Final answer:
The contractor's gross profit varies for each type of construction contract under different conditions of u (the total cost for the change order) and c (the original estimate). To provide specific values, a comprehensive analysis is needed based on the given interest rates (r, r1, r2, r3) and the parameters of the guaranteed maximum cost contract.
Step-by-step explanation:
Determining the contractor's gross profit involves evaluating the impact of various interest rates on different types of contracts. The calculation includes the original estimate, change order total cost, and the conditions specified for the guaranteed maximum cost contract. The formula for gross profit involves subtracting the total cost (including interest) from the contract amount.
For a detailed breakdown, each type of construction contract needs to be considered separately, taking into account the interest rates r, r1, r2, and r3. The guaranteed maximum cost contract requires special attention to the conditions set for change orders. Calculations involve applying the given rates to the formula for interest and incorporating the specified conditions for the guaranteed maximum cost contract. This comprehensive approach ensures an accurate determination of the contractor's gross profit under different scenarios of u and c.
In summary, the contractor's gross profit is contingent on the type of construction contract and the specific conditions outlined for the guaranteed maximum cost contract. A detailed analysis is essential to provide precise values for each scenario.