1 July 1998
f. The cost engineer should participate in the development of project/construction
schedule to ensure that the schedule reflects compatibility with the cost estimate in the
application of manpower, equipment, material resources, and the project work.
g. It is the responsibility of the Design Criteria Professionals to include project design
criteria in the RFP technical specifications to ensure that the construction cost including
allowances and design costs are within the funding cost limitation. Throughout the entire
Design-Build process, close coordination between the Design Criteria Professional, the cost
engineers, and the customer should be exercised to achieve cost control. All cost charges to
the current working estimate must be explained and be properly documented in the estimate.
h. If at any time, prior to contract award, the estimated costs (including design costs)
are likely to exceed the programmed amount or budget, inform the project manager. When
required, prepare and submit a ENG Form 3086. The form should indicate causes for the cost
variation (e.g., revisions to scope, site conditions, Customer requirements). The prompt
reporting of cost changes is imperative, as this will have a direct impact on the successful
execution of the project.
i. The bid schedule required by the solicitation documents should be completed as part
of the Government estimate and must include a separate line identifying the design costs to be
incurred by the D-B contractor. The format of the bid schedule should be anticipated in the
planning and design estimates. As part of the Design Criteria Professional Team, the cost
engineer should be involved in development of the bid schedule.
j. Provide a requirement in the RFP that the offeror's construction cost estimate must be
broken down to the systems level for buildings. Specify the estimate format and minimum
level of cost data/breakdown to be provided by the Design-Build offeror and the time of
submission (for example, three days after receipt of proposal). The lowest level of cost
data/breakdown will allow a realistic review of cost items that may be eliminated during
negotiations to bring the project within construction cost limitations. Cost engineering
personnel will assist during negotiations, as required.
k. The construction cost estimate should be prepared using the HQUSACE approved
cost estimating software programs and data bases.
l. The use of additive alternates in Design-Build RFP's is discouraged. If it is suspected
that the funds available for the project will not be sufficient to obtain all the scope in the initial
RFP, options or bid items should be used to determine what can be obtained within the funds
m. Since electronic security systems are typically funded with procurement
appropriations (OPA-3), cost estimates must separately identify electronic security system
equipment and installation costs to facilitate proper resourcing.