Capital Project Costs
WHAT TOTAL COSTS ARE INCLUDED IN A PROJECT?
The cost of a project is more than design, construction or installation of equipment:
- Pre-Design (if needed)
- Architecture and Engineering (A&E) Fees
- includes any site improvements/earthwork
- may or may not include A&E Fees, permits
- traditional construction work
- Contingencies range between 10-20%
- Owner (WSU)
- WSU Facilities Management Fees(Administrative Fee 4.5%, Project Manager 1.97-9.5% & Construction Manager – 4.5%)
- Furniture, Fixtures, and Equipment (FFE)
- Sales Tax
- Other – Insurance, travel, etc.
WHAT ARE THE PROJECT FEES AND CONTINGENCIES ASSIGNED BY FACILITIES SERVICES?
A construction contingency is an amount of money set aside to cover any unexpected costs throughout a construction project. This money is on reserve and is not allocated to any specific area of work. The contingency acts as insurance against other unforeseen costs and goes back into the project. Contingencies are estimated at different percentages of the project as it moves through the design and construction process:
A NOTE ABOUT RISK MANAGEMENT
What does it mean when you hear that the University is self-insured? It means your department is responsible to cover the cost of the property loss, unless your department has pre-purchased property insurance. Property insurance premiums are reasonable, the deductible for buildings and equipment is $100K. For equipment only, the deductible can be bought down to $10K.
Short-term insurance can be purchased to cover the moving of expensive or sensitive equipment from one building to another.
Best Practice: If the loss of the equipment would cripple your program, you may want to insure it.