APPENDIX D, COST ESTIMATES

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ESTIMATING STANDARDS

The Design and Construction Management department employs the Association for the Advancement of Cost Engineering (AACE) estimating standards. This reference describes five (5) levels of estimating accuracies, each level contains a different level of project detail and corresponding level of contingency. The levels range from “Order of Magnitude,” where little is known about the project, to an “Engineer Estimate” that is based upon an actual design for the project.  Following the Engineers Estimate, the highest level (i.e., most detailed) of estimate (with the lowest contingency) is reached when the project bids out and a fixed fee contract is in hand.  Depending upon the stage of the project, the contingency can range from +50% to as little       as +10% and establishes the reasonable risk on the project.

AACE Classification of Cost Estimate Types

BURDENS

Under LBNL/DOE guidelines the type of funding determines the burdens that will be applied to the project budget, which will affect its overall cost. If funding is unknown at the time of the estimate, then a clear, written statement must be included in the estimate stating assumptions made, burdens applied, and that changes in funding sources may change the estimated cost. If there are multiple funding options for the project the estimate should, when not cost prohibitive, reflect the differences in project costs under the different burdens. If multiple funding sources are required (capital improvements, furniture and moves, IT/telecom, and programmatic costs), these must be clarified and reflected in the estimate.

COMPLETED ESTIMATES

Cost estimates are provided to the client in writing and signed by the Facilities Design and Construction Management Project Manager. Cost estimates will clearly indicate the degree of uncertainty in the estimate (e.g., Class 1, 2, 3, 4, or 5) and list the important assumptions and/or exclusions. In cases where the project client is unable to provide a well-defined project scope, it may be appropriate to provide the client with cost and schedule duration ranges.

REFINING ESTIMATES

If a client requests a higher level of certainty cost estimate than what was originally approved in the original scoping and estimating Work Order, the client may be asked to: Furnish more details in the description of the project; Provide additional funding to support estimating and study work; and/or Agree to a reasonable due date for completing the estimate. 

REVIEW ESTIMATE AT 50% AND 100% DESIGN

The Project Manager may arrange for a third-party cost estimate for larger, more complex projects at 50% and 100% design. The Project Manager or an alternative estimating resource, in-house or external to the Lab, may perform this function.

ESTIMATE PREPARATION INSTRUCTIONS

COST WORKS ESTIMATE - Example

IN-HOUSE DETAILS – Example

ESTIMATE SUMMARY WORKSHEET – Example

BURDEN CALCULATION WORKSHEET – Example

PROJECT BUDGET ESTIMATE COVER SHEET