UFC 3-740-05 8 November 2010

UNIFIED FACILITIES CRITERIA (UFC)

HANDBOOK: CONSTRUCTION COST
ESTIMATING
APPROVED FOR PUBLIC RELEASE; DISTRIBUTION UNLIMITED

UFC 3-740-05 8 November 2010 iv UNIFIED FACILITIES CRITERIA (UFC)

REVISION SUMMARY SHEET
Document: UFC 3-740-05
Superseding: UFC 3-700-02A, dated 1 Mar 05
Description of Changes:
This document is a complete update to UFC 3-700-02A, establishing uniform
guidance to describe methods, procedures, and formats for the preparation of
construction cost estimates and construction contract modification estimates. It
addresses all phases of construction cost estimating from planning phases
through modification estimates during construction. The term construction
includes remedial action environmental projects, dredging and other
construction type work often implemented as service contracts.
Reasons for Changes:
This UFC will provide guidance on the correct way for DOD personnel to prepare
a project cost estimate.
Impact:
There are negligible cost impacts.
Non-Unification Issues: Due to differences in Services management structure
and operational processes, not all criteria within this UFC are unified.
Independent Review of Construction Cost Estimate - The independent review
processes vary among the Services due to differing organizational structures
and operational processes, which are delineated in separate Service-specific
directives.
The independent reviews of Army DD Form 1391 programming documents are
performed by a specialized team of cost engineers residing in Huntsville District.
The review is performed under the direction of HQUSACE and in coordination
with the HQACSIM. For the Navy, independent reviews are performed by the
Region/FEC and the Consistency Review Board at NAVFACHQ.
Format, Presentation of Government Estimate, and Productivity Adjustment
Factors - The preliminary and intermediate steps in the preparation of the
estimates vary among the Services, however, the final estimate product is
essentially the same.
1) The design execution processes by which the Services produce cost estimates
are also different. The Army manages this process by means of using design