Construction Planning and Management
If the excavation of earth is done manually then it costs Rs. 10 per cum. A machine can excavate at a fixed cost of Rs. 4000 plus a variable cost of Rs. 2 per cum. The quantity of earth for which the cost of excavation by machine will be equal to the cost of manual excavation is

1500 cum
2000 cum
500 cum
1000 cum

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Construction Planning and Management
During the construction period, price variation clause in contracts caters to

Increase in rates of only important materials
Variation in cost in materials element, labour element and petrol-oil-lubricant element
Variation in total cost of the project on an ad hoc basis
Rate of inflation

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