxxxxxx Foremen and Superintendents shall be classified as management and shall not be considered as a separate cost item for force account purposes. The force account percentage for labor or wage rates paid by the Contractor to its employees shall cover any possible costs for bond premium, workmen's compensation insurance, personal injury public liability and property damage public liability insurance, unemployment compensation, federal social security payments, payments required to be made to employer and employee trusteeships and fringe benefits which by way of illustration, but not by limitation, include health and welfare, vacation and holidays, etc., required to be paid by the employer, the proceeds from which inure exclusively to the benefit of the employee, and will be made at forty percent (40%) of the labor costs as determined by the hourly rate times the number of hours worked. In addition to this sum, six percent (6%) will be added for any and all other possible cost items aforementioned, for a total forty-six percent (46%) of the labor costs.