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Section 5 TOTAL PROJECT COST
Transcript of Section 5 TOTAL PROJECT COST
TOTAL PROJECT COST
TOTAL PROJECT COST
LEGAL, LAND, ADMINISTRATION, STAFFING AND FINANCIAL COSTS
These costs which include audits, the cost of issuing bonds, land costs, and interest for borrowed money during construction, are part of the probable total project cost and can be estimated in cooperation with the client because they are usually outside the knowledge and control of the Civil Engineer.
Estimate of probable total project cost should be periodically revised by the engineers as the design moves forward and more information becomes known.
The client is normally responsible for providing estimates of those costs which may lie outside the Civil Engineers knowledge or expertise, such as those in the legal, land, administrative, and financial areas.
The probable total capital cost, often used to establish budgets for a typical project, is made up of:
Professional engineering costs.
Legal and land costs.
Owners cost, including project administration, staffing, financing and overhead.
Contingency allowance for unknowns.
A civil engineer is often engaged to make a study and to render a planning report on the contemplated project including alternative solutions, layouts, and locations along with initial estimates of the probable project cost. This may involve alternative or phase implementation schemes which add flexibility to the project.
Is the estimated total cost of constructing the facility to be covered by the proposed detailed design or construction supervision services, excluding the fees and other costs of such services, the cost of land and right of way, and legal administrative expenses of the agency.
The estimated construction cost must be approved by the client before the invitation to submit technical proposal is issued.
To provide for intangible costs, contingencies should routinely be added to the basic cost estimate. It is common practice to add 20% or more to the estimated probable total project cost at the completion of the study end report phase, reducing this to perhaps 10% at the completion of the final design and perhaps to 5% when the construction bids become known. Larger or more complex may require higher contingencies.
PROFESSIONAL ENGINEERING COST