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statement describing the sources of unit costs and quantities used for each cost division or
category, but individual source references for each itemized cost element are not required.
general conditions and profit
Feasibility Studies, Program Development Studies, and Concept Design
A percentage allowancean overall percentage allowance for the General Contractor's
general conditions, bonds, insurance, and corporate overhead and profitis appropriate
if the project involves no unusual coordination, site preparation, or specialized support
services.
Design Development and Construction Documents
It is appropriate to estimate these costs with two breakdowns:
General Conditions: Comprised of itemized general requirements and job-site
supervision.
Mark-Ups: Comprised of general and administrative costs (including state and
local taxes), profit, bonds, and insurance.
site and design contingencies
Contingencies are an integral part of the total estimated costs of a project and cover
costs that may result from incomplete design, unforeseen and unpredictable conditions,
or uncertainties concerning project scope. The amount of the contingency will depend
on the status of design, procurement, and construction, as well as the complexity and
uncertainties of the component parts of the project. Contingency is not to be used to avoid
making an accurate assessment of expected cost. GSA may choose to set aside separate
contingencies for major schedule changes, unknown design factors, unanticipated
regulatory standards or changes, additions to project scope, force majeure situations, or
congressional budget cuts.
Contingencies must always be separately identified so that the magnitude of a contin-
gency's impact is clear. For example, the Independent Government Estimator may never
add contingency by concealing it within unit pricing or quantity estimates or takeoffs.
Site and design contingencies start at 10% during the programming and planning stages
and are reduced to zero as the design develops (see Table 2).
general requirements and principles
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section 1.4
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