UFC 3-701-06
30 March 2006
3-2
REPLACEMENT COST FACTORS
3-2.1
Definition
Replacement provides a complete and useable facility capable of serving the
purpose of the original facility. Replacement costs include construction of pilings,
foundations, all interior and exterior walls and doors, the roof, utilities out to the
5-foot line, all built-in plumbing and lighting fixtures, security and fire protection
systems, electrical distribution, wall and floor coverings, heating and air
conditioning systems, and elevators. Not included are items generally termed
personal property such as computer systems, telephone instruments, and
furniture. Also not included are project costs such as design, supporting facility
costs, equipment acquired with other funding sources (e.g. mission-funded range
targets), contingency costs, and supervision, inspection, and overhead (SIOH).
3-2.2
Use of Replacement Cost Factors
Replacement cost factors form the basis of calculating plant replacement value in
a consistent manner across DoD. Plant replacement value represents the cost to
design and construct a notional facility to current standards to replace an existing
facility at the same location. The standard DoD formula for calculating plant
replacement value is:
Plant Replacement Value = Facility Quantity x Replacement Cost Factor x Area Cost
Factor1 x Historical Records Adjustment2 x Planning and
Design Factor3 x Supervision Inspection and Overhead
Factor4 x Contingency factor5
Replacement cost factors can also support large-scale program-level estimates
for re-stationing plans with the addition of allowance for site preparation,
earthwork, landscaping, and related factors. Replacement cost factors should
not be used for individual project estimates.
1
A geographic location adjustment for costs of labor, material, and equipment, published in Chapter 4.
2
An adjustment to account for increased costs for replacement of historical facilities or for construction in a historic
district; the current value of the factor is 1.05.
3
A factor to account for the planning and design of a facility; the current value of this factor is 1.09 for all but medical
facilities and 1.13 for medical facilities.
4
A factor to account for the supervision, inspection, and overhead activities associated with the management of a
construction project; the current value of the factor is 1.06 for facilities in the continental US (CONUS) and 1.065 for
facilities outside of the continental US (OCONUS).
5
A factor to account for construction contingencies; the current value of the factor is 1.05.
6
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