TOTAL PROJECT

COST
The probable total capital cost, often used to
establish budgets for a typical project, is made of:

Professional engineering costs.

Construction cost.
Legal and land costs.
Owners cost, including project
administration, staffing, financing and
overhead.
Contingency allowance for unknowns.
Professional Engineering Cost
A civil engineer is often engaged to make a
study and to render a planning report on the
contemplated project including alternative
solutions, layouts, and locations along with initial
estimates of the probable project cost. This may
involve alternative or phase implementation
schemes which add flexibility to the project.
 Construction Cost
Is the estimated total cost of constructing the facility
to be covered by the proposed detailed design or
construction supervision services, excluding the fess
and other costs of such services, the cost of land
and right of way, and legal administrative expenses
of the agency.
The estimated construction cost must be approved
by the client before the invitation to submit
technical proposal is issued.
 Legal, Land, Administration, Staffing
and Financial Costs

These costs which include audits, the cost of

issuing bonds, land costs, and interest for
borrowed money during construction, are part
of the probable total project cost and can be
estimated in cooperation with the client
because they are usually outside the knowledge
and control of the Civil Engineer.
 Contingency Allowance

To provide for intangible costs, contingencies

should routinely be added to the basic cost
estimate. It is common practice to add 20% or
more to the estimated probable total project cost
at the completion of the study end report phase,
reducing this to perhaps 10% at the completion of
the final design and perhaps to 5% when the
construction bids become known. Larger or more
complex may require higher contingencies.
Thank You…
 Quiz:
1. . It is common practice to add 20% or more to the estimated probable total project cost at the
completion of the study end report phase, reducing this to perhaps 10% at the completion of
the final design and perhaps to 5% when the construction bids become known.
2. It is the estimated total cost of constructing the facility to be covered by the proposed detailed
design or construction supervision services, excluding the fess and other costs of such services,
the cost of land and right of way, and legal administrative expenses of the agency.
3. This may involve alternative or phase implementation schemes which add flexibility to the
project.
4. These costs which include audits, the cost of issuing bonds, land costs, and interest for borrowed
money during construction, are part of the probable total project cost and can be estimated in
cooperation with the client because they are usually outside the knowledge and control of the
Civil Engineer.
1. Contingency Allowance
2. Construction Cost
3. Professional Engineering Cost
4. Legal, Land, Administration, Staffing and Financial Costs,