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 b. As the basis for the funds reservation request. Funds must be reserved before the
construction contract can be advertised and Contractor bids received.
c. To compare project cost with authorized funding at all stages of the design.
d. To check cost limitations (e.g., repair, maintenance, construction) placed upon the
different classifications of work.
e. To determine the need for, and extent of, additive bid items.
f. As a standard of comparison with the Schedule of Prices submitted by the Contractor,
following award of the construction contract.
g. As input to a cost estimating database that is used for estimating construction costs
of future similar projects.
9.3 PREPARATION OF COST ESTIMATES
9.3.1 Cost Estimator Qualifications. Cost estimates shall be prepared by qualified
professional cost estimators or registered professional architects and engineers with a minimum
of five (5) years of cost estimating experience.
9.3.2 Format. Use NAVFAC Form 11013/7. Completely and efficiently utilize all space on
the form; whenever possible, do not leave blank spaces. Computer prepared cost estimates are
acceptable; clearly and neatly handwritten cost estimates are also acceptable.
9.3.2.1 Item Description. Describe material and labor requirements in sufficient detail to
enable a third party reviewer to determine the full scope of work required. The type of
material, size and material quality shall be part of the description.
9.3.2.2 Material Quantities. The identified material quantities shall be complete and accurately
reflect the quantities required by the plans and specifications. An allowance shall be included
for trimming, overlap, "end of roll" excess, breakage, etc., which are generally industry
accepted norms.
Use standardized units of measure recognized by the various trade groups to be involved in
construction of the project.
9.3.2.3 Unit Costs. Unit costs for materials and equipment shall include delivery, all applicable
taxes, trade and payment discounts and discounts resulting from competition among suppliers.
Unit costs for labor shall include the basic labor rate plus all payroll taxes and fringe benefits.
Unit costs for specialty subcontractors (e.g., for interior finishing, fire protection, public address
systems, etc.) shall include subcontractor overhead and profit.
9.3.2.4 Overhead and Profit. The A-E shall include Contractor Overhead and Profit as a
separate line item on the cost estimate summary sheet.
9-2
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