ACTIVITY #1

CE LAWS

TRISHIA JOYCE C. MARAYA

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Probable total cost is a major concern of the client throughout the planning design, and construction
phases of a subject. The following compose this budget:

1. Total Project Cost

Professional Eng’g Costs.
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. The six standard phases of a construction project
and the engineering service are the following:

Study and Report. Analysis of client needs, evaluation of alternatives and recommendations of a
preferred option, conceptual design, opinions of probable project cost.
Preliminary Design. Preparation of final design criteria, preliminary drawings, outline
specification, and estimate of construction cost.
Final Design. Preparation of construction drawings, specification, estimates of probable
construction cost and other contract documents.
Bidding or Negotiation. Assistance to the client with the bidding or negotiating process for the
project if construction.
Construction and Operation. Representation of client during and inspection and construction of
project to the startup operation of the project including inspection.

Construction Cost. It is a part of the overall costs incurred during the development of a built
asset such as a building. However, the construction contract may include costs such as fees,
profits, overheads, etc. Contract sum can be adjusted. Cost plan is used to analyze the estimated
cost during the pre and post construction phases of the project. This would include initial cost
appraisals, elemental cost plans and approximate quantities cost plans, pre-tender estimates,
contract sum, final accounting

2. Total Project Cost

Legal, Land Administration, Staffing & Financial Cost Allowances. These costs includes audits,
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 scope of the CE.

3. Contingency. 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 final design and perhaps to 5% when the construction bids become known.
Larger or more complex projects may require higher contingencies.