Laserfiche WebLink
WATER SYSTEM MANAGEMENT PLAN OCTOBER 2024 / CAROLLO <br />CITY OF PLEASANTON WATER SYSTEM MANAGEMENT PLAN 14 <br />SECTION 6 COST ESTIMATING ASSUMPTIONS <br />6.1 Planning Level Costs and Markups <br />Cost markups were applied to develop Class 5 planning level estimates per the Association for the <br />Advancement of Cost Engineering (AACE). The resulting AACE class 5 estimates may represent an <br />overestimate of cost by 100 percent or an underestimate of cost by 50 percent. The markup categories for <br />R&R project are in Table 3. The markups for all other projects are included in Table 4. <br />Table 3 Indirect Cost Factors – Rehabilitation and Replacement <br />Markup Category Percentage of Direct Cost Total <br />Installation 70 percent <br />Direct Cost Multiple(1) 1.70 <br />Owner's Costs 30 percent <br />Subtotal Multiple(2) 2.21 <br />Design/Construction Contingency 30 percent <br />Total Estimated Construction Cost Multiplier(3) 2.87 <br />Notes: <br />(1)Direct Cost Multiple: 1*1.70=1.70. <br />(2)Subtotal Multiple: 1.70*1.30=2.21. <br />(3)Total Estimated Construction Cost Multiplier: 2.21*1.30 = 2.87. <br />(4)ENR Index for San Francisco, May 2024, 15418 <br />Table 4 Indirect Cost Factors – Capacity Projects <br />Markup Category Percentage of Direct Cost Total <br />Baseline Construction 1.0 <br />Owner's Costs 30 percent <br />Subtotal Multiple(2) 1.3 <br />Design/Construction Contingency 30 percent <br />Total Estimated Construction Cost Multiplier(3) 1.69 <br />Notes: <br />(1)Baseline Construction is the cost for a contractor to build the project <br />(2)Subtotal Multiple: 1.0*1.30=1.30 <br />(3)Total Estimated Construction Cost Multiplier: 1.30*1.30 = 1.69 <br />(4)ENR Index for San Francisco, May 2024, 15418 <br />The tables above demonstrate how to calculate the total estimated construction cost. Note that if the <br />recommendation is to decommission the asset, then the material cost is $0; however, the installation cost <br />is still based on the cost range for said asset class. <br />The construction cost also accounts for the owner's costs. These are the amounts included in the total <br />program budget to cover the owner's expenses for engineering fees, and legal fees. These costs may also <br />include property/easement/right-of-way (ROW) acquisition, bid advertising, etc., and can range from 15 to <br />40 percent of the total construction cost. For this project, we are assuming 30 percent. <br />Page 445 of 658