Canon 7

Canon 7. Civil Engineers shall continue their professional development throughout their careers,
and shall provide opportunities for the professional development of those Civil
Engineers under their supervision.
SECTION 5. TOTAL PROJECT COST
5.1 General
Probable cost is a major concern of the client throughout the planning, design, and construction
phases of a project. The probable total capital project cost, often used to establish budgets for a
typical project is made up of:

5.1.1 Professional Engineering Costs

A civil engineer is often engaged to make a study and to render a planning report on the
contemplated project, including the alternative solutions, layouts, and locations along with initial
estimates of the probable project cost. These may involve alternative or phased implementation
schemes which add flexibility to the project.

The study and report phase may include the cost for field or traffic surveys, planning analyses,
geotechnical explorations and analyses, in addition to the direct engineering costs. The costs of
coordination, evaluation implementation and compliance have increased correspondingly. The
extent of these concerns may not be identified during the study and report phase, and sometimes
not even after final and specifications have been prepared. As a result, the estimated probable
total cost of the project based on the study and report phase must be understood to be preliminary
in nature.

Because projects vary widely in nature and scope, the study and report phase is important
because its implementation determines the scope and development of the entire project and its
ultimate capital and lifestyle cost. At times, preliminary investigations become extensive and
lengthy that the study and report phase cost as much or more than the final design phase.

During the final design and construction phase, additional surveying and geotechnical
engineering services may be needed. Also special or additional engineering services not
originally identified may be required by the client or recommended by the Civil Engineer.
5.1.2 Construction Cost

The study and report phase of the project usually includes a preliminary estimate of the
construction cost for the contemplated project and for alternative project configurations. Such
cost estimates are approximate, since the final design drawings and specifications have not yet
been prepared. In addition, the timing of the construction work must be considered because
inflation will affect the construction cost.

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 fees 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.

5.1.3 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 cost and can best be estimated in cooperation
with client because they are usually outside the knowledge and control of the Civil Engineer.

5.1.4 Contingency Allowance

As the project moves forward from the study and report phase through the final design phase and
finally to construction award, more becomes known about project details and costs, until at the
completion of the project, the final project becomes a known quantity.

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 and end report phase, reducing this to perhaps 10% at the completion
of final design and perhaps to 5% when the construction bids become known. Larger or more
complex projects may require higher contingencies.
Summary

Estimate of probable total project cost should be periodically revised by the engineers as the
design moves forward and more information becomes known. The client is normally responsible
for providing estimates of these costs which may be outside the Civil Engineer’s knowledge or
expertise, such as those in legal, land, administrative, and financial areas.