he Material Costs. We have estimated the quantities and cost of material for the construction of this work and have added 15 percent to cover loss, waste, breakage, and similar items. Under normal circumstances, we believe that this figure is high, however, it must be recognized that all materials will be handled several more times and will be transported a greater distance than is normally the case of work in the United States. In addition to this, it may be necessary to over-order in ‘some cases as an insurance against delay in the work caused by shortages of specific types of material. The long- time lag involved in purchase and transportation balanced against labor cost of delay may dictate such over-order of material. Transportation Costs. The cost of transportation in the estimate in- cludes delivery of material dockside; additional warehousing and storage dockside if required and loading aboard the carrier; cost of ocean transpor= tation and insurance; and the cost of longshoring at the Atoll. Warehouse operations in the embarkation port, except dockside, are included as overhead. Equipment Costs. Due to the fact that the construction equipment now at the jobsite needs extensive repair, it is anticipated that some equipment will be purchased new in United States. A majority of the construction equipment needed for this project has an average estimated life of eight years under ordinary climatic conditions and use; however, it is felt that the average life of the equipment on the site will be greatly reduced and that maintenance and repair will be increased. In view of the variables affecting the life and efficiency of construction equipment on this project, estimated equipment costs have been determined from an analysis of each type of construction and the equipment needed to efficiently expedite the overall project. In each case, equipment cost in cludes the U. S. standard equipment rental rate for the construction involved, IX-