TM 5-800-4
8. Project Costs.
e. Technological Updating Adjustment. Techno-
logical advances in equipment and operational techniques
Project cost is defined as the sum total of construction
used in some specialized facilities are being developed
costs including facility costs, supporting facilities costs,
rapidly; this often causes obsolescence to occur before
any other allowable costs, cost allowances for contingen-
design and construction are completed. Also, revisions in
cies, and other allowances for supervision and administra-
criteria to provide life cycle cost benefits may increase
tion.
initial funding requirements before feedback data can
a. Construction Contingencies. Each project cost es-
reflect the added cost. An additional allowance for
timate should include a separate item as a reserve for
technological updating is appropriate for these conditions.
construction contingencies to cover construction require-
Appendix D is a listing of technological updating factors
ments which cannot be foreseen before the contract is
by category codes of facilities.
awarded. The contingency reserve is for some adverse or
f. Design Contingency. The facility cost estimate may
unexpected condition not susceptible to predetermination
include a design contingency allowance based on design
from the data at hand during engineering and design; it
data reliability. The design contingency allowance (DC)
must be included in the project cost estimate. This reserve
is to cover component items that cannot be analyzed or
is usually for latent difficulties, such as unforeseeable
evaluated at the time the facility cost estimate is prepared;
relocations; unforeseeable foundation conditions; en-
however, such items are susceptible to cost evaluation as
countering utility lines in unforeseeable locations; or other
engineering and design progresses. The DC depends on
unforeseen problems beyond interpretation at the time of
the reliability and refinement of the data on which the
contract award. The contingency reserve is not an al-
estimate is based; it therefore diminishes as design
lowance for omissions of work items which are known to
progresses from the predesign stage through the design
be required, but for which quality or quantity has not yet
completion stage. Although it lessens at each successive
been determined by specific design. Reasonable allowan-
design stage, the initial magnitude of the DC at the
ces for all foreseeable requirements should be made in the
predesign stage depends on the technical complexity of
estimate or shown as an allowance for cost adjustment.
the project for which the facility cost estimate is being
Application for construction contingency reserves will be
prepared. The level of technical complexity must first be
in accordance with AR 415-15 and/or Army latest
established as a prerequisite for determining the mag-
guidance. The construction contingency reserve for Army
nitude of the DC. Technical complexity levels and design
military construction programs and Army family housing
contingency factors are listed in table 2.
new or replacement construction will normally be 5 per-
cent of the total estimated contract cost. However, 10
7. Supporting Facilities Costs.
percent construction contingency will normally be
Appendix A, Parts II and III, lists expected support
authorized for projects where most of the work will not be
facilities unit costs. Supporting facilities are described as
visibly exposed before construction begins and the unseen
items of construction directly related to the facility such as
conditions cannot be adequately defined (Examples:
utilities, roads and parking, and site improvements.
renovation/alteration projects, Army family housing
Table 2. Technical Complexity Levels and Design Contingency Factors
Technical
Description
Design Contingency Factor
Complexity
Pre-Concept
Concept
Level
LOW
Site adapted, repetitive standard
1.050
1.025
design project involving routine
technology
MEDIUM
Unique design involving complex
1.100
1.050
technology
HIGH
Unique design involving highly
1.150
1.100
complex technology
ULTRAHIGH
Unique design involving extremely
1.250
1.150
complex or innovative technology
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