UFC 1 -300-08
30 JUNE 2004
CLOSEOUT NEW CONSTRUCTION DOCUMENTATION . The construction
agent project manager is responsible for the financial closeout of all the projects he/she
manages. Closeout occurs after design and construction contracts are closed. Closeout
of the project, financial, and cost accounts by the construction agent project manager
allows return of excess funds from USACE/NAVFAC (or other construction agents) to the
funding agencies. The construction agent project manager also ensures that project
capitalization costs, accounted for by USACE/NAVFAC (or other construction agents) in
their accounting system, are properly identified by individual facility in order that they may
be properly recorded in the installation real property database.
In summary, the construction agent project manager should ensure that:
The Project Cost Estimate (PCE) is current, that the PCE corresponds with costs in
the financial accounting system of the specific construction agent, such as the
Corps of Engineers Financial Management System (CEFMS) for USACE or
STARS FL for NAVFAC, and that any construction expenses that need to be
excluded/expensed are deducted from the CIP or work-in-progress account.
For Military Construction projects managed by USACE/NAVFAC, all P&D, S&A
and construction costs are included in the CIP account, with the exception of P&D
costs incurred prior to canceling construction (breakage) and dredging.
Any costs for repairs on construction projects, which the installation project manager
determines should not be capitalized, are not added to the project DD Form 1354,
but are expensed. Therefore, only the PCE costs documented in the CIP or work-in-
progress account may be shown on the interim DD Form 1354.
Total project cost equals the sum of P&D, S&A, construction costs, EIP, minus
design breakage and expensed items. Show the total project cost and its four
components separately in the Project Remarks (block 28). Site preparation costs,
including footprint demolition costs, are included in the construction costs and
capitalized as part of the total facility costs. Total project cost must equal the sum of
all costs in column 19 on the final DD Form 1354, or the discrepancy must be
explained in Project Remarks (block 28).
The PCE costs documented in the CIP or work-in-progress account are only
accrued costs. The accrued costs must be equal to or less than the project funds
received. Funds may be received on a Funding Authorization Document (FAD) or
Military Interdepartmental Purchase Request (MIPR), or both. For example, the
construction agent project manager may know that some of the funds received will
be returned and, therefore, the project cost estimate would be less than the funds
received at that time. However, when additional funds are required, and not yet
received, the additional required value would not be included in the project cost
estimate. The final DD Form 1354, at project closeout, would include only those
funds actually received, obligated and expended against that specific project.