LEGAL, LAND,

ADMINISTRATION,
STAFFING AND
FINANCIAL COSTS
CE LAWS, ETHICS AND CONTRACTS
Presented by:
Arriola, Julianne
Celones, Louis Andrei
Lirio, Dionne

Instructor: John Carlo Ramos, RCE

TABLE OF CONTENTS
LEGAL, LAND, ADMINISTRATION,
STAFFING AND FINANCIAL COSTS

CONTINGENCY ALLOWANCE

SUMMARY
LEGAL, LAND, ADMINISTRATION,
STAFFING AND FINANCIAL COSTS
These costs, which include audits, the cost
of issuing bonds, land costs, and interest for
borrowed money during construction, are
part of the probable total project cost and
can best be estimated in cooperation with
the client because they are usually outside
the knowledge and control of the Civil
Engineer.
 CONTINGENCY
ALLOWANCE
As the project moves forward from the
study and report phase through the final
design phase and finally to construction
award, more becomes known about project
details and costs, until at the completion of
the project, the final project cost becomes
a known quantity.
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.
SUMMARY
Estimate of probable total project cost
should be periodically revised by the
engineers as the design moves forward
and more information becomes known.
The client is normally responsible for
providing estimates of those costs which
may lie outside the Civil Engineer's
knowledge or expertise, such as those in
the legal, land, administrative, and
financial areas.
THANK YOU FOR
LISTENING!
Don't hesitate to ask any questions!