TM 5-800-4
f. Procedure. The equation for the basic cost model is
a. Figure 1 is an example of a completed DA Form
then adjusted for other adjustment factors are as follows:
7307-R. Appendix F tabulates the ratio of WBS cost to
facility cost from the USACE and DOD military con-
$AB = $E x Sa x La x CEa x TUa x DCa x Oca
struction historical cost data. Table 3 shows the percent-
age of installation cost required for removal and the
Where: OCa is equal to any one of special adjustment
percentage cost required for installation. Other sources for
factor or sum of all special factors
this data is available from private industries.
b. Consider a FY93 alteration project for an existing
The following are step-by-step example calculations
40,000 SF barracks, category code 72111, at Fort Riley
showing how to determine the program estimate for a new
with midpoint of construction of July 1994. Step-by-step
administration building category, code 61050, of 50,000
procedures using DA Form 7307-R are as follows:
square feet to be built at Walter Reed Army Medical
Step 1. Identify the percentage of the building systems
Center, Washington, DC in the FY93 program based on
to be removed and enter in blocks 16a and 21a. The data
a midpoint of construction date of January 1994.
for this block should be based on the scope of work (in
g. Example. Follow the procedures given in paragraph
many cases based on best judgment). A walk-through of
10 steps 1 through 7 to determine the basic cost adjust-
the facility to be altered is the best way to obtain accurate
ment factors.
data. Assume for this example that the substructure,
Step 8. Determine the need for special cost factors for
superstructure, exterior closure are not affected; that 80%
further cost adjustment based on site and project con-
of the interior is to be replaced; and that 75% of the
ditions as described in paragraphs a, b, c, d and e above.
electrical, mechanical, and plumbing are to be replaced.
Based on analysis of the site and project conditions other
Step 2. Using data obtained from table 3 enter in
cost adjustment factors are identified as follows:
block 16b the percentage of installation cost required for
Historical Adjustment
0.05
removal and in block 16c the percentage of cost required
Site Sensitivity Adjustment
0.089
for installation.
Step 3. Obtain the ratio of WES systems cost to
The adjustment factors for each cost consideration are
facility cost for barracks from appendix F and enter in
added together giving a total site sensitivity adjustment
blocks 16d and 21b.
factor of 1.139. Appropriate site sensitivity considerations
Step 4. Block 16e is calculated by multiplying entries
and example calculations are included in appendix E.
in blocks 16a, 16b, 16c, and 16d. Block 17,
Selection can then be made of the proper range of cost
removal/demolition factor (RDF), is calculated by adding
impacts.
all entries in block 16e which is 10.2 percent of the cost
Step 9. Using the adjusted basic cost model condition
to build the building new. To calculate the total
the cost is calculated as follows:
removal/demolition cost (RDC) for the project use the
following:
$Ab = x 0.95 x 1.03x1880/1869x1.00x1.05x 1.139
RDC = $ExSaxLaxCEaxTUaxDCaxRDF
= 2.41
Step 10. Determine the facility estimated cost by
Where:
$E = Empirical cost (Cost/SF of
multiplying the size of the facility being programmed by
new facility from appendix A)
the adjusted unit cost and round off to the nearest
thousand dollar (the unit cost of 2.41 obtained in step
Sa =
Size adjustment factor
9 is multiplied by 50,000 square feet giving a total cost of
La =
Location adjustment factor
,120,500).
Ea =
Cost escalation adjustment factor
Step 11. Determine project cost estimate in accord-
TUa =
Technological updating adjust-
ance with paragraph 10 step 9.
ment factor
DCa = Design contingency adjustment factor
12.
Estimating Alteration Projects.
RDF = Removal/demolition factor
Alteration is defined as a change to interior or exterior
RDC = x 1.00 x 0.98 x 1899/1869 x 1.00 x 1.05
facility arrangements to improve or change its current
purpose. This includes installed equipment made a part of
x 0.102 = .85
the existing facility, but does not include additions,
expansions, and extensions. The procedures described in
Step 5. Determine replacement/new portion factor.
this paragraph provide a step-by-step method for prepar-
The same method is used in the removal portion except
ing programming or budgetary estimates for building al-
the cost includes 100% labor material and equipment.
teration when current design data is not available. The
Block 21c is calculated by multiplying entries in blocks
procedures use a building systems work breakdown struc-
21a and 21b. Block 22, replacement new factor
ture (WBS) and relates the alteration work to new facility
requirements as a percentage of new work.
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