EP 1110-1-19
30 Jun 01
6-7. Project Cost Appendix. To support the summary of total project costs in the RA report
(Paragraph 4-9 of this guide), cost information should be provided in an appendix to the RA
report. This should include a cost breakdown and, if treatment was part of the remedy,
calculation of technology-specific unit cost(s).
a.
Cost Breakdown
(1)
The cost breakdown should be in the form of one- to two-page table(s) that
presents all RA capital and operating costs, post-RA O&M costs, and RA or post-RA O&M
periodic costs, actual or projected. The table(s)
should follow an activity-based format that
Cost Growth
identifies all cost elements and sub-elements
As a project moves from the planning
using the RA WBS or O&M WBS, as
stage to the implementation stage, more and
applicable for each of the types of costs
more becomes known about the actual costs of
presented (e.g., RA capital costs, RA operating
the project. During the course of RA projects,
costs, post-RA O&M costs).
the expected accuracy of cost estimates ranges
from about 30% to +50% for the ROD to
(2)
Exhibit 6-5 provides an example
about 10% to +15% at the time of RA bid and
award to 0% at the completion of work.
of how a cost breakdown may be reported in
Appendix B of the RA report for a remedial
Contingency is typically added to
action that uses land treatment system to
estimates at various stages to account for cost
growth potential. Scope (design) contingency
remediate contaminated soil. In this example,
covers unknowns associated with an
no periodic costs apply.
incomplete design.
Bid (construction)
contingency accounts for unforeseen costs that
b.
Technology-Specific Unit Cost
become known as construction proceeds. This
amount represents a reserve for quantity
(1)
The Guide to Documenting and
overruns, modifications, change orders, claims,
etc.
Managing Cost and Performance Information
for Remediation Projects (EPA 542-B-98-007)
In addition to comparison to the ROD
presents a recommended format for reporting
estimate, reporting of actual costs in the RA
report allows for comparison to the bid/award
technology-specific costs. One of the purposes
estimate and assess the amount and possible
of this format is to enable the calculation of a
causes of cost growth during implementation
unit cost using only those items directly related
of the RA.
to the performance of a technology. This unit
cost could then be used for comparison with
unit costs of other technologies. The unit cost calculation excludes all project costs associated
with remediation that are not directly attributable to a specific technology. In addition, the
technology-specific unit cost calculation should exclude all costs for project management,
remedial design, construction management, and technical support that are typically added at the
bottom of an estimate or cost breakdown.
(2)
For the RA report, if treatment using one or more technologies is part of the
remedy, technology-specific unit costs should be calculated and reported in the project cost
appendix. The total costs and quantities used for the calculation should be clearly stated.
(3)
In the example shown in Exhibit 6-5, the subtotal RA capital costs and subtotal
RA operating costs would all be considered specific to land treatment, but not projected
6-12
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