Quantcast Section 7. Cost Estimates - aeg_c0090

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SECTION 7. COST ESTIMATES
7.1 GENERAL
A detailed cost estimate is required with each submittal. All estimates shall be computer
or manually prepared using a cost estimating method as appr oved by the PM. Scan all
computer disks submitted for viruses using a commercial anti -virus scanning program. The
estimate detail for each submittal shall be consistent with the level of design required for that
submittal. Accurate quantity take -off, in clusion of all appropriate cost systems, and accurate
unit prices for the project's geographic location are fundamental to the development of a good
cost estimate.
The A&E's objective is to develop a final estimate that will be within 10% (+/ -) of the
lowest responsible bid. This requires responsible pricing, experienced judgment and an
accurate assessment of the market conditions. When this objective is not met, it is necessary
for bid evaluation that the A&E submit a comparison of cost between the lo w bid and the final
A&E estimate. Reasons for major differences, sorted by specification division, must be stated
with a recommendation to award or reject. This bid analysis must be received within one
week after notification that it is required and is t o be provided at no additional cost to the
Government.
Properly prepared cost estimates provide a check of plans and specifications for
construction, coordination conflicts, discrepancies, omissions and cost control. Cost estimates
are used by the Government to establish budgets, verification of contract bid price, and to
develop historical data for future budget estimates.
Final Government estimates are to be marked by the A&E with "For Official Use Only."
Access to or disclosure of information withi n the estimate is limited to those personnel whose
official duties require knowledge of the estimate.
7.2 PROJECT DESIGN ESTIMATES
The estimate at each submittal is expected to reflect the A&E's best information and
experience. Expected bid opening dat e shall be established by the PM. Pricing must reflect
all requirements of the contract plans and specifications. The individual preparing the
estimate should verify that all specification requirements are priced with particular attention to
Division One and the wage rates. Size, material quality, and type of item shall be part of the
description to enable unit cost verification without constant reference to drawings and
specifications.
7.2.1 35% DESIGN
Preliminary estimate based on materials take -off for this submittal shall reflect cost based
on reasonably accurate take-off of materials/systems consistent with the level of design. For
those elements of the project where the status of design does not permit a reasonably accurate
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