TOTAL PROJECT COST

Reporter:
Nelda Pendihito Simudlan

Total Project Cost

It is a major concern of the client

throughout the planning, design, and
construction phases of a project.

Total
Project
1. Professional Engineering
The probable total capital cost, often used
Cost
Cost
to established budgets for
a
typical
project,
2. Construction Cost
is made up of.

3. Legal and land Cost

4. Owners Cost (Including
Project Administration,
Staffing, Financing, and
other Overhead. )
5. Contingency Allowance fo
unknowns

Often used to establish budgets for a typical

project, is made up of:

Professional Engineering Cost

A Civil Engineer is often engaged to make a study and to
render a planning report on the contemplated project,
including alternative solutions, layouts, and locations
along with initial estimates of the probable project
cost.

These may
involve alternative
or phased
implementation schemes which add flexibility
to the project.
The study and reports phase may include the
cost for field or traffic surveys, planning
analyses,
geotechnical
explorations
and
analyses, in addition to the direct engineering
costs.

Construction Cost
It is the estimated total cost of constructing the
facility to be covered by the proposed detailed
design
or
construction
supervision
services,
excluding the fees and other costs of such services,
the cost of land and right-of-way, and legal
administrative expenses of the agency.
The estimated construction cost must be approved
by the client before the invitation to submit
technical proposal is issued.

LEGAL, LAND, ADMINISTRATION, STAFFING

AND FINANCIAL COSTS
These costs, which include audits, the
cost of issuing bonds, land costs, and
interest for borrowed during
construction, are part of the probable
total project cost can best be estimated
in cooperation with the client because
they are usually outside the knowledge and
control of the Civil Engineer.

Contingency Allowance
To provide for intangible costs,
contingencies should routinely be added
to the basic cost estimate. It is
common practice to add 20% or more to
the estimated probable total project
cost at the completion of the study and
report phase, reducing this to perhaps
10% at the completion of final design
and perhaps to 5% when the construction
bids become known. Larger or more
complex projects may require higher
contingencies.

The END