This lesson provides a detailed overview of the Cost Estimating Format tool, including the tool's purpose and structure.
At the end of this lesson, participants will be able to:
Describe the purpose of the Cost Estimating Format tool
Describe parts A-H of the Cost Estimating Format spreadsheet
Cost Estimating Format
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.
Project Qualifications for Cost Estimating Format
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.
Accessing the Cost Estimating Format Tool
The Cost Estimating Format Tool consists of an Excel spreadsheet. To download it, go to the FEMA homepage and search for "CEF Spreadsheet." Select the result titled "CEF Spreadsheet | FEMA.gov."
There will be two download options. Be sure to select the link to the XLSX file. The PDF file does not include all of the same functionality.
Download the spreadsheet by selecting the "CEF Spreadsheet" XLSX link and save it to your hard drive. Choose a location where you will be able to find it easily.
Note that additional Cost Estimating Format documents are also available on this website:
Open the CEF Spreadsheet. You may be asked to enable editing.
Once the spreadsheet is open, you will see that there are six tabs:
CEF Fact Sheet: Basic information about the project and the estimate
CEF Notes: Documents the logic, assumptions, and reasoning for the selection of each factor
CEF Part A: Base construction costs
CEF Summary of Completed Work: Costs and cost estimates associated with all completed work (Parts A-H)
CEF Summary of Uncompleted Work: Costs and cost estimates associated with all uncompleted work (Parts A-H)
CEF Total Project Summary: Costs and cost estimates associated with all completed and uncompleted work (Parts A-H)
Parts B-H as well as the results from Part A are entered into the Completed and Uncompleted Work tabs. These figures will also appear in the Summary tab.
Part A of the Cost Estimating Format represents the project's base construction costs. Cost Estimating Format Parts B-H (called the cost estimatin format factors) allow project costs not included in part a to be identified and included in the overall estimate.
The structure of the Cost Estimating Format mirrors the applicant-general contractor-subcontractor relationship for eligible work:
Part A costs represent the construction efforts required to directly and specifically complete the defined eligible work
When using RSMeans cost data, Part A represents the trade or subcontractor(s) installed costs
Parts B, C, D, and E represent the general contractor or equivalent costs; they can be considered as components of "as-bid" costs and represent the soft costs of completing the work
Parts F, G, and H represent the Applicant's non-construction project costs, including preparation of design or contract documents, plan review and permit fees, change orders, and management of project design and construction
Using the CEF Spreadsheet
The CEF Spreadsheet no longer uses macros. Instead, there is a text-based validation system that documents errors and displays them to the user for correction.
The CEF Spreadsheet is an official document of the Federal Government and may not be changed, altered, or amended without review and written concurrence of FEMA Headquarters. Therefore, no changes to the format or functionality of Part A other than the addition of rows are to be made by the user.
Various factors are applied to the base cost estimate from Part A. The factors used must be appropriate to the eligible work, the conditions under which the work will be performed as documented at the time of the estimate, and the source of unit cost data.
Either check boxes or specific values are used to apply each factor or sub-factor in the spreadsheet. The default value for each factor is 0, i.e., the factors are unselected when opening a new CEF Spreadsheet.
Check boxes are used when the factor is fixed or is calculated by the spreadsheet automatically
A recommended percentage range is provided for all other factors.
The specific values entered depend on the scale and complexity of the work in question
A Public Assistance project may have Completed and Uncompleted Work elements. Because several Cost Estimating Format factors are applied differently based on the level of completion, the spreadsheet is structured to analyze completed and uncompleted work separately.
You must separate Completed Work and Uncompleted Work in Part A, as well as between the completed and uncompleted summary tabs. Mixing completed work costs with uncompleted costs can lead to inaccurate estimates.
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.
CEF Fact Sheet (1 of 2)
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.
Each type of work (not to be confused with work categories) entered on the Fact Sheet populates a column title on the Summary of Completed Work and Summary of Uncompleted Work sheets.
These types of work include:
Repairs, including retrofits/upgrades eligible under applicable code and standards
Replacement/new construction
Hazard mitigation
Other work (specify)
Note: The work types should be kept short to better fit into summary sheet columns
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.
Preparer's Notes (2 of 2)
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
Preparer's Notes Examples
Topic
Inadequate
Adequate
Stage of completion
Estimate based on engineering drawings
Estimate based on drawings identified as 80% design submittal. Drawings dated June 7, 2004 prepared by Sky Hook Engineering Associates, Wise, VA
Summary scope of work
Scope of work including repairs to HVAC and electrical systems
Scope of work including replacing flood- damaged gas furnace and controls, air distribution duct, electrical circuit breaker panels, and electrical distribution circuits. Specific quantities indicated in CEF Part A
Source of unit cost data
Unit prices taken from RSMeans
Unit prices based on data presented in RSMeans Building Construction Cost Data, 2012
CEF Notes
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.
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.
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.
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.
Part A Organization
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.
Part A of the CEF Spreadsheet can be formulated to meet the specific requirements of a particular estimate. You may add rows to the spreadsheet to accommodate additional items of work as necessary.
Work should also be sorted by major components, systems, or sources of unit cost data. For projects with multiple sites, it is helpful to organize the estimate by adding a line and titling in the item description.”
Once the estimates for Completed and Uncompleted Work have been developed, enter these estimates in the Summaries of Completed Work and Uncompleted Work, respectively.
The estimates are entered in the appropriate fields under Part A on each summary sheet. The distinction between Permanent and Non-Permanent Work must be maintained when completing the summary sheets.
Tip: These cell are not auto populating. If you edit part a after completing the CEF, they you must remember to update these fields each time you adjust part A.
Parts B-H
Cost Estimating Format Parts B-H are industry-based factors that are applied to the base construction cost from Part A in order to create cost estimates. They represent construction-related costs directly connected to the project but not previously considered or included in Part A.
It is critically important that the Estimating Specialist determine all elements of cost that make up the unit costs itemized in Part A for the sake of accuracy and to help avoid cost duplication. If a cost is included in Part A, do not duplicate it in the subsequent parts.
These factors were developed using information from the Construction Specifications Institute and RSMeans. They have been verified using data from closed-out grants for large projects nationwide.
Keep in mind that there could be different project delivery methods, project status issues, and Part A-itemized costs when considering the application of values for Parts B-H.
Parts B-E: As-Bid Costs
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.
Part B: Non-Permanent On-Site Facilitative Work
Part B includes Non-Permanent job site work that facilitates execution of the eligible work but is not typically itemized in Part A. It consists of two categories:
B.1 - Job Site Costs
B.2 - General Contractor's Field Supervision Costs
The Part B factors are applied directly to the work type subtotals from Part A. If no percentages or check boxes are selected, the B factor will be set to 0.
B.1: Job Site Costs
Part B.1 accounts for job site costs. It is broken down into four factors:
Safety and security measures
Temporary services and utilities
Quality control
Administrative submittals
To apply the B.1 factors, enter the percentages for each work type. Even though this is only one part, four selections are made, and thus four explanations are required in the CEF Notes sheet, one for each type of work.
B.1: Job Site Costs - Safety and Security Measures
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
Recommended Application: Safety and Security Measures
This factor adds 4-6% of the Part A base cost. The higher end of the range would be applicable on projects such as airports, marinas, and ports; large segmented sites with phased construction. Projects that require tracking employees on premises during workhours for safety reasons and the project sites that require a 24-hour security officer.
4% - Most projects requiring routine site security, including temporary fences, barricades, etc., and general worker safety provisions
5% - Projects with unusual safety and security concerns such as requirements to maintain public access during construction, special needs to protect construction material and equipment during non-working hours, or special worker safety issues, such as work requiring a confined-space entry program
6% - Projects with extraordinary safety or security issues such as airports, ports, correctional facilities, etc. that require full-time worker identification and interaction with facility users
B.1: Job Site Costs - Temporary Services and Utilities
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.
Recommended Application: Temporary Services and Utilities
0% - All temporary services, including power, water, sanitation, communications, etc. are fully itemized in Part A as Non-Permanent work or not required
0.5% - Some, but not all, temporary services are included in Part A, e.g., sanitation facilities, dumpsters
1% - Temporary services are that not itemized as non-permanent work in Part A
B.1: Job Site Costs - Quality Control
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.
Recommended Application: Quality Control
0% - Only appropriate for projects limited to non-structural repairs conducted using contract package without technical specifications
0.5% - Applicable to most routine projects involving Architect/Engineering contract documents
1% - Applicable to projects with Architect/Engineering specifications requiring special testing, such as pile load tests or full-scale load tests of structural elements, or projects requiring special full-time engineering inspection and reports
B.1: Job Site Costs - Submittals
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
Recommended Application: Submittals
0% -
Select for projects limited to non-structural repairs conducted using pre-existing services contracts
Select for single trade specialty contractor projects with work being done without formal design documents or if submittal requirements are minimal or non-existent
2.5% - Only appropriate for projects limited to non-structural repairs conducted using contract package without technical specifications
5% - Applicable to most routine projects involving Architect/Engineering contract documents
B.2: General Conditions
Part B.2 represents a prime contractor's on-site project management costs and covers field supervision, coordination of trades, etc. Before applying this factor, the Program Delivery Manager should verify that the prime contractor's on-site project management costs have not already been included in any unit costs or bid prices.
The value of this factor has been established at 4.25%. To apply the B.2 factors, select each work type(s) to which the factor should be applied. All assumptions or the basis for selecting or not selecting factors must be recorded in the CEF Notes sheet.
Recommended Application: General Conditions
Off - if the project is performed without the involvement of a general contractor, or if all general contractor project costs, including supervision, trade coordination, etc. are detailed in Part A
On - Any project not included in the "Off" description
Costs are typically described in the general requirements of construction specifications
May be specified in the non-permanent work section of Part A
Document all assumptions in the CEF Notes sheet.
Part C: Design and Construction Cost Contingencies
Part C is the most misunderstood factor. A contingency is a monetary provision for uncertainties about performing the work and unforeseeable costs to execute the defined scope of work. For example, a contractor may know what work must be done but not be confident that the precise execution requirements and limitations are known.
Contingencies are included in an estimate to create an appropriate level of probability for completing the project within the floor and ceiling threshold limits for that estimate. The cost allowances added to the estimate in Part C of the Cost Estimating Format represent financial protections for the final delivery of the eligible scope of work (developed in Parts A and B) defined during the engineering and design phase.
The C.1 contingency is intended to represent cost uncertainties based on the state of the project design development at the time the CEF Spreadsheet is prepared. The project should be evaluated to determine the level of detail in the available scope definition based on the level of design completion at the time the estimate is prepared.
The percentages reflect the gradual decrease of unknowns as design development progresses. As the engineering design becomes more detailed, the scope of work and the means and methods of construction can be better determined. Therefore, later estimates generally include a smaller contingency for uncertainties.
Levels of Design Development
The two levels of design development are:
Preliminary Engineering Analysis
Working Drawing
Only a single C.1 value representing the status of project design is used for each work type. For each, either select Preliminary Engineering Analysis or Working Drawings, not both.
However, two different types of work may have two different selections. For example, the repair of a facility may be nearing the final design stage while mitigation is still at the schematic design stage.
Design Phase Contingency is not appropriate for including in CEF Part A.
Preliminary Engineering Analysis
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.
The recommended values range from 7–20% to allow some differentiation between simple and more complex projects.
7–10% – Estimates developed without engineering drawings and having a scope of work consisting primarily of a single MasterFormat Division, i.e., a single trade scope of work
13–15% – Estimates developed without engineering drawings and having a scope of work consisting primarily of work with less than eight MasterFormat Divisions
20% – Estimates developed without engineering drawings and having a scope of work consisting primarily of work from more than eight MasterFormat Divisions
Working Drawing
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
Recommended Application: Working Drawing
The recommended values range from 2-10% to allow for differentiation depending on the level of completeness of working drawings.
2-5% - Estimates developed from a scope of eligible work based on preliminary engineering drawings equal to or more than 80% complete
4-6% - Estimates developed from a scope of eligible work based on preliminary engineering drawings more than 50% and less than 80% complete
7-10% - Estimates developed from a scope of eligible work based on preliminary engineering drawings equal to or less than 50% complete. Average level of detail and readily identifiable quantities
C.2 - Facility or Project Constructability
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
C.2 - Facility or Project Constructability: Complexity
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.
C.2 - Facility or Project Constructability: Applicant Requirements
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
Site Conditions/Construction Process Complexities
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
Recommended Application: Facility or Project Constructability
Simple construction projects should be assigned a C.2 factor of 0 or 1%. Projects with a combination of features that increase complexity should be assigned factors at the upper end of the appropriate range.
For example, two bridges may require the same materials and equipment. However, if unstable soil conditions exist at one of the bridges, the work at this bridge will require more types of construction equipment, additional labor hours, and greater supervision.
If possible, project complexity issues should be addressed in Part A. If all complexity issues are addressed in Part A, the C.2 factor should not be used. However, if certain project conditions cannot be identified or quantified, select a suitable factor from the range of values given in the table on the next slide.
C.2 Constructability Table
Project Category and Type
Percent Range
Simple construction projects
0-1
Cat C – Roads (rural-urban)
1-2
Cat C – Bridges and culverts (simple-complex)
1-5
Cat D – Water control facilities
1-5
Cat E – Simple open buildings
1-2
Cat E – Schools, libraries, and offices
1-5
Cat E – Hospitals, museums, and historic buildings
1-7
Cat F – Public utilities
1-5
Cat G – Park and recreation facilities
1-5
C.3 - Access, Staging, and Storage Contingencies
This factor addresses varying degrees of uncertainties of costs to deliver, receive, store, and transfer materials and equipment to the installation location at the project site. For example, work in an urban environment may require storage of materials and equipment several miles away from the actual construction site, increasing the project cost.
The C.3 factors address project site conditions that impose additional costs on the work activities listed in Part A. Items should be specifically defined in Part A, if practical.
Site Access
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
Storage
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.
Staging
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.
Recommended Application: Access, Staging, and Storage Contingencies
The recommended values for C.3 factors range from 1 to 4%.
1% - Project is located in a metropolitan area with ready access to construction labor, materials, and equipment without long trip times
2.5% - Project is located in a suburban to exurban area with access to construction labor, materials, and equipment with trip distances of 25 to 70 miles
4% - Project is located in a rural or other remote area with limited access to construction labor, materials, and equipment with trip distances exceeding 70 miles
C.4 - Economies of Scale
This factor offsets the overstatement of costs when Cost Estimating Format factors are applied to large projects with repetitive work elements that allow workers to achieve above-average productivity.
Economies of scale are either zero or a decrease in cost resulting from task or project size. For example, the crew productivity for replacing a roof can exceed average for large roofs with few penetrations or interior parapets
Typically, unit costs are based on projects of a known size range. Use of these costs for projects outside of this range can result in inaccurate estimates. This concept also applies to other factors in the Cost Estimating Format. Therefore, economies of scale are the best approach to adjusting productivity in Part A for unit prices.
C.4 Economies of Scale Table
Project Size
Under $500,000
0.0
Under $2 million
-0.5
Under $10 million
-1.0
Over $10 million
-2.0
Recommended Application: Economies of Scale
The table on the previous visual lists the construction cost changes (in percentages) that can be anticipated due to economies of scale. The multiplier is set automatically when you check the box for the type of work to which the factor should be applied.
Select C.4 if:
The scope of work contains sufficient repetitive, continuous work elements to achieve large-scale efficiency in production that would lower unit costs
Do not select C.4 if:
The scope of work lacks sufficient repetitive, continuous work elements to achieve large-scale efficiency in production that would lower unit costs
It can be determined that the unit costs in Part A and the factors in Part B reflect economies of scale
Economy of scale adjustments are particularly applicable to new construction projects, but are also applicable for other types of work for which cost is reduced due to the volume of repetitive work included in the eligible scope.
Part D: General Contractor Overhead and Profit
Part D accounts for the general contractor's construction costs that have not been included in Parts A, B, or C. There are three factors:
D.1 - Home office overhead
D.2 - Insurance payment and performance bonds
D.3 - Contractor's profit
Part D does not reflect the subcontractors' overhead and profit, which should be included in the line items listed in Part A. Part D factors should not be applied to force account work.
To apply Parts D.1 and D.2, check the box for each applicable type of work. To apply Part D.3, select the type of work to which the factor applies. The profit percentage and value are automatically calculated by the CEF Spreadsheet.
D.1 - General Contractor Office Overhead
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.)
Recommended Application: General Contractor Office Overhead
The value for D.1 is fixed at 7.7%.
Select this factor if a general contractor is involved in this project
Do not select this factor if no general contractor is involved in the project or if the cost is identified in Part A
D.2 - General Contractor Insurance, Payment, and Performance Bonds
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.
Recommended Application: General Contractor Insurance, Payment, and Performance Bonds
The total value of the factor is fixed at 3.3%.
Select this factor if a general contractor is involved in the project or if the estimate was developed using RSMeans cost data
Do not select this factor if a general contractor is not or was not involved in the project or if the cost is identified in Part A
D.3 - Contractor's Profit
The general contractor's profit will be calculated from the table on the next visual and is applied to the sum of Parts A, B, C, D.1, and D.2.
The value is set automatically when you check the box for the type of construction to which the factor should be applied. If you do not check a box, the factor will be set to 0.
D.3: Contractor's Profit Table
Project Size (Sum of Parts A, B, C, D.1, and D.2)
General Contractor’s Profit (%)
Repair
General Contractor’s Profit (%)
Retrofit
General Contractor’s Profit (%)
New Construction
Under $500,000
10
10
10
$500,000 to $750,000
9
9
9
$750,000 to $1.5 million
8
8
8
$1.5 million to $3 million
7
7
7
$3 million to $5 million
5.5
5.5
5.5
$5 million to $10 million
4.5
4.5
4.5
Over $10 million
3
3
3
Recommended Application: Contractor's Profit
The CEF Spreadsheet calculates the value of D.3 based on an interpolation between percentage points.
Select this factor if a general contractor is involved in this project
Do not select this factor if no general contractor is involved in the project or if the cost is identified in Part A
Part E: Cost Escalation
Part E is a cost escalation factor that allows forward pricing of the estimated construction costs to account for inflation during the design and construction period. The cost escalation factor is the Cost Estimating Format forward pricing function.
The escalation factor should be based on a 2-year average of either the Building Cost Index or the Construction Cost Index according to the Engineering News Record. The average monthly increase (expressed as a percentage) is applied to the number of months remaining to mid-point of project construction.
The Public Assistance Group Supervisor, or designee, is responsible for calculating this percentage at the beginning of a disaster. If the escalation factor has not yet been distributed, use the chain of command to request this number. The escalation factor is not to be determined by individuals in the field.
Development of Project Timeline
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
Preparation of Design and Bid Documents
The duration for design can be estimated using data provided by the applicant, or using other means if the Applicant does not provide.
For example, RSMeans' Facilities Cost Data recommends estimating the design time for different building types at 25-40% of the construction duration.
The lower bound should be used for typical flood and hurricane wind disasters where the damage necessitates less complex design
The upper bound would be applicable to major seismic and hurricane disasters where greater damage necessitates more complex analysis and design
Repair and replacement activities that are based on a facility's "as-built" drawing will typically not require a design duration similar to that of a new construction project.
Solicitation of Bids, Review of Bids, and Award of Contract
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.
Construction Start and Completion Dates
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
Recommended Application: Cost Escalation
This factor should only be used for escalating the cost of uncompleted work.
If Part A is based on actual costs for completed work or a firm-fixed-price contract, Part E would not be applicable.
Example Timeline Estimate Scenario
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-H: Non-Construction Project Costs
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
Part F: Plan Review and Construction Permit Costs
Part F reflects:
F.1 - Fees Charged by State and Local Agencies for Plan Reviews
F.2 - Construction Permits
The Applicant is generally responsible for obtaining all of the required reviews and producing a bid-ready set of plans and specifications that have been through agency reviews, plan checks, and general building permit processes. However, sometimes an applicant may, at his or her option, require the contractor to obtain specific permits necessary for performing the eligible scope of work.
Note that State or local government owned facilities (such as schools, medical facilities, bridges, and treatment plants) may have different approval requirements than other facilities.
Recommended Application: Plan Review and Construction Permit Costs
Part F is not applicable when State and local agencies waive fees during disaster recovery situations.
The actual cost of the fees should be entered into the spreadsheet
The cost should include all fees that are paid to others to obtain approvals required before construction can commence
Part G: Applicant Reserve for Change Orders
Part G reflects the Applicant's reserve for contract change orders caused by unexpected changes in the eligible scope of work. The reserve is based on project size and applies only to uncompleted eligible work.
This reserve is intended to be controlled by the Applicant. It is to be used to fund approved change orders to eligible work and any other incidental costs directly required to complete eligible work that may be incurred after the construction contract is awarded. It does not reflect discretionary change orders for upgrades or for any ineligible work.
Recommended Application: Applicant Reserve for Change Orders
The value is calculated automatically when you check the box for the type of work to which the factor should be applied. When a work type selection box is highlighted, the Applicant's reserve in Part G is applied to the work type subtotal of Parts A through F.
If you do not check a box, the factor will be set to 0.
Part H: Applicant Project Management and Design Costs
This factor represents the Applicant's costs for overall project development and management throughout the design and construction phases.
Note that incidental development costs should be absorbed into these categories.
Part H does not duplicate the administrative allowance provided to the applicant under the Stafford Act. That allowance is provided to meet the cost of requesting, obtaining, and administering disaster assistance. Part H covers the cost of managing the project, not grant funds.
To apply the H.1 factor, select the box under each work type to which the factor is to be applied.
A value of 1% has been established for this factor. If you do not check a box, the factor will be set to 0.
H.2 - A/E Design Contract Costs
This factor covers the cost of basic design and inspection services normally performed by an Architect/Engineering firm, as well as many additional services not necessarily required with every construction project. Part H.2 is not applicable when design, construction inspection, or other basic services are not required.
The basic services consist of:
Preliminary engineering analysis
Preliminary design
Final design
Includes preparation of contract requirements, technical specifications, and construction drawings/sketches
Construction inspection
A construction inspection may be procured as a stand-alone service for projects that do not require design or formal bid documents.
The engineering service curves found in the PA Guide, FEMA 322, June 2007, are used to estimate the cost of basic engineering services as a percentage of the estimated construction cost. One of two curves, Curve A or Curve B, may be used to determine the appropriate percentage.
Curve A - Above Average Complexity
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 - Average Complexity
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
Basic Construction Inspection Services
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
Special Services
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.
You must select the appropriate project complexity curve and check the box for that curve on the spreadsheet.
The spreadsheet automatically calculates the percentage to be applied. If you do not check a box, the factor is set to 0.
H.3 - Project Management - Construction Phase
Project management costs during the construction phase are estimated using a table and include:
Quality assurance and management of additional testing during construction
Advertising and awarding the construction contract
Decisions on construction problems and requests for information
Management of change orders for on-site construction conditions and design errors
Omissions and unforeseen problems, such as differing site conditions and hidden damage
Recommended Application: Project Management - Construction Phase
To apply the H.3 factor, select the box under each work type to which the factor is to be applied. The values will be automatically calculated. If you do not check a box, the factor will be set to 0.
Total Project Summary
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.
