Chapter 7: Utility Cost Estimates


Section 1: General Requirements

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The cost estimate will be prepared by the utility and submitted to the District in support of the utility agreement and plans required for the proposed work. An agreement assembly should include estimates covering only the work for clearing transportation project construction.

Cost estimates may be built using one of multiple cost methods. Acceptable methods for developing relocation costs include:

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  • actual direct and related indirect costs accumulated in accordance with a work order accounting procedure;
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  • actual direct and indirect costs accumulated in accordance with an established procedure developed by the utility and which the utility uses in its regular operations;
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  • an agreed fixed amount (lump sum) payment; and
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  • other acceptable costing methods, such as unit costs.

Where elective betterments are considered, two estimates will be required:

The utility’s accounting or billing section should review estimates prepared by engineers. In addition, the cost estimate must include a complete narrative of the scope of work. This will ensure that costing operations and final bill preparation will be compatible with the format of the estimate.

The cost estimate should contain a summary of all costs for the major accounts and should reflect all credits in order to indicate the net cost of adjustment. If the utility owner has been approved to receive funds from the SP2125 Program, then the Cost Estimate must be broken out by funding eligibility (eg. compensable interest, non-compensable, and/or SP2125). If contract work is to be utilized, the estimate should distinguish between the work being performed under contract and the work to be accomplished by utility force account.

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