TM 5-800-4
Step 7 - Adjusted Cost. Calculate adjusted cost using
built at locations listed in the national register of historical
the equation for the basic cost model conditions. Results
landmarks. The factor for historical adjustment is 1.05.
are as follows:
Deviation above the allowed factor must be explained in
detail.
b. Risk Adjustment. Highly complex facilities involv-
$Ab = $E x Sa x La x CEa x TUa x DCa
ing complex technology or innovative technology will re-
$Ab = /SF x 1.10 x 1.19 x 1880/1869 x 1.00 x 1.05
quire cost adjustment due to risk. The level of risk factor
varies on different facilities and can be determined using
$Ab = 0.28/SF
available commercial software programs. Risk adjustment
factors will not be used unless properly supported.
Step 8 - Facility Cost Estimate. Determine the facility
c. Semipermanent Construction Adjustment. If the
estimated cost by multiplying the size of the facility being
facility being considered is semipermanent instead of per-
programmed by the adjusted unit cost ($Ab) derived in
manent type construction, an additional factor of 0.90
step 7 and then round off the product to the nearest
should be applied.
d. Site Sensitivity Adjustment. A site sensitivity adjust-
thousand dollars. The size of 11,250 square feet
multiplied by 0.28/SF gives a facility cost estimate of
ment may be necessary for those special cases where the
||content||
,353,150 which when rounded off to the nearest
unique nature of both the site and the project, in relation
thousand dollars is
||content||
,353,000.
to one another will cause a significant impact on the cost.
Step 9 - Project Cost Estimate. Determine the project
An analysis for site sensitivity adjustment should consider
estimate cost by adding contingency and supervision and
only those unique site conditions which will influence cost
administration factors to facility cost and supporting
by virtue of the uniqueness of the conditions involved.
facilities cost. (Assume supporting facilities cost of
The factor used in adjusting the total construction cost for
0,000) Since this project is new construction and loca-
such a set of unique conditions is referred to as the "Site
tion is CONUS, a contingency factor of 1.05 and super-
Sensitivity Adjustment Factor." The method outlined
vision and administration factor of 1.06 should be applied
below may be used to determine the cost impact caused by
as follows:
the influence of a project upon itself, resulting from an
extremely large concentration of construction effort, or
Project Cost
from extreme site limitations, or from both. Appendix B
Estimate
= (
||content||
,353,00 + 0,000) x 1.05 x 1.06
is a listing of example sensitivity considerations and com-
putations with a range of values, where applicable, from
=
||content||
,784,139
above normal to substantially below normal. This sample
listing of site sensitivity considerations is meant to
In accordance with the rounding rule given below the
indicate only and is not a complete and comprehensive
project cost is
||content||
,800,000.
list.
e. Technical Specialty Competition Adjustment. A
Congressional Rounding Rule
technical specialty competition adjustment may be
necessary m those special cases where competition for
Amount
Nearest
services of certain specialty craftsmen is created due to
the increase in the type of work requiring their services; or
Less Than or Equal to 1,000,000
10,000
because of the decrease in the number of craftsmen
1,000,001 to 5,000,000
50,000
available in the workforce. An analysis for technical
5,000,001 to 10,000,000
100,000
specialty adjustment should consider the total marketing
10,000,001 to 15,000,000
200,000
area that may have an effect on competition for the
15,000,001 to 20,000,000
500,000
services of the specialty craft under consideration. The
20,000,001 or Greater
1,000,000
factor used in adjusting the total construction cost for
such a competitive market is referred to as the "Technical
11. Determining and Using Other Cost Ad-
Specialty Competition Adjustment" factor. A method that
justment Factors.
may be used to determine the additional project costs
In some cases other adjustment factors may apply. These
caused by the competition for the services of specialty
are in addition to those set up in the basic cost model
craftsmen is displayed for the labor availability item of
conditions. The special adjustment factors apply only in
appendix E. Factors considered for the labor portion of a
special individual cases. They are not to be confused with
"Site Sensitivity" analysis would be very similar to those
the basic model adjustment factor for size, location, and
considered for "Technical Specialty Competition."
cost growth. These special cost factors will not be used
Therefore, this same methodology can be used. By
unless justified on the basis that they reflect significant
determining the degree of labor availability (i.e., slightly
cost which would not be included in the adjustment
below normal, substantially below normal, and extremely
factors used to establish basic cost model conditions.
below normal) and making assumptions as to required
a. Historical Requirements Adjustment. An allow-
inducements, the cost of such inducements in terms of a
ance for unique architectural features to comply with
Technical Specialty Competition Adjustment factor can
historical requirements is permitted for facilities to be
be computed.
5
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