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Tools for Evaluation of Engineering Fees PowerPoint PPT Presentation

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Tools for Evaluation of Engineering Fees. 14 th Annual New Mexico Infrastructure Finance Conference. Factors Which Determine Engineering Costs. Scope of Work Complexity of the Project Size of the Project. Primary Components of the Scope of Work.

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Tools for Evaluation of Engineering Fees

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Tools for Evaluation of Engineering Fees

14th Annual New Mexico Infrastructure Finance Conference

Factors Which Determine Engineering Costs

  • Scope of Work

  • Complexity of the Project

  • Size of the Project

Primary Components of the Scope of Work

  • Basic Services: Design, Bid Administration, Construction Administration, Periodic Construction Observation

  • Additional Services: Surveying/Mapping, Preliminary Engineering Reports, O&M, Environmental Documentation, Investigations, Permitting, Right-of-Way, Public Meetings, Full Time Construction Observation

  • Reimbursable Costs: Printing, Travel

Factors Affecting Complexity

  • Rehabilitation

  • Constricted Space

  • Rugged Terrain

  • Congested Areas

  • Physical Constraints

  • Unconventional

  • Multiple Disciplines

  • Specialized Expertise

  • Level of Detail Req’d

  • Number of Submittals

  • Public Sensitivity

  • High Level of Interaction with Owner/Agencies

  • Complex Funding

  • Environmental/Cultural Constraints

  • High Level of Citizens Involvement

  • Special Security Req’d

Guide for Evaluation of Design professional Fees



Estimation of Fees for Basic Services2

Estimation of Fees for Resident Construction Representation4

Fee Table for Basic Services5

Fee Table for Resident Construction Representation6

Description of Basic Services7

Examples of Additional Services8

Reimbursable Expenses8

Determination of Project Complexity9

Clarifications of Technical Factors Affecting Project Complexity10

Clarifications of External Factors Affecting Project Complexity11

Typical Costs for Additional Services12

Preliminary Engineering ReportsNMED Construction Programs Bureau Standards

  • Recommended Standards for Water Facilities

  • Recommended Standards for Wastewater Facilities

Factors Which Determine Costs for a Preliminary Engineering Report (PER)

  • Scope of Work

  • Complexity

Primary Components of the Scope of Work

  • Prel. Engineering Report: Planning Area, Existing Facilities, Need for Project, Alternatives Considered, Proposed Project

  • Additional: Flow Measurements, Video Taping, Pump Tests, Geo-Hydrological Studies, Water Rights Investigation, Laboratory Testing, Detailed ROW Investigation, Extensive Public Involvement, Extensive Modeling, Leak Detection

Factors Which Increase the Complexity and/or Scope of PERs

  • Previous studies have not been completed in project area from which to draw data for PER.

  • Updated system mapping of system not available

  • Record drawings and specifications of recently completed construction projects not available.

  • Age, location, size and condition of existing facilities is unknown.

  • Customer usage has not been adequately measured. Use by customer category is unknown

Cont’d - Factors Which Increase the Complexity and/or Scope of PERs

  • Financial records are inadequate or not updated

  • Significant recent changes have occurred in the leadership, management, operation or maintenance staff

  • Procedures are not well established or not in compliance with regulatory requirements

  • Full-time staff is not available to provide necessary information to the engineer

Cont’d - Factors Which Increase the Complexity and/or Scope of PERs

  • A recent sanitary survey has not been performed by NMED

  • The number of alternatives evaluated

  • The number of system components involved in the alternatives

  • The complexity of alternatives

  • Complex site conditions such as corrosive soils, high water tables, limited access, etc.

Cont’d - Factors Which Increase the Complexity and/or Scope of PERs

  • Water and wastewater treatment facilities are more complex

  • Involvement of multiple entities

  • Geographic extent of facilities

  • Number of hook-ups

  • High level of interaction required with owner/s and public

Plan for Development of PER Fee Guide

  • ACEC/NM Committee is developing tool for evaluation of PER Fees in cooperation with the NMED Construction Programs Bureau

  • ACEC/NM Member firms will test Fee Guide by application to previously completed PERs

  • Modifications will be made to Fee Guide and reviewed by NMED. Changes will be made as needed

  • Guide will be distributed for use in evaluating the reasonableness of proposed PER fees.

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