We're bidding the Quail Gap Yard track removal for Ochre Hills Railroad. The rail, OTM and turnouts become ours, and the instructions to bidders say negative unit prices won't be accepted. Using the track chart, the track material inventory and our scrap assumptions, work out what the salvage is worth net of cutting, handling and trucking, track by track and including the industrial lead alternate, and suggest how we should carry the credit in the bid schedule.
Thinking…
The industrial lead loses money below $225 per gross ton. Mobilization cannot carry the salvage credit.
Rail salvage credit