FTA Oversight Procedures - Federal Transit Administration - U.S. ...

The unit costs were also checked with [commercial cost index] Heavy Construction Cost Data. The unit
costs in this reference source were adjusted to reflect [local area] pricing by using the respective city
indices. These indices represent relative construction factors (or multipliers) for material and installation
costs, as well as the weighted average for total-in-place costs for each CSI Master Format division. The
[commercial cost index] Weighted Average Total (Material plus Labor) City Cost Indices for [local
reference] were used to adjust [commercial cost index] unit costs to these [local reference] cities.
It should be noted that in the PMOC cost review, the sponsor unit costs were initially assumed to be
unburdened, and as such compared favorably with [commercial cost index] values and industry norms. In
confirming such inferences with the sponsor unit costs are known to be unburdened with General
Conditions cost, they are low when compared with the previously mentioned sources and pose significant
cost risk.
[Grantee] does not allow a separate line item for General Conditions and typically incorporates the costs
for General Conditions in their project estimate unit costs, with some items addressed as specific line
items or cost percentage add-ons. [Grantee] addresses Mobilization, which can be included in General
Conditions, as a separate line item.
Specific cost items reviewed are identified in Appendix [XX].
Cost estimate quantities used in the design were developed with [software name], and were based on the
application of guidance from the above mentioned references as well as other sources such as sponsor’s
Surveys and Mapping, supplemental field surveys conducted by [consultant name], and inspection reports
provided by [consultant name] for [named bridges]. Quantities were also based on coordination and
advice from sponsor, and on engineering judgment.
Cost estimate totals for minor items and Lump Sum/Miscellaneous Items were generated mainly by either
cost CER or lump sum. Quantities for these items were also based on coordination and advice from
sponsor, and on engineering judgment.
Potential Cost Impacts
General Conditions
General Conditions are generally defined to include such items as traffic control and rerouting,
specialized equipment, temporary utility connections and service. Grantee does not allow a separate line
item for General Conditions and typically incorporates the costs for General Conditions in their project
estimate unit costs, with some items addressed as specific line items or cost percentage add-ons. Grantee
addresses Mobilization, which can be included in General Conditions, as a separate item.
As discussed above, the unit costs are now known to be burdened with General Conditions cost, as such
they are low when compared with the previously mentioned sources and pose significant cost risk. It is
recommended that General Conditions be applied at a rate of 20% for guideway and track items (SCC-10)
and at a rate of 10% for sitework items (SCC 40). Cost estimates for stations (SCC-20), support facilities
(SCC-30), and systems (SCC-50) should be considered to include the cost of General Conditions within
the cost allowances included. Mobilization should also be backed-out of the SCC-40 category, as it
currently is rolled up in the cost estimate, and be applied at a rate of 7.5% to all affected line items
throughout the SCC categories.
OP 33 Capital Cost Estimate Review
Revision 0, June 2008
Page D-5