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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

14th Annual New Mexico Infrastructure Finance Conference


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Factors Which Determine Engineering Costs

  • Scope of Work

  • Complexity of the Project

  • Size of the Project


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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


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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


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Guide for Evaluation of Design professional Fees

Content Page

Instructions 2

Estimation of Fees for Basic Services 2

Estimation of Fees for Resident Construction Representation 4

Fee Table for Basic Services 5

Fee Table for Resident Construction Representation 6

Description of Basic Services 7

Examples of Additional Services 8

Reimbursable Expenses 8

Determination of Project Complexity 9

Clarifications of Technical Factors Affecting Project Complexity 10

Clarifications of External Factors Affecting Project Complexity 11

Typical Costs for Additional Services 12


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Preliminary Engineering ReportsNMED Construction Programs Bureau Standards

  • Recommended Standards for Water Facilities

  • Recommended Standards for Wastewater Facilities


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

  • Scope of Work

  • Complexity


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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


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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


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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


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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.


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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


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Plan for Development of PER Fee Guide Scope of PERs

  • 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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