CEMP-E/CECW-E
EI 01D010
1 September 1997
evaluated at the time the estimate is prepared;
remedial technologies. Design contingencies should
however, such items are susceptible to cost
be higher for new or emerging state-of-the-art
evaluation as engineering and design progresses.
remedial action systems than for systems with well-
The magnitude of design contingency is determined
documented histories. Design contingencies should
by the level of technical complexity of the project for
be developed using cost risk analysis prediction
which the estimate is being prepared.
tools or a design/cost team group analysis. Design
contingencies may need to be included in estimates
(2) The following design contingency
at the as-advertised project stage for those remedial
factors in table 13-2 represent a reasonable guide for
action treatments for which the design is not
the component items of the estimate. Non-Army
available to the cost engineer such as design-build or
programs should be checked for other specific
performance specification processes/ treatments
guidance provided by the agency responsible for
where the remedial action (construction) contractor
criteria concerning design specifically related to
performs the design. The design contingency
contingencies.
percentages in table 13-3 represent a reasonable
guide for design contingencies for remedial action
(3) Construction contingencies.
projects.
Contingency percentages for military projects should
be determined in accordance with ER 1110-3-1300
(2) Construction contingencies should be higher
and/or Army latest guidance. The current
for new state-of-the-art remedial action systems than
authorized construction contingency percentages are
for well-documented systems. Considerations will
5 percent for new construction and 10 percent for
include the technological, geotechnical, and other
renovation/alteration for projects within the
unknowns applicable to the construction or remedial
boundaries, continental United States (CONUS).
action phase. Construction contingencies are
Construction contingencies more than the authorized
applied to all pre-design estimates and on CWE
percentages should be fully justified and supported
during the design stages. Official Government
by a risk analysis.
estimates which are used for comparison with
contractor bids or proposals will not include an
d. HTRW. Contingency percentages for
amount for construction contingencies. Generally,
HTRW projects should be determined for and
fifteen percent is the recommended percentage to use
applied at each second (system) level WBS cost in
for construction contingencies, unless there is a basis
the HTRW remedial action estimate as structured by
for a different percentage such as a risk analysis
the HTRW RAWBS. The total HTRW contingency
prediction or a design/cost team group analysis.
is the sum of the design contingency plus
Table 13-1. Contingency factors for
construction contingency. HAZRISK is the
construction features
statistical cost risk analysis system that will be used
to determine contingencies.
Factors
(1) Design contingencies represent
Phase of Project
Const. Cost
Const. Cost
construction cost unforeseen when the estimate is
Development
>,000,000 <,000,000
prepared due to incomplete design. The extent of
site characterization and assessment that has been
accomplished to compute project quantities must be
Feasibility
20%
25%
considered when determining design contingencies
for HTRW construction costs. For example,
Project/Feature
estimates of groundwater volume and concentration
Design Memorandum
15%
20%
are often possible only after field pump tests are
completed. Many feasibility study estimates are
Plans and Specifications 10%
10%
prepared prior to these tests and so must rely on
assumed volumes and concentrations. Unit price
history is also lacking for many of the newer
13-5
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