3.5        Construction Cost Estimating

3.5.1            Development of Construction Cost Estimates

Since the MDOT MAA utilizes various funding sources for construction projects, the following procedure outlines the requirements for development of construction cost estimates, and supplemental requirements for preparation of quantity plan sheets, tabulation of bids and bid forms.

A.     “Design Contingencies” should be included in all construction cost estimates. The percentages should be determined by the design consultant for the individual project components and should be higher for early budget estimates and decreased as the design progresses. The final Engineer’s Estimate should not have any design contingency.

B.     In addition to the design contingencies discussed above, all estimates should have a “Miscellaneous Work Allowance” added after the subtotal to account for change orders. The amount of Miscellaneous Work Allowance has generally ranged between five (5) and ten (10) percent but should be coordinated with the MDOT MAA Project Manager.

C.      All estimates shall include line items as described in the Security Requirements During Construction specification relating to the project (i.e., airside, terminal, MTN, etc.). Refer to the applicable Security Requirements During Construction specification in PEGS V2, Appendix 2D Standard Specifications for the basis of payment and method of measurement of specific line items when determining costs for the estimate.

D.     Design contingencies and construction contingencies should be listed as separate line items.

E.      Once a project component has been identified in the budget or subsequent estimates, it must be carried forward as a line item in all future estimates. When work is added to the project scope, an additional line item should be included in the estimate to cover that work. Back-up for each line item should be attached.

F.      For projects with Federal (AIP) or PFC funding, eligible and non-eligible costs should be separated. For estimates with these costs, a narrative should be attached, briefly outlining which costs are non-eligible and why.

G.     For unit price contracts, the quantities for the various line items with different funding sources should be calculated and shown separately in the Quantity plan sheets and Tabulation of Bids.

H.     For lump sum contracts, language should be added in the bid forms requiring the Contractor to furnish MDOT MAA with a breakdown of the total bid into the project components as necessary to allow the determination of eligible and non-eligible costs under different funding sources.

I.       All cost estimates shall be program costs which shall include both construction costs and soft (design and construction management) costs.

The MDOT MAA standard format for cost estimates should be used for preparing all estimates. It is found in PEGS V2, Appendix 2B Standard Forms. Percentages shown in the cost estimate form for contingencies, overhead and profit, etc. are samples. It is the consultant’s responsibility to select the correct percentage and apply the correct formulas within the spreadsheet.

3.5.2 Bid Tabulation Format Cost Estimates

When final contract documents or addendum documents are submitted for bidding, the A/E Consultant shall be responsible for delivering a final complete construction cost estimate prepared as described below to the MDOT MAA Project Manager, as well as, the Office of Procurement. For the on-call construction contracts, the A/E Consultant shall be responsible for delivering a final complete construction cost estimate prepared as described below to the MDOT MAA Project Manager, as well as, the Office of Engineering and Construction, Construction Section.

The A/E Consultants are required to submit a completed set of Bid Tabulation Format Cost Estimate wherein the A/E Consultant has filled in the same Unit Prices and Total Prices on the Bid Forms as those presented in the A/E Consultant’s cost estimate in the same manner as a prospective bidder would. The A/E Consultant’s Bid Tabulation Format Cost Estimate shall have identical bid Item Numbers, Description, Units and Approximate Quantities. For lump sum bid items, the A/E Consultant cost estimate shall also include separate lump sum breakdowns for each lump sum item used. Lump sum breakdowns can be prepared using any industry accepted cost estimating program, and the breakdown information shall be included as an Appendix to the cost estimate.

The A/E Consultant shall be responsible for the review of each line item to ensure that the Item Numbers, Description, Units and Approximate Quantities of the Bid Tabulation Format Cost Estimate and the Bid Tabulation Forms correspond to each specification section’s “Method of Measurement” and “Basis of Payment” descriptions.

3.5.3 Bid Tabulation Format Cost Estimate Certification

The A/E Consultant shall also provide a cover letter on their company’s letterhead for the completed set of Bid Tabulation Format Cost Estimate containing the following statement:

“I hereby certify that I have personally checked the bid tabulation forms, cost estimate and specifications for consistency and completeness and certify that there are no missing or incomplete pay items, units, or other discrepancies”.

Project Manager:             Insert Signature of Project Manager

                                             Project Manager’s Typed Name “

3.5.4            Liquidated Damages

The Consultant shall provide to the MDOT MAA written documentation outlining the basis for liquidated damages. The documentation shall be provided to the MDOT MAA Project Manager at 100% submittal.