1 September 1997
8-3. Waste Allowance
MATERIALS AND SUPPLIES
Waste and loss considerations may be included in
results in a quantity takeoff of work placement which
is not altered to reflect material losses. However, the
a. Materials and supplies are defined below and,
alternative methodology of increasing the measured
for the purpose of estimating, both can be considered
quantity by waste and loss quantity is acceptable if the
materials unless they need to be separated because of
excess quantity will not be used for any other purpose.
different tax rates.
The methodology used by the cost engineer should
consider the impact of charging labor on the excess
b. Materials. Those items which are physically
quantity. In either case, a note statement is required
incorporated into and become part of the permanent
in the estimate explaining the methodology used.
8-4. Forward Pricing
c. Supplies. Those items which are used in
construction but do not become physically
incorporated into the project such as concrete forms.
Sometimes quotes are requested in advance of the
expected purchase date. However, suppliers are
reluctant to guarantee future prices and often will
8-2. Sources of Pricing Data
only quote current prices. It may, therefore, be
necessary to adjust current prices to reflect the cost
a. General. Prices for materials and supplies
expected at the actual purchase date. This cost
may be obtained from pricing services, the UPB,
adjustment, if required, should not be included as a
catalogs, quotations, and historical data records.
contingency, but should be clearly and separately
Each office should review the source of the pricing
defined in each estimate. Adjust current pricing to
contained in these publications and assess the
future pricing using program specific escalation
reasonableness prior to use. Standard unit prices
from these sources are considered satisfactory only
and should be maintained as cost estimate backup
after an applicability determination has been made.
Care should be taken when using this type of cost
data to make proper allowances for quantity
discounts, inflation, and other factors affecting
a. The cost engineer should check the basis for
b. Quotes from manufacturers and suppliers.
the price quotes to determine if they include delivery.
Quotes should be obtained for all significant materials
If they do not include delivery, freight costs to the
and installed equipment and for specialized or not
project site must be determined and included. The
readily available items. Quotations may be received
supplier can usually furnish an approximate delivery
either in writing or telephonically. It is preferable to
cost. For delivery charge, Free on Board (FOB) refers
obtain quotes for each project to ensure that the cost
to the point to which the seller will deliver goods
is current and that the item meets specifications. If
without additional charge to the buyer.
possible, more than one quote should be obtained to
be reasonably sure the prices are competitive. The
b. If the materials or supplies are FOB factory or
cost engineer should attempt to determine and ensure
warehouse, freight costs to the construction site
that contractor discounts are considered in the
should be added to the cost of the materials or
estimate. Quotes should be kept proprietary to
preserve the confidentiality entrusted. A standard
telephone quotation data sheet similar to that shown
c. If the cost of materials or supplies includes
in appendix B should be utilized for recording.
partial delivery, FOB to the nearest rail station, the