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GATE 2021 CE (CE1) – Question 16

Construction Management · Types of construction projects, estimation and costing, analysis of rates · 1 mark · Multiple choice

A contractor estimates direct and indirect project costs of ₹160000 and ₹20000. If markup is 10% of the bid price, the quoted price in rupees is

  1. 200000
  2. 198000
  3. 196000
  4. 182000

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Correct answer: (A) 200000

Explanation

Total estimated cost is ₹180000. If B is the bid, the markup is 0.10B, so $B=180000+0.10B$. Therefore $B=180000/0.9=\mathbf{200000}$, **A**. Applying 10% to cost instead would incorrectly give ₹198000.