Module 6

• 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.
• The study and report phases include the cost of field or traffic surveys, planning analyses, geotechnical explorations, and analyses, in addition to the direct engineering costs.
• The costs of coordination, evaluation, implementation, and compliance have increased correspondingly. The extent of these concerns may not be identified during the study and report phases, and sometimes not even after final plans and specifications have been prepared. As a result, the estimated probable total cost of the project based on the study and report phases must be understood to be preliminary in nature.
• During the final design and construction phases, additional surveying and geotechnical engineering services may be needed. Also, special or additional engineering services not originally identified may be required by the client or recommended by the civil engineer.
• The study and report phase of the project usually includes a preliminary estimate of the construction cost for the contemplated project and for alternative project configurations.
• Construction cost 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 a technical proposal is issued.
• LEGAL, LAND, ADMINISTRATION, STAFFING AND FINANCIAL COSTS These costs, which include audits, the cost of issuing bonds, land costs, and interest on borrowed money during construction, are part of the probable total project cost and can be best estimated in cooperation with the client because they are usually outside the knowledge and control of the civil engineer.
• CONTINGENCY ALLOWANCE

  As the project moves forward from the study and report phase through the final design phase and finally to the construction award, more becomes known about project details and costs, until, at the completion of the project, the final project cost becomes a known quantity.
• To account 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 projects may require higher contingencies.