FINAL

TECHNICAL MEMORANDUM

Tighe&Bond

Cost Estimating Methodology

PREPARED FOR: PROJECT:

Town of Barnstable Lake Wequaquet, Long Pond and Cape Cod Community College Sewer Extension Tighe & Bond, Inc. March 11, 2003

PREPARED BY: DATE:

1. Introduction
The methodology, procedures, and sources of information that will be used for estimating construction costs for the Lake Wequaquet, Long Pond and Cape Cod Community College Sewer Extension Project are described in this memorandum. Tighe & Bond, Inc. will prepare cost estimates for the construction of the proposed sewer extensions, including gravity sewer pipes, pressure sewer pipes, vacuum sewer pipes, pump stations, grinder pumps, and various ancillary components of the project. Supporting documentation will be provided for the cost estimates, including the following: 1. Cost assumptions 2. Unit cost data sources and source dates 3. Cost estimating calculations, including quantity take-offs 4. Contingency factors 5. Construction cost indices to update costs from data source to base year 6. Limitations of the cost estimate 7. Identification of the individual(s) preparing and reviewing the cost estimates 8. Layout drawings on which the cost estimates are based 9. Soil borings information 10. Miscellaneous information including community requirements, environmental limitations, and operation and maintenance requirements

2. Cost Estimating Approach

Preliminary Design Cost estimates will be prepared for each of the sewerage system extension alternatives that will be developed during preliminary design and included in the Preliminary Design Report using typical sewerage system and utility construction categories and will be based on unit prices and estimated quantities. The cost estimates will be broken down into appropriate
LAKE WEQUAQUET, LONG POND, AND CAPE COD COMMUNITY COLLEGE SEWER EXTENSION

COST ESTIMATING METHODOLOGY

components and will be sufficiently detailed to allow for an evaluation and comparison of the alternatives developed. Unit prices will be established for the construction items listed below. Other unit costs will be used as appropriate. Gravity sewers Force mains Low pressure sewers Vacuum sewers Grinder pumps Standard manholes Special manholes Pump stations/vacuum collection stations

Pipe construction unit prices will be developed for each pipe size, for various ranges of excavation depths, and for different types of surface restoration (i.e. pavement repair vs. lawn restoration), as appropriate. Pipe material will be considered in establishing appropriate costs. The pipe unit prices will include furnishing and installing the pipe and manholes; excavating, backfilling, and compacting the pipe trench; surface restoration (loam and seed, paving, etc.); dewatering; traffic control; and land acquisition. Special construction features, such as environmental mitigation, will be considered in the development of the unit costs and will be listed as separate cost items, where appropriate. Annual operation and maintenance (O&M) costs will be developed for the alternatives and will be adjusted to present worth values, as discussed in Section 5 of this memorandum. In addition, a contingency will be added to each cost estimate to reflect the current project phase (i.e. preliminary design, 60% design, final draft design, and final design), as discussed in Section 4 of this memorandum. Design For the design submittals (60% design, final draft design, and final design), a more detailed cost estimate will be prepared based on unit prices and estimated quantities. Unit prices will be established for the construction items listed below. Other unit costs will be used as appropriate. Gravity sewers Force mains Low pressure sewers Vacuum sewers Grinder pumps Special manholes Pump stations Vacuum stations Appurtenances (valves, house service wyes, etc.)

LAKE WEQUAQUET, LONG POND AND CAPE COD COMMUNITY COLLEGE SEWER EXTENSION

COST ESTIMATING METHODOLOGY

Standard manholes Excavation Paving repair Lawn restoration Dewatering Traffic control House services Potential utility relocations Mitigation measures in wetlands and other sensitive receptors Mobilization/demobilization

Annual O&M costs will be developed for each alternative and will be adjusted to present worth values and a contingency will be added to each cost estimate to reflect the current project phase.

3. Sources of Construction Cost Data

The construction cost estimates will be based upon recent construction bidding information and will reflect local conditions that have been identified and special Town project requirements. The development of representative unit costs for pipeline materials and labor will be based on municipal projects constructed throughout Massachusetts, but weighted to favor Southeastern Massachusetts and Cape Cod, including Town projects recently bid, Tighe & Bond projects recently bid, most recent Massachusetts Highway Department weighted average bid prices, and cost data sources such as Means Cost Estimating. Cost estimates developed using previous construction projects will be adjusted using the Engineering News Record (ENR) Construction Cost Index (CCI). O&M costs over the planning period will be developed using information on labor requirements and operator wages to be provided by the Town and utility rates provided by the local utilities. In addition, equipment maintenance/replacement costs will be estimated

based on experience with similar facilities.

4. Contingencies
The contingency factors that will be used for the cost estimates are listed below and vary depending on the project phase. Preliminary design 50-75% design 90-95% design Final design 20% 15% 10% 10%

LAKE WEQUAQUET, LONG POND AND CAPE COD COMMUNITY COLLEGE SEWER EXTENSION

COST ESTIMATING METHODOLOGY

5. Life Cycle Cost Analysis

A Life Cycle Cost Analysis (LCCA), which considers both capital and annual O&M costs, will be conducted for each cost estimate. The LCCA will use a Net Present Value approach, which converts all future capital and O&M costs during the period of analysis to an equivalent value in the base year. The current EPA discount rate will be used and will be adjusted for inflation. A 50-year period will be used for this analysis. The annual O&M costs will include: Estimated annual labor for operating and maintaining the new pumping/vacuum facilities Estimated annual utility usage for the new pumping facilities and additional utility usage at existing pumping facilities Chemical usage costs Equipment maintenance/replacement costs Sewer maintenance/replacement costs

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LAKE WEQUAQUET, LONG POND AND CAPE COD COMMUNITY COLLEGE SEWER EXTENSION