In response to the Disaster Mitigation Act of 2000, FEMA is increasingly obligating funds based on estimates for small projects. This enables funding to be disbursed more quickly in support of community recovery.

Accurate estimates are essential to providing adequate funding for eligible projects and reducing problems resulting from either an overage or shortage in the original grant.

Public Assistance program requirements include performing a cost or price analysis to establish reasonable costs for every procurement action, including contract modifications. The Applicant's estimate developed for the cost or price analysis may become part of the project cost estimate within FEMA Grants Portal Software.

The method and degree of analysis depends on the facts surrounding the particular procurement situation, but as a starting point, independent estimates are required before receiving bids or proposals.

Applicants should independently estimate project costs or prices prior to receiving bids or proposals.

A cost analysis is required if:

• An Applicant is required to submit the elements of an estimated cost
• Adequate price competition is lacking
• It is a sole source procurement, including contract modifications and change orders, unless price reasonableness can be established
• There is a cost overrun

The requirement for a cost price analysis can be met by conducting an independent validation of the estimate. The Cost Estimating Format tool should be used to conduct a cost or price analysis. The process is outlined in the CEF Instructional Guide V2.1 and will also be discussed later in this course.

The Applicant is responsible for ensuring that all eligible work is identified and that all costs for completing the eligible scope of work are submitted.

Applicant damage claims are addressed through a project. Projects are developed within the Grants Portal and are comprised of:

1. A Damage Description and Dimension
2. A scope of work for repair
3. Estimated costs for work to be completed (with actual costs for completed work)
4. Documentation to support the damage claim and repair costs

Methods of preparing the project and funding the work vary, depending on whether the work constitutes a small or large project, which is based on the estimated cost of the work.

Often, differences arise between FEMA, Applicant, and contractor estimates. The immediate reaction may be to look for mistakes in the estimating process, form, and cost data.

However, experience has shown that the difference is most often due to differences in the scope of work deemed eligible by the project formulation team, the scope of work desired by the Applicant, and the scope of work defined in the bid documents provided to the contractor.

When the three scopes of work are aligned, the estimates generally also fall into alignment quickly.

Once properly procured, bids along with any actual costs will help eliminate the concern of the estimate amounts for large projects.

Why is it important to prepare accurate estimates?

• Promotes appropriate use of Federal dollars
• Encourages acceptance by the Applicants
• Reduces the potential for future adjustments to grants

Congressional legislation requires FEMA to work toward establishing methods that will allow funding to be granted on the basis of estimates, a process that is highly dependent on FEMA's ability to prepare accurate scopes of work and corresponding cost estimates.

A consistent approach and format to all estimates is important for accuracy and validation. Consistent organization of the estimate and supporting documentation promotes efficiency in preparation, processing, and approval of projects.

The general process for preparing a cost estimate applies to all types of cost estimates, regardless of the type of facility or the size of the project.

FEMA uses the Cost Estimating Format to prepare cost estimates for large projects using factors to represent costs that frequently cannot be determined at the time the project is created in Grants Portal (e.g., base construction cost). However, the construction cost estimate (base cost, Part A of the Cost Estimating Format) is prepared using the same principles that are used for other cost estimates.

Cost estimates must be prepared in a manner that promotes accuracy and acceptance by the Applicants, and they must be defensible.

Standard industry practices and methods must be used to prepare cost estimates, regardless of the size or complexity of the project.

Quality control promotes ongoing improvements to estimating procedures and ensure that estimates are accurate before projects are approved and funding is obligated.

Quality control measures include:

• Training, mentoring, and oversight of the Estimating Specialists
• An effective review process

Cost Estimating is a step-by-step process. Each step of the estimating process should be addressed for every Public Assistance project estimate.

However, the complexity of the project's scope of work will drive the speed and schedule for development of the estimate. Accurate estimates require a thorough understanding of the scope of work.

An incomplete or poorly defined scope of work will result in an inaccurate estimate. If more attention is spent up front doing a detailed site visit and perfecting the scope of work, the development of the estimate will be a success.

The Applicant is responsible for preparing the design, determining the methods and schedule for completing the work, and preparing the specifications. FEMA and the Applicant develop the eligible scope of work and cost estimate.

FEMA will prepare a cost estimate using the Applicant's design and other data or validate the Applicant's cost estimate to verify that it is accurate, appropriate for the eligible scope of work, and sufficient to use as the basis for funding.

Pursuant to the Disaster Mitigation Act of 2000, the Cost Estimating Format was endorsed as the cost estimating methodology and instrument of the Public Assistance program. The Cost Estimating Format is designed to serve the unique requirements of the Public Assistance program. The way it is organized promotes consistency in documentation.

The Cost Estimating Format has the ability to import and incorporate cost data from most electronic cost data providers. It is flexible and more readily adaptable to the needs of the Public Assistance program than inflexible estimating systems required by some other agencies.

The Cost Estimating Format must be used for all projects that have the following characteristics:

• Projects that meet the large project threshold
• Permanent, restorative work (i.e., Public Assistance Categories C-G)
• Work that is less than 90 percent complete at the time of inspection

Cost estimate validation involves several steps. Experience has shown that validation typically requires an independent estimate of the costs of project elements equivalent to about 50-70% of the project scope of work and should include a minimum of 20% of the Construction Specifications Institute MasterFormat Divisions included in the scope.

1. Review eligibility of work included in the estimate or bid schedule of values.

2. Perform cost validation to determine reasonableness.

• Check 6-10 of the largest cost items using local average weighted unit cost or industry standard unit cost data, these items representing at least 25% of the MasterFormat Divisions included in the estimate
• Check 25% of remaining cost items, which should include systems or components representing an additional 25% of the eligible scope of work

The items checked should be within 10% of the local average weighted unit costs or industry standard unit cost data.

• If they are, use the Architect and Engineering estimates of the construction bid schedule of values as part of the project estimate
• If not:
• Check to see if the applicant provided costs are based on bid values; they may include general contractor costs
• Check to see if the separately listed items may need to be combined to accurately validate the cost
• If the costs cannot be brought within 10%, then develop a new independent estimate for eligible work”

3. Confirm procurement method.

How much do you think it would cost to replace this door?

• What components of work are involved?
• What factors impact cost?

The primary steps in the estimating process were mentioned in the last lesson. They are:

1. Identify Scope
2. Develop Estimate
3. Review

The scope of work describes what is necessary to fix the facility. Defining the eligible scope of work is the most important aspect of the cost estimating process.

An accurate construction cost estimate begins with a well-defined, quantitative description of the project's scope of work. A poorly defined scope of work will cause inaccurate estimates.

FEMA works with the Applicant to develop the scope of work for eligible damages. This scope of work is also used to assist in preparing the cost of the grant.

A scope of work includes:

• All work items necessary to restore the facility to its pre-disaster design, function, and capacity in accordance with the laws, regulations, and policies that govern the Public Assistance program
• Eligible upgrades necessary to meet current codes and standards, if applicable
• Special Considerations
• Incidental non-permanent work that is required as part of completing construction, (i.e. scaffolding, traffic control, temporary erosion control)

The cost estimate is only as accurate as the information provided and the experience of the project formulation team. An accurate scope of work and appropriate unit cost data are required for an accurate estimate.

The costing specialist will review the scope of work information to ensure a full understanding of project conditions that may affect eligible costs.

The focus of this lesson is on estimates developed using detailed unit cost data. Regardless of the source, the cost elements (i.e., labor, equipment, materials, overhead, and profit) that generates the unit cost data, it must be documented and understood so that the unit cost can be properly applied.

The unit cost data must also be reproducible by future users and reviewers of the estimate, such as FEMA project closeout staff or auditors.

There are three potential sources for cost data:

• Local Historical Costs
• Industry Costs-Estimating Software
• FEMA Cost Codes

Local historical costs are the preferred and most reliable source of cost data. To be used, costs must be similar to those being estimated, recent, and procured in compliance with Federal, State, and local procurement regulations by either the Applicant or other agencies in the same or nearby jurisdiction.

Historical contract costs must have been competitively awarded and in compliance with all relevant government regulations. The scope of work in contract prices should be similar to repair or restoration work. Data must include a schedule of values or unit rates applicable to the eligible work being (or to be) performed.

State Departments of Transportation are a frequent source of historical project unit cost data. Additionally, Department of Transportation projects frequently involve Federal funding, an indication that procurement policies are in compliance with Federal procurement requirements.

Local historical costs must meet the requirements for producing a quantitative estimate. Data must also be accessible by others for verification and future use of the estimate.

When similar data are provided, it is recommended that the reported average of three low bids be used as a reasonable estimate of cost. In some cases, the contracted unit cost is higher than the average unit cost of the three low bids, suggesting the successful bidder used an unbalanced approach to prepare the bid.

The use of the average of three low bids will compensate for unreasonable unit costs, either high or low, used by the successful bidder.

Published industry standard construction cost-estimating resources include Xactimate, RSMeans, BNi Cost Books, Marshall & Swift, and Sweet's Unit Cost Guide. Unit cost data or estimating software used by the insurance industry is not approved for use in the Public Assistance program.

Unit cost data from published national construction cost databases must meet the same criteria as other unit cost sources. They must also:

• Be specifically designed for the construction industry and recognized as credible
• Provide documentation of the elements included in the unit costs (i.e., labor, material, equipment, overhead, and profit)
• Document the assumptions included in the unit costs, e.g., union vs. non-union, labor, productivity
• Be adaptable to project localities

RSMeans maintains a national construction cost database that provides accurate and up-to-date cost information that helps owners, developers, architects, engineers, contractors, and others to carefully and precisely project and control the cost of both new building construction and renovation projects. RSMeans' online database is called RSMeans On-Line.

RSMeans is widely accepted throughout the engineering and construction community and is generally consistent with other sources of construction cost data.

FEMA cost codes are issued by the FEMA Regional Office. They are issued for a specific location or declaration.

Generally, FEMA cost codes represent complete installed costs and include:

• Equipment
• Materials
• Labor
• Direct construction costs
• Supporting activities
• Project support and management
• Contractor profit

Some cost code data may be several years old and require escalation. FEMA cost codes are last on the list of acceptable cost data sources. Local historical costs or industry cost-estimating software should be used if possible.

The Construction Specifications Institute MasterFormat is an industry standard for organizing specifications and other written information for commercial and institutional buildings. The purpose of this format is to help the user locate specific types of information.

MasterFormat is a standardized list of numbers and titles for organizing construction documents, including cost estimates, by work results. A list of the 50 divisions is on the following slide.

MasterFormat provides a master list of divisions and section numbers and titles within each division to follow when organizing information about a facility's construction requirements and associated activities.

The Cost Estimating Format is designed to use the Construction Specifications Institute MasterFormat and to facilitate preparation of estimates using the Construction Specifications Institute (CSI) numbering system.

Construction Specifications Institute MasterFormat organizes all materials used in a construction project in a consistent format, which reduces errors. This provides a number of advantages:

• Design teams know where their components fit into the final contract documents package
• Contractors can separate construction documents by discipline and provide sections to trade subcontractors for bidding
• Estimating Specialists can readily identify all related work associated with each discipline

The total estimated cost for each work activity is a product of quantity, unit price, and a city adjustment factor. These elements are assembled and calculated in the Cost Estimating Format.

After cost estimates have been made, they must be reviewed and validated by FEMA. Applicants must submit relevant documentation for substantiating costs.

The FEMA review will focus on:

• Eligibility
• Reasonableness
• Cost inflation factors

FEMA must also validate all competitively procured contracts. A third-party expert panel review is required for estimates with a federal cost share of $5 million or greater.

Eligibility is an essential factor in developing cost estimates. The Applicant, facility, and work must be eligible for a cost to be eligible for Public Assistance reimbursement. Ineligible costs should not be included in the Public Assistance estimate.

Eligible costs must:

• Directly tie to the performance of eligible work
• Be reasonable and necessary to accomplish the work
• Comply with Federal, State, and local requirements for competitive procurement
• Not be a duplication of benefits
• Be traceable to one of three types of cost data: local historical costs, published industry costs, or FEMA cost codes

The final grant amount will be based on the cost estimate and programmatic adjustments including:

• Insurance proceeds
• No duplication of benefits
• Salvage value
• Other adjustments

A cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the Applicant makes the decision to incur the cost.

FEMA determines reasonableness by evaluating:

• The cost is of a type generally recognized as ordinary and necessary for the type of facility or work
• The cost is comparable to the current market price for similar goods or services based on:
• Historical documentation
• Average costs in the area
• Published unit costs from national cost estimating databases

There are a variety of factors that may inflate costs involved with disaster response and recovery. FEMA evaluates the length of time the factors applied compared to the length of time costs were incurred.

• Shortages in equipment, materials, supplies, labor, or contractors
• Project-specific complexities, such as environmental or historic issues, remote access or location, provision of a unique service with few providers, or elements requiring an extraordinary level of effort
• Exigent circumstances

The Applicant is responsible for providing documentation to demonstrate its claimed costs are reasonable. If FEMA determines any of the costs to be unreasonable based on its evaluation, FEMA may disallow all or part of those costs.

As an example, a historic property needs to be re-built to historic standards, thus more expensive building materials and more custom labor are needed. Consequently, the Estimating Specialist must incorporate these elements and associated costs into the estimate.

A FEMA licensed engineer/architect with cost-estimating expertise or a certified cost estimator reviews all requests for replacement and validates the estimates. For any replacement requests over $5 million, the United States Army Corp of Engineers Center for Excellence for Cost Engineering performs an additional review of the repair and replacement estimates. FEMA considers the results of the USACE review prior to approving replacement.

For an Alternative Procedures Project with an estimated Federal share of at least $5 million, upon the Applicant's request, FEMA provides a FEMA-funded, independent validation of the cost estimate.

Once the project has been qualified and an accurate estimate has been developed, the estimate is documented in the Cost Estimating Format. The Cost Estimating Format tool is a spreadsheet designed to use the Construction Specifications Institute MasterFormat and to facilitate preparation of estimates using the Construction Specifications Institute numbering system.

The Cost Estimating Format spreadsheet is organized to make it user-friendly and flexible enough to respond to individual project conditions and to promote consistency and the development of more inclusive cost estimates.

It is designed to serve the unique requirements of the Public Assistance program and promotes consistency in documentation, as well as having the ability to import and incorporate cost data from most electronic cost data providers.

The Cost Estimating Format must be used for all projects that have the following characteristics:

• Large Projects
• Large projects, according to the large project threshold for the applicable Federal fiscal year
• Permanent Work
• Restorative work (i.e., Categories C-G)
• Less than 90% complete
• Work that is less than 90% complete at the time of inspection

If projects do not meet all these requirements, cost estimates should be prepared using concepts and organization similar to the Cost Estimating Format, but the Cost Estimating Format is not required. Even projects that do not meet these requirements must be quantified, and the cost of all work elements in the estimate must be defined.

To be considered Completed Work, a project work element must be:

• A discrete work activity (such as grading or constructing foundations) that is complete and has no pending or potential for future change orders
• A specific type of work for which actual incurred cost documentation for eligible work is available

If cost documentation is not available within two weeks of the site inspection, the project estimate can be prepared as Uncompleted Work.

The CEF Fact Sheet is the first tab in the spreadsheet and should be completed first. It documents basic information about the project and estimate.

In it, you will identify the Applicant, preparer, project title, damaged facility, FEMA region, work category, and type of work. Give the dates of the event, site inspection, and estimate. Provide the relevant numbers to identify the declaration and project, as well as the PA (Public Assistance) ID number. There is also a section for the preparer's notes, where project context should be provided.

Information you enter into the Fact Sheet is automatically populated in some other components of the CEF Spreadsheet, including the CEF Notes, Summary of Completed Work, and Summary of Uncompleted Work.

Select this link for a full image description.

The purpose of this section is to document the basis of the Cost Estimating Format estimate and establish a basic understanding of the project context.

This section can be a challenge on large, complex projects. It may be necessary to summarize major elements here and refer the reviewer to more detailed explanations in the associated backup documentation.

What should be documented:

• A clear and concise description of the eligible scope of work
• The status of the project at the time of the estimate (percent of design and/or construction complete)
• The anticipated project delivery method (design-bid-build, force account, etc.)
• The source of unit cost data
• This can also go in CEF Part A Notes if the text is too long
• Results of analysis, e.g., estimated bid validation or repair vs. replacement analysis
• Any assumptions or scope additions made by the estimator that are not otherwise documented
• example: CEF specialist assumed dewatering by temporary stream diversion

The CEF Notes sheet provides a place to document the logic, assumptions, and reasoning for the selection of factors B-H on the summary sheets. All assumptions for selecting or not selecting factors must be recorded in the CEF Notes sheet.

To ensure proper documentation:

• Enter notes for each work type, if appropriate
• Indicate the value chosen for each factor and the rationale for the choice, or the reason/assumption for omitting the cost from the estimate
• All notes for factors B-H must document why or why not you have applied the factor

The sheet also contains an area for miscellaneous comments and notes.

Select this link for a full image description.

Part A of the CEF Spreadsheet is designed to document the quantitative base construction cost required to directly complete the eligible scope of work. Preparation of an accurate base cost estimate in Part A is critical to the accuracy of the total project estimate developed using the CEF Spreadsheet.

Estimates are defined using the following:

• Item number
• Item description title or component description
• Division number or cost code identifiers

The total estimated cost for each work activity is a product of quantity, unit price, and the city adjustment index/factor.

CEF Part A allows development of construction costs using a variety of FEMA-approved unit cost data sources. Local bids from recent projects of similar size and scope, industry cost-estimating references, or FEMA cost codes can be used for cost data sources.

Each requires validation of scope and cost reasonableness prior to using as the base cost estimate.

Select this link for a full description of Part A

The Costing Specialist needs to determine if the cost data are "complete and in-place." Complete and in-place cost components include the cost of all labor, materials, equipment, small tools, and incidental costs necessary to complete an item of work, all site support and coordination costs, and all construction contract administration costs. If those cost are included in the unit cost data, Cost Estimating Format factors may not be required.

Unit cost data based on historical contracts are typically complete and in-place costs, while unit cost data from industry cost-estimating references only include the direct construction costs (labor, materials, equipment, and O&P of the installing or specialty contractor) and do not include other elements such as the general contractor costs.

To meet the requirements, all construction work activities must be itemized and quantified in Part A with as much detail as possible. The Part A spreadsheet is organized to allow differentiation between:

• Permanent and Non-Permanent Work
• Completed and Uncompleted Work

Sort items by work type (repair, retrofit, new construction, hazard mitigation, and other discrete work elements, such as selective demolition and force account). The types of work specified should match those selected when you complete the CEF Fact Sheet. Work should also be sorted by major components, systems, or sources of unit cost data.

Once you have identified the types of work, the line items for each type of work should be further organized using the standard work breakdown structure outlined in the Construction Specifications Institute MasterFormat Divisions.

Select this link for a full image description.

For each cost item, record:

• Construction Specifications Institute MasterFormat Division Number/Cost Code
• Quantity
• Units
• Unit Price
• City Adjustment Factor
• Total Cost

City adjusted cost factors must be set for the zip code of the location of work to be performed.

Select this link for a full description of Part A.

Published unit cost data, e.g., RSMeans, include only the costs directly required to install the specific unit of work. General contractor or equivalent costs, also referred to as 'as-bid' costs, are accounted for in Parts B-E. These represent the construction costs not included in RSMeans construction trade unit cost data.

Historical contract unit cost data such as State Department of Transportation data or FEMA cost codes typically represent complete data and may not require the use of these supplemental factors.

This factor includes such items as:

• Perimeter fencing, guard service, and site lighting

• First aid, barricades, traffic controllers, flagging, railings, toe boards, and rented fencing

• Harnesses, scaffolding, and other safety equipment

• Fire protection, such as fire extinguishers and temporary hydrants

• Temporary signage that may be required by a regulatory authority (e.g., the Federal Highway Administration) to control pedestrian or vehicle detours within and around the construction zone

This factor includes:

• Construction trailer or office space and related office equipment. The space may be for the construction job superintendent or for inspectors.

• Temporary utilities such as construction water, electricity (including temporary power distribution to work areas), telephones, construction craft sanitary facilities, and weather protection that may be necessary for temporary services or utilities.

Example: School repair projects, especially if scheduled during vacation periods, allow the contractor to use or access the existing facility power and water services. Do not include these costs by selecting the factor. If some temporary services are still required, e.g., telephones and sanitary facilities, the cost should be included, but the factor should be reduced.

This factor reflects quality control measures taken by an organization other than the Applicant or the contractor. Each Construction Specifications Institute MasterFormat section includes a quality control requirement, such as field testing and manufacturing certifications for size and strength.

Typically, the field quality control is conducted by an independent testing and inspection service with expertise specific to the project scope of work, such as:

• Soil compaction testing
• Concrete strength testing
• Masonry mortar testing
• Masonry panel tests
• Water quality testing
• Non-destructive examination of welds
• Bolt torque testing of steel connections

Manufacturers' quality control documentation is provided by the manufacturer, often through the supplier.

This factor includes the contractor's cost for:

• Preparation of shop drawings, materials certifications, and instructions
• Providing samples and product data
• Preparation of construction progress schedules

At this stage, concepts have been developed, usually without a significant level of detail. Accurately quantifying work at this stage is difficult, and contractors would assume a relatively high level of risk/uncertainty in bidding a project at this time.

At this stage of design, the design requirements are better defined, concepts are determined, details are more complete, and work tasks and quantities have been readily defined. Contractors are likely to assume a low to medium level of risk in bidding this type of project.

Project estimates based on 100% drawings will still have contingencies for unexpected costs encountered during construction, e.g.:

• Increased equipment rental cost due to weather delays
• Installation requires more staffing or heavier equipment than expected
• Delays in material shipments

This factor allows for site conditions or construction process complexities that could increase project costs. It includes issues such as:

• Working in difficult site conditions
• Extreme weather conditions impeding productivity
• Special building code requirements
• Special interfaces with operating facility

The complexity of construction activities varies among different types of projects. New construction design drawings and specifications are comprehensive in scope; therefore, no complexity allowance is provided for new construction.

Repair and retrofit projects, which must be accomplished within the physical and operational constraints of existing facilities, tend to consist of tasks that are more selectively located, are more intensely detailed and sequenced, and require closer supervision throughout the process.

Applicant requirements and restrictions must also be reasonable, applying to the specific services related to the eligible scope of construction. Such requirements or restrictions could include access restrictions during normal business hours to portions of the facility being repaired.

For example, there are specific tolerances related to:

• Sports facility floors and seating
• End user and/or environmental requirements for hospitals and museums
• Special site-specific construction requirements, or restrictions, mandated by State or local regulatory agencies

The constructability factor represents site conditions or construction process complexities such as:

• Steep site embankments
• Unstable soil conditions
• Difficult subsurface construction conditions requiring such activities as de-watering and rock excavation
• Extreme weather conditions affecting productivity, such as winter shutdowns
• Urban sites
• Special building code requirements
• Availability of adequate energy, skilled craft labor, and building materials
• The Applicant's special requirements and restrictions
• Environmental considerations

This factor addresses access to the project site.

Examples include:

• Difficult or long access routes for trucks delivering materials
• A temporary access roadway or driveway constructed to provide access for equipment
• Site loading conditions requiring heavy equipment such as barges, cranes, or forklifts
• Restricted material delivery hours at operational facilities
• Obstructions created by utilities or exposed systems

Projects in crowded urban areas may be at the upper end of each factor, while remote projects can incur increased material transportation charge.

• Some remote West Virginia schools had premiums added to material prices because of long delivery distances, especially for "less than full truck load" deliveries

This factor addresses the storage of construction materials and equipment on site to support proper staging and construction activities.

Examples include:

• Remote or off-site storage of materials due to space constraints
• Temporary easements
• Lot, sidewalk, or roadway space rental costs

Projects in crowded urban areas may require the use of off-site storage, thus increasing the material and handling costs.

Example: Limited material storage space on site results in extra costs incurred for "just-in-time" deliveries, resulting in greater trade labor downtime.

This contingency addresses the timing and execution of the work, which could be complicated by occupation of facilities, lack of space, and access to the facility. This factor should be used for sites, such as hospitals and city halls, which have work access limitations because services must continue despite the construction.

The general contractor's main office expenses include: labor and salary costs for personnel and include

• Principals, estimators, schedulers, purchasing agents, project managers, and general office staff
• Other operational expenses associated with working out of the main office (rent, utilities, etc.)

This factor includes allowances for:

• General contractor's payment and performance bonds (1.5%)
• Builder's risk insurance (0.3%)
• Public liability insurance (1.5%)

Insurance and bonds are project overhead costs typically, but not always, charged by the general contractor. A contractor may be required by the owner to obtain insurance and bonds when bidding on a construction project. 44 CFR 13.36(h) establishes the minimum bond requirements for construction contracts or subcontracts under Federal grants.

If there is no applicant-submitted design and/or construction timeline, the Costing Specialist will develop the timeline. There are three phases the timeline needs to account for:

• Preparation of Design and Bid Documents
• Solicitation of Bids, Review of Bids, and Award of Contract
• Construction Start and Completion Dates

The duration for bidding and award can be estimated using data provided by the Applicant, or using other means if the applicant does not provide it.

A period of 2-3 months for bidding and award duration is typical. Extremely large projects (over $5 million) may need additional time for the bidding and award process.

The duration for construction can be estimated using information provided by the applicant, or by preparing an outline of the major construction tasks and determining the duration and linkages (critical paths and dependencies) associated with each of these tasks to arrive at a total construction time.

• Construction start date = date that the applicant gives notice to proceed to the contractor

• Construction completion date = date the owner accepts the project and agrees to pay any outstanding retainage due to the contractor

• Guidance for estimating design and construction times is provided in Section 8 of the CEF Instructional Guide

• Guidance for calculating the monthly escalation factor is also provided in Section 8 of the CEF Instructional Guide

An engineer's report indicates that the bridge replacement construction will take approximately 6 months.

• The Public Works Department schedules the work for the summer of 2018
• The estimate is being prepared in late November 2017
• Based on an estimated construction schedule of early April 2018 through October 2018 (6 months), the mid-point is determined to be July 2018
• Thus, the time to mid-point of construction from the time of the estimate is 8 months
• 5 months = design, bid, and award
• 6 months = construction period
• 5 + 6/2 = 5 + 3 = 8 months

Parts F, G, and H represent the Applicant's non-construction project costs:

• Part F: Plan Review and Construction Permit Costs
• Part G: Applicant Reserve for Change Orders
• Part H: Applicant Project Management and Design Costs

The Applicant's costs to manage the project during the design phase include:

• Managing the Architect/Engineering contracts for final design
• Managing the permitting and special review process
• Coordinating with other agencies

The H.1 factor is not applicable when engineering services are not required.

Curve A applies to projects with above-average complexity and non-standard design.

Examples:

• Airports with extensive terminal facilities
• Water, wastewater, and industrial waste treatment plants
• Hospitals, schools, and office buildings
• Power plants
• Large dams and complicated small dams
• Highway and railway tunnels
• Pumping stations
• Incinerators
• Complicated waterfront and marine terminal facilities

Curve B applies to projects with average complexity and standard design.

Examples:

• Industrial buildings, warehouses, garages, hangars, and comparable structures
• Bridges and other structures of conventional design
• Simple waterfront facilities
• Roads and streets
• Conventional levees, floodwalls, and retaining walls
• Small dams
• Storm sewers and drains
• Sanitary sewers
• Water distribution lines
• Irrigation works, except pumping plants
• Airports, except as classified for Curve A

When the work requires only basic construction inspection services, a fee that does not exceed 3% of construction costs should be used to cover the following items:

• Review of bids
• Work site inspection visits
• Checking and approval of material samples
• Review of shop drawings and change orders
• Review contractors request for payment
• Acting as the applicant's representative

In addition to the basic services, the following special services may be required and are not usually included in the fee for basic engineering services. These services should be specifically described and justified in Part A, and the cost estimated, before the services are included in the Cost Estimating Format.

Examples:

• Engineering surveys
• Soil investigations
• Resident engineer services
• Feasibility studies

Tip:  When these costs are added in part a, they should not have irrelevant factors from parts B-H applied to them. A good technique is to create an “other special services’ in the CEF fact sheet-type of work. That will allow those costs to be separated from the factors applied to construction costs.

The final tab is the Total Project Summary sheet. It merges estimated costs for completed and uncompleted work into a single estimate for the entire project.

Values from the rest of the document should automatically populate the appropriate fields as they are entered in the other sheets. This estimate is used in the preparation of the Project within Grants Portal.

Exceptions may occur. For example, if the estimate includes a hazard mitigation proposal, the Total Project Summary will include the hazard mitigation estimated cost.

In the case of exceptions, the Program Delivery Manager can find the Total Project Cost for each type of work/facility/programmatic issue as the Total Cost for the appropriate scope of work at the bottom of the Summary of Completed Work and/or Summary of Uncompleted Work sheets.

Select this link for a full image description.