Quantcast Chapter 9.Cost Estimates

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CHAPTER 9. COST ESTIMATES
9.1 GENERAL
This section establishes the requirements and provides the instructions for preparation of
cost estimates. Project estimates based on plans and specifications shall be provided
with each submission as required by the Statement of Architect-Engineer Services. For
MILCON/BRAC projects, estimates must form the basis of the DD Form 1391 which is a
part of the Engineering Documentation. The A-E objective is to develop a final cost
estimate that will be within 10% of the lowest responsible bid considering all factors
affecting costs including bidding climate. In the event that bids received on projects require
clarification and analysis before an award can be made, the A-E shall provide that analysis
at no additional cost to the government. Additionally, the A-E shall provide an estimate for
each Amendment and each Change Order Request (COR). The government Cost
Engineers will provide the A-E with all cost guidance information necessary to develop a
suitable project cost estimate. The government final cost estimates are to be marked
by the A-E with "For Official Use Only". Access to or disclosure of information
within the estimate is limited to those personnel whose official duties require
knowledge of the estimate. The A-E shall consider all cost estimates to be
confidential documents.
9.1.1 Purpose of Estimate
Properly prepared project cost estimates provide a check of plans and specifications for
constructibility, coordination conflicts, discrepancies, omissions and cost control. They
provide checks during design development to assure the project can be built with available
funds. Estimates are also used by the government to establish and assure that sufficient
money is requested to fund the project, to develop historical data for future estimating and
to verify contract bid prices.
9.1.2 Cost Engineering Estimate Format Guide
The Cost Engineering Format Guide is a cost estimating document developed to make all
AE firms aware of the formats for estimates and other required documents that are
considered acceptable for the development of 1391 plus, parametric cost estimate (PCE),
15%, 45%, 100%, and final construction cost estimates that are utilized throughout the
Naval Facilities Engineering Command Engineering Field Divisions and Activities
(EFDs/EFAs). Southwest Division's use of the estimates are for guidance only. If changes
are warranted due to the nature of a project, contact the Senior Cost Engineer, Code
4CN.JB The government Senior Cost Engineer will provide the A-E with all cost
guidance information necessary to develop a suitable project cost estimate at a
scoping meeting prior to the start of design.
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