CEMP-E/CECW-E
EI 01D010
1 September 1997
schedule is finalized for procurement, it must show
CHAPTER 4
unit prices, quantities, extension of unit prices, lump
COMPOSITION OF GOVERNMENT
sum items, and total costs. Rounding off is not
ESTIMATES
permitted on the bid schedule between the unit price
and extension. Any rounding adjustments must be
4-1. General
performed in Details and Analysis. Instructions in
the bidding request documents also pertain to the
The Government estimate is the formal, approved
Government estimate.
construction cost estimate prepared to support
contract award. The presentation format for this
4-3. Narrative of Contract Costs
type of estimate is: Government Estimate of
Contract Cost, Narrative of Contract Cost,
a. This part of the estimate of construction cost
Government Estimate Backup Data, and
consists primarily of those sheets, with notes, which
Miscellaneous Support Data. Each part is shown in
describe the scope tasks and costing. It also contains
figure 4-1. Sample Government estimate sheets are
discussions, considerations, and the developed
illustrated in appendix B. Security and control of the
construction plan. The types of items normally
Government estimate is described in chapter 2.
included are as follows:
4-2. Government Estimate of Contract
b. Table of contents. This page denotes the
Cost
backup content.
a. The Government estimate is the portion of
c. Project narrative. The project narrative
the cost estimate to be submitted as required by
provides general details of the project. The
procurement regulations. It includes the title page,
narrative defines the assumptions made during the
signature page, and bid schedule.
preparation of the cost estimate. It describes the
project requirements that must be performed in
b. Title page. The title page should include the
sufficient detail to give a clear understanding of the
name and location of the project, the district
scope of work. It also describes project details
responsible for the project design, the cost engineer
including length, width, height and shape of primary
responsible for preparation of the cost estimate, and
features, special problems that will be encountered in
the date and price level of the cost estimate.
performing the work, site conditions affecting the
work, reasons for selection of major plant and
c. Signature page. The signature page should
equipment, method and time for mobilization and
contain the names and signatures of those
demobilization of all equipment, and the reasons for
individuals responsible for the preparation, review,
unusually high or low unit prices. Each estimate
submittal, and approval of the cost estimate. It is
will include a statement which relates both the
necessary that the sheet contain the total amount of
development of design, as appropriate, and date of
the estimated costs. The number of amendments
effective pricing. Other factors to be considered in
included in the estimate should appear on the same
the project narrative include:
page so that there will be no question as to the
approved amount.
(1) Construction schedule, use of overtime,
construction windows, phasing, acquisition plan, and
d. Bid/Price schedule. The bid schedule
subcontracting.
required by the solicitation documents must be
completed as part of the Government estimate. As
(2) Project-related details include site access,
part of the design team, the cost engineer should be
borrow areas, construction methodology, unusual
involved in the development of the bid schedule.
conditions (soil, water or weather), unique
The format of the bid schedule must be anticipated
techniques of construction, equipment/labor
in planning and design estimates. When the bid
availability and distance traveled, environmental
4-1
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