Tools for Evaluation of Engineering Fees

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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, OM,
  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 Reqd

• Number of Submittals
• Public Sensitivity
• High Level of Interaction with Owner/Agencies
• Complex Funding
• Environmental/Cultural Constraints
• High Level of Citizens Involvement
• Special Security Reqd

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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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Contd - 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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Contd - 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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Contd - 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

• 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.