EP 1110-1-19
30 Jun 01
CHAPTER 6
DOCUMENTING PROJECT COSTS
6-1.
General.
a.
This chapter provides more detailed information on documenting project costs in
the RA report, expanding on concepts presented in Chapter 4 (Paragraph 4-9). For
environmental restoration projects, project costs should be reported using primarily the RA (for
RA capital and operating costs) and O&M (for post-RA costs) work breakdown structures, which
are intended to coincide with the RA and O&M
phases of the remedial response process. The
Actual vs. Estimated Costs
use of the RA WBS will help provide RA cost
data for input into HCAS. Cost reporting
Often, especially at sites involving
templates for HCAS data entry are provided in
groundwater remediation, the actual costs
Appendix D of this guide. The data from these
associated with the RA will not be available at the
time the RA report is being written. In addition,
templates will be input by the USACE HTRW
costs may not be available at PRP sites, or
CX into the HCAS software upon receiving the
because of claims and change orders, which may
RA report. Cost data should be documented in
not be settled until many years after RA
Appendix B of the RA report.
completion. In these cases, the best available
estimated costs should be used.
b.
Each project typically uses a
project-specific WBS to roll up costs. For the
purposes of upward reporting of costs in a standardized manner in the RA report, these costs
must be mapped from the project-specific WBS to the standard HTRW RA WBS. This will
permit a standardized roll up of costs for nationwide historical cost input to the HCAS database.
6-2. Definitions. The types of costs to document in the RA report include capital, O&M (RA
operating and post-RA O&M), and periodic costs. These are defined below. Figure 6-1
illustrates the relationship of these costs to the RA and O&M phases.
a.
Capital costs are those expenditures that are required to construct the RA. They
are exclusive of the costs required to operate or maintain the action throughout its lifetime.
Capital costs consist primarily of expenditures initially incurred to build or install the remedial
action (e.g., construction of a groundwater treatment system and related site work). Capital costs
include all labor, equipment, and material costs, including contractor markups such as overhead
and profit, associated with construction activities. The RA WBS should be primarily used to
report capital costs. Capital costs can also include expenditures for professional/technical
services that are necessary to support construction of the RA.
b.
O&M costs are those post-construction costs necessary to ensure or verify the
continued effectiveness of a remedial action. O&M costs documented in the RA report can
include RA operating costs and post-RA O&M costs. The RA WBS should be primarily used to
report RA operating costs and the O&M WBS should be primarily used to estimate post-RA
O&M costs. O&M costs include all labor, equipment, and material costs, including contractor
markups such as overhead and profit, associated with O&M activities. O&M costs can also
include expenditures for professional/technical services necessary to support O&M activities.
6-1
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