(b) In negotiating or determining profit, factors to be considered include—

1. (1) Extent and difficulty of the work done by the contractor as compared with the total work required by the contract (engineering estimates of the percentage of completion ordinarily should not be required, but if available should be considered);
2. (2) Engineering work, production scheduling, planning, technical study and supervision, and other necessary services;

3. (3) Efficiency of the contractor, with particular regard to—

   1. (i) Attainment of quantity and quality production;
   2. (ii) Reduction of costs;
   3. (iii) Economic use of materials, facilities, and manpower; and
   4. (iv) Disposition of termination inventory;
4. (4) Amount and source of capital and extent of risk assumed;
5. (5) Inventive and developmental contributions, and cooperation with the Government and other contractors in supplying technical assistance;
6. (6) Character of the business, including the source and nature of materials and the complexity of manufacturing techniques;
7. (7) The rate of profit that the contractor would have earned had the contract been completed;
8. (8) The rate of profit both parties contemplated at the time the contract was negotiated; and
9. (9) Character and difficulty of subcontracting, including selection, placement, and management of subcontracts, and effort in negotiating settlements of terminated subcontracts.

(c) When computing profit on the terminated portion of a construction contract, the contracting officer shall—

1. (1) Comply with paragraphs (a) and (b) above;
2. (2) Allow profit on the prime contractor's settlements with construction subcontractors for actual work in place at the job site; and
3. (3) Exclude profit on the prime contractor's settlements with construction subcontractors for materials on hand and for preparations made to complete the work.